ANK Bashneft' : A Shareholder Agreement on the Procedure for Managing and Voting with Shares of PJSOC Bashneft is signed

16 September 2015

Today, Bashneft has been notified that the Federal Agency for State Property Management and the Republic of Bashkortostan have signed a Shareholder Agreement on the Procedure for Managing and Voting with Shares of PJSOC Bashneft. The document was signed by Olga Dergunova, Deputy Minister of Economic Development of the Russian Federation and Head of the Federal Agency for State Property Management; Rustem Khamitov, Head of the Republic of Bashkortostan; and Evgeny Guryev, Minister of Land and Property Relations of the Republic of Bashkortostan.

The Agreement on the Procedure for Managing and Voting with Shares of PJSOC Bashneft was signed in accordance with Decree No. 317 of the President of the Russian Federation on Public Joint-Stock Oil Company Bashneft dated June 21, 2015.

The Shareholder Agreement establishes the principles and mechanisms of cooperation between the Russian Federation and the Republic of Bashkortostan on corporate governance of PJSOC Bashneft.

Under the Agreement, the parties undertake to exercise shareholder rights in a coordinated manner in the course of preparation for and voting at general meetings of shareholders of PJSOC Bashneft and when voting at meetings of the Company's Board of Directors on key issues related to the Company's operations, including approval of its development strategy and its budget, determination of the size of recommended dividends, approval of major transactions, election of the Chairman of the Board of Directors, appointment of the Company's President and a number of other matters. Furthermore, the Agreement stipulates the parties' obligations related to the procedure for managing the Company's shares.

The parties also agree to take necessary steps, including voting accordingly at general meetings of shareholders, in order to ensure that dividend payments total no less than 25% of PJSOC Bashneft's net profit, unless a different amount is stipulated by the law of the Russian Federation or by decrees or instructions of the Russian Government.

The Shareholder Agreement came into force upon being signed and shall remain effective for an indefinite period of time. The text of the Agreement is available on the website of the Ministry of Land and Property Relations of the Republic of Bashkortostan at: http://mziorb.ru/novosti/podpisano_soglashenie_akcionerov_o_poryadke_rasporyazheniya_i_golosovaniya_akciyami_pao_ank_bashneft1/

Note: The Russian Federation owns 88,951,379 ordinary shares of PJSOC Bashneft (50.08% of its authorized share capital). The Republic of Bashkortostan owns 38,128,551 ordinary shares and 6,280,076 preferred shares of PJSOC Bashneft (25% of its authorized share capital).