Surgutneftegas Public Joint Stock : Issuer's report (Quarterly report) for 4Q 2019

I S S U E R ' S R E P O R T

(Q U A R T E R L Y R E P O R T)

"Surgutneftegas" Public Joint Stock Company

The issuer's code: 00155-A

for 4Q2019

The issuer's location: 628415, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut, ul.Grigoriya Kukuyevitskogo, 1, 1

The information contained in this quarterly report is subject to disclosure pursuant to the

Securities Legislation of the Russian Federation

Director General	___________________ V.L.Bogdanov
signature
Date: 14 February 2020
Chief Accountant	____________________ А.V.Druchinin
signature
Date: 14 February 2020
STAMP

Contact person: Anton I. Molchanov, Securities Division Head

Telephone: [phone]

Fax: [phone]

E-mail: [e-mail]

The information contained in this quarterly report is disclosed on the website(s): http://www.surgutneftegas.ru/investors;

http://www.e-disclosure.ru/portal/company.aspx?id=312

Table of Contents
Table of Contents ...............................................................................................................................................................	2
Introduction ........................................................................................................................................................................	5
Section I. The issuer's bank accounts, auditor (audit organization), appraiser and financial advisor as well as persons
who signed the issuer's report (quarterly report)................................................................................................................	6
1.1. The issuer's bank accounts ......................................................................................................................................	6
1.2. The issuer's auditor (audit organization) .................................................................................................................	6
1.3. The issuer's appraiser(s)..........................................................................................................................................	6
1.4. The issuer's advisors ...............................................................................................................................................	6
1.5. Persons who signed the issuer's report (quarterly report) .......................................................................................	6
Section II. General information on the issuer's financial and economic position ..............................................................	6
2.1. The issuer's financial and economic performance...................................................................................................	6
2.2. The issuer's market capitalization ...........................................................................................................................	6
2.3. The issuer's liabilities..............................................................................................................................................	7
2.3.1. Borrowed funds and accounts payable .................................................................................................................	7
2.3.2. The issuer's credit history.....................................................................................................................................	7
2.3.3. The issuer's liabilities related to security provided by the issuer .........................................................................	7
2.3.4. Other liabilities of the issuer.................................................................................................................................	7
2.4. Risks related to acquisition of placed securities or those being placed ...................................................................	7
Section III. Detailed information on the issuer...................................................................................................................	7
3.1. The history of the issuer's establishment and development ....................................................................................	7
3.1.1. The issuer's corporate name (name).....................................................................................................................	7
3.1.2. State registration of the issuer...............................................................................................................................	8
3.1.3. Establishment and development of the issuer.......................................................................................................	8
3.1.4. Contact information..............................................................................................................................................	8
3.1.5. Taxpayer identification number............................................................................................................................	9
3.1.6. Branches and representative offices of the issuer .................................................................................................	9
3.2. Core operations of the issuer ...................................................................................................................................	9
3.2.1. Core economic activities of the issuer ..................................................................................................................	9
3.2.2. Core operations of the issuer ................................................................................................................................	9
3.2.3. The issuer's supplies, goods (raw materials) and suppliers ..................................................................................	9
3.2.4. Marketing outlets for the issuer's products (works, services) ..............................................................................	9
3.2.5. The issuer's permits (licenses) or authorizations for certain types of works ........................................................	9
3.2.6. Activity of certain categories of issuers................................................................................................................	9
3.2.7. Additional information on issuers whose core operation is mineral resources extraction....................................	9
3.2.8. Additional information on issuers whose core operation is telecommunication services provision...................	15
3.3. Plans for the issuer's future activity ......................................................................................................................	15
3.4. The issuer's share in banking groups, bank holding companies, holdings and associations .................................	16
3.5. Organizations under the issuer's control which are material to the issuer.............................................................	16
3.6. Constitution, structure and cost of the issuer's fixed assets; information on plans to purchase, replace and dispose
of fixed assets as well as on all facts of encumbrance of the issuer's fixed assets .......................................................	21
Section IV. Financial and business activities of the issuer ...............................................................................................	21
4.1. Results of the financial and business activities of the issuer .................................................................................	21
4.2. The issuer's liquidity position, capital and current assets adequacy......................................................................	21

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4.3. The issuer's financial investments.........................................................................................................................	21
4.4. The issuer's intangible assets ................................................................................................................................	21
4.5. Data on the issuer's policy and expenses for scientific and technical development, licenses and patents, new
developments and research...........................................................................................................................................	21
4.6. Trends analysis in the sphere of issuer's core operation........................................................................................	21
4.7. Analysis of the factors influencing the issuer's operation .....................................................................................	22
4.8. The issuer's competitors........................................................................................................................................	23
Section V. Detailed data on the members of the issuer's management bodies, the issuer's agencies supervising its
financial and business activities, and summary on the issuer's employees (workers)......................................................	23
5.1. Structure and terms of reference for the issuer's management bodies...................................................................	23
5.2. Members of the issuer's management bodies ........................................................................................................	23
5.2.1. The issuer's Board of Directors (Supervisory Board) ........................................................................................	23
5.2.2. Individual executive body of the issuer ..............................................................................................................	26
5.2.3. The issuer's collegiate executive body ...............................................................................................................	27
5.3. Remuneration and/or compensation for expenses for each management body of the issuer.................................	27
5.4. Structure and terms of reference for the agencies supervising the issuer's financial and business activities and
organization of the risk management and internal control system................................................................................	27
5.5. Members of the agencies supervising the issuer's financial and business activities..............................................	28
5.6. Remuneration and (or) compensation for expenses for the agency supervising the issuer's financial and business
activities .......................................................................................................................................................................	29

1. Number and summary records of the issuer's employees (workers), their categories and changes in their number
   ...................................................................................................................................................................................... 30
2. Obligations of the issuer to its employees (workers) relating to their possible participation in the issuer's charter

capital ...........................................................................................................................................................................	30
Section VI. The issuer's members (shareholders) and interested party transactions conducted by the issuer..................	30
6.1. Total number of the issuer's shareholders (members) ...........................................................................................	30

6.2. The issuer's members (shareholders) holding at least five percent of its charter capital or at least five percent of its ordinary shares as well as persons controlling such members (shareholders) and in absence of such persons - members (shareholders) of such persons who hold at least 20 percent of the charter capital or at least 20 percent of

their ordinary shares .....................................................................................................................................................	31
6.3. Share of the state or a municipal formation in the issuer's charter capital; any special right ("golden share").....	31
6.4. Restrictions on participation in the issuer's charter capital ...................................................................................	32
6.5. Changes in the list and participation of the issuer's shareholders (members) holding at least five percent of its
charter capital or at least five percent of its ordinary shares.........................................................................................	32
6.6. Interested party transactions conducted by the issuer............................................................................................	32
6.7. Accounts receivable...............................................................................................................................................	32
Section VII. The issuer's accounting (financial) statements and other financial information ..........................................	32
7.1. Annual accounting (financial) statements of the issuer .........................................................................................	32
7.2. Interim accounting (financial) statements of the issuer .........................................................................................	32
7.3. Consolidated financial statements of the issuer .....................................................................................................	32
7.4. Accounting policy of the issuer .............................................................................................................................	32
7.5. Total export and share of export in total sales .......................................................................................................	32
7.6. Substantial changes in the issuer's property after the date when the last completed reporting year ended ...........	32
7.7. The issuer's participation in litigations in case such participation may substantially affect the issuer's financial
and business activities ..................................................................................................................................................	33
Section VIII. Additional information on the issuer and equity securities placed by the issuer ........................................	33
8.1. Additional information on the issuer .....................................................................................................................	33

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8.1.1. Size and structure of the issuer's charter capital.................................................................................................	33
8.1.2. Changes in the size of the issuer's charter capital ..............................................................................................	34
8.1.3. Convening and holding a meeting (session) of the issuer's supreme management body ...................................	34
8.1.4. Commercial organizations where the issuer holds at least five percent of the charter capital or at least five
percent of ordinary shares ............................................................................................................................................	34
8.1.5. Major transactions conducted by the issuer........................................................................................................	37
8.1.6. Credit ratings of the issuer..................................................................................................................................	37
8.2. Data on each category (type) of the issuer's shares...............................................................................................	37
8.3. Previous issues of the issuer's equity securities, excluding the issuer's shares.....................................................	39
8.3.1. Issues with all securities redeemed.....................................................................................................................	39
8.3.2. Issues with securities that are not redeemed .......................................................................................................	39

8.4. Person(s) who offered security for the issuer's secured bonds and security offered for the issuer's secured bonds

...................................................................................................................................................................................... 39

8.4.1. Additional information on the mortgage collateral on the issuer's mortgage-backed bonds..............................	39
8.4.2. Additional information on the collateral by money claims for the bonds of the issuer with the collateral by
money claims................................................................................................................................................................	39
8.5. Organizations keeping records of rights for the issuer's equity securities.............................................................	39
8.6. Legislative acts regulating import and export of capital which may influence dividend payment, interests and
other payments to non-residents ...................................................................................................................................	39
8.7. Declared (accrued) and (or) paid dividends on the issuer's shares and the issuer's bond yield ............................	40
8.7.1. Dividends declared and paid on the issuer's shares............................................................................................	40
8.7.2. Accrued and paid yield on the issuer's bonds.....................................................................................................	47
8.8. Miscellaneous information ....................................................................................................................................	47
8.9. Represented securities and the issuer of represented securities title to which is evidenced by Russian Depositary
Receipts ........................................................................................................................................................................	47

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Introduction

Grounds for the issuer's obligation to disclose information in the form of an issuer's report (quarterly report)

State registration of at least one issue (additional issue) of the issuer's securities was accompanied by registration of the issue prospectus and such securities were placed through a public or through a private subscription among more than 500 persons.

The issuer is a joint stock company formed through privatization of state and/or municipal enterprises (their business units); under the duly approved privatization plan, which was the issue prospectus of such an issuer as of the date of its approval, the issuer's shares may be disposed of in favor of more than 500 acquirers or the general public.

The issuer is a public joint stock company.

This issuer's report (quarterly report) contains estimates and forecasts of the issuer's authorized management bodies as to the forthcoming events and/or actions, prospects of development of the issuer's main industry and the issuer's operating results, including the issuer's plans, probability of certain events and certain actions. Investors shall not entirely rely on the estimates and forecasts of the issuer's management bodies since the issuer's future actual operating results may differ from the forecast results for many reasons. Acquisition of the issuer's securities may entail risks described in this issuer's report (quarterly report).

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Section I. The issuer's bank accounts, auditor (audit organization), appraiser

and financial advisor as well as persons who signed the issuer's report

(quarterly report)

1.1. The issuer's bank accounts

There were no changes in the information contained in this clause in the reporting quarter.

1.2. The issuer's auditor (audit organization)

There were no changes in the information contained in this clause in the reporting quarter.

1.3. The issuer's appraiser(s)

There were no changes in the information contained in this clause in the reporting quarter.

1.4. The issuer's advisors

With reference to clause 1.4, Appendix 3 to Regulations No. 454-P of The Bank of Russia "On Disclosing Information by Securities Issuers" dated 30 December 2014, the issuer has engaged no financial advisors during 12 months before the date when the reporting quarter ended.

1.5. Persons who signed the issuer's report (quarterly report)

Name: Bogdanov Vladimir Leonidovich

Year of birth: 1951

Primary employment

Company: "Surgutneftegas" PJSC

Position: Director General

Name: Druchinin Andrei Vladislavovich

Year of birth: 1969

Primary employment

Company: "Surgutneftegas" PJSC

Position: Chief Accountant

Section II. General information on the issuer's financial and economic position

2.1. The issuer's financial and economic performance

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

2.2. The issuer's market capitalization

Market capitalization shall be calculated by taking the total number of shares of a certain category (type) and multiplying it by the market price of one share which is disclosed by the market maker

Unit of measure: thousand RUB

Indicator	As of 31.12.2018		As of 31.12.2019
Market capitalization	1,261,584,898.54	2,107,381,083.93

The securities market maker that provides data for calculation of market capitalization and any other additional information on outstanding securities at the issuer's discretion: the issuer's market capitalization shall be calculated by PJSC "Moscow Exchange".

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2.3. The issuer's liabilities

2.3.1. Borrowed funds and accounts payable

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

2.3.2. The issuer's credit history

The history of the issuer's obligations fulfilled under credit and (or) loan agreements having been in force during the last completed reporting and current years, including those in the form of bonds issued and sold, the principal amount of which equaled to or exceeded five percent of the book value of the issuer's assets as of the last day of the last completed reporting period of 3, 6, 9 or 12 months preceding the conclusion of the relevant agreement as well as obligations under other credit and (or) loan agreements which the issuer deems significant.

The issuer had no such obligations.

1. The issuer's liabilities related to security provided by the issuer
   Information as of 31.12.2019 will be presented in the issuer's report for 1Q2020.
2. Other liabilities of the issuer

There are no other liabilities not shown in the accounting (financial) statements which may significantly affect the issuer's financial position, its liquidity, sources of funds, terms of their use, performance results and expenses.

2.4. Risks related to acquisition of placed securities or those being placed

There were no changes in the information contained in this clause in the reporting quarter.

Section III. Detailed information on the issuer

3.1. The history of the issuer's establishment and development 3.1.1. The issuer's corporate name (name)

The issuer's full corporate name: "Surgutneftegas" Public Joint Stock Company

Date of introduction of the issuer's existing full corporate name: 03.07.2018

The issuer's abbreviated corporate name: "Surgutneftegas" PJSC

Date of introduction of the issuer's existing abbreviated corporate name: 03.07.2018

The issuer's corporate name is registered as a trademark or a service mark.

Trademark registration

Certificate of trademark: No. 438918 dated 09.06.2011

Priority (commencement) of the document of title: 06.05.2010

Validity period of the document of title: 06.05.2020

Certificate of trademark (logotype): No. 580396 dated 12.07.2016

Priority (commencement) of the document of title: 25.03.2015

Validity period of the document of title: 25.03.2025

Certificate of trademark (logotype): No. 723719 dated 16.08.2019

Priority (commencement) of the document of title: 21.03.2019

Validity period of the document of title: 21.03.2029

All previous names of the issuer during its existence

Full corporate name: Production Association "Surgutneftegas"

Abbreviated corporate name: PO "Surgutneftegas"

Introduced: 15.09.1977

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Full corporate name: Joint Stock Company of Open Type "Surgutneftegas"

Abbreviated corporate name: AOOT "Surgutneftegas"

Introduced: 06.05.1993

Grounds for introduction: Decree of the President of the Russian Federation No. 1403 "On Special Provisions for Privatization and Corporization of State Enterprises, Production and Scientific Production Associations in the Petroleum, Petroleum Refining and Petroleum Products Supply Industries" dated 17.11.92.

Full corporate name: Open Joint Stock Company "Surgutneftegas"

Abbreviated corporate name: OJSC "Surgutneftegas"

Introduced: 27.06.1996

Grounds for introduction: Resolution of the annual general shareholders' meeting of OJSC "Surgutneftegas" held on 15.06.1996, Minutes No. 3 dated 15.06.1996.

3.1.2. State registration of the issuer

Initial state registration

State registration number: 12-4782

Date of state registration: 06.05.1993

Body that conducted the state registration: Administration of the city of Surgut, Khanty-Mansiysky Autonomous Okrug, Tyumenskaya Oblast

Registration of the legal entity

Main state registration number of the legal entity: 1028600584540

Date of entry of the legal entity registered prior to 1 July 2002 into the Uniform State Register of Legal Entities: 18.09.2002

Name of the registration authority: Inspectorate of the Ministry of Taxation of Russia for Surgut, Khanty-Mansiysky Autonomous Okrug

3.1.3. Establishment and development of the issuer

There were no changes in the information contained in this clause in the reporting quarter.

3.1.4. Contact information

The issuer's location: Russian Federation, Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug

- Yugra, Surgut, ul.Grigoriya Kukuyevitskogo, 1, bld. 1

Address of the issuer indicated in the Uniform State Register of Legal Entities: 628415, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut, ul.Grigoriya Kukuyevitskogo, 1, 1

Telephone: [phone]; 42 61 33

Fax: [phone]

E-mail:[e-mail]

Website(s) where information on the issuer and securities issued and/or being issued by the issuer is available:

http://www.surgutneftegas.ru/investors;

http://www.e-disclosure.ru/portal/company.aspx?id=312

The name of the third party for shareholder and investor relations: Joint Stock Company "Surgutinvestneft"

The third party's location: Russian Federation, Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut, ul.Entuziastov, 52/1

Telephone: [phone]

Fax: [phone]

E-mail: [e-mail]

Website: http://sineft.ru/

The issuer's special subdivision for shareholder and investor relations: Investor relations and DR program support department of Securities Division of "Surgutneftegas" PJSC

Subdivision's location: 628415, Russian Federation, Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut, ul.Grigoriya Kukuyevitskogo, 1, bld. 1

Telephone: [phone]

8

Fax: [phone]

E-mail:[e-mail]

Website: www.surgutneftegas.ru

1. Taxpayer identification number
   8602060555
2. Branches and representative offices of the issuer

There were no changes in branches and representative offices of the issuer in the reporting quarter.

3.2. Core operations of the issuer

3.2.1. Core economic activities of the issuer

Code of economic activity which is core for the issuer

OKVED codes

06.10.1

3.2.2. Core operations of the issuer

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

3.2.3. The issuer's supplies, goods (raw materials) and suppliers

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

3.2.4. Marketing outlets for the issuer's products (works, services)

There were no changes in the information contained in this clause in the reporting quarter.

3.2.5. The issuer's permits (licenses) or authorizations for certain types of works

The issuer does not have permits (licenses), information about which must be specified in the issuer's report (quarterly report).

3.2.6. Activity of certain categories of issuers

The issuer is not a stock investment fund, insurance or banking institution, mortgage agent or specialized company.

3.2.7. Additional information on issuers whose core operation is mineral resources extraction a) Mineral resources

The list of mineral deposits which have significant financial and business importance for the issuer to which the issuer or its subsidiaries hold the right of use

1. Field: Vostochno-Surgutskoye Rights to the field are held by: the issuer Type of minerals: oil
   Proved reserves: AB1 - 68,533 thous. tonnes; В2 - 10,404 thous. tonnes
   Production rate for the relevant reporting period (periods): 879.289 thous. tonnes
2. Field: Vostochno-Surgutskoye

Rights to the field are held by: the issuer

Type of minerals: associated gas

Proved reserves: AB1 - 4,146 mn cub m; В2 - 629 mn cub m

Production rate for the relevant reporting period (periods): 54.190709 mn cub m

3. Field: Fedorovskoye

Rights to the field are held by: the issuer

9

Type of minerals: oil

Proved reserves: AB1 - 253,188 thous. tonnes; В2 - 28,507 thous. tonnes

Production rate for the relevant reporting period (periods): 2,434.285 thous. tonnes

4. Field: Fedorovskoye

Rights to the field are held by: the issuer

Type of minerals: associated gas

Proved reserves: AB1 - 123,078 mn cub m; В2 - 3,268 mn cub m

Production rate for the relevant reporting period (periods): 805.524730 mn cub m

5. Field: Lyantorskoye

Rights to the field are held by: the issuer

Type of minerals: oil

Proved reserves: AB1 - 29,476 thous. tonnes; В2 - 409 thous. tonnes

Production rate for the relevant reporting period (periods): 923.180 thous. tonnes

6. Field: Lyantorskoye

Rights to the field are held by: the issuer

Type of minerals: associated gas

Proved reserves: AB1 - 61,506 mn cub m; В2 - 17 mn cub m

Production rate for the relevant reporting period (periods): 489.444890 mn cub m

7. Field: Rogozhnikovskoye

Rights to the field are held by: the issuer

Type of minerals: oil

Proved reserves: AB1 - 98,779 thous. tonnes; В2 - 27,445 thous. tonnes

Production rate for the relevant reporting period (periods): 677.077 thous. tonnes

8. Field: Rogozhnikovskoye

Rights to the field are held by: the issuer

Type of minerals: associated gas

Proved reserves: AB1 - 7,015 mn cub m; В2 - 2,105 mn cub m

Production rate for the relevant reporting period (periods): 50.050374 mn cub m

9. Field: Russkinskoye

Rights to the field are held by: the issuer

Type of minerals: oil

Proved reserves: AB1 - 52,249 thous. tonnes; В2 - 7,898 thous. tonnes

Production rate for the relevant reporting period (periods): 702.135 thous. tonnes

10. Field: Russkinskoye

Rights to the field are held by: the issuer

Type of minerals: associated gas

Proved reserves: AB1 - 2,669 mn cub m; В2 - 366 mn cub m

Production rate for the relevant reporting period (periods): 34.665309 mn cub m

1. Field: Severo-Labatyuganskoye Rights to the field are held by: the issuer Type of minerals: oil
   Proved reserves: AB1 - 47,663 thous. tonnes; В2 - 10,542 thous. tonnes
   Production rate for the relevant reporting period (periods): 1,152.395 thous. tonnes
2. Field: Severo-Labatyuganskoye

Rights to the field are held by: the issuer

10

Type of minerals: associated gas

Proved reserves: AB1 - 3,459 mn cub m; В2 - 847 mn cub m

Production rate for the relevant reporting period (periods): 96.023639 mn cub m

1. Field: Central Block of the Talakanskoye oil and gas condensate field Rights to the field are held by: the issuer
   Type of minerals: oil
   Proved reserves: AB1 - 104,277 thous. tonnes; В2 - 1,146 thous. tonnes
   Production rate for the relevant reporting period (periods): 1,186.985 thous. tonnes
2. Field: Central Block of the Talakanskoye oil and gas condensate field

Rights to the field are held by: the issuer

Type of minerals: associated gas

Proved reserves: AB1 - 36,280 mn cub m; В2 - 386 mn cub m

Production rate for the relevant reporting period (periods): 138.943521 mn cub m

Licenses for subsoil use obtained by the issuer or its subsidiaries for the fields of significant financial and economic importance

Legal entity that obtained a license: the issuer

1. Number: YaKU 05848 NE Date of issue: 07.11.2018 Valid till: 31.12.2081

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use:

the Republic of Sakha (Yakutia), Lensky District, area (sq. km) - 410.57 Type of the license: exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of 31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

2. Number: KhMN 03626 NE Date of issue: 23.04.2019 Valid till: 31.12.2129

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, area (sq. km) - 1952.07

Type of the license: exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

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Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of 31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

3. Number: KhMN 03594 NE Date of issue: 11.04.2019 Valid till: 31.12.2162

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92 Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, area (sq. km) - 1815.72

Type of the license: exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of 31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

4. Number: KhMN 03603 NR Date of issue: 16.04.2019 Valid till: 31.12.2095

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92 Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, area (sq. km) - 167.45

Type of the license: geological survey, including prospecting and estimation of mineral deposits, exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of 31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

5. Number: KhMN 03611 NR Date of issue: 18.04.2019 Valid till: 31.12.2117

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Oktyabrsky and Khanty-Mansiysky Districts, area (sq. km) - 407.39

Type of the license: geological survey, including prospecting and estimation of mineral deposits,

12

exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of 31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

6. Number: KhMN 03516 NE Date of issue: 01.02.2019 Valid till: 31.12.2100

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, area (sq. km) - 1182.20

Type of the license: oil and gas production

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of

31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

7. Number: KhMN 03528 NE Date of issue: 06.02.2019 Valid till: 31.12.2083

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, area (sq. km) - 959.79

Type of the license: exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of 31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

8. Number: KhMN 03538 NR Date of issue: 08.02.2019 Valid till: 31.12.2115

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

13

Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Oktyabrsky and Khanty-Mansiysky Districts, area (sq. km) - 1271.50

Type of the license: geological survey, including prospecting and estimation of mineral deposits, exploration and production of mineral resources

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of

31.12.2019 all terms and conditions are being met.

Legal entity that obtained a license: the issuer

9. Number: KhMN 03560 NE Date of issue: 26.03.2019 Valid till: 31.12.2087

In accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92 Basis for license issuance: in accordance with Law of the Russian Federation No. 2395-I "On Subsurface" dated 21.02.92

Description of the subsoil plot provided for use: Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, area (sq. km) - 1474.95

Type of the license: oil and gas exploration and production

The main license provisions concerning the subsoil user obligations indicating the period of fulfillment of specified obligations: prospecting and exploratory drilling, seismic surveys and putting fields into development in accordance with the terms and conditions of the license

Compulsory payments to be made under the terms and conditions of the license: all kinds of payments are made in accordance with the current legislation of the Russian Federation

Fulfillment by the issuer, its subsidiaries and affiliates of license obligations and any factors that may adversely affect fulfillment of license obligations and the possibility of their occurrence: as of

31.12.2019 all terms and conditions are being met.

This section provides a list of the issuer's main fields.

In the lines "Proved reserves" the current recoverable oil and condensate reserves in respect of oil are shown under the Russian classification of hydrocarbon reserves and resources.

In the lines "Proved reserves" the current recoverable associated gas reserves in respect of associated gas are shown under the Russian classification of hydrocarbon reserves and resources.

License KhMN 03516 NE is issued in lieu of License KhMN 00049 NE dated 13.07.1993, KhMN 00435 NE dated 05.03.1997.

License KhMN 03626 NE is issued in lieu of License KhMN 00052 NE dated 14.07.1993, KhMN 00408 NE dated 18.12.1996.

License KhMN 03594 NE is issued in lieu of License KhMN 00062 NE dated 15.07.1993, KhMN 00406 NE dated 18.12.1996.

License KhMN 03528 NE is issued in lieu of License KhMN 00054 NE dated 14.07.1993, KhMN 00417 NE dated 14.01.1997.

License YaKU 05848 NE is issued in lieu of License YaKU 12061 NE dated 26.12.2003. License KhMN 03538 NR is issued in lieu of License KhMN 01525 NR dated 18.04.2001. License KhMN 03560 NE is issued in lieu of License KhMN 11293 NE dated 05.09.2002.

14

License KhMN 03611 NR is issued in lieu of License KhMN 13143 NR dated 18.05.2005. License KhMN 03603 NR is issued in lieu of License KhMN 14906 NR dated 27.04.2010.

1. Mineral resources processing Fixed assets used for processing
   The refining and processing sector of the issuer is represented by refinery LLC "KINEF" with a

processing capacity of 20.1 million tonnes of oil per year located in Leningradskaya Oblast, and a gas processing complex with a capacity of 7.3 billion cubic meters of gas per year located in Khanty- Mansiysky Autonomous Okrug - Yugra.

The issuer and its controlled organizations do not engage any contractors to process mineral resources they produce.

c) Products marketing

Permits granted by the authorized government agencies for sale of mineral resources and their processed products and quotas, including export quotas

In accordance with Federal Law of the Russian Federation No. 147-FZ "On Natural Monopolies" dated 17.08.1995, a duly registered oil producer and an organization being a parent company of an oil producer are granted with the right of access to the system of Russian trunk pipelines and terminals to transport oil outside the customs territory of the Russian Federation, proportionally to the volumes of produced oil pumped into the system of trunk pipelines with a 100% trunk pipeline transmission capacity (subject to feasibility).

3.2.8. Additional information on issuers whose core operation is telecommunication services provision

Telecommunication services provision is not the core operation of the issuer.

3.3. Plans for the issuer's future activity

The long-term strategy of the issuer is aimed at strengthening its position of a financially sustainable company with good production growth prospects in the domestic oil and gas sector. To achieve its goal, the issuer is developing the following priority areas of business:

Oil and gas production:

• to strengthen and enlarge the mineral resource base through geological exploration and acquisition of new promising subsoil plots;
• to develop and apply innovative solutions, extend the introduction of advanced technologies and equipment enhancing the efficiency of geological exploration and field development, including fields with low-margin reserves;
• to maintain the volume of hydrocarbon production in accordance with the current conditions in the oil and gas market;
• to form and develop new centers of hydrocarbon production;
• to use the produced associated petroleum gas in the most efficient way;
• to provide a high quality of work and control of costs.

Oil refining and gas processing:

• to enhance refining and processing efficiency through modernization and reconstruction of production facilities;
• to increase an oil conversion ratio, the share of light oil products yield and to increase the volume of high-margin products;
• to provide a wide range of products in accordance with the market needs.

Marketing:

• to increase sales of high-margin products;
• to attract and retain consumers by providing high quality products;
• to increase the efficiency of retail sales by expanding the range of related services.

15

Power generation:

• to develop the energy complex which ensures generation, transmission and sale of electric and thermal energy;
• to introduce energy saving and energy efficient solutions and technology within every area of the issuer's operations.

Social responsibility:

• to mitigate the environmental impact, ensure environmental safety of production facilities and use natural resources in a responsible and rational way;
• to assure high industrial and occupational safety standards;
• to maintain the reputation of an attractive and responsible employer and create the environment for personnel development;
• to contribute to balanced social and economic development of the areas where the issuer operates and preserve the status of a reliable partner and supplier of high quality products;
• to offer extra social benefits and guarantees for the employees, their families and retired employees.

In the mid-term, the issuer plans to keep the volumes of oil production at the level of 60-62 million tonnes depending on the hydrocarbon market environment and terms of agreements between oil- producing countries on the volume of oil production.

The achievement of the planned tasks in the field of oil and gas production shall be performed by implementing the available resource potential of the issuer as well as due to the increased efficiency of the current projects of field development. For 2020 the issuer developed programs for prospective and exploratory drilling in the amount of 221 thousand meters, development drilling in the amount of 4,741 thousand meters and is expecting to put three new fields into development.

In the field of oil refining and gas processing the issuer's efforts will focus on enhancement of the range of products and improvement of the quality of fuel. In 2020, the issuer plans to process 5.8 billion cubic meters of gas at its own gas processing plant. The level of associated petroleum gas utilization at the issuer's fields will amount to over 99%. The volume of oil refining at the issuer's refinery is planned to be 18.2 million tonnes.

In the marketing sector, the issuer focuses on developing the network of gas filling stations, expanding the provision of additional services and sales of related goods as well as optimizing their range.

In the energy sector, the issuer plans to implement the complex of measures on increasing the energy efficiency of production and carry out its energy conservation program. In 2020, power generated (provided) in-house by gas turbine and gas reciprocating engine power plants will be about 5.8 billion kWh.

As part of its social responsibility initiatives, the issuer will continue implementing the complex of measures on environmental protection, promoting comfortable work and leisure conditions for its employees, implementing social programs and contributing to the social and economic development of the areas of its operation.

1. The issuer's share in banking groups, bank holding companies, holdings and associations
   There were no changes in the information contained in this clause in the reporting quarter.
2. Organizations under the issuer's control which are material to the issuer

1. Full corporate name: Limited Liability Company "Novgorodnefteproduct"

Abbreviated corporate name: LLC "Novgorodnefteproduct"

Location: Russian Federation, Veliky Novgorod

INN: 5321059365

OGRN: 1025300788644

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

16

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operations: procurement, storage and marketing of oil products.

The controlled organization's board of directors (supervisory board)
		No provision is made for the board of directors (supervisory board).
Individual executive body of the controlled organization
		Name	The person's share in		The issuer's ordinary
				the issuer's charter		shares held by the person,
				capital, %:	%
		Serebrennikov Viktor Georgievich		0.0007	0

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

2. Full corporate name: Limited Liability Company "Marketing Association "Pskovnefteproduct"

Abbreviated corporate name: LLC "Pskovnefteproduct"

Location: Russian Federation, Pskov

INN: 6027042337

OGRN: 1026000970049

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operations: procurement, storage and marketing of oil products.

The controlled organization's board of directors (supervisory board)
		No provision is made for the board of directors (supervisory board).
Individual executive body of the controlled organization
		Name	The person's share in			The issuer's ordinary
				the issuer's charter			shares held by the person,
				capital, %:		%
		Maleshin Yury Vladimirovich			0	0

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

3. Full corporate name: Limited Liability Company "Marketing Association "Tvernefteproduct"

Abbreviated corporate name: LLC "MA "Tvernefteproduct"

Location: Russian Federation, Tver, ul.Novotorzhskaya, 6

INN: 6905041501

OGRN: 1026900510647

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operations: procurement, storage and marketing of oil

17

products.
The controlled organization's board of directors (supervisory board)
		No provision is made for the board of directors (supervisory board).
Individual executive body of the controlled organization
		Name	The person's share in		The issuer's ordinary
				the issuer's charter		shares held by the person,
				capital, %:	%
		Klinovsky Alexander Eduardovich		0.0025	0.0014

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

4. Full corporate name: Limited Liability Company "Kaliningradnefteproduct"

Abbreviated corporate name: LLC "Kaliningradnefteproduct"

Location: Russian Federation, Kaliningrad, Central District, ul. Komsomolskaya, 22-b

INN: 3900000136

OGRN: 1023900589240

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operations: procurement, storage and marketing of oil products.

The controlled organization's board of directors (supervisory board)
		No provision is made for the board of directors (supervisory board).
Individual executive body of the controlled organization
		Name	The person's share in			The issuer's ordinary
				the issuer's charter			shares held by the person,
				capital, %:		%
		Berdnikov Igor Vladimirovich			0	0

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

5. Full corporate name: Limited Liability Company "KIRISHIAVTOSERVIS"

Abbreviated corporate name: LLC "KIRISHIAVTOSERVIS"

Location: Russian Federation, Saint Petersburg

INN: 7840016802

OGRN: 1057807804064

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operations: procurement, storage and marketing of oil products.

The controlled organization's board of directors (supervisory board) No provision is made for the board of directors (supervisory board).

18

The issuer's ordinary

shares held by the person,

%

Individual executive body of the controlled organization
		Name	The person's share in			The issuer's ordinary
				the issuer's charter			shares held by the person,
				capital, %:		%
		Farbman Valery Evseevich			0	0

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

6. Full corporate name: Limited Liability Company "Production Association "Kirishinefteorgsintez"

Abbreviated corporate name: LLC "KINEF"

Location: Russian Federation, Leningradskaya Oblast, Kirishi

INN: 4708007089

OGRN: 1024701478735

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operations: oil refining, production and marketing of oil products (motor gasoline, diesel and boiler fuels, petroleum bitumen, aromatic hydrocarbons and other refined and petrochemical products).

The controlled organization's board of directors (supervisory board)

No provision is made for the board of directors (supervisory board).

Individual executive body of the controlled organization

NameThe person's share in the issuer's charter capital,

%:

Somov Vadim Evseevich	0.0086	0.0103

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

7. Full corporate name: Joint Stock Company "Surgutneftegasbank"

Abbreviated corporate name: JSC BANK "SNGB"

Location: Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut

INN: 8602190258

OGRN: 1028600001792

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control
The issuer's share in the charter capital of the controlled organization: 97.7591%
Fraction of the ordinary shares held by the issuer: 98.2389%
The share of the controlled organization in the issuer's charter capital: 0.0015%
The issuer's ordinary shares held by the controlled organization: 0.0018%
Description of the controlled organization's core operation: banking.
The controlled organization's board of directors (supervisory board)
Name	The person's share in the	The issuer's ordinary

19

The issuer's ordinary

shares held by the person,

%

				issuer's charter capital,		shares held by the person,
				%:	%
		Barankov Vladislav Georgievich	0.0139	0.0153
		(chairperson)
		Burtsev Gennady Alekseevich	0	0
		Zhernovkov Alexander Georgievich	0.0048	0.0001
		Pospelova Natalia Evgenyevna	0.0017	0.0002
		Druchinin Andrei Vladislavovich	0.0006	0.0004
		Sobakinskikh Valery Leonidovich	0.0002	0
		Tarasova Olga Ivanovna		0.0001	0
Individual executive body of the controlled organization
		Name	The person's share in the		The issuer's ordinary
				issuer's charter capital,		shares held by the person,
				%:	%
		Korol Andrei Vitalyevich		0	0
The controlled organization's collegiate executive body
		Name	The person's share in the		The issuer's ordinary
				issuer's charter capital,		shares held by the person,
				%:	%
		Korol Andrei Vitalyevich (chairperson)	0	0
		Chaplin Dmitry Vladimirovich	0.0003	0
		Cherednichenko Marina Vladimirovna	0	0
		Chernozhukov Evgeny Nikolaevich	0	0
		Krotov Sergei Grigoryevich		0	0

The Board is the collegial executive body of JSC BANK "SNGB".

8. Full corporate name: Limited Liability Company "Oil Refining and Petrochemical Facilities Design Institute"

Abbreviated corporate name: LLC "Lengiproneftekhim"

Location: Russian Federation, Saint Petersburg, nab. Obvodnogo kanala, 94

INN: 7810327462

OGRN: 1057803105755

The characteristics of the issuer's control exercised over the organization in respect to which the issuer is a controlling entity: right to control over 50 percent of votes in the supreme management body of the organization under the issuer's control.

Type of control: direct control

The issuer's share in the charter capital of the controlled organization: 100%

The share of the controlled organization in the issuer's charter capital: 0%

The issuer's ordinary shares held by the controlled organization: 0%

Description of the controlled organization's core operation: design of buildings and constructions, including process design of facilities and constructions for fuel, mining and processing industry.

The controlled organization's board of directors (supervisory board)

No provision is made for the board of directors (supervisory board).

Individual executive body of the controlled organization

NameThe person's share in the issuer's charter capital,

%:

Lebedskoy-Tambiyev Mikhail Andreevich	0	0

The controlled organization's collegiate executive body

No provision is made for a collegiate executive body.

20

3.6. Constitution, structure and cost of the issuer's fixed assets; information on plans to purchase, replace and dispose of fixed assets as well as on all facts of encumbrance of the issuer's fixed assets

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

Section IV. Financial and business activities of the issuer

4.1. Results of the financial and business activities of the issuer

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

4.2. The issuer's liquidity position, capital and current assets adequacy

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

4.3. The issuer's financial investments

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

4.4. The issuer's intangible assets

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

1. Data on the issuer's policy and expenses for scientific and technical development, licenses and patents, new developments and research
   Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.
2. Trends analysis in the sphere of issuer's core operation

In 2019, the volume of oil production in Russia increased by 0.8% compared to 2018 and totaled

560.2 million tonnes. The level of oil production in Russia was still significantly influenced by an agreement between OPEC and non-OPEC countries (the OPEC+ agreement) concluded to stabilize the situation in the oil market.

In 2019, Russian oil and gas producers increased the scope of prospective and exploratory drilling by 6.4% to 1,135.3 thousand meters against 2018. The development drilling meterage decreased by 1.2% against 2018 and amounted to 27.3 million meters.

In 2019, refined crude oil amounted to 52% of the total oil produced. The volume of oil refining at the Russian refineries decreased by 0.6% to 285 million tonnes. At the same time, the production of the main oil products increased by 0.5%. In 2019, the decrease in the share of fuel oil and the increase in the share of motor gasoline and diesel fuel in the main oil products structure were maintained. In 2019, the production of motor gasolines amounted to 40.2 million tonnes, diesel fuel - 78.4 million tonnes, jet kero

- 12.5 million tonnes, fuel oil - 45.8 million tonnes.

In 2019, the export of Russian oil to non-CIS countries increased by 3.7% to 248.5 million tonnes with the significant increase in the volume of oil delivery by marine transport.

"Surgutneftegas" PJSC is one of the largest vertically integrated oil companies. At the end of 2019, it accounted for 10.8% of the industry oil production, 6.5% of total Russian oil refining.

In 2019, the volume of oil produced by the issuer remained almost unchanged against 2018 and totaled 60.8 million tonnes. The issuer continues to develop the resource base and put new fields into development. In Eastern Siberia, the volume of oil production in 2019 exceeded 9.3 million tonnes accounting for 15.4% of the total oil production of the issuer.

In 2019, the issuer increased its share in Russian development drilling to 18.1% and in exploratory drilling to 21.1%. In 2019, the issuer increased the amount of development drilling by 2.1% against 2018 and it reached 4,947.9 thousand meters. The prospecting and exploratory drilling meterage increased by 13.1% to 239.2 thousand meters.

In the sphere of oil refining the issuer strives to maintain the optimal load of production capacities of its own refinery in the existing economic conditions. In 2019, the amount of oil refined at the refinery

21

amounted to 18.6 million tonnes.

The issuer pays special attention to the rational use of subsoil, natural resources and to the environmental issues. Due to construction of infrastructure facilities for gathering and utilization of associated petroleum gas, the level of its utilization in recent years remains at the level of more than 99%. By the end of 2019, this indicator remained at the level of the previous year and amounted to 99.56% being one of the highest in the industry.

4.7. Analysis of the factors influencing the issuer's operation

The issuer's financial results are affected by the following key factors:

• hydrocarbon price trends in global and domestic markets
• tax burden ratio;
• ruble / foreign currencies rate;
• inflation rate and tariffs of transport monopolies.

Hydrocarbon price trends in global and domestic markets

The issuer's operations are mostly affected by oil and oil products prices.

In 4Q2019, global oil prices had the following tendency:

• by the end of the quarter, the average Brent price amounted to 63.08 USD/bbl, which is 1.7% higher against the previous quarter and 8.3% lower against 4Q2018;
• the average Urals price increased by 0.1% from the previous quarter to 61.36 USD/bbl, and decreased by 10.1% against 4Q2018.
  The price in the domestic market of Russia depends on export alternatives and is based on seasonal demand for hydrocarbons, changes in taxes and levies rates, transportation tariffs and other factors. In 4Q2019, the weighted average oil price in the open Russian market increased by 0.7% against the previous quarter, and decreased by 10.4% against 4Q2018 to 24.1 thousand RUB/tonne (Western Siberian oil and gas province).

To fairly estimate the impact of the price factor on the issuer's operation, it is essential to take into account the tax burden ratio, since any changes in global oil quotations result in corresponding changes in export customs duties and the Mineral Extraction Tax.

Tax burden ratio

Since 01 January 2019, as part of the tax maneuver, the oil and gas sector witnessed the beginning of a gradual decrease in oil export customs duty rate down to zero within six years and a simultaneous increase in the MET oil rate. Furthermore, in the course of the tax maneuver mechanism, a reverse excise duty for oil was introduced, which includes a damping ratio.

In 2019, for several subsoil plots a tax on additional income from hydrocarbon production was introduced. The rate of the tax on additional income from hydrocarbon production is set at 50% and is applied to estimated revenue from sales, excluding actual and estimated expenses. As for the subsoil plots to which the tax on additional income is applied, a reduced MET rate is set.

In 2019, the MET base oil rate remained at the level of the previous year and equaled 919 RUB/tonne. An additional indicator Kk increasing the MET oil rate was fixed at RUB 428 (in 2018

• RUB 357). Moreover, since 01 January 2019, the formula for the MET oil rate calculation includes additional coefficients.

In 4Q2019 against the previous quarter, MET effective rate increased by 1.9% due to the increase in global oil prices and strengthening of the national currency against the US dollar as well as the increase in the motor gasoline and diesel fuel coefficient (KABDT). As compared to the same period of 2018, MET effective rate increased by 0.7% mainly due to the introduction of new coefficients into the formula for MET rate calculation and the decrease of global oil prices as well as weakening of the US dollar against the ruble.

The export customs duty is set according to the formula based on Urals oil prices in the global market. Since 01 January 2019, an adjustive coefficient applied to the oil export customs duty is set in the amount of 0.833 for 2019.

In 4Q2019, the average export customs duty rate for oil to be exported to non-CIS countries decreased by 6.7% against the previous quarter and amounted to 88.7 USD/tonne, and decreased by 37.3% against 4Q2018. At the same time, the reduced rate of the export customs duty for Eastern Siberian crude oil remained at a zero level.

22

The excise duties on oil products depend on the fuel ecology class. Since 01 January 2019, the excise duties on motor gasoline Euro 5, diesel fuel and medium distillates have increased.

Ruble/Foreign currencies rate

The issuer receives a part of its revenue from sales of products in a foreign currency and a part of the issuer's assets is denominated in a foreign currency. Therefore, any fluctuations in the exchange rate of the ruble to the main currencies influence the issuer's financial performance, including revenue, other income and expenses.

The average USD rate in 4Q2019 was 63.72 RUB/USD, which is 1.3% lower than in the previous quarter and 4.2% lower as compared to the same indicator in 4Q2018.

In the reporting quarter, the average Euro rate was 70.54 RUB/Euro, which is 1.8% lower than in the previous quarter and 7.1% lower as compared to the same indicator in 4Q2018.

The inflation rate and tariffs of transport monopolies

The issuer's financial and business performance is adversely affected by inflation and higher tariffs because they lead to the price growth and, therefore, the increase in the issuer's costs.

In the reporting quarter, there were no changes in tariffs of PJSC "Transneft" for pipeline transportation and service tariffs for orders and supervision of oil delivery on the routes used by the issuer compared to the previous quarter. The growth of tariffs of PJSC "Transneft" amounted to 3.9% compared to 4Q2018.

In 4Q2019, the inflation rate amounted to 0.8% as compared to 1.7% in 4Q2018 and the deflation in the amount of 0.2% in 3Q2019.

4.8. The issuer's competitors

There were no changes in the information contained in this clause in the reporting quarter.

Section V. Detailed data on the members of the issuer's management bodies, the issuer's agencies supervising its financial and business activities, and summary on the issuer's employees (workers)

5.1. Structure and terms of reference for the issuer's management bodies

There were no changes in the information contained in this clause in the reporting quarter.

5.2. Members of the issuer's management bodies

5.2.1. The issuer's Board of Directors (Supervisory Board)

Name: Erokhin Vladimir Petrovich (chairperson)

Year of birth: 1949

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period		Organization	Position
from		to
2014	present		"Surgutneftegas" PJSC	Chairperson of the Board of
				Directors

The person's share in the issuer's charter capital, %: 0.0104

The issuer's ordinary shares held by the person, %: 0.0126

Participation in the work of the committees of the Board of Directors: the member of the Board of Directors does not participate in the work of the committees of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or

23

agencies supervising the issuer's financial and business activities.

Name: Bogdanov Vladimir Leonidovich

Year of birth: 1951

Education: higher professional, Doctor of Economics

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period	Organization		Position
from	to
2014	present	"Surgutneftegas" PJSC		Director General
2014	June 2018	"Surgutneftegas" PJSC		Vice Chairperson of the Board of
				Directors
June 2018	present	"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.3028

The issuer's ordinary shares held by the person, %: 0.3673

Participation in the work of the committees of the Board of Directors: the member of the Board of Directors does not participate in the work of the committees of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Bulanov Alexander Nikolaevich

Year of birth: 1959

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period			Organization		Position
from		to
2014	present			"Surgutneftegas" PJSC		Chief Engineer - First Deputy
						Director General
2014	present			"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.0005

The issuer's ordinary shares held by the person, %: 0.0002

Participation in the work of the committees of the Board of Directors: the member of the Board of Directors does not participate in the work of the committees of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Dinichenko Ivan Kalistratovich

Year of birth: 1946

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period		Organization		Position
from		to
June 2014	present		"Surgutneftegas" PJSC		Member of the Board of Directors
The person's share in the issuer's charter capital, %: 0.0003

24

The issuer's ordinary shares held by the person, %: 0

Participation in the work of the committees of the Board of Directors: the member of the Audit Committee of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Egorov Valery Nikolaevich

Independent Member of the Board of Directors

Year of birth: 1949

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period		Organization		Position
from		to
June 2018	present		"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.0029

The issuer's ordinary shares held by the person, %: 0.0028

Participation in the work of the committees of the Board of Directors: Chairperson of the Audit Committee of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Krivosheev Viktor Mikhailovich

Year of birth: 1953

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period		Organization		Position
from		to
June 2014	present		"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.0064

The issuer's ordinary shares held by the person, %: 0.0072

Participation in the work of the committees of the Board of Directors: the member of the Board of Directors does not participate in the work of the committees of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Matveev Nikolai Ivanovich

Year of birth: 1942

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

25

	Period	Organization		Position
from		to
2014		June 2018	"Surgutneftegas" PJSC		Member of the Board of Directors
June 2018		present		"Surgutneftegas" PJSC		Vice Chairperson of the Board of
						Directors

No share in the issuer's charter capital/no ordinary shares.

Participation in the work of the committees of the Board of Directors: the member of the Board of Directors does not participate in the work of the committees of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Mukhamadeev Georgy Rashitovich

Independent Member of the Board of Directors

Year of birth: 1948

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period	Organization		Position
from		to
June 2018		present		"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.0031

The issuer's ordinary shares held by the person, %: 0.0034

Participation in the work of the committees of the Board of Directors: the member of the Audit Committee of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Usmanov Ildus Shagalievich

Year of birth: 1954

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period	Organization		Position
from		to
June 2014		present	"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.0018

The issuer's ordinary shares held by the person, %: 0.0022

Participation in the work of the committees of the Board of Directors: the member of the Board of Directors does not participate in the work of the committees of the Board of Directors.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

5.2.2. Individual executive body of the issuer

26

Name: Bogdanov Vladimir Leonidovich

Year of birth: 1951

Education: higher professional, Doctor of Economics

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period	Organization		Position
from		to
2014		present	"Surgutneftegas" PJSC		Director General
2014		June 2018	"Surgutneftegas" PJSC		Vice Chairperson of the Board of
					Directors
June 2018		present	"Surgutneftegas" PJSC		Member of the Board of Directors

The person's share in the issuer's charter capital, %: 0.3028

The issuer's ordinary shares held by the person, %: 0.3673

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

5.2.3. The issuer's collegiate executive body

No provision is made for a collegiate executive body.

5.3. Remuneration and/or compensation for expenses for each management body of the issuer

Remuneration

The Board of Directors

Unit of measure: thousand RUB

Indicator	2019
Remuneration for the participation in the work performed by the	51,796
management body
Salary
Bonus
Commission
Other types of remuneration	247.6
TOTAL	52,043.6

Information on resolutions adopted by the authorized management bodies of the issuer and (or) on existing agreements regarding the amount of such remuneration to be paid and (or) the amount of such expenses to be compensated: remunerations to the members of the issuer's Board of Directors are paid in accordance with the issuer's charter and the Regulations on the Board of Directors.

Compensation

Unit of measure: thousand RUB
Management body	2019
The Board of Directors	8,712.6

Additional information: none.

5.4. Structure and terms of reference for the agencies supervising the issuer's financial and

27

business activities and organization of the risk management and internal control system

There were no changes in the information contained in this clause in the reporting quarter.

5.5. Members of the agencies supervising the issuer's financial and business activities

Agency supervising the issuer's financial and business activities: the Auditing Committee

Name: Oleynik Tamara Fedorovna (chairperson)

Year of birth: 1947

Education: Secondary vocational

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period		Organization		Position
from			to

The person's share in the issuer's charter capital, %: 0.0002

The issuer's ordinary shares held by the person, %: 0.0002

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Prishchepova Lyudmila Arkadyevna

Year of birth: 1951

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period	Organization		Position
from		to
2014		December		"Surgutneftegas" PJSC		Deputy Head of Auditing Department,
		2015				Administrative Office

No share in the issuer's charter capital/no ordinary shares.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Name: Musikhina Valentina Viktorovna

Year of birth: 1960

Education: Secondary vocational

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period			Organization			Position
from			to

No share in the issuer's charter capital/no ordinary shares.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

Agency supervising the issuer's financial and business activities: the Internal Audit Service

28

Head of such a separate business unit (body) of the issuer

Position of the head of the business unit: Head of Service

Name: Arteeva Alexandra Ivanovna

Year of birth: 1959

Education: higher professional

All positions held by the person in the issuer and other organizations over the last 5 years and at present, including outside employment, in date order

	Period	Organization		Position
from		to
2014		present		"Surgutneftegas" PJSC		Head of Internal Audit Service

No share in the issuer's charter capital/no ordinary shares.

The person has no share in the charter capital of the issuer's subsidiaries and affiliates.

The person has no options that, when their rights are exercised, may be used to acquire the issuer's shares, subsidiary's or affiliate's shares.

The person has no kinship with persons who are the members of the issuer's management bodies and/or agencies supervising the issuer's financial and business activities.

5.6. Remuneration and (or) compensation for expenses for the agency supervising the issuer's financial and business activities

Agency supervising the issuer's financial and business activities: the Auditing Committee Remuneration for the participation in the work performed by the supervising agency

Unit of measure: thousand RUB

Indicator	2019
Remuneration for the participation in work performed by the agency	2,100
supervising the issuer's financial and business activities
Salary
Bonus
Commission
Other types of remuneration
TOTAL	2,100

Existing agreements in relation to such payments in the current financial year: none.

Agency supervising the issuer's financial and business activities: the Internal Audit Service Remuneration for the participation in the work performed by the supervising agency

Unit of measure: thousand RUB

Indicator	2019
Remuneration for the participation in work performed by the agency
supervising the issuer's financial and business activities
Salary	10,285.2
Bonus	2,329.5
Commission
Other types of remuneration	480.6
TOTAL	13,095.3

Existing agreements in relation to such payments in the current financial year: none. Compensation

29

Unit of measure: thousand RUB
Supervising body (of the business unit)	2019
Auditing Committee	67.3
Internal Audit Service	936.5

Additional information: none.

5.7. Number and summary records of the issuer's employees (workers), their categories and changes in their number

Unit of measure: thousand RUB

Indicator	2019
Average number of workers, people		101,713
Gross payroll for the reporting period	130,925,383.6
Social payments for the reporting period		2,497,308.9
The employees (workers) of the issuer formed a trade union body.

5.8. Obligations of the issuer to its employees (workers) relating to their possible participation in the issuer's charter capital

The issuer has no obligations to its employees (workers) relating to their possible participation in the issuer's charter capital, and neither provides nor makes provisions for the possibility of granting the issuer's options to the issuer's employees (workers), and nor did it enter into agreements with its employees (workers) regarding the possible participation in the issuer's charter capital.

Section VI. The issuer's members (shareholders) and interested party

transactions conducted by the issuer

6.1. Total number of the issuer's shareholders (members)

The total number of persons having non-zero balances on personal accounts registered in the issuer's shareholder register as of the date when the reporting quarter ended: 31,396

The total number of the issuer's nominee shareholders: 4

The total number of persons included in the most recently compiled list of persons who had (have) the right to participate in the issuer's general shareholders' meeting (the other list of persons compiled in order to exercise (realize) rights to the issuer's shares, and for the compiling of which the nominee holders of the issuer's shares provided data on persons on behalf of whom they held (hold) the issuer's shares): 36,170

The date when the list of persons included in the most recently compiled list of persons who had (have) the right to participate in the issuer's general shareholders' meeting is compiled (the other list of persons compiled in order to exercise (realize) rights to the issuer's shares, and for the compiling of which the nominee holders of the issuer's shares provided data on persons on behalf of whom they held (hold) the issuer's shares): 03.06.2019

Holders of the issuer's ordinary shares who were to be included in such a list: 36,170

Holders of the issuer's preference shares who were to be included in such a list: 0

Information on the number of treasury shares on the issuer's balance as of the end of the reporting quarter Category of shares: ordinary

The number of treasury shares on the issuer's balance: 19,100. Information on the number of the issuer's shares held by its subordinates

30

Category of shares: ordinary

Number of the issuer's shares held by its subordinates, shares: 650,000

6.2. The issuer's members (shareholders) holding at least five percent of its charter capital or at least five percent of its ordinary shares as well as persons controlling such members (shareholders) and in absence of such persons - members (shareholders) of such persons who hold at least 20 percent of the charter capital or at least 20 percent of their ordinary shares

The issuer's members (shareholders) holding at least five percent of its charter capital or at least five percent of its ordinary shares

1. Nominee holder

Information on the nominee holder

Full corporate name: Non-banking credit organization Joint-Stock Company "National Settlement Depository"

Abbreviated corporate name: NCO JSC NSD

Location: 105066, Russia, Moscow, ul.Spartakovskaya, 12

INN: 7702165310

OGRN: 1027739132563

Telephone: [phone]

Fax: [phone]

E-mail: [e-mail]

License of securities market professional participant

Number: 045-12042-000100

Date of issue: 19.02.2009

Valid till: unlimited

Issuing authority: Federal Financial Markets Service (FSFR) of Russia

Number of the issuer's ordinary shares registered in the issuer's shareholder register in the name of the said nominee holder, shares: 3,960,767,966

Number of the issuer's preference shares registered in the issuer's shareholder register in the name of the said nominee holder, shares: 5,106,733,993

Other information as the issuer may wish to disclose: none.

6.3. Share of the state or a municipal formation in the issuer's charter capital; any special right ("golden share")

Share of the charter capital of the issuer under state (federal, of constituent territories of the Russian Federation) municipal ownership and Persons who exercise functions of the issuer's member (shareholder) on behalf of the Russian Federation, constituent territory of the Russian Federation, or municipal formation

Persons who administer blocks of shares owned by the state, municipal formations

Municipal ownership

Name: Municipal unit City district, the city of Surgut as represented by the Administration of the city of Surgut

Location: ul.Engelsa, 8, Surgut, Khanty-Mansiysky Autonomous Okrug - Yugra, Tyumenskaya Oblast

Share of the issuer's charter capital under state (federal, of constituent territories of the Russian Federation) municipal ownership, %: 0.0278

Municipal ownership

Name: Department of Municipal Property Management and Housing Policy of Surgutsky District Administration

Location: ul.Mayakovskogo, 1 A, Bely Yar, AO Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, 628433

31

Share of the issuer's charter capital under state (federal, of constituent territories of the Russian Federation) municipal ownership, %: 0.0127

Special right of the Russian Federation, the constituent territories of the Russian Federation or municipal formations to participate in the administration of the issuer - joint stock company ("golden share") and duration of the special right ("golden share")

No such right.

6.4. Restrictions on participation in the issuer's charter capital

There are no restrictions on participation in the issuer's charter capital.

6.5. Changes in the list and participation of the issuer's shareholders (members) holding at least five percent of its charter capital or at least five percent of its ordinary shares

The issuer's shareholders (members) holding at least five percent of the issuer's charter capital, and for issuers as joint stock companies also holding at least five percent of the issuer's ordinary shares determined as of the date of compiling the list of persons entitled to participate in each general shareholders' (members') meeting of the issuer held in the last completed financial year preceding the date when the reporting quarter ended, and for the period from the date when the current year started till the date when the reporting quarter ended based on the list of persons entitled to participate in each of such meetings

Additional information: none.

1. Interested party transactions conducted by the issuer
   No such transactions.
2. Accounts receivable

Not subject to presentation in this reporting quarter.

Section VII. The issuer's accounting (financial) statements and other financial

information

7.1. Annual accounting (financial) statements of the issuer

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

7.2. Interim accounting (financial) statements of the issuer

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

7.3. Consolidated financial statements of the issuer

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

7.4. Accounting policy of the issuer

There were no changes in the information contained in this clause in the reporting quarter.

7.5. Total export and share of export in total sales

Not subject to presentation in the issuer's report (quarterly report) for the fourth quarter.

7.6. Substantial changes in the issuer's property after the date when the last completed reporting year ended

32

Substantial changes in the issuer's property during 12 months before the date when the reporting quarter ended

There were no substantial changes in the issuer's property during 12 months before the date when the reporting quarter ended.

Additional information: none.

7.7. The issuer's participation in litigations in case such participation may substantially affect the issuer's financial and business activities

The issuer did not/does not participate in any litigations which affected/may affect its financial and business activities for the period from the date when the last completed financial year started and till the date when the reporting quarter ended.

Section VIII. Additional information on the issuer and equity securities placed

by the issuer

8.1. Additional information on the issuer

8.1.1. Size and structure of the issuer's charter capital

The issuer's charter capital as of the end of the reporting quarter, RUB: 43,427,992,940

Ordinary shares

Total nominal value, RUB: 35,725,994,705

Share in the charter capital, %: 82.2648994034

Preference

Total nominal value, RUB: 7,701,998,235

Share in the charter capital, %: 17.7351005966

Specify if the amount of the charter capital stated in this clause corresponds to the issuer's constituent documents: the amount of the charter capital of the issuer corresponds to the constituent documents.

The issuer's shares are traded outside the Russian Federation by means of depositary securities trading (foreign issuer's securities which represent such shares of the Russian issuer).

Category (type) of shares traded outside the Russian Federation Type of securities: shares

Category of shares: ordinary

Shares traded outside the Russian Federation in the total number of shares of the relevant category (type), %: 3.95

Foreign issuer whose securities represent the issuer's shares of this category (type)

Full corporate name: The Bank of New York Mellon.

Location: 240 Greenwich Street, New York, NY 10286, USA

Summary of the issue program (type of the program) for the foreign issuer's depositary securities representing shares of the relevant category (type): sponsored, level I; one American depositary share represents 10 ordinary registered shares of the issuer.

On the issuer's obtaining a permit issued by The Bank of Russia and (or) authorized government body (authorized state authority) of the Russian Federation to offer and (or) trade issuer's securities of the same category (type) outside the Russian Federation: not applicable.

Foreign market maker(s) trading the issuer's shares (depositary securities representing the issuer's shares)

(if such trading exists): Berlin Stock Exchange, Frankfurt Stock Exchange, London Stock Exchange, Pink OTC Markets Inc.

33

Other information on the issuer's shares traded outside the Russian Federation as the issuer may wish to disclose: the date when the program was launched is 30 December 1996.

Type of securities: shares

Category of shares: preference

Type of shares: -

Shares traded outside the Russian Federation in the total number of shares of the relevant category (type), %: 6.61

Foreign issuer whose securities represent the issuer's shares of this category (type)

Full corporate name: The Bank of New York Mellon.

Location: 240 Greenwich Street, New York, NY 10286, USA

Summary of the issue program (type of the program) for the foreign issuer's depositary securities representing shares of the relevant category (type): sponsored, level I; one American depositary share represents 10 preference registered shares of the issuer.

On the issuer's obtaining a permit issued by The Bank of Russia and (or) authorized government body (authorized state authority) of the Russian Federation to offer and (or) trade issuer's securities of the same category (type) outside the Russian Federation: not applicable.

Foreign market maker(s) trading the issuer's shares (depositary securities representing the issuer's shares) (if such trading exists): Berlin Stock Exchange, Frankfurt Stock Exchange, Pink OTC Markets Inc.

Other information on the issuer's shares traded outside the Russian Federation as the issuer may wish to disclose: the date when the program was launched is 19 March 1998.

8.1.2. Changes in the size of the issuer's charter capital

There were no changes in the size of the issuer's charter capital for the last completed financial year preceding the date when the reporting quarter ended, and for the period from the date when the current year started till the date when the reporting quarter ended.

1. Convening and holding a meeting (session) of the issuer's supreme management body There were no changes in the information contained in this clause in the reporting quarter.
2. Commercial organizations where the issuer holds at least five percent of the charter capital or at least five percent of ordinary shares

Commercial organizations where the issuer holds at least five percent of the charter (share) capital (mutual fund) or at least five percent of ordinary shares as of the end of the last reporting quarter

1. Full corporate name: Limited Liability Company "Novgorodnefteproduct"
   Abbreviated corporate name: LLC "Novgorodnefteproduct"
   Location: Russian Federation, Veliky Novgorod
   INN: 5321059365
   OGRN: 1025300788644
   The issuer's share in the charter capital of a commercial organization: 100%
   The person's share in the issuer's charter capital: 0%
   The issuer's ordinary shares held by the person: 0%
2. Full corporate name: Limited Liability Company "Syrgutmebel"
   Abbreviated corporate name: LLC "Syrgutmebel"

Location: Russian Federation, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgutsky District, poselok Barsovo, Vostochnaya industrial 1 territory, 2

INN: 8617013396

OGRN: 1028601679688

The issuer's share in the charter capital of a commercial organization: 100%

The person's share in the issuer's charter capital: 0%

34

The issuer's ordinary shares held by the person: 0%

1. Full corporate name: Limited Liability Company "Marketing Association "Pskovnefteproduct"
   Abbreviated corporate name: LLC "Pskovnefteproduct"
   Location: Russian Federation, Pskov
   INN: 6027042337
   OGRN: 1026000970049
   The issuer's share in the charter capital of a commercial organization: 100%
   The person's share in the issuer's charter capital: 0%
   The issuer's ordinary shares held by the person: 0%
2. Full corporate name: Limited Liability Company "Marketing Association "Tvernefteproduct"
   Abbreviated corporate name: LLC "MA "Tvernefteproduct"
   Location: Russian Federation, Tver, ul.Novotorzhskaya, 6
   INN: 6905041501
   OGRN: 1026900510647
   The issuer's share in the charter capital of a commercial organization: 100%
   The person's share in the issuer's charter capital: 0%
   The issuer's ordinary shares held by the person: 0%
3. Full corporate name: Limited Liability Company "Kaliningradnefteproduct"

Abbreviated corporate name: LLC "Kaliningradnefteproduct"

Location: Russian Federation, Kaliningrad, Central District, ul.Komsomolskaya, 22-b

INN: 3900000136

OGRN: 1023900589240

The issuer's share in the charter capital of a commercial organization: 100%

The person's share in the issuer's charter capital: 0%

The issuer's ordinary shares held by the person: 0%

1. Full corporate name: Limited Liability Company "Oil Refining and Petrochemical Facilities Design Institute"
   Abbreviated corporate name: LLC "Lengiproneftekhim"
   Location: Russian Federation, Saint Petersburg, nab.Obvodnogo kanala, 94
   INN: 7810327462
   OGRN: 1057803105755
   The issuer's share in the charter capital of a commercial organization: 100%
   The person's share in the issuer's charter capital: 0%
   The issuer's ordinary shares held by the person: 0%
2. Full corporate name: Limited Liability Company "KIRISHIAVTOSERVIS"

Abbreviated corporate name: LLC "KIRISHIAVTOSERVIS"

Location: Russian Federation, Saint Petersburg

INN: 7840016802

OGRN: 1057807804064

The issuer's share in the charter capital of a commercial organization: 100%

The person's share in the issuer's charter capital: 0%

The issuer's ordinary shares held by the person: 0%

8. Full corporate name: Limited Liability Company "Media-Invest".

35

Abbreviated corporate name: LLC "Media-Invest"

Location: Russian Federation, Moscow

INN: 7704667322

OGRN: 1077762407580

The issuer's share in the charter capital of a commercial organization: 100%

The person's share in the issuer's charter capital: 0%

The issuer's ordinary shares held by the person: 0%

1. Full corporate name: Limited Liability Company "Production Association "Kirishinefteorgsintez"
   Abbreviated corporate name: LLC "KINEF"
   Location: Russian Federation, Leningradskaya Oblast, Kirishi
   INN: 4708007089
   OGRN: 1024701478735
   The issuer's share in the charter capital of a commercial organization: 100%
   The person's share in the issuer's charter capital: 0%
   The issuer's ordinary shares held by the person: 0%
2. Full corporate name: Limited Liability Company "Rion"

Abbreviated corporate name: LLC "Rion"

Location: Russian Federation, Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug - Yugra,

Surgut

INN: 8602293599

OGRN: 1198617009788

The issuer's share in the charter capital of a commercial organization: 100%

The person's share in the issuer's charter capital: 0%

The issuer's ordinary shares held by the person: 0%

1. Full corporate name: Joint Stock Company "Surgutneftegasbank" Abbreviated corporate name: JSC BANK "SNGB"
   Location: Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut
   INN: 8602190258
   OGRN: 1028600001792
   The issuer's share in the charter capital of a commercial organization: 97.7591%
   The Company's ordinary shares held by the issuer: 98.2389%
   The person's share in the issuer's charter capital: 0.0015%
   The issuer's ordinary shares held by the person: 0.0018%
2. Full corporate name: Limited Liability Company "Invest-Zaschita"

Abbreviated corporate name: LLC "Invest-Zaschita"

Location: 628400, Russian Federation, Tyumenskaya Oblast, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut, ul.Entuziastov, 52/1

INN: 8602102332

OGRN: 1028600581680

The issuer's share in the charter capital of a commercial organization: 15.13%

The person's share in the issuer's charter capital: 0.1152%

The issuer's ordinary shares held by the person: 0.0236%

13. Full corporate name: Joint Stock Company "St. Petersburg International Mercantile Exchange" Abbreviated corporate name: JSC "SPIMEX"

Location: Russian Federation, Saint Petersburg

36

INN: 7840389730

OGRN: 1089847188903

The issuer's share in the charter capital of a commercial organization: 8%

The Company's ordinary shares held by the issuer: 8%

The person's share in the issuer's charter capital: 0%

The issuer's ordinary shares held by the person: 0%

14. Full corporate name: Joint Stock Company "Airport Surgut" Abbreviated corporate name: JSC "Airport Surgut"

Location: Russian Federation, Khanty-Mansiysky Autonomous Okrug - Yugra, Surgut

INN: 8602060523

OGRN: 1028600603998

The issuer's share in the charter capital of a commercial organization: 5%

The Company's ordinary shares held by the issuer: 5%

The person's share in the issuer's charter capital: 0%

The issuer's ordinary shares held by the person: 0%

8.1.5. Major transactions conducted by the issuer

In the reporting period, the issuer made no transactions falling under criteria stated in clause 8.1.5, Appendix 3 to Regulations No. 454-P "On Disclosing Information by Securities Issuers" dated 30 December 2014.

8.1.6. Credit ratings of the issuer

There were no changes in the information contained in this clause in the reporting quarter.

8.2. Data on each category (type) of the issuer's shares

Category of shares: ordinary

Par value of each share (RUB): 1

Number of outstanding shares (number of shares that are placed and are not redeemed): 35,725,994,705

Number of additional shares which can be or being placed (number of shares in an additional issue in respect to which the state registration has been granted, but the report on the additional issue was not registered, or a notification of the additional issue was not submitted in case the Federal Law "On Securities Markets" does not prescribe state registration of the report of the additional issue): 0

Number of declared shares: 0

Number of shares which came to the disposal (are on the balance) of the issuer: 19,100

Number of additional shares that can be placed through conversion of the previously placed securities convertible into shares or by virtue of fulfillment of the issuer's option obligations: 0

Issues of shares of this category (type):

Date of state registration	State registration number of the issue
24.06.2003	1-01-00155-A

Shares grant shareholders the following rights

An ordinary share of the issuer entitles its owner to the same amount of rights:

• the right to participate in the General shareholders' meeting of the issuer with the right to vote on all issues within his/her terms of reference;
• the right to receive dividends and, in case of dissolution of the issuer, the right to receive a portion of its property.
• the right to dispose of shares without consent of other shareholders and the issuer;
• exercising his/her rights, including the right to participate in the General shareholders' meeting of the issuer both in person and by proxy.
  Each ordinary share shall provide its owner with the right to one vote when the issues put to vote at the General shareholders' meeting of the issuer are resolved, except when the members of the issuer's

37

Board of Directors are elected. The issuer's Board of Directors shall be elected by cumulative voting. When conducting cumulative voting the number of votes for each issuer's voting share shall be equal to the total number of the issuer's Board of Directors. A shareholder has the right to cast all the votes carried by his/her share for one candidate or distribute them among several candidates to the issuer's Board of Directors.

The shareholders who own the voting shares shall have the right to demand from the issuer to buy back all or a portion of the shares owned by them in cases specified by the current legislation of the Russian Federation.

The shares shall be bought back by the issuer in accordance with the current legislation of the Russian Federation.

A shareholder shall have no ownership right to the property of the issuer except as in the event of distribution of the property upon dissolution of the issuer.

A shareholder of the issuer who owns ordinary shares shall have the pre-emptive right to acquire additional ordinary shares and equity securities placed through a public subscription, convertible into ordinary shares, in the amount proportional to that of the ordinary shares of the issuer held by them.

Other information on the shares as the issuer may wish to disclose

In accordance with Ordinance of the Federal Securities Market Commission of Russia No. 03- 1215/r dated 24 June 2003, the additional issues of equity securities of OJSC "Surgutneftegas" were consolidated to cancel the following state registration numbers assigned to the issues of ordinary registered non-documentary shares of OJSC "Surgutneftegas":

87-1-664 dated 19.07.94;

MF 67-1-01430 dated 30.09.96; 1-05-00155-А dated 25.08.97; 1-06-00155-А dated 22.12.97;

1-07-00155-А dated 18.04.2000.

Category of shares: preference

Type of shares:

Par value of each share (RUB): 1

Number of outstanding shares (number of shares that are placed and are not redeemed): 7,701,998,235 Number of additional shares which can be or being placed (number of shares in an additional issue in respect to which the state registration has been granted, but the report on the additional issue was not registered, or a notification of the additional issue was not submitted in case the Federal Law "On Securities Markets" does not prescribe state registration of the report of the additional issue): 0

Number of declared shares: 0

Number of shares which came to the disposal (are on the balance) of the issuer: 0

Number of additional shares that can be placed through conversion of the previously placed securities convertible into shares or by virtue of fulfillment of the issuer's option obligations: 0

Issues of shares of this category (type):

Date of state registration	State registration number of the issue
24.06.2003	2-01-00155-А

Shares grant shareholders the following rights

A preference share of the issuer entitles its owner to the same amount of rights:

A shareholder shall have no ownership right to the property of the issuer except as in the event of distribution of the property upon dissolution of the issuer.

The shareholders shall have the right to dispose of shares owned by him/her without consent of other shareholders and the issuer.

The shareholders who own preference shares shall have the right to receive an annual fixed dividend.

The total amount payable as dividend on each preference share shall be set at the rate of 10 percent of the issuer's net profit based on the results of the last reporting year divided by the number of shares accounting for 25 percent of the charter capital of the issuer.

If the amount of dividends paid by the issuer on each ordinary share in a certain year exceeds the amount payable as dividends on each preference share, the dividend amount paid on the latter shall be increased up to the dividend amount paid per ordinary share.

38

The issuer shall have no right to pay dividends on preference shares otherwise than prescribed by the issuer's charter.

The shareholders of the issuer who own preference shares of the issuer shall have no right to vote at the General shareholders' meeting of the issuer, unless otherwise established by the Federal Law "On Joint Stock Companies".

In case of acquisition of the voting right, the owner of preference shares shall have the right to demand that the issuer buy back his/her shares if:

• the issuer is being restructured or a major transaction is being conducted, the resolution about which is adopted by the general shareholders' meeting in compliance with the issuer's charter, if he/she voted against such a resolution or transaction or did not vote on these issues;
• the issuer's charter is amended or approved in a new wording to restrict his/her rights if he/she voted against the corresponding resolution or did not participate in voting.
  A shareholder of the issuer who owns preference shares of the issuer shall have the pre-emptive right to acquire additional preference shares and equity securities placed through a public subscription, convertible into preference shares, in the amount proportional to that of the preference shares of the issuer held by them.

Other information on the shares as the issuer may wish to disclose

In accordance with Ordinance of the Federal Securities Market Commission of Russia No. 03- 1215/r dated 24 June 2003, the additional issues of equity securities of OJSC "Surgutneftegas" were consolidated to cancel the following state registration numbers assigned to the issues of preference registered non-documentary shares of "Surgutneftegas" PJSC:

87-1-664 dated 19.07.94;

MF 67-1-01184 dated 05.04.96; MF 67-1-01431 dated 30.09.96; 2-05-00155-А dated 25.08.97; 2-06-00155-А dated 24.10.97.

8.3. Previous issues of the issuer's equity securities, excluding the issuer's shares

8.3.1. Issues with all securities redeemed

There were no changes in the information contained in this clause in the reporting quarter.

8.3.2. Issues with securities that are not redeemed

There were no changes in the information contained in this clause in the reporting quarter.

8.4. Person(s) who offered security for the issuer's secured bonds and security offered for the issuer's secured bonds

As of the date when the reporting quarter ended, there are no issuer's outstanding secured bonds with non-fulfilled obligations in respect of which the prospectus and (or) admission to trading were registered.

1. Additional information on the mortgage collateral on the issuer's mortgage-backed bonds
   The issuer placed no mortgage-backed bonds obligations on which are non-fulfilled yet.
2. Additional information on the collateral by money claims for the bonds of the issuer with the collateral by money claims

The issuer placed no bonds with the collateral by money claims obligations on which are non- fulfilled yet.

8.5. Organizations keeping records of rights for the issuer's equity securities

There were no changes in the information contained in this clause in the reporting quarter.

8.6. Legislative acts regulating import and export of capital which may influence dividend payment, interests and other payments to non-residents

39

There were no changes in the information contained in this clause in the reporting quarter.

8.7. Declared (accrued) and (or) paid dividends on the issuer's shares and the issuer's bond yield

8.7.1. Dividends declared and paid on the issuer's shares

Information for last five completed reporting years or for each completed reporting year if the issuer conducts its business for less than five years, and for the period from the date when the current year started till the date when the reporting quarter ended

Indicator	Indicator value for the relevant reporting
	period - 2014, full year
Category of shares, for preference shares - type	ordinary

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

Other information on the declared and (or) paid dividends as the issuer may wish to disclose

The resolution was adopted by the general shareholders' meeting on 27.06.2015, Minutes No. 26 dated 30.06.2015

0.65

23,221,896,558.25

16.07.2015

2014, full year

dividends shall be paid not later than on 20

August 2015

cash

net profit of the reporting year

2.6

23,208,648,207.83

99.94

Obligations to pay dividends for 2014 on the issuer's ordinary shares were fulfilled except for the situations when the issuer does not bear responsibility in accordance with Article 44 of the Federal Law "On Joint Stock Companies" for the reasons beyond the issuer's control when incorrect, incomplete or outdated information on bank details and/or mail address was entered in a registered person's dividends questionnaire.

Declared unclaimed dividends are reinstated as part of the issuer's undistributed profits.

Indicator	Indicator value for the relevant reporting

40

	period - 2014, full year
Category of shares, for preference shares - type	preference

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

Other information on the declared and (or) paid dividends as the issuer may wish to disclose

Indicator

Category of shares, for preference shares - type

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

The resolution was adopted by the general shareholders' meeting on 27.06.2015, Minutes No. 26 dated 30.06.2015

8.21

63,233,405,509.35

16.07.2015

2014, full year

dividends shall be paid not later than on 20

August 2015

cash

net profit of the reporting year

7.09

62,619,662,368.77

99.03

Obligations to pay dividends for 2014 on the

issuer's preference shares were fulfilled

except for the situations when the issuer does not bear responsibility in accordance with Article 44 of the Federal Law "On Joint Stock Companies" for the reasons beyond the issuer's control when incorrect, incomplete or outdated information on bank details and/or mail address was entered in a registered person's dividends questionnaire.

Declared unclaimed dividends are reinstated as part of the issuer's undistributed profits.

Indicator value for the relevant reporting

period - 2015, full year

ordinary

The resolution was adopted by the general shareholders' meeting on 29.06.2016, Minutes No. 27 dated 30.06.2016

0.60

21,435,596,823.00

41

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

Other information on the declared and (or) paid dividends as the issuer may wish to disclose

Indicator

Category of shares, for preference shares - type

18.07.2016

2015, full year

22.08.2016

cash

net profit of the reporting year

2.85

21,423,379,131.16

99.94

Obligations to pay dividends for 2015 on the issuer's ordinary shares were fulfilled except for the situations when the issuer does not bear responsibility in accordance with Clause 16 of Article 8.2 of the Federal Law "On Securities Market"

Declared unclaimed dividends are reinstated as part of the issuer's undistributed profits.

Indicator value for the relevant reporting

period - 2015, full year

preference

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting

The resolution was adopted by the general shareholders' meeting on 29.06.2016, Minutes No. 27 dated 30.06.2016

6.92

53,297,827,786.20

18.07.2016

2015, full year

22.08.2016

cash

net profit of the reporting year

7.09

42

	year, %
	Total dividends paid on the shares of this category (type),	52,789,443,657.57
	RUB
	Payout ratio in the total amount of the declared dividends on	99.05
	the shares of this category (type), %
	In case the declared dividends are not paid by the issuer or	Obligations to pay dividends for 2015 on the
	paid not in full - reasons for non-payment of the declared	issuer's preference shares were fulfilled
	dividends	except for the situations when the issuer does
		not bear responsibility in accordance with
		Clause 16 of Article 8.2 of the Federal Law
		"On Securities Market"
		Declared unclaimed dividends are reinstated
		as part of the issuer's undistributed profits.

Indicator	Indicator value for the relevant reporting
	period - 2016, full year
Category of shares, for preference shares - type	ordinary

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

The resolution was adopted by the general shareholders' meeting on 29.06.2017, Minutes No. 28 dated 29.06.2017

0.6

21,435,596,823.00

19.07.2017

2016, full year

23.08.2017

cash

undistributed profits of the previous years

-

21,423,686,148.38

99.94

Obligations to pay dividends for 2016 on the issuer's ordinary shares were fulfilled except for the situations when the issuer does not bear responsibility in accordance with Clause 16 of Article 8.2 of the Federal Law "On

43

		Securities Market"
	Other information on the declared and (or) paid dividends as
	the issuer may wish to disclose
	Indicator	Indicator value for the relevant reporting
		period - 2016, full year
	Category of shares, for preference shares - type	preference

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

Other information on the declared and (or) paid dividends as the issuer may wish to disclose

Indicator

Category of shares, for preference shares - type

The resolution was adopted by the general shareholders' meeting on 29.06.2017, Minutes No. 28 dated 29.06.2017

0.60

4,621,198,941.00

19.07.2017

2016, full year

23.08.2017

cash

undistributed profits of the previous years

-

4,576,812,288.21

99.04

Obligations to pay dividends for 2016 on the

issuer's preference shares were fulfilled

except for the situations when the issuer does not bear responsibility in accordance with Clause 16 of Article 8.2 of the Federal Law "On Securities Market"

Indicator value for the relevant reporting

period - 2017, full year

ordinary

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

The resolution was adopted by the general shareholders' meeting on 29.06.2018, Minutes No. 29 dated 29.06.2018

0.65

44

Total dividends declared on all shares of this category (type),	23,221,896,558.25
RUB
	19.07.2018
The date as of which the persons entitled to dividends are
(were) determined
Reporting period (year, quarter) for which (at the end of	2017, full year
which) the declared dividends are (were) paid
The due period (date) of declared dividend payment	23.08.2018
Form of declared dividend payment (cash, other property)	cash
Sources of payment of the declared dividends (net profit of	net profit of the reporting year
the reporting year, net undistributed profits of the previous
years, special fund)
Declared dividends ratio in the net profit of the reporting	15.51
year, %
Total dividends paid on the shares of this category (type),	23,207,348,393.82
RUB
Payout ratio in the total amount of the declared dividends on	99.94
the shares of this category (type), %
In case the declared dividends are not paid by the issuer or	Obligations to pay dividends for 2017 on the
paid not in full - reasons for non-payment of the declared	issuer's ordinary shares were fulfilled except
dividends	for the situations when the issuer does not
	bear responsibility in accordance with Clause
	16 of Article 8.2 of the Federal Law "On
	Securities Market"
Other information on the declared and (or) paid dividends as
the issuer may wish to disclose
Indicator	Indicator value for the relevant reporting
	period - 2017, full year
Category of shares, for preference shares - type	preference

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

The resolution was adopted by the general shareholders' meeting on 29.06.2018, Minutes No. 29 dated 29.06.2018

1.38

10,628,757,564.30

19.07.2018

2017, full year

23.08.2018

cash

net profit of the reporting year

7.1

10,525,046,983.34

45

	RUB
		99.02
	Payout ratio in the total amount of the declared dividends on
	the shares of this category (type), %
	In case the declared dividends are not paid by the issuer or	Obligations to pay dividends for 2017 on the
	paid not in full - reasons for non-payment of the declared	issuer's preference shares were fulfilled
	dividends	except for the situations when the issuer does
		not bear responsibility in accordance with
		Clause 16 of Article 8.2 of the Federal Law
		"On Securities Market"
	Other information on the declared and (or) paid dividends as
	the issuer may wish to disclose

Indicator	Indicator value for the relevant reporting
	period - 2018, full year
Category of shares, for preference shares - type	ordinary

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

Other information on the declared and (or) paid dividends as the issuer may wish to disclose

The resolution was adopted by the general shareholders' meeting on 28.06.2019, Minutes No. 30 dated 28.06.2019

0.65

23,221,896,558.25

18.07.2019

2018, full year

22.08.2019

cash

net profit of the reporting year

2.81

23,206,047,983.63

99.93

Obligations to pay dividends for 2018 on the

issuer's preference shares were fulfilled

except for the situations when the issuer does not bear responsibility in accordance with Clause 16 of Article 8.2 of the Federal Law "On Securities Market"

Indicator	Indicator value for the relevant reporting
	period - 2018, full year

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Category of shares, for preference shares - type

preference

Issuer's management body which adopted a resolution of dividend declaration, the date when such a resolution was adopted, the date and number of the minutes of the meeting (session) of the issuer's management body when such a resolution was adopted

Dividends declared per one share, RUB

Total dividends declared on all shares of this category (type),

RUB

The date as of which the persons entitled to dividends are (were) determined

Reporting period (year, quarter) for which (at the end of which) the declared dividends are (were) paid

The due period (date) of declared dividend payment

Form of declared dividend payment (cash, other property)

Sources of payment of the declared dividends (net profit of the reporting year, net undistributed profits of the previous years, special fund)

Declared dividends ratio in the net profit of the reporting year, %

Total dividends paid on the shares of this category (type),

RUB

Payout ratio in the total amount of the declared dividends on the shares of this category (type), %

In case the declared dividends are not paid by the issuer or paid not in full - reasons for non-payment of the declared dividends

Other information on the declared and (or) paid dividends as the issuer may wish to disclose

The resolution was adopted by the general shareholders' meeting on 28.06.2019, Minutes No. 30 dated 28.06.2019

7.62

58,689,226,550.70

18.07.2019

2018, full year

22.08.2019

cash

net profit of the reporting year

7.09

58,087,089,319.25

98.97

Obligations to pay dividends for 2018 on the

issuer's preference shares were fulfilled

except for the situations when the issuer does not bear responsibility in accordance with Clause 16 of Article 8.2 of the Federal Law "On Securities Market"

Obligations to pay dividends for 2016 - 2018 on the issuer's shares were fulfilled except for the situations when the issuer does not bear responsibility in accordance with the legislation of the Russian Federation.

8.7.2. Accrued and paid yield on the issuer's bonds

There were no changes in the information contained in this clause in the reporting quarter.

1. Miscellaneous information no.
2. Represented securities and the issuer of represented securities title to which is evidenced by Russian Depositary Receipts

The issuer does not issue any represented securities title to which is evidenced by Russian Depositary Receipts.

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