Report on the Board of Directors’ Performance in 2019

In 2019, the Board of Directors paid great attention to the development strategy in terms of financial and operational activities and corporate governanceIn addition to the Company’s strategy, financial and operational activities and corporate governance, in the reporting year the Board of Directors considered procedural issues related to the organisation of the activities of the Company’s Board of Directors and the Committees under the Board, as well as other issues that fall within the Board of Directors’ competence..

Type of activity Results for 2019
Strategy Results of implementation of the following were considered:
  • Long-Term Development Programme: for 2018, for Q1 2019, for 1H 2019 and for 9 months of 2019;
  • Transneft Innovative Development Programme for 2018.
The specifications for auditing the implementation of the Transneft
Long-Term Development Programme for 2019 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;
  • reports on the implementation of the Programme for Disposal of Transneft Group’s Non-Core Assets;
  • implementation of executive orders of the Government of the Russian Federation;
  • the Company’s charitable activities;
  • approval of transactions.
The following issues were considered and approved:
  • the adjusted Transneft Long-Term Development Programme;
  • the revised version of the system of key performance indicators of Transneft’s economic activities for 2019;
  • Transneft’s Budget for 2020; the Consolidated Budget of Revenues and Expenses of Transneft Group for 2020; the Consolidated Cash Flow Budget of Transneft Group for 2020;
  • projected values of key performance indicators of economic activities for 2020;
  • Transneft’s Programme for Operational Efficiency Improvement and Cost Cutting up to 2024;
  • the procedure for making compensation payments to shippers for the losses incurred as a result of the Incident
Corporate governance The following documents in the field of corporate governance were considered and approved:
  • The Transneft Corporate Governance Code;
  • The Report on Compliance with the Information Policy;
  • Transneft corporate governance practice in 2019.
The following documents in the field of counteracting corruption were considered and approved:
  • The Report on Anti-Corruption Measures Implemented by Transneft in 2018.
  • The revised version of Transneft’s Anti-Corruption Policy.
The following documents in the field of risk management were considered and approved:
  • The Foreign Exchange and Interest Risks Management Policy of Transneft;
  • Transneft’s Risk Management Report for 2018;
  • Transneft’s Report on Currency and Interest Rate Risks Management for 2018;
  • The list of critical risks was supplemented.
The following documents in the field of internal control were considered and approved:
  • The revised version of the Regulations on the Procurement of Goods, Works and Services;
  • 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 2020;
  • The report for 2018;
  • The revised version of the Regulations on Internal Audit