Corporate Governance System

Basic definitions

General Meeting of Shareholders The supreme governing body whose decision taking powers include resolving the most substantial issues involving the Company’s operations.
Board of Directors The governing body that handles the general management of the Company’s operations and is responsible for strategic management aimed at increasing the Company’s shareholder value. The Board of Directors ensures the Company’s executive bodies work efficiently and monitors such work.
Management Board The collective executive body that oversees the Company’s day-to-day operations.
CEO The sole executive body that performs the functions of the Chairman of the Company’s Management Board.
Internal Audit Department The internal division that monitors the Company’s financial and business activities.
Audit Commission The oversight body that monitors the Company’s financial and business activities selected by the General Meeting of Shareholders. The Audit Commission’s powers include verifying and analysing the Company’s financial position, the operation of internal audit and risk management systems and verifying the lawfulness of business operations
External Auditor The oversight body approved by the General Meeting of Shareholders upon recommendation by the Board of Directors that performs an annual audit of financial statements in accordance with RAS and IFRS.

The corporate governance system of OJSC Gazprom Neft is based on principles that aim to preserve and multiply assets, increase market value, maintain the Company’s financial stability and profitability as well as respect the rights and interests of shareholders and other interested parties.

The management of a complex multi-level VIOC structure that includes geological exploration, production, refining and sales both within the country and abroad, requires a professional team of managers and a highly efficient system of corporate governance and control. The Company currently has a well-defined and clear organisational structure with a high level of interaction between governing bodies and clear delineation of management and control duties to guarantee sustained growth of the Company’s value for shareholders in the long term.

The disclosure and transparency of financial information combined with preserving the Company’s interests regarding the protection of trade secrets and other confidential information play a significant role in the Gazprom Neft corporate governance system.

The most important information distribution channel available to the greatest number of stakeholders for Gazprom Neft is the Company’s official website (http://www.gazprom-neft.ru/) and in partucular the dedicated IR section of the website (http://ir.gazprom-neft.ru/). These resources can be used to view the latest Company news, financial and production indicators, reporting and other useful information about the Company’s operations as well as documents governing the activities of Gazprom Neft management and supervisory bodies, including the Charter, Regulation on the General Meeting of Shareholders, Regulation on the Board of Directors, Regulation on the Management Board, Regulation on the CEO and Regulation on the Audit Commission.

Adhering to the principle of equal access to information for all stakeholders, Gazprom Neft publishes information on its official website in both Russian and in English.

Structure of management and supervisory bodies of OJSC Gazprom Neft