Report on the Board of Directors’ Performance in 2020

Strategy

Results of implementation of the following were considered:

• Long-Term Development Programme for 2019, for Q1 2020, for H1 2020 and for 9 months of 2020;
• Transneft Innovative Development Programme for 2019.

The specifications for auditing the implementation of the Transneft

Long-Term Development Programme for 2020 was approved.

Financial and operational activities

The following reports and issues were considered:

• quarterly reports on procurement results;
• quarterly reports of the executive body on the financial and economic performance of Transneft and Transneft Group;
• the Company’s charitable activities;
• approval of transactions.

The following issues were considered and approved:

• Report on implementation in 2019 of Transneft’s Programme for Operational Efficiency Improvement and Cost Cutting;
• the revised version of the system of key performance indicators of Transneft’s economic activities for 2019;
• Transneft’s Budget for 2021; the Consolidated Budget of Revenues and Expenses of Transneft Group for 2021; the Consolidated Cash Flow Budget of Transneft Group for 2021;
• Adjusted projected values of key performance indicators of economic activities for 2020.

Corporate governance

The following documents in the field of corporate governance were considered and approved:

• Regulations for access to insider information of Transneft and internal control regulations for prevention, detection and suppression of unlawful use of insider information and (or) market manipulation;
• The Report on Compliance with the Information Policy;
• Transneft corporate governance practice in 2020.

The following documents in the field of counteracting corruption were considered and approved:

• The Report on Anti-Corruption Measures Implemented by Transneft in 2019;
• The revised version of Transneft’s Anti-Corruption Policy.

The following documents in the field of risk management were considered and approved:

• Transneft’s Risk Management Report for 2019;
• The list of critical risks was supplemented.

The following documents in the field of internal control were considered and approved:

• The revised Standards for the Procurement of Certain Types of Goods, Works and Services.

The following documents in the field of internal audit were considered and approved:

• The main lines of development for 2021;
• The report for 2019;
• The employment agreement with the Director of the Department of Internal Audit and Analysis of Core Business Activities of Transneft.