Dear Sirs or Mesdames,

Ukrainian Danube Shipping Company (hereinafter referred to as the PJSC UDP) expresses its deep respect for you and would like to inform you about the following: our company is the state company of Ukraine - National Carrier of Ukraine; 100% shares of the PJSC UDP are owned by the State of Ukraine represented by the Ministry of Infrastructure of Ukraine.

We are forced to appeal to you for the purpose of clarification of the situation, which has a negative impact on the image of our company. The information about the sale of m/v "Georgiy Agafonov" owned by the PJSC "Ukrainian Danube Shipping Company" to Russia with reference to your materials (the report of the Stockholm International Peace Research Institute) has appeared in the open sources. We would like to inform you that m/v "Georgiy Agafonov" by PJSC UDP was designed for transportation of vegetables and fruit from Bulgaria to USSR; because of absence of demand and high fuel consumption, she was not operated for more than seven years and was in "cold lay-up". The expenses incurred by the shipping company for provision of lay-up of vegetable carriers ran into huge amounts yearly. In 2013 the PJSC UDP appealed to the Ministry of Infrastructure of Ukraine regarding the sale of the vegetable carriers. Upon results of inspection performed by the commission of the Ministry of Infrastructure on 16.08.2013, the watercrafts were found unserviceable. In 2014 the shipping company obtained a permit for sale of the above-mentioned watercrafts (Order No. 470 of the Ministry of Infrastructure of Ukraine d/d 24.09.2014). As such commodity transactions can be performed only through the exchange, the shipping company concluded Agreement No. 261 GUI with the Ukrainian Universal Exchange for conducting auctions for sale of the watercrafts d/d.

02.10.2014. The announcements for conduction of auctions, including an auction for sale of m/v "Georgiy Agafonov", were published in official open sources. Upon results of the open auction for m/v "Georgiy Agafonov" conducted by the exchange on 17.11.2014, a Turkish company 2 E Denizcilik was decided as a winner. According to its foundation documents, one of the main activities of 2 E Denizcilik is fleet operation. Upon results of auction selling conducted on 16.12.2014, the shipping company concluded contracts with 2 E Denizcilik (Contract No. 332 GUI). On 05.02.2015, m/v "Georgiy Agafonov" was excluded from the State Ship Registry of Ukraine and, according to the customs documents, was towed outside the territory of Ukraine on 19.03.2015. We are not aware of the further destiny of the vessel.

Please kindly check the materials at your disposal, correct them and publish a refutation. Please note that the information published in your report contradicts the reality and harms the business reputation of the PJSC "Ukrainian Danube Shipping Company" as well as the image of the State of Ukraine. We would like to advise you that if the above-mentioned information does not get any refutation in open sources, we shall be forced to act at the level of Ministry of Infrastructure of Ukraine and Ministry of Foreign Affairs of Ukraine.

We are ready to submit all the necessary documents.

Best regards,

Chairman of the Board of the PJSC UDP D.А. Barinov