Report on the execution of the instructions of the President of the Russian Federation and the decrees of the government of the Russian Federation

Instructions of the President of the Russian Federation and Decrees of the Government of the Russian Federation Information on execution by the Company of the relevant Instructions and Decrees

On the possibility of the JSC transition to tax control in the form of tax monitoring.

In pursuance of directive No. 11528п-П13 (p-P13) of the Government of the Russian Federation dated December 13, 2019

The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 176 dated December 30, 2019).

On amendments to Zarubezhneft JSC procurement documentation governing competitive procedures.

In pursuance of directive No. 10464п-П13 (p-P13) of the Government of the Russian Federation dated November 18, 2019

The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 176 dated December 30, 2019).

On expediency of the Company integration into the activities covered by the national project (program) “International Cooperation and Export”.

In pursuance of directive No. 10357п-П13 (p-P13) of the Government of the Russian Federation dated November 14, 2019

The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 176 dated December 30, 2019).

On the purchase of Russian production used to execute national projects and implement a comprehensive plan of modernization and expansion of the trunk infrastructure.

In pursuance of directive No. 9984п-П13 (p-P13) of the Government of the Russian Federation dated November 1, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 174 dated November 26, 2019).
  • On December 26, 2019, the BD considered the issue “On updating of Zarubezhneft JSC KPI system”, approved revised editions of passports and weight of corporate KPIs of Zarubezhneft JSC (Minutes No. 175 dated December 26, 2019).

On implementation of methodological guidelines on KPI application in state companies and development (updating) of the Company bylaws governing formation of key performance indicators and compensations to the Company management.

In pursuance of Decree No. 1388-p of the Government of the Russian Federation dated June 27, 2019, and directive No. 9054п-П13 (p-P13) of the Government of the Russian Federation dated October 2, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 174 dated November 26, 2019).
  • On December 26, 2019, the BD considered the issue “On updating of Zarubezhneft JSC KPI system”, approved revised editions of passports and weight of corporate KPIs of Zarubezhneft JSC (Minutes No. 175 dated December 26, 2019).

On establishing Zarubezhneft JSC subsidiaries.

In pursuance of directive No. 5051п-П13 (p-P13) of the Government of the Russian Federation dated June 10, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 170 dated June 27, 2019).
  • ZN Razvitiye LLC was registered on July 22, 2019 (OGRN (PSRN) 1197746461516), and ZN Dobycha LLC was registered on August 1, 2019 (OGRN (PSRN) 1197746486343).

On Zarubezhneft JSC year-end dividends for 2018

In pursuance of directive No. 4482п-П13 (p-P13) of the Government of the Russian Federation dated May 23, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 168 dated May 29, 2019).
  • The dividends were paid on August 9, 2019 (Payment Order No. 3789 dated August 9, 2019).

On expanding the practice of using factoring in the performance of contracts for the supply of goods (performance of work, provision of services).

In pursuance of directive No. 4111п-П13 (p-P13) of the Government of the Russian Federation dated May 8, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 169 dated June 11, 2019).
  • The amendments provided for by the directives were made to the documents governing procurement activities of Zarubezhneft Group, as follows:
    • the Regulation on Procurement of Zarubezhneft JSC (approved by Minutes No. 169 of the BD meeting dated June 11, 2019);
    • the Unified Regulation on Procurement for the Needs of Subsidiaries under List 1 (approved by Order No. 178 dated June 11, 2019);
    • the Unified Regulation on Procurement for the Needs of Subsidiaries under List 2 (approved by Order No. 207 dated June 28, 2019).
  • The existing edition of the Regulation on Procurement of Zarubezhneft JSC (approved by Minutes No. 176 dated December 30, 2019) also meets the requirements set forth in the directives.

On finalizing corporate import phase-out plans for protection against radiation, chemical and biological factors.

In pursuance of directive No. 584п-П13 (p-P13) of the Government of the Russian Federation dated January 26, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 166 dated March 29, 2019).
  • The activities provided for by the directives were included in the revised edition of Annex No. 8 to the LTDP as approved by the BD of Zarubezhneft JSC (Minutes No. 168 dated June 11, 2019).
  • The standard defining personal protection equipment for employees of the Companies belonging to Zarubezhneft Group was updated (Order No. 407 dated December 30, 2019).

On development of programs to improve the quality of procurement management.

In pursuance of directive No. 1519п-П13 (p-P13) of the Government of the Russian Federation dated February 20, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 164 dated February 26, 2019).
  • The General Director of Zarubezhneft JSC approved the Program on the Procurement Activities Management Quality Improvement (DZ No. 25/666 dated February 28, 2019), which provides for extension of the Directives to Zarubezhneft JSC Subsidiaries.
  • Within the framework of the Program implementation, inter alia, standard forms of procurement documentation were approved (Order No. 185 dated June 18, 2019), indicators for the procurement performed by the Subsidiaries were developed (Letter No. ДМ-25-2507 (DM) dated June 27, 2019), and test procurements through electronic trading platforms of SberB2B, TEK-torg and GPB were carried out.
  • Copies of the approved Program on the Procurement Activities Management Quality Improvement, along with excerpts from Minutes No. 164 of the meeting of the Board of Directors dated February 26, 2019 on adoption of resolutions in pursuance of the Directives were posted in Zarubezhneft JSC Personal Account on the Interdepartmental Portal of the Federal Agency for State Property Management.

On updating the Long-Term Development Program of Zarubezhneft JSC (hereinafter, the LTDP) and submission of the LTDP audit reports to the Ministry of Economic Development of the Russian Federation, the Federal Agency for State Property Management, and federal executive authorities coordinating Zarubezhneft JSC activities, in accordance with Decree No. 1870-р of the Government of the Russian Federation dated August 30, 2017

In pursuance of directive No. 276п-П13 (p-P13) of the Government of the Russian Federation dated January 17, 2019

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 164 dated February 26, 2019).
  • The Company developed, and the BD approved, Annex No. 14 to the LTDP “The Activities of the Long-Term Development Program to Accelerate the Growth Rates of Investments in Fixed Capital of the Exploration and Production Segment” (Minutes No. 169 dated June 11, 2019).
  • The auditor’s opinion based on the audit of the LTDP for 2018 was sent to the Ministry of Economic Development, the Federal Agency for State Property Management, and the Ministry of Energy (Ref. No. СК-46-1890 (SK) dated May 20, 2019) and was posted on the Interdepartmental Portal of the Federal Agency for State Property Management on May 31, 2019.

On transition of Zarubezhneft JSC to preferential use of domestic software.

In pursuance of directive No. 10068п-П13 (p-P13) of the Government of the Russian Federation dated December 6, 2018

  • The resolutions provided for by the directives were adopted by the Company BD on January 28, 2019 (Minutes No. 163 dated January 28, 2019).
  • Action Plan for 2019–2021, for Zarubezhneft JSC transition to preferential use of domestic software (hereinafter, the “Action Plan”) was agreed upon with ANO Center of Expertise on Import Phase-Out in the Information and Communication Technology (Rus: “Tsentr Kompetentsiy po Importozameshcheniyu v Sfere Informatsionno-Kommunikatsionnykh Tekhnologiy”) (Letter Ref. No. 03/130 dated March 13, 2019), and was approved by the BD of Zarubezhneft JSC (Minutes No. 166 dated March 29, 2019).
  • Activities on transition to preferential use of the domestic software were included in Annex No. 8 to the LTDP, the revised edition whereof was approved by the BD (Minutes No. 169 dated June 11, 2019).
  • The reports on the implementation of the Action Plan for Q1, Q2, Q3 and Q4 2019 were posted in Zarubezhneft JSC Personal Account on the Interdepartmental Portal of the Federal Agency for State Property Management, on April 10, 2019, July 10, 2019, October 10, 2019, and October 10, 2020 respectively, and sent to the Ministry of Communications of the Russian Federation.

On annual reporting to the relevant federal executive authorities and the Government of the Russian Federation on the scopes of the contracts for procurement of non-defense production (not related to the State Defense Order) for the needs of fuel and energy sector, concluded with the enterprises of the military industrial sector (performance of work, provision of services), (hereinafter, procurement of the non-defense production from MIS enterprises for the needs of FES).

In pursuance of directive No. 7923п-П13 (p-P13) of the Government of the Russian Federation dated September 26, 2018

  • The resolutions provided for by the directives were adopted by the Company BD (Minutes No. 160 dated November 20, 2018). The Company has an approved Action Plan for fulfillment of the directives, and actions are being taken as per the Plan approved.
  • The report for 2018 on procurement by Zarubezhneft Group of the non-defense production from MIS enterprises for the needs of FES, was sent to the Ministry of Economic Development, the Ministry of Industry and Trade and the Ministry of Energy of the Russian Federation (Letters Ref. No. СК-25-1479 (SK) dated April 16, 2019).

On conducting an inventory of intellectual property rights for the purpose of arranging subsequent activities to ensure that the IP identified, the rights whereto belong to the JSC, be legally protected, and to recognize the rights thereto in the balance sheet as intangible assets, for subsequent introduction into the economic circulation, as well as, if necessary, to evaluate such rights thereto.

In pursuance of directive No. 7050п-П13 (p-P13) of the Government of the Russian Federation dated August 30, 2018

  • The resolutions provided for by the directives were adopted by the Company BD (Minutes No. 159 dated October 3, 2018).
  • As part of the fulfillment of the directives in 2019, an inventory of the IP rights was conducted (DZ No. 42/661 dated February 28, 2019), the results of the inventory were considered at the meeting of the Commission for Evaluation, Recognition, Useful Life Determination, Impairment Evaluation and Determination of the Intangible Assets Utilization Expediency (Minutes No. 1 dated March 28, 2019).
  • An inventory of IP rights having not been previously identified was conducted (Letter to the Subsidiaries No. АД-42-586 (AD) dated February 18, 2019). Potentially protectable IP was considered at Zarubezhneft JSC Council for Science and Engineering (No. 9/2019 dated May 30, 2019) and approved for submission for registration with the Federal Service for Intellectual Property of the Russian Federation (Rospatent) (by December 31, 2019).
  • The Report on Functioning of the Intellectual Property Rights Management System in Zarubezhneft JSC was considered by the Company Board of Directors (Minutes No. 174 dated November 26, 2019).

On amendments to the statutory documents, providing for potential for establishing all-Russian sectoral physical culture and sports communities and corporate physical culture and sports communities.

In pursuance of instruction No. ИШ-П13-8690 (ISh-P) of the Government of the Russian Federation dated December 26, 2017

  • In pursuance of the instruction, the Company Board of Directors considered the issue “On amendments to the statutory documents, providing for potential for establishing all-Russian sectoral physical culture and sports communities and corporate physical culture and sports communities” (Minutes No. 150 dated February 22, 2018).
  • The revised edition of the Article of Association of Zarubezhneft JSC subject to the above changes was approved by resolution of the General Meeting of Shareholders of Zarubezhneft JSC (Order No. 499-р(r) of the Federal Agency for State Property Management dated June 30, 2018).

On the implementation of the recommendations as to intellectual property rights management

In pursuance of directive No. 9177п-П13 of the Government of the Russian Federation dated December 12, 2017

On the expediency of applying the recommendations as to intellectual property rights management.

In pursuance of instruction No. ИШ-P8-800 (ISh-R) of the Government of the Russian Federation dated February 4, 2014

  • The resolutions provided for by the directives were adopted at the BD meeting (Minutes No. 149 dated February 8, 2018).
  • By the resolution of the BD (Minutes No. 159 dated October 3, 2018), the Intellectual Property Rights Management Policy of Zarubezhneft JSC, and the Action Plan for implementation thereof, were adopted (made available through Zarubezhneft JSC Personal Account on the Interdepartmental Portal of the Federal Agency for State Property Management, as from October 4, 2018). Activities have been carried out as per the Plan approved, including:
    • on June 10, 2019, the Regulation on the Innovative Development Section was approved, having stipulated the functions related to the intellectual property rights management;
    • The KPI sets for evaluation of the IP rights management system in Zarubezhneft JSC (DZ No. 42/2040 dated June 28, 2019) were developed.
    • The BD considered the Report on Functioning of the Intellectual Property Rights Management System in Zarubezhneft JSC for 2019 (Minutes No. 174 dated November 26, 2019).

On amendments to the employment contract with the Head of the JSC and on expediency of amending the current program and register of non-core assets disposition.

In pursuance of directive No. 6604п-П13 (p-P13) of the Government of the Russian Federation dated September 18, 2017

  • The updated Register of Non-Core Assets of Zarubezhneft JSC and the Action Plan for Sale of Non-Core Assets of Zarubezhneft JSC for 2019–2020 were approved by the BD (Minutes No. 166 dated March 29, 2019).
  • Report on Sale of NCA for Q4 2018 was considered by the BD (Minutes No. 164 dated February 26, 2019).
  • Report on Sale of NCA for Q1 2019 was considered by the BD (Minutes No. 167 dated April 25, 2019).
  • Report on Sale of NCA for Q2 2019 was considered by the BD (Minutes No. 171 dated August 12, 2019).
  • Report on Sale of NCA for Q3 2019 was considered by the BD (Minutes No. 174 dated November 26, 2019).

On submission by Zarubezhneft JSC to the Ministry of Economic Development of the Russian Federation of information on possession of assets located in the Russian Federation, through foreign legal entities.

In pursuance of directive No. 5945п-П13 (p-P13) of the Government of the Russian Federation dated August 25, 2017

  • The resolutions provided for by the directives were adopted at the BD meeting on October 27, 2017 (Minutes No. 144).
  • To the Ministry of Economic Development of the Russian Federation, the information to evidence that there were no assets located in the Russian Federation and possessed by Zarubezhneft Group through any foreign legal entities in 2016 (Letter No. СК-46-4487 (SK) dated September 7, 2017), in 2017 (Letter No. СК-46-154 (SK) dated January 17, 2018), in 2018 (Letter No. СК-46-540 (SK) dated February 12, 2019), and in 2019 (Letter No. СК-46-147 (SK) dated January 21, 2020).

On approval of the Procedure for Coordination with the Ministry for the Development of Russian Far East and Arctic, of investment programs, and other plans, for infrastructure development implementable by joint stock companies with state participation in the Far Eastern Federal District.

In pursuance of directive No. 3538п-П13 (p-P13) of the Government of the Russian Federation dated May 25, 2017

  • The resolutions provided for by the directives were adopted at the BD meeting on June 23, 2017 (Minutes No. 140).
  • The procedure for coordination with the Ministry for the Development of Russian Far East and Arctic, of investment programs (plans) for infrastructure development implementable in the Far Eastern Federal District, was approved by the Board of Directors on June 23, 2017 (Minutes No. 140). The procedure is posted in the Personal Account of Zarubezhneft JSC on the Interdepartmental Portal of the Federal Agency for State Property Management on June 26, 2017.
  • The Long-Term Development Program of Zarubezhneft JSC does not provide for any financing of social and economic development goals in the Far Eastern Federal District. In 2017–2019, Zarubezhneft Group did not have any expenditures on activities aimed at priority development of the Far Eastern Federal District.

On acquisition or rent of aircraft, including those with high-comfort passenger compartments.

In pursuance of directive No. 2602п-П7 (p-P7) of the Government of the Russian Federation dated April 17, 2017

  • The resolutions provided for by the directives were adopted at the BD meeting on May 23, 2017 (Minutes No. 138).
  • Procurements of aircraft for the needs of Zarubezhneft JSC and its Subsidiaries, are monitored on an annual basis. In 2019, no such procurement took place.

On the development progress, and implementation, of the import phase-out plans.

In pursuance of directive No. 830п-П13 (p-P13) of the Government of the Russian Federation dated February 6, 2017

  • The resolutions provided for by the directives were adopted at the BD meeting on March 17, 2017 (Minutes No. 135).
  • The Company has a working group on import phase-out (approved by Order No. 144 dated May 30, 2017); by Order No. 125 dated May 17, 2017, a person responsible for controlling the entry of information into AIS “Import Phase-Out Technology and Projects”.
  • The Company developed and approved governing document No. 426 dated December 19, 2018 “Guidelines for Mandatory Analysis of the Potential for Foreign Production Phase-Out in Favor of the Domestic Production of Equivalent Specifications and Consumer Properties in the Russian Segment of Zarubezhneft Group Footprint”.
  • The Report on the Import Phase-Out Plan Implementation (Annex No. 8 to the LTDP) for 2018 was enclosed in the Report on the LTDP Implementation for 2018 (considered by the BD of Zarubezhneft JSC (Minutes No. 168 dated May 29, 2019)).
  • The BD approved the revised edition of Annex No. 8 to the Long-Term Development Program of Zarubezhneft JSC (Minutes No. 169 dated June 11, 2019). The document reflects measures to implement directives No. 10068п-П13 (p-P13) dated December 6, 2018 “Transition to preferential use of domestic software”, and No. 584п-П13 (p-P13) dated January 26, 2019 “On finalizing corporate import phase-out plans for protection against radiation, chemical and biological factors”, of the Government of the Russian Federation.
  • According to the instruction by the Ministry of Industry and Trade of the Russian Federation in respect of compliance with Clause 1 of the Minutes of the Interdepartmental Working Group meeting, the system “Import Phase-Out Technology and Projects” was updated, as to imported production introduced and operated in the Subsidiaries of Zarubezhneft Group, in Q1, Q2, Q3 and Q4 2019.
  • Zarubezhneft JSC developed a Digital Transformation Strategy aimed at setting objectives and goals for digitalization, as well as creating competitive advantages both in Russia and abroad through large-scale application of digital technology (approved by Order No. 345 dated November 25, 2019).

On expanding the practice of using factoring in the performance of contracts for the supply of goods (performance of work, provision of services).

In pursuance of directive No. 7704п-П13 (p-P13) of the Government of the Russian Federation dated October 11, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on November 11, 2016 (Minutes No. 129).
  • In order to implement the practice of factoring, the methodology of financing against a cash claim assignment by a counterparty (factoring) was approved by Order No. 501 dated November 29, 2016.
  • The edition of Zarubezhneft JSC Regulation on Procurement subject to the requirements of the directives was approved by the BD (Minutes No. 133 dated December 27, 2016). The existing updated edition of the Regulation on Procurement (approved by Minutes No. 176 of the BD meeting dated December 30, 2019) also meets the requirements set forth in the directives.
  • In 2019, small and medium business entities did not establish any requirements for factoring to be used in the performance of contracts for the supply of goods (performance of work, provision of services).

On amendments to the Company’s procurement policy in terms of innovative construction materials.

In pursuance of directive No. 6558п-П13 (p-P13) of the Government of the Russian Federation dated September 5, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on October 14, 2016 (Minutes No. 128).
  • The edition of the Regulation on Procurement subject to the requirements of the directives was approved by the BD (Minutes No. 133 dated December 27, 2016). The existing updated edition of the Regulation on Procurement (approved by Minutes No. 176 of the BD meeting dated December 30, 2019) also meets the requirements set forth in the directives.
  • In 2019, no innovative construction materials were procured.

On conclusion of agreements on priority engagement of vessels built at Russian shipyards.

In pursuance of directive No. 5059п-П13 (p-P13) of the Government of the Russian Federation dated July 13, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on August 8, 2016 (Minutes No. 126).
  • In order to implement the directives:
    • A Model Contractual Condition prescribing priority engagement of vessels built at Russian shipyards, for export supplies of goods (cargoes) using water transport, was developed;
    • by Order No. 354 dated August 19, 2016, the Model Contract Condition prescribing priority engagement of vessels built at Russian shipyards, for export supplies of goods (cargoes) using water transport, was approved;
    • Zarubezhneft JSC and its Subsidiaries are monitored to ensure that the oil supply contracts to be concluded contain the above model contract condition prescribing priority engagement of vessels built at Russian shipyards, for export supplies of goods (cargoes) using water transport.
    • In 2019, 15 contracts were concluded under the above model contractual condition prescribing priority engagement of vessels built at Russian shipyards, for export supplies of goods (cargoes) using water transport.

On implementation of professional standards across the Company’s activities.

In pursuance of directive No. 5119п-П13 (p-P13) of the Government of the Russian Federation dated July 14, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on August 8, 2016 (Minutes No. 126).
  • In 2019, in pursuance of the directives, the Reports on Measures Taken to Implement Professional Standards in Zarubezhneft JSC were considered by the Board of Directors in the 1st half of 2019 (Minutes No. 166 dated March 29, 2019) and in the 2nd half of 2019 (Minutes No. 176 dated December 30, 2019).

On implementation of the non-core assets disposition programs.

In pursuance of directive No. 4863п-П13 (p-P13) of the Government of the Russian Federation dated July 7, 2016

On amendments to the employment contract with the Head of the JSC and on expediency of amending the current program and register of non-core assets disposition.

In pursuance of directive No. 6604п-П13 (p-P13) of the Government of the Russian Federation dated September 18, 2017

Refer to the Section “Information about the Non-Core Asset Disposition Program”.

  • The updated Register of Non-Core Assets of Zarubezhneft JSC and the Action Plan for Sale of Non-Core Assets of Zarubezhneft JSC for 2019–2020 were approved by the BD (Minutes No. 166 dated March 29, 2019).
  • Report on Sale of NCA for Q4 2018 was considered by the BD (Minutes No. 164 dated February 26, 2019).
  • Report on Sale of NCA for Q1 2019 was considered by the BD (Minutes No. 167 dated April 25, 2019).
  • Report on Sale of NCA for Q2 2019 was considered by the BD (Minutes No. 171 dated August 12, 2019).
  • Report on Sale of NCA for Q3 2019 was considered by the BD (Minutes No. 174 dated November 26, 2019).

On procurement of domestic commercially viable software required for the JSC activities.

In pursuance of directive No. 4972п-П13 (p-P13) of the Government of the Russian Federation dated July 11, 2016

  • The resolutions provided for by the directives were adopted by the Company BD (Minutes No. 126 dated August 8, 2016).
  • The edition of the Regulation on Procurement subject to the requirements of the directives was approved at the BD meeting (Minutes No. 128 dated October 14, 2016). The existing updated edition of the Regulation on Procurement (approved by Minutes No. 176 of the BD meeting dated December 30, 2019) also meets the requirements set forth in the directives.
  • In 2019, no foreign software procurement took place.
  • At the same time, the Company takes proper measures to fulfill directive No. 10068п-П13 (p-P13) dated December 6, 2018, “On transition of Zarubezhneft JSC to preferential use of domestic software”.

On the normative acts of the Company that govern limitations as to procurement of certain types of goods, work and services.

In pursuance of directive No. 2793п-П13 (p-P13) of the Government of the Russian Federation dated April 19, 2016.

  • The resolutions provided for by the directives were adopted at the BD meeting on May 31, 2016 (Minutes No. 124).
  • The procurement limitations have been applied in the Company since 2016.
  • In 2019, the analysis of procurement activities in terms of application of procurement limitations in 2018 was carried out, with information on the analysis results posted on the Interdepartmental Portal and the respective report sent to the Federal Agency for State Property Management (Letter Ref. No. ДМ-25-304 (DM) dated January 28, 2019).
  • In 2019, by Order No. 175 dated June 10, 2019, the procurement limitations as to the mandatory list of certain types of goods, work and services, were updated. The procurement limitations are available on the Company’s official website.

On approval of the procedure for investment projects accounting.

In pursuance of directive No. 1659п-П13 (p-P13) of the Government of the Russian Federation dated March 15, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on March 30, 2016 (Minutes No. 120).
  • The procedure for accounting for high-priority investment projects of Zarubezhneft Group was approved by the Board of Directors on May 13, 2016 (Minutes No. 122).

On innovation development.

In pursuance of directive No. 1471п-П13 (p-P13) of the Government of the Russian Federation dated March 3, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on March 15, 2016 (Minutes No. 119).
  • The updated Innovation Development Program of Zarubezhneft JSC for 2016–2020 (with potential prospects till 2030) was approved by the Board of Directors on September 14, 2016 (Minutes No. 127).
  • The Report on the Results of Zarubezhneft JSC Innovation Development Program for 2018 was approved by the Board of Directors (Minutes No. 167 dated April 25, 2019).

On innovation development.

In pursuance of directive No. 1472п-П13 (p-P13) of the Government of the Russian Federation dated March 3, 2016

  • The resolutions provided for by the directives were adopted at the BD meeting on March 15, 2016 (Minutes No. 119), where:
    • the passport and target values of an integrated KPI of innovative activities, and the revised weights of corporate KPIs, for 2016–2018 were approved,
    • Annex No. 7 to the LTDP was updated subject to the inclusion of the above innovation activity integrated KPI into the LTDP KPIs.
  • The updated passport of the integrated KPI of innovative activity of Zarubezhneft JSC was approved by the resolution of the BD on August 21, 2017 (Minutes No. 141).
  • Information on achievement of the integrated KPI of innovative activity was included in the Report on the Implementation of IDP of Zarubezhneft JSC for 2018 (approved by the BD under Minutes No. 167 dated April 25, 2019).

On optimization and performance enhancement of charity and sponsorship expenditures.

In pursuance of directive No. 5024п-П13 (p-P13) of the Government of the Russian Federation dated July 31, 2015

  • The resolutions provided for by the directives were adopted at the BD meeting on September 4, 2015 (Minutes No. 109).
  • At the meeting of the Board of Directors of Zarubezhneft JSC held on January 14, 2016 (Minutes No. 116), the Regulations on Charitable and Sponsorship Activities of Zarubezhneft JSC were approved.
  • At the meeting of the Board of Directors held on November 27, 2017 (Minutes No. 145), the revised edition of the Regulations on Charitable and Sponsorship Activities of Zarubezhneft Group was approved in pursuance of the recommendations based on the audit of the performance of procedures for organizing risks management and internal control system as to preventing and combating corruption.
  • In 2019, as part of the implementation of recommendations based on a regular evaluation of the corporate anti-corruption system, a revised edition of the Regulations on Charitable and Sponsorship Activities of Zarubezhneft Group was approved (Minutes No. 176 dated December 30, 2019).
  • The budget for sponsorship and charitable activities of Zarubezhneft Group, for 2019, was approved by the Board of Directors on December 20, 2018 (Minutes No 162) as part of the Business Plan 2019.
  • In 2019, Zarubezhneft JSC published information on its charitable and sponsorship activities through its Personal Account, on a quarterly basis.

On the procedure of settlements under export contracts.

In pursuance of directive No. 4807п-П13 (p-P13) of the Government of the Russian Federation dated July 23, 2015

  • The resolutions provided for by the directives were adopted at the BD meeting on September 4, 2015 (Minutes No. 109).
  • In order to implement the directives:
    • рa model contractual condition to export contracts, providing for the possibility of making settlements in Russian rubles, was developed;
    • the minimum portion of export settlements to be made in Russian rubles was determined;
    • by Order No. 497 dated October 12, 2015, a new model form of oil export contract, containing a model contractual condition on the possibility of making settlements in RUB, was approved;
  • In 2019, 15 crude oil supply contracts were concluded under the above model contractual condition on the possibility of making settlements in RUB.

On the introduction of a management bonus system based on the manager KPI and subject to the need to reduce operating expenses (costs) by 2–3% annually.

In pursuance of directive No. 2303п-П13 (p-P13) of the Government of the Russian Federation dated April 16, 2015

  • The resolutions provided for by the directives were adopted by the BD of Zarubezhneft JSC (Minutes No. 101 dated April 30, 2015).
  • The BD of Zarubezhneft JSC (Minutes No. 163 dated January 28, 2019) approved a revised edition of the Guidelines for Calculating the Operating Expenses Reduction Indicator.
  • By the resolution of the BD (Minutes No. 164 dated February 26, 2019), the Report on the Implementation of Operating Expenses Reduction Program for 2018 (in 2018, the reduction in operating expenses amounted to 3.1%), and the Operating Expenses Reduction Program for 2019, were approved.
  • The Report on the Implementation of Operating Expenses Reduction Program for Q1 2019 was considered by the BD of Zarubezhneft JSC (Minutes No. 169 dated June 11, 2019).
  • The Report on the Implementation of Operating Expenses Reduction Program for Q2 2019 was considered by the BD of Zarubezhneft JSC (Minutes No. 172 dated September 20, 2019).
  • The Report on the Implementation of Operating Expenses Reduction Program for Q3 2019 was considered by the BD of Zarubezhneft JSC (Minutes No. 174 dated November 26, 2019).

On ensuring the establishment of single treasuries of parent, subsidiary and dependent companies.

In pursuance of directives No. 5110п-П13 (p-P13) dated August 8, 2014, and No. 1796п-П13 (p-P13) dated March 26, 2015, of the Government of the Russian Federation

  • The Unified Treasury of Zarubezhneft Group has been functioning since July 1, 2015.
  • For the establishment of the Unified Treasury, the following documents were approved:
    • Regulations on Payments in Zarubezhneft Group (Order No. 270 dated September 18, 2017);
    • Regulations on Fundraising and Investment in Zarubezhneft Group (Order No. 231 dated May 20, 2015);
    • Unified Financial and Credit Policies in Zarubezhneft Group, the revised edition (Order No. 58 dated March 31, 2017);
    • Regulations on Intra-Group Financing in Zarubezhneft Group (Order No. 315 dated October 31, 2017).
  • Following the review results, the report ”Economic Effect of the Single Treasury Establishment in Zarubezhneft Group of Companies” was sent to the Ministry of Finance of the Russian Federation by the letter with Ref. No. СК-24-3584 (SK) dated September 10, 2019; and to the Federal Service for Financial Monitoring of the Russian Federation by the letter with Ref. No. СК-24-3583 (SK) dated September 10, 2019.

On changes in the structure of the Company’s annual report.

In pursuance of directive No. 2007п-П13 (p-P13) of the Government of the Russian Federation dated April 6, 2015

  • The resolutions provided for by the directives were adopted at the BD meeting on April 15, 2015 (Minutes No. 100).
  • The annual report prepared subject to the requirements stated in the directives was approved by the resolution of the annual General Meeting of Shareholders of Zarubezhneft JSC (Decree No. 409-r of the Federal Agency for State Property Management dated June 30, 2019).
  • The report on the LTDP implementation and the KPI achievement, for 2018, was sent to the Federal Agency for State Property Management, the Ministry of Energy and the Ministry of Economic Development, of the Russian Federation (letters No. СК-46-2590 (SK) dated May 20, 2019).

On approval by the JSC of long-term development programs and audit of such programs.

In pursuance of directive No. 4955п-П13 (p-P13) of the Government of the Russian Federation dated July 17, 2014

  • The LTDP was approved by the resolution of Zarubezhneft JSC Board of Directors (No. 91 dated November 20, 2014).
  • The Regulations for the LTDP Implementation Audit were approved by Zarubezhneft JSC Order (No. 507 dated November 11, 2014).

In 2019, in pursuance of the directives, the following activities were carried out:

  • The audit engagement for auditing the LTDP implementation in 2018 was approved by the Board of Directors (Minutes No. 164 dated February 26, 2019).
  • The LTDP implementation for 2018 was audited, the Report on the Audit of the LTDP Implementation for 2018 was considered by the Board of Directors (Minutes No. 168 dated May 29, 2019) and prior considered by the Strategic Planning Committee under the BD of Zarubezhneft JSC on May 14, 2019 (Minutes No. 57).
  • In order to update Zarubezhneft JSC LTDP and with account taken of the auditor’s recommendations based on the results of the LTDP audit and the received directives of the Government of the Russian Federation, the BD approved the updated:
    • Annex No. 3 “Zarubezhneft Group Innovation-Related Activity” (Minutes No. 163 dated January 28, 2019, Minutes No. 176 dated December 30, 2019);
    • Annex No. 4 “Action Plan for Zarubezhneft JSC Long-Term Development Program Risks Management up to 2030” (Minutes No. 163 dated January 28, 2019, Minutes No. 176 dated December 30, 2019);
    • Annex No. 5 “Demand for Labor Resources under Zarubezhneft JSC Long-Term Development Program” (Minutes No. 163 dated January 28, 2019);
    • Annex No. 6 “Labor Performance Enhancement Program” (Minutes No. 163 dated January 28, 2019);
    • Annex No. 7 “Measures to Increase Performance and Transparency of Zarubezhneft JSC Activities (Minutes No. 163 dated January 28, 2019);
    • Annex No. 8 “Measures on Planned and Phased Replacement of the Foreign Production, Work and Services Purchased with Equivalent Domestic Products, Work and Services” (Minutes No. 169 dated June 11, 2019);
    • Annex No. 9 ”Operating Expenses Reduction Program” (Minutes No. 163 dated January 28, 2019);
    • Annex No. 10 “Program Measures to Ensure Achievement of the LTDP KPIs and Compensation to Zarubezhneft JSC Management” (Minutes No. 163 dated January 28, 2019, Minutes No. 176 dated December 30, 2019).
  • Also, for the purpose of implementation of measures on Zarubezhneft JSC digital transformation, Annex No. 13 to the Long-Term Development Program, “Zarubezhneft JSC Strategy in Digital Transformation”, was developed, and approved by the Board of Directors (Minutes No. 163 dated January 28, 2019).
  • In pursuance of directive No. 276п-П13 (p-P13) dated January 17, 2019 of the Government of the Russian Federation, in order to implement the sectoral section of the action plan for acceleration of the growth rates of investments in fixed capital and increase their share in the gross domestic product up to 25%, the Board of Directors of Zarubezhneft JSC approved Annex No. 14 to the LTDP, “Long-Term Development Program Measures to Accelerate the Growth Rates of the Investments in Fixed Capital of the Exploration and Production segment” (Minutes No. 169 dated June 11, 2019).

On the net currency assets limitation.

In pursuance of directive No. 8495п-П13 (p-P13) of the Government of the Russian Federation dated December 17, 2014

  • by Order No. 280 dated July 5, 2016, the Guidelines for Calculating and Monitoring Net Currency Assets possessed by Zarubezhneft Group, were approved.
  • At the meeting of the Board of Directors on August 8, 2016 (Minutes No. 126) the resolution on monthly submission of the report form to the Bank of Russia was adopted.
  • In 2019, the Department of Finance and Treasury Operations sent to the Bank of Russia information on the net currency assets of Zarubezhneft JSC, on a monthly basis.

On increasing labor performance, and creating and modernizing high-performance jobs.

In pursuance of directive No. 7389п-П13 (p-P13) of the Government of the Russian Federation dated October 31, 2014

  • Annex No. 6 to the LTDP, “Labor Performance Enhancement Program for 2015–2018”, was developed and approved by the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No. 97 dated February 27, 2015), and the indicator “Labor Performance” was included into the system of corporate KPIs of Zarubezhneft JSC (Minutes No. 103 dated May 28, 2015, Minutes No. 139 dated May 29, 2017).
  • Amendments were made to the employment contract with the General Director, as provided for by the directives (supplement to the employment contract dated December 26, 2014).
  • In the Personal Account of Zarubezhneft JSC on the Interdepartmental Portal of the Federal Agency for State Property Management, the information on labor performance enhancement is filled/updated annually. The information for 2018 was published on March 22, 2019.

On ensuring the JSC adoption of key performance indicators.

In pursuance of directive No. 2579п-П13 (p-P13) of the Government of the Russian Federation dated April 25, 2014

  • In pursuance of the recommendations of the Revision Commission based on the results of the audit of financial and economic activities of the Company in 2015, the updated Regulation on the KPI System, and the passports of the corporate KPI of Zarubezhneft JSC were developed and agreed with the Federal Agency for State Property Management (letter No. ДП-05/44755 (DP) dated October 28, 2016).
  • By the resolution of the Board of Directors of Zarubezhneft JSC dated November 25, 2016 (Minutes No. 131), the updated edition of the Regulation on Key Performance Indicators of Zarubezhneft JSC and the updated passports of the corporate KPIs approved by the Federal Agency for State Property Management (letter No. ДП-05/44755 (DP) dated October 28, 2016) were approved.

In 2019:

  • The Report on the Corporate KPI Achievement for 2018 was approved by the BD of Zarubezhneft JSC (Minutes No. 168 dated May 29, 2019). Based on achievement of the corporate KPIs target values, the BD adopted the resolution to pay compensation to the Sole Executive Body of the Company (Minutes No. 168 dated May 29, 2019).
  • The reports on the KPI achievement for 3 months, 6 months and 9 months 2019 were considered by the BD of Zarubezhneft JSC (Minutes No. 169 dated June 11, 2019, Minutes No. 173 dated September 30, 2019, and Minutes No. 174 dated November 26, 2019).
  • The KPI system of Zarubezhneft JSC was updated in accordance with Decree No. 1388-р(r) of the Government of the Russian Federation dated June 27, 2019, and directive No. 9054п-П13 (p-P13) of the Government of the Russian Federation dated October 2, 2019.
  • The updated KPIs for 2020 were approved by the resolution of the BD of Zarubezhneft JSC (Minutes No. 175 dated December 26, 2019).

On conducting process audits and price audits of investment projects.

In pursuance of directive No. 2988п-П13 (p-P13) of the Government of the Russian Federation dated May 30, 2013

  • By the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No. 110 dated September 30, 2015), the Standard of Process Audit and Price Audit of Investment Projects of Zarubezhneft Group was approved. The above Standard of Process Audit and Price Audit of Investment Projects of Zarubezhneft Group incorporates the recommendations of the Expert Council under the Government of the Russian Federation, as well as the updated regulatory framework in terms of investment and project activities.
  • In 2019, no investment projects were identified that fell under the criteria for being included in the scope of process and price audits.

On nonfinancial reporting. In pursuance of directive No. 1710п-П13 (p-P13) of the Government of the Russian Federation dated March 30, 2012

  • In 2019, the Report on Sustainable Development of Zarubezhneft JSC for 2018 was prepared and posted on the official website of the Company.

On the implementation of investment programs (Instruction No. ИШ-P13-5361 (ISh-R) of the First Deputy Chairman of the Government of the Russian Federation dated September 18, 2009, and fax message No. ГН-13/8809 (GN) of the Federal Agency for State Property Management dated April 1, 2011)

  • Information on the implementation progress of the investment programs
  • adopted in Zarubezhneft JSC was updated, on a quarterly basis, in the Personal Account of Zarubezhneft JSC on the Interdepartmental Portal of the Federal Agency for State Property Management.

On implementation of measures aimed at ensuring information transparency of procurement activities and transition to electronic procurement, including regulations governing the procedures for procurement of goods, work and services.

In pursuance of directive No. 6464п-П13 (p-P13) of the Government of the Russian Federation dated December 16, 2010,

Instruction No. ИШ-P13-8685 (ISh-R) of the Government of the Russian Federation dated December 17, 2010, and letter No. ГН-13/1416 (GN) of the Federal Agency for State Property Management dated January 25, 2011

Refer to the Section “Report on Procurement Activities of the Zarubezhneft Group of Companies”.

  • By Order No. 544 of Zarubezhneft JSC dated December 1, 2014, the Small and Medium Business Entities Partnership Program of Zarubezhneft JSC was approved; both the Partnership Program and the Register of Small and Medium Business Entities Having Joined the Partnership Program were made available on the Company’s website in the Section “Information Disclosure”.
  • In 2019, in pursuance of the directives of the Government of the Russian Federation, revised editions of the Regulation on Procurement of Zarubezhneft JSC were prepared, and approved by the BD (Minutes No. 169 dated June 11, 2019, and Minutes No. 176 dated December 30, 2019).
  • Quarterly reports on the results of procurement activities were considered at the meetings of the Board of Directors of Zarubezhneft JSC as follows: the Report for Q4 2018 (Minutes No. 166 dated March 29, 2019), the Report for Q1 2019 (Minutes No. 169 dated June 11, 2019), the Report for Q2 2019 (Minutes No. 172 dated September 20, 2019), and the Report for Q3 2019 (Minutes No. 174 dated November 26, 2019).

On proposals and recommendations aimed at stimulating the development of environmental responsibility mechanisms based on international standards, including, inter alia, nonfinancial reporting and voluntary certification and labelling systems subject to independent verification and certification (Sub-clause “л” (l) of Clause 1 of List No. Пр-1640 (Pr) of Instructions of the President of the Russian Federation dated June 6, 2010, and Letter No. ГН-13/37524 (GN) of the Federal Agency for State Property Management dated December 5, 2011)

Refer to the Section “Environmental Protection”.

  • At the meeting of the Board of Directors held on April 20, 2012 (Minutes No. 59) the Environmental Program of Zarubezhneft Group of Companies was approved. In order to control the implementation of the Program, a specialized unit, the Occupational Health and Safety and Environmental Protection Section, was established in Zarubezhneft JSC.
  • In 2019, the Report on Sustainable Development of Zarubezhneft JSC for 2018 was prepared. The Report is available on the official website of Zarubezhneft JSC.

Resolution No. 1214 of the Government of the Russian Federation dated December 31, 2010 “On Improvement of the Procedure for Managing Open Joint Stock Companies Whose Shares Are Owned by the Federal Government, and Federal State Enterprises”

  • At the meeting of the Company’s Board of Directors held on June 10, 2013 (Minutes No. 72), a revised edition of Zarubezhneft JSC Regulation on Organizing Information Interaction through the Interdepartmental Portal for State Property Management in the Internet” was approved. In 2019, in accordance with the above Regulation, Zarubezhneft JSC regularly posted the relevant information in its Personal Account on the Interdepartmental Portal.

On the implementation of the recommendations as to intellectual property rights management.

In pursuance of directive No. 9177п-П13 (p-P13) of the Government of the Russian Federation dated December 12, 2017

  • The resolutions provided for by the directives were adopted by the BD (Minutes No. 149 dated February 8, 2018).
  • By the resolution of the BD (Minutes No. 159 dated October 3, 2018), the Intellectual Property Rights Management Policy of Zarubezhneft JSC, and the Action Plan for implementation thereof, were adopted (made available through Zarubezhneft JSC Personal Account on the Interdepartmental Portal of the Federal Agency for State Property Management, as from October 4, 2018). Activities have been carried out as per the Plan approved, including:
    • on June 10, 2019, the Regulation on the Innovation Development Section was approved, having stipulated the functions related to the intellectual property rights management;
    • The KPI sets for evaluation of the IP rights management system in Zarubezhneft JSC (DZ No. 42/2040 dated June 28, 2019) were developed.
    • The BD considered the Report on Functioning of the Intellectual Property Rights Management System in Zarubezhneft JSC for 2019 (Minutes No. 174 dated November 26, 2019).

On development and approval of the list of bylaws governing the Joint Stock Company’s activity, as well as on ensuring submission of reports on implementation of long-term development programs, and on achieving approved key performance indicators, in accordance with Clauses 2 and 3 of Instruction No. Пр-3013 (Pr) of the President of the Russian Federation dated December 27, 2014

  • Long-Term Development Program of Zarubezhneft JSC — subsequent to preliminary approval by the Strategic Planning Committee under the Board of Directors (Minutes No. 1 dated September 19, 2014) was coordinated with the Expert Council under the Government of the Russian Federation (Letter No. ЭС-2909/02 (ES) dated September 29, 2014, and Letter No. ЭС-1211/02 (ES) dated November 12, 2014), and approved by the resolution of the Board of Directors of the Company (Minutes No. 91 dated November 20, 2014)

Refer to the Section “Long-Term Development Program”.

  • The Regulation on Key Performance Indicators and the corporate KPIs passports were approved by the Board of Directors (Minutes No. 94 dated December 24, 2014).
  • In 2016, subsequent to approval by the Federal Agency for State Property Management (Letter No. ДП-05/44755 (DP) dated October 28, 2016), the updated editions of the Regulations on Key Performance Indicators and the corporate KPIs passports were approved by the resolution of the Board of Directors of the Company. In 2017, at the meeting of the Board of Directors held on August 21, 2017 (Minutes No. 141) the revised edition of the Passports of Zarubezhneft JSC Innovation Activity Integrated Key Performance Indicator was approved
  • Regulations on Increasing Investment and Operational Performance and Reducing Expenditures were approved by the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No. 117 dated January 29, 2016, the previous edition was approved under Minutes No. 112 dated November 11, 2015).
  • The Regulation on Internal Audit was approved by the resolution of the Board of Directors (Minutes No. 97 dated February 27, 2015). In accordance with the Guidelines for Preparing of the Regulation on Internal Audit, the Company developed a revised edition of the Regulation on Internal Audit in Zarubezhneft JSC (approved by the resolution of the Board of Directors (Minutes No. 110 dated September 30, 2015)). In 2016, the Regulation on Internal Audit in Zarubezhneft JSC was updated subject to the Guidelines for Organizing Risks Management and Internal Control System as to Preventing and Combating Corruption, and approved by the resolution of the Board of Directors of Zarubezhneft JSC on October 14, 2016 (Minutes No. 128 dated October 14, 2016).
  • The Regulation on Quality Management System of Zarubezhneft JSC was approved by the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No 112 dated November 11, 2015). In 2016, the updated edition of the Regulation on the Quality Management System of Zarubezhneft JSC was approved (Minutes No. 133 dated December 27, 2016).
  • The Risks Management Policy of Zarubezhneft JSC was approved by the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No 112 dated November 11, 2015). In 2016, the Risks Management Policy of Zarubezhneft JSC was updated subject to the Guidelines for Organizing Risks Management and Internal Control System as to Preventing and Combating Corruption, and approved by the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No. 125 dated June 27, 2016).
  • The Regulation on the Procedure for Developing and Implementing the Innovation Development Program of Zarubezhneft JSC was approved by Order No. 262 of Zarubezhneft JSC dated September 6, 2017 (previous editions were approved by Order No. 623 dated December 30, 2015, and Order No. 541 dated November 16, 2015)

On inclusion of a list of measures into the Company’s long-term development program aimed at planned and phased replacement of procured foreign production (work, services) by the procurement of the Russian production (work, services) equivalent in terms of specifications and consumer properties, in accordance with Instruction No. АД-P9-9176 (AD-R) dated December 8, 2014

On the development progress, and implementation, of the import phase-out plans.

In pursuance of directive No. 830п-П13 (p-P13) of the Government of the Russian Federation dated February 6, 2017

Refer to the Section “Procurement Activities”.

  • In pursuance of directive No. 1346p-P13 of the Government of the Russian Federation dated March 5, 2015, by the resolution of the Board of Directors of Zarubezhneft JSC (Minutes No. 101 dated April 30, 2015), Annex No. 8 to the Long-Term Development Program of Zarubezhneft JSC, “Measures Aimed at Scheduled and Phased Replacement of Procured Foreign Production, Work and Services with Equivalent Russian Production, Work and Services” was approved.
  • The resolutions provided for by directive No. 830п-П13 (p-P13) dated February 6, 2017 were adopted at the BD meeting on March 17,2017 (Minutes No. 135).
  • The Company has a working group on import phase-out (approved by Order No. 144 dated May 30, 2017); by Order No. 125 dated May 17, 2017, a person responsible for controlling the entry of information into AIS “Import Phase-Out Technology and Projects” was assigned.
  • The Report on the Import Phase-Out Plan Implementation (Annex No. 8 to the LTDP) for 2018 was enclosed in the Report on the LTDP Implementation for 2018 (considered by the BD on May 29, 2019 (Minutes No. 168)).
  • The BD approved the revised edition of Annex No. 8 to the Long-Term Development Program of Zarubezhneft JSC (Minutes No. 169 dated June 11, 2019). The document reflects measures to implement directives No. 10068п-П13 (p-P13) dated December 6, 2018 “Transition to preferential use of domestic software”, and No. 584п-П13 (p-P13) dated January 26, 2019 “On finalizing corporate import phase-out plans for protection against radiation, chemical and biological factors”, of the Government of the Russian Federation.
  • According to the instruction by the Ministry of Industry and Trade of the Russian Federation in respect of compliance with Clause 1 of the Minutes of the Interdepartmental Working Group meeting, the system “Import Phase-Out Technology and Projects” was updated, as to imported production introduced and operated in the Subsidiaries of Zarubezhneft Group, in Q1, Q2, Q3 and Q4 2019.
  • Zarubezhneft JSC developed a Digital Transformation Strategy aimed at setting objectives and goals for digitalization, as well as creating competitive advantages both in Russia and abroad through large-scale application of digital technology (approved by Order No. 345 dated November 25, 2019).

Participation in preparation of regulatory documents for holding of professional skill championships under the WorldSkills standards

In pursuance of Clause 1 of instructions No. Пр-1921 (Pr) of the President of the Russian Federation dated September 21, 2015

  • At present, Zarubezhneft JSC is not an associated member of the WorldSkills Russia Union, therefore the Company is not entitled to hold or participate in the industry-specific championships on professional skills.
  • Zarubezhneft JSC supports the idea of holding championships under the WorldSkills standards and, in case there is a championship in the fuel and energy sector in the expertise area “Oil and Gas Production”, will take part in the competition.
  • In order to develop professional expertise and increase motivation of the Group employees, Zarubezhneft JSC annually holds a corporate contest of professional skills, “Best in Profession”, among the employees of the subsidiaries performing business activities in such segments as hydrocarbon production, and oil refining and transportation.
  • The information regarding Zarubezhneft JSC professional skills competition to be held under the WorldSkills standards was sent to the Federal Agency for State Property Management by Letter No. ИЩ-503683 (IShch) dated September 17, 2019.