Committees of the Board of Directors

In order to increase the effectiveness of decisions taken by the Board of Directors, the Company established three committees of the Board of Directors that carry out preliminarily review of the most important issues on the agenda of the Board of Directors meeting and prepare appropriate recommendations within their competence:

The Committees are fully accountable to the Board of Directors In the course of their business activities. The committees’ membership is composed of the Board of Directors members, and in accordance with the best practices and requirements of the Listing Rules of the Moscow Stock Exchange, independent directors are included into the composition of two Committees. This contributes to the formulation of objective, weighted recommendations. All members of the committees have sufficient knowledge and extensive experience, including practical one. The committees carry out their activities in direct interaction with the Board of Directors, the Management Board, the Executive Directorate, the internal audit department, the Corporate Secretary's office, and other departments and offices of the Company.

The Board of Directors forms the personal composition of the committees. The Company provides to the Board of Directors with detailed information on the biography, background, experience, skills and knowledge of each candidate for the membership of any committee.