X5 Group 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 7th 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. 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. X5 plans to complete its expert assessment of the Russian Far East territories and infrastructure by First Quarter 2023, after which the Company will consider building a distribution centre in the region as part of the project.