Commitment to transparent and responsible governance is crucial for maintaining the confidence of investors and maximizing the long-term return on investment for all shareholders. JSC NPEC Oil Refinery’s corporate governance system helps to safeguard all shareholder rights in accordance with legal requirements, the recommendations of the corporate governance code of the Bank of Russia and the Company’s internal regulations.

Corporate governance is a multi-level system of relations through which the management and control of JSC NPEC Oil Refinery’s activities is ensured for the purpose of increasing its value and maintainits reputation in the interests of its shareholders, employees, lenders and other stakeholders.

Stock exchanges establish strict requirements for corporate governance as one of the conditions for corporate securities to be admitted to exchange trading. The fact that JSC NPEC Oil Refinery’s securities have been included in the Moscow Exchange’s First (Top) Tier Quotation List and are traded on the London Stock Exchange evidences that the Company follows the most stringent rules in this area.

The main trends of the corporate governance development in Russia are determined by the Corporate Governance Code approved by the Board of Directors of the Bank of Russia on March 21, 2014 (the Bank of Russia Code) and recommended by the Bank of Russia for application by Russian jointstock companies with securities have been admitted to exchange trading.

According to the results of the performed assessment of compliance with the recommendations of the Bank of Russia Code, it was established that JSC NPEC Oil Refinery observed most of the recommendations. JSC NPEC Oil Refinery’s corporate governance complies with 89.7% of recommendations of the Bank of Russia Code, which is higher than the 2015 indicator (by 1.6%) and significantly higher than the minimum threshold (65%) recommended by the Federal Agency for State Property Management (Rosimuschestvo).

JSC NPEC Oil Refinery supreme governing body is the General Shareholders’ Meeting. The Board of Directors performs the Company’s strategic management on behalf and in the best interests of shareholders. JSC NPEC Oil Refinery day-to-day operations are managed by the sole executive body and collective executive body. Executive bodies report to the Board of Directors and the General Shareholders’ Meeting.

JSC NPEC Oil Refinery constantly monitors the efficiency of the governance system, and holds activities to improve corporate governance in view of the changing economic environment as well as in compliance with applicable legislation and regulatory requirements.