Report on Compliance with the Bank of Russia’s Corporate Governance Code

In 2019, the Company’s efforts to improve corporate governance focused on updating its relevant internal documents in line with changes in FPC’s Articles of Association and the laws of the Russian Federation as well as the Internal Audit Unit’s recommendations following the corporate governance audit in 2018.

FPC’s General Shareholders Meeting approved the following documents:

• Updated Regulations on the Board of Directors of JSC FPC
• Updated Regulations on Preparing and Holding the General Shareholders Meeting of JSC FPC.

The Board of Directors approved the following documents:

• Regulations on the Anti-Corruption Hotline of JSC FPC
• Updated Anti-Corruption Policy of JSC FPC
• Updated Risk Management and Internal Control Policy of JSC FPC
• Regulations on Monitoring Compliance with the Requirements of Anti-Corruption Regulatory Documents at JSC FPC
• Amendments to the Regulations on Procurement of Goods, Works and Services for the Needs of JSC FPC
• Regulations on Conflict of Interest Resolution at JSC FPC
• Procedure for Planning, Reviewing and Monitoring the Implementation of Initiatives to Enhance the Reliability of Technical Means and Reduce Technical Failures at JSC FPC.

In the reporting period, the Company improved its corporate governance practice in line with the following recommendations of the Code:

• Human Resources, Remuneration, and Corporate Governance Committee of the Board of Directors assessed nominees to the Board of Directors for required experience, knowledge, business reputation, and absence of conflicts of interest
• The Board of Directors conducted a self-assessment of its performance as well as the performance of its Committees and individual Board members. The analysis covered the needs of the Board of Directors in terms of professional qualifications, experience and business skills of Board members, the number of Board members, and the performance of the Chairman of the Board of Directors
• The Company’s Annual Report contains the main results of the Board of Directors’ performance evaluation. It also contains annual financial statements prepared under the IFRS, along with the auditor’s report
• FPC’s Board of Directors approved the Company’s Strategy until 2030.

More details on the Company’s compliance with the Corporate Governance Code are available