IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project companies. The following potential environment, health and safety impacts of the projects were analyzed. - Site Selection and Land Acquisition; - Water Supply, Sewage, and Stormwater Management; - Solid and Hazardous Waste Management; and - Fire and Life Safety.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements – Russian Federation and local Moscow laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the project companies is summarized in the paragraphs that follow. - Site Selection and Land Acquisition. Two of the sites are located in existing industrial/commercial zones; the third is to be constructed on undeveloped agricultural land adjacent to a highway and 300 meters from a small village on the outskirts of Moscow. Sites are being leased from the responsible government authorities under prevailing market terms. No people or squatters occupy the sites or use them for any economic purpose, and no persons have been or will be moved to develop the new warehouses. Soil samples and other subsurface testing have revealed no contamination or conditions of environmental concern. The project companies have obtained all necessary environmental approvals and permits from the relevant authorities to construct and operate the warehouses. - Water Supply, Sewage, and Stormwater Management. The March 8th and Southern sites receive potable water supply from connection to the existing Moscow municipal water supply system. Two on-site artesian wells will provide water supply for the Baltia site when it becomes operational, and water quality will meet Russian and WHO drinking water standards. Employee-generated domestic sewage will be discharged to the local sewerage systems serving each area. Stormwater collected on the properties is pretreated in on-site facilities to remove oils and other pollutants prior to discharge to the municipal stormwater drainage systems in conformance with local requirements. No other liquid effluents are generated. - Hazardous Materials and Solid and Hazardous Waste Management. Waste generated at the warehouse complexes consists of general refuse, cardboard boxes, used lamps, and sediments from the stormwater pretreatment units. These will be stored in specialized containers at each site and periodically collected by licensed local contractors and disposed at regulated municipal landfills or recycled via commercial entities in conformance with the environmental requirements of the Moscow municipal authorities. No significant amounts of hazardous materials or wastes are handled or generated. Fuel oil storage facilities for the heating plant at the Baltia site will be provided with secondary containment to prevent spills from being released to the environment. - Fire and Life Safety. Facilities feature fire protection and life safety systems and designs consistent with international best practice and in compliance with local rules administered by the respective Fire Marshalls, and include full sprinkler and hydrants, smoke detector, and fire alarm systems throughout the buildings. Through the establishment of hot lines and other communication procedures, personnel coordinate with local fire brigades for fire fighting and emergency response.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering ongoing performance of project-specific environmental, health and safety activities. The project companies will maintain records of significant environmental matters, including accidents and occupational illnesses, spills fires and other emergencies, and an inventory of any hazardous or dangerous goods that were stored or handled by any tenants. The AMR will summarize this information. Periodic site supervision visits will also be conducted.