accordance with the WECM Rules and Joining Contract provisions. 
 
    Considering the above, P. S. Grachev has no opportunity to influence the 
 terms and conditions of the CCT Agreements between the Company and PJSC FGC 
                                                                        UES. 
 
Throughout the period of filling the Board Member vacancy, P. S. Grachev has 
   been involved actively in the activities of the Board of Directors of the 
    Company - he has been participating in the absolute majority of meetings 
  held by the Board of Directors and Committees under the Board of Directors 
 of the Company (including those of the Board of Directors, Audit Committee, 
   HR and Remunerations (Nominations) Committee, Strategy Committee, and Far 
   East Power Industry Development Committee, as held since the beginning of 
                                                                      2020). 
 
        P. S. Grachev's track record with the Company Board of Directors and 
  Committees under the Company Board of Directors in 2016 - 2020, as well as 
   his active stands in the discussions at the in-person meetings, have been 
         demonstrating his ability to provide independent, unbiased and fair 
       judgments, since the P. S. Grachev's stands as to the agenda items of 
      meetings of the Board of Directors and the Committees are based on his 
  professional expertise and experience, being rational and independent, and 
the nature of resolutions adopted by P. S. Grachev previously and at present 
allow coming to a conclusion that occurrence of his nominal relatedness to a 
 substantial counterparty of the Company will affect neither independence of 
P. S. Grachev, nor his ability to act for the benefit of the Company and all 
                                                       shareholders thereof. 
 
 P. S. Grachev signed a Declaration of a Member of the Board of Directors of 
    the Company Recognized as Independent, in the form recommended by Moscow 
                                                                   Exchange. 
 
      * P. S. Grachev is a member of the Board of Directors of PJSC FGC UES. 
 
                                               Schedule No. 8 to the Minutes 
 
   Having assessed the compliance of M. S. Bystrov, a member of the Board of 
Directors of the Company, with the criteria for determining the independency 
  of the Board members, as envisaged by Appendix 4 to the Listing Rules, the 
HR and Remunerations (Nominations) Committee (Minutes No. 105 dated December 
         21, 2020) established that M. S. Bystrov is not a party related to: 
 
? the Company competitors; 
 
? the state (the Russian Federation, a Russian Federation constituent 
entity), or any municipal entity. 
 
     According to the assessment results, for M. S. Bystrov, a criteria were 
                                               revealed of being related to: 
 
? a substantial Company shareholder - the Russian Federation**, 
as M. S. Bystrov is a Board Member at more than two organizations 
controlled by the Russian Federation, namely Rosseti PJSC, SO UES JSC, and 
RusHydro; 
 
? the Company - M. S. Bystrov has been a Member of the Board of Directors 
of the Company since 2013, i.e. as of June 28, 2020, the period of his 
holding the Board Member position amounted to over 7, but less than 12 
years (7 years 3 months). 
 
? the Company substantial counterparties: ATS JSC, SO UES JSC, CFR JSC, 
Market Council TC ANO***, Karachaevo-Cherkesskenergo JSC, Kabbalkenergo 
JSC***, STC UPS Protivoavariynoe Upravlenie JSC****, and PJSC FGC 
UES*****, because the amount of liabilities under agreements between the 
Company and each of the aforesaid counterparties has exceeded 2% of the 
book value of assets as of the immediately preceding reporting date and/or 
2% of the revenues for the preceding fiscal year, of each of the 
counterparties, and as regards liabilities to PJSC FGC UES also exceeds 2% 
of the Company's revenue under consolidated statements prepared under IFRS 
for the preceding fiscal year. 
 
         The HR and Remunerations (Nominations) Committee under the Board of 
      Directors of the Company established that the existing relation to the 
 Company, its substantial counterparties and its substantial shareholder, is 
 of nominal nature, and recommended the Board of Directors of the Company to 
                         recognize M. S. Bystrov as an Independent Director. 
 
  M. S. Bystrov's relatedness to the Company substantial counterparties: ATS 
 JSC, SO UES JSC, CFR JSC, Market Council TC ANO, Karachaevo-Cherkesskenergo 
   JSC, Kabbalkenergo JSC, STC UPS Protivoavariynoe Upravlenie JSC, PJSC FGC 
  UES, and with the Company substantial shareholder is of nominal nature and 
   cannot affect his ability to form unbiased and independent opinions as to 
       the agenda items considered by the Board of Directors and act for the 
  benefit of the Company and all shareholders thereof, due to the reasons as 
                                                                    follows: 
 
? Pursuant to Order No. 804-r dated March 30, 2020 of the Government of 
the Russian Federation (hereinafter, the Russian Government), M. S. 
Bystrov was nominated, by the Russian Federation, to the Company Board 
Members as an Independent Director, thereby there is no duty for M. S. 
Bystrov to vote in pursuance of the Russian Government directives, if 
elected into the Board of Directors in 2020 (Clause 16 of Regulation No. 
738 of the Government of the Russian Federation dated December 03, 2004); 
 
? ATS JSC***** (Wholesale Electricity and Capacity Market Trading System 
Administrator Joint Stock Company) is a wholesale electricity and capacity 
market (hereinafter, the wholesale market) commercial operator, and 
renders services, to the Company, in the sphere of arranging electricity 
and capacity trading at the wholesale market, as prescribed by Article 33, 
Clause 7 of Federal Law No. 35-FZ dated March 26, 2003, "On Electric Power 
Industry" (hereinafter, the Russian Federal Law on the Electric Power 
Industry), under the Contract for Joining the Wholesale Market Trading 
System. The Contract terms and conditions are and shall be binding on the 
parties. Commercial relations between the Company and ATS JSC are based on 
the principle of non-discriminatory access to the services providable by 
the wholesale market commercial infrastructure organizations (Article 20 
of the Russian Federal Law on the Electric Power Industry) and the 
principle of the state regulation of tariffs for the wholesale market 
commercial operator's services (Article 23.1 of the Russian Federal Law on 
the Electric Power Industry); 
 
? SO UES JSC (System Operator of the Unified Energy System Joint-Stock 
Company) renders services, to the Company, in the operational dispatch 
management in the electric power industry owing to its system operator's 
status assigned thereto by Article 12, Clause 1, of the Russian Federal 
Law on the Electric Power Industry, under the Contract for Joining the 
Wholesale Market Trading System. Commercial relations between the Company 
and SO UES JSC are based on the principle of non-discriminatory access to 
the operational dispatch management in the electric power industry 
(Article 20, Clause 6, of the Russian Federal Law on the Electric Power 
Industry) and the principle of the state regulation of tariffs for the 
operational dispatch management services (Article 23.1 of the Russian 
Federal Law on the Electric Power Industry); 
 
? CFR JSC (Center of Financial Settlements Joint-Stock Company) is a 
Russian Federation wholesale electricity and capacity market commercial 
infrastructure organization that ensures functioning of the wholesale 
market contractual structure and the system of financial settlements 
between the market participants, and renders services, to the Company, in 
estimating requirements and liabilities under the Contract for Joining the 
Wholesale Market Trading System. The said Contract was executed in 
pursuance of Article 32, Clause 1, of the Russian Federal Law on the 
Electric Power Industry, and Clause 40 of Rules of the Wholesale 
Electricity and Capacity Market as approved by the Russian Government 
Resolution No. 1172 dated December 27, 2010) (hereinafter, the "WECM 
Rules"). 
 
       Commercial relations between the Company and CFR JSC are based on the 
    principle of non-discriminatory access to the services providable by the 
 wholesale market commercial infrastructure organizations (Article 20 of the 
  Russian Federal Law on the Electric Power Industry). The amount of payment 
    for the CFR JSC service package, the same for all counterparties, is and 
shall be as approved by the NP Market Council Association Supervisory Board; 
 
? Market Council TC ANO (NP Market Council Training Center Continuing 
Professional Education Autonomous Non-Commercial Organization) established 
under NP Market Council Association, a wholesale and retail electricity 
and capacity trading infrastructural organization, renders services, to 
the Company, in educating and training specialists in the sphere of 
arranging effective wholesale and retail electricity and capacity trading 
system. 
 
  Whereas wholesale market regulations, as approved by the NP Market Council 
 Association Supervisory Board (hereinafter, the "WECM Regulations"), change 
   regularly, for the purposes of maintaining high level of knowledge in the 
        area of wholesale market procedures and obtaining information on the 
  wholesale market actual and planned changes, the Company employees must be 
  trained at the original source of the changes, namely at Market Council TC 
   ANO. Contracts for education and training, between the Company and Market 
                     Council TC ANO, are concluded on an arm's length basis; 
 
? Karachaevo-Cherkesskenergo JSC and Kabbalkenergo JSC are the only 
guaranteed supply companies in the territory where they operate, that 
acquire energy resources at the wholesale market and sale them to any

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