Second-Party Opinion Download

Sustainalytics is of the opinion that the JSC Russian Railway Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds is aligned with those recognized as impactful by the Green Bond Principles. Sustainalytics considers that investments in electric locomotives or trains for passenger transportation will lead to positive environmental impacts and advance the UN Sustainable Development Goal (11) Sustainable cities and communities.

PROJECT EVALUATION/SELECTION

JSC Russian Railway’s internal process in evaluating and selecting projects is in line with market practice. The corporate finance department, accounting, investments, passenger transportation and environment and sustainable development departments are responsible for project evaluation and selection in alignment with the Use of Proceeds outlined in the Framework.

MANAGEMENT OF PROCEEDS

JSC Russian Railway’s processes for management of proceeds is aligned with market practice. Investments in eligible projects will be tracked through a Green Financing Register. Pending full allocation, proceeds may be invested in cash, cash equivalents or for repayment of short-term indebtedness where holdings do not conflict with the environmental objectives of the bond.

REPORTING

JSC Russian Railways intends to report annually on allocation of proceeds and relevant impact metrics. The Green Bond Reports will be made available on the Company’s website. Sustainalytics views Russian Railway’s allocation and impact reporting as aligned with market practice.