Address of the Chairman of the Board of Directors

Dear shareholders, investors and partners!

Transneft is constantly improving its corporate governance practices, both at the level of the Company itself and at Transneft subsidiaries. In 2018, we not only followed the principles of transparency and openness, but also further expanded the opportunities of shareholders to obtain information about the Company and also resumed regular meetings with investors.

In 2018, we also paid close attention to countering corruption, fraud and dishonest behavior of the Company's employees. The Code of Ethics and Conduct for Employees of Transneft and Transneft Subsidiaries was approved, and all employees are required to familiarise themselves with it. We also approved a clear and unequivocal procedure for notifying the Company of attempts to bribe employees and the procedure for handling complaints received by Transneft’s anti-corruption hotline. Anti-corruption measures in the Company are under constant supervision of the Board of Directors.

In 2019, we will further improve Transneft’s corporate governance system. In particular, we will conduct an external assessment of the quality of the internal audit. Internal anti-corruption documents will also be updated.

In addition, the Company will improve its approaches to working with shareholders and investors. We have already established a special business unit to help shareholders and investors as efficiently as possible and provide them with complete, relevant and transparent information about all aspects of the Company's activity to make sound investment and management decisions.

Alexander Novak
Chairman of the Board of Directors of Transneft,
Minister of Energy of the Russian Federation