Cherkizovo Group: Announcement of Securities Purchase Agreement

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. Announcement of Securities Purchase Agreement with Prosperity Capital Management Moscow, Russia - 11 July 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, today announces a securities purchase agreement with Prosperity Capital Management.

The controlling shareholder of Cherkizovo Group, together with its affiliates, reached an agreement to acquire approximately 21% of the Group's ordinary shares and GDRs from funds and portfolios under the management of Prosperity Capital Management at a price of RUB 1,300 per ordinary share in the total amount around RUB 12 billion.

It is anticipated that following completion of the transaction with Prosperity, a mandatory tender offer will be made to all shareholders of Cherkizovo Group in compliance with Russian legal requirements at the price per share not lower than the price per share in the Prosperity transaction. The transaction with Prosperity is subject to approval by the Russian Federal Antimonopoly Service and is expected to be completed within 30 days.

Sergey Mikhailov, CEO of Cherkizovo Group, commented: "Cherkizovo Group is currently reviewing its capital markets strategy, including different ways to increase the free-float, stock liquidity and ensure sustained growth in shareholder value. The deal with Prosperity Capital Management is part of this strategy".

Alexander Branis, Chief Investment Advisor of Prosperity Capital Management, commented: "Prosperity Capital Management is undertaking the sale within the framework of its current investment management strategy. The firm retains its long-term commitment to the Russian agricultural sector".

The person responsible for the release of this announcement on behalf of Cherkizovo Group is Dmitry Mironov (please see details below). For more information please visit http://www.cherkizovo.com or contact

Cherkizovo Group

Dmitry Mironov Head of Investor Relations +7 (495) 660 24 40 ext. 15962 d.mironov@cherkizovo.com About Cherkizovo Group

Cherkizovo Group is the largest meat and feed producer in Russia. The Group is a top-3 producer in each of the Russian poultry, pork and processed meat markets and is the largest feed manufacturer in the country.

Cherkizovo Group encompasses eight full cycle poultry production facilities, 15 modern pork production facilities, six meat processing plants, eight feed mills and more than 287,000 hectares of agricultural land. The Group also includes Tambov Turkey facility, a joint Russian-Spanish venture. In 2016, Cherkizovo Group produced 903,000 tonnes of meat and meat products.

Thanks to its vertically integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution system, the Group has delivered long-term sales growth and profitability. The Group's consolidated revenue was RUB 82.4 billion in 2016.

Cherkizovo Group shares and GDRs are traded on the Moscow Exchange (MOEX) and the London Stock Exchange (LSE).

This press release may contain forward-looking statements based on current assumptions and forecasts made by Cherkizovo Group management and other information currently available to Cherkizovo Group.