Suspension of tariff increase

“KTZ — Freight transportation” JSC (hereinafter — the Company) announces the suspension for a short term of increase of tariffs for cargo transportation by rail in terms of locomotive traction services for 2017, announced by the Company’s order from December 29, 2016 № 982-SE with the entry into effective from January 10, 2017.

At the present time, given the introduction of amendments and additions to the Entrepreneurial Code of the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan dated 28 December 2016 “On amendments and additions to some legislative acts of Kazakhstan on the issues of competition and state support of housing,” the Company, being a subject of socially significant market, re-applied to the Committee on regulation of natural monopolies and protection of competition of the Ministry of national economy of the Republic of Kazakhstan with the request to increase the tariff for cargo transportation by rail in terms of locomotive traction services for 2017

At the same time, we inform about the preservation of the reached agreements tariffs raising for the carriage of goods by rail in terms of locomotive traction services for 2017 in the framework of the inflation level.

The recalculating and refunding of the carriage of goods, carried out from January 10, 2017 until the termination of the Company’s order of December 29, 2016 № 982-GP, will be done.