7.6.Board of Directors

The Board of Directors is responsible for strategic business management of Transneft. The competences of the Board of Directors include resolving significant issues related to the Company’s activities. The formation procedure, functions and powers of the Board of Directors, as well as the procedure of its operation, are determined by the Articles of Association and the Regulations on the Board of Directors.

According to Transneft’s Articles of Association, the Board of Directors consists of nine persons.

In the Company’s opinion, the composition of the Board of Directors is optimal for achieving current and strategic goals and objectives of the Company; the composition also meets the requirements of the legislation of the Russian Federation and the Listing Rules of the Moscow Exchange.