Vladivostok, 6 September 2022 – X5 Group (“X5” or the “Company”, LSE and MOEX ticker: FIVE), a
leading Russian food retailer, signed a cooperation agreement with Russian Far East and Arctic
Development Corporation (RFEADC) to launch operations in Russia’s Far Eastern Federal District. With
this move, the parties agreed to join efforts in developing the food market of the Russian Far East.
The agreement was signed by RFEADC CEO Nikolay Zapryagaev and X5 Group President Ekaterina
Lobacheva on the sidelines of the 7 th Eastern Economic Forum (EEF), which is taking place in
Vladivostok on 5-8 September 2022. The signing was attended by Yury Trutnev, Russian Deputy Prime
Minister and Presidential Plenipotentiary Envoy to the Far Eastern Federal District and Alexei
Chekunkov, Russian Minister for the Development of the Far East and the Arctic.
“I think such projects are very important because they not only create opportunities to bring products to
the Far Eastern territories and help reduce prices, but they also provide additional opportunities for Far
Eastern agrarians by forming new sales channels. This creates the foundation for increasing production
and developing new crop areas, because when people understand that their products are in demand,
they can produce more agricultural goods,” Mr Trutnev noted
“Our priority task is to improve the quality of life of people in the Far East. The scale of the federal
network, combined with the existing mechanisms of state support in the region, will make it possible to
build optimal logistics, expand the range of products, and make them more accessible to people.
Partnerships with Asian networks can provide an additional synergetic effect,” said Alexei Chekunkov.
As part of the partnership, X5 and RFEADC will develop an action plan for X5 to enter the Far Eastern
Federal District, including identifying requirements for the respective infrastructure (including energy
usage, land plots for distribution centres) and logistics development (railway and motor transport
access). X5 will carry out a comprehensive analysis to review the opportunities for rolling out a modern
retail chain in the region. The Company’s potential investment to build distribution centres and stores in
the region may reach RUB 10 billion.
“The agreement with the Russian Far East and Arctic Development Corporation marks the launch of a
large-scale project for X5 to expand its geography and enter the market of the Russian Far East.
Together, we will assess local infrastructure needs and search for land plots to accommodate our
logistics centres, and will then decide on the appropriate investment,” said Ekaterina Lobacheva,
President of X5 Group.
According to Nikolai Zapryagaev, general director of RFEADC, the corporation will assist X5 with
selecting land plots for infrastructure development as well as help secure the Company’s status as a
resident of a territory of advanced social and economic development, which carries administrative and
tax benefits.
The expert assessment of the Russian Far East territories and infrastructure is slated for completion by
Q1 2023, after which the Company will consider building a distribution centre in the region as part of the
project.