Gazprom

Environmental & Social Information • Jun 25, 2020

National Storage Mechanism | Additional information

RNS Number : 0632R

PJSC Gazprom

25 June 2020

PJSC GAZPROM

Consolidated Report on Payments to Governments

For the year 2019

Contents

1                General Information

2                Basis of Preparation

3                Payments to Governments

PJSC Gazprom

Consolidated Report on Payments to Governments

for the Year 2019

(in millions of Russian Rubles)

1          General Information

This consolidated Report on Payments to Governments (the "Report") has been

prepared under the requirements of the UK Financial Conduct Authority's Disclosure Rules and

Transparency Rules 4.3А.

The Report contains information on payments made to governments in 2019 by PJSC Gazprom and its subsidiaries (the "Gazprom Group") engaged in exploration, prospection and extraction of mineral resources ("extractive activities"). The Report excludes payments made by

the Gazprom Group entities not engaged in extractive activities.

2        Basis of Preparation

For the purposes of the Report, the Gazprom Group subsidiaries are defined as entities controlled by PJSC Gazprom.

Associates and joint ventures accounted for using the equity method, as well as joint operations are excluded from the Report.

The Russian Ruble is the presentation currency of the Report and the consolidated financial

statements of the Gazprom Group prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts disclosed in the Report are presented in millions of Russian Rubles.

Payments made in foreign currencies have been translated into Russian Rubles at the average

annual exchange rates of respective currencies set by the Central Bank of the Russian

Federation.

For the purposes of the Report, the term "governments" means any national, federal or local authorities, ministries and agencies authorised to collect of tax, budgetary and other payments in accordance with the applicable legislation effective as of the date when the payment obligation occurs. In the context of the Report, governments also include legal entities authorised to collect of taxes, fees and other payments imposed by governments.

The Report includes all direct and indirect payments made to governments.

For the purposes of the Report, payments to governments include the following:

а) production entitlements;

b) taxes levied on income, production or profit of companies (mineral extraction tax, profit tax (including profit tax paid by PJSC Gazprom consolidated group of taxpayers), land tax and other similar taxes), except for those specified in paragraph (h) below;

c) royalties;

d) dividends (except for those specified in paragraph (i) below);

e) signature, commercial discovery and production bonuses;

f) licence fees, rental fees, other considerations for obtaining and using licences or concessions;

g) payments for infrastructure improvements (except for social expenses).

2        Basis of Preparation (continued)

For the purposes of the Report, payments to governments do not include the following:

h) turnover taxes (value added tax, sales tax and other similar taxes) or taxes withholding by

an entity acting as a tax agent (personal income tax and other similar taxes);

i) dividends paid to shareholders that are governments, on the same terms as to other

shareholders;

j) export duties and other payments related to export and transportation of mineral resources.

There were no payments of royalties (c), dividends (d) or bonuses (e) to governments in 2019.

The Report presents payments broken down by the following categories:

·    countries in which the Gazprom Group's entities are engaged in extractive activities and projects implemented as part of extractive activities;

·    countries in which the Gazprom Group's entities are engaged in extractive activities and governments (budgets) for the benefit of which payments were made.

For the purposes of the Report, the term "project" means a legal entity engaged in the extractive activity. This definition is based on the existing tax regulations in the Russian Federation where the Gazprom Group performs most of its extractive activities. In accordance with the effective tax legislation in the Russian Federation, only mineral extraction tax can be determined for each particular field. All other taxes are calculated and collected at the level of a legal entity as a whole and cannot be allocated to particular fields.

If a Gazprom Group's entity is involved in several types of business activities (including extractive activities) and a portion of its tax liabilities directly related to extractive activities cannot be determined, the whole tax payment is included in the Report.

Note 32 "Net Cash from Operating Activities" in the consolidated financial statements of

the Gazprom Group prepared in accordance with IFRS for the year 2019 discloses information on taxes paid and other similar payments made in cash by all subsidiaries of the Gazprom Group (regardless of their types of business activities) in 2019.

3        Payments to Governments

The table below sets forth information on payments to governments,

broken down by countries and projects:

		Production entitlements	Taxes on income, production or profit	Licence fees, rental fees and other considerations for obtaining and using licences or concessions		Payments for infrastructure improvements		Total
	Russian Federation:	2,830	1,302,158	1,813		3,255		1,310,056
	LLC Gazprom dobycha Yamburg	-	240,047	29		31		240,107
	PJSC Gazprom	-	199,085	27		713		199,825
	LLC Gazprom dobycha Urengoy	-	176,646	176		6		176,828
	LLC Gazpromneft-Khantos1	891	160,248	254		207		161,600
	JSC Gazpromneft-Noyabrskneftegaz1	839	122,500	353		160		123,852
	LLC Gazprom dobycha Nadym	43	99,155	87		2		99,287
	LLC Gazpromneft-Yamal1	127	62,497	38		1,839		64,501
	LLC Gazprom dobycha Astrakhan	-	51,842	19		1		51,862
	OJSC Severneftegazprom	11	34,941	71		25		35,048
	LLC Gazpromneft-Orenburg1	3	32,197	72		32		32,304
	LLC Gazprom dobycha Noyabrsk	16	29,094	242		7		29,359
	LLC Gazprom neft shelf1	867	20,318	15		5		21,205
	OJSC Vostokgazprom	-	19,934	85		8		20,027
	LLC Gazprom dobycha Orenburg	-	16,781	42		149		16,972
	LLC Gazpromneft-Vostok1	-	16,830	91		33		16,954
	CJSC Purgaz	-	11,884	11		8		11,903
	LLC Gazprom dobycha Krasnodar	-	4,367	65		1		4,433
	JSC Yuzhuralneftegaz1	-	1,762	1		1		1,764
	LLC Tekhnologicheskii centr Bazhen1	-	1,281	9		3		1,293
	LLC Meretoyakhaneftegaz1	-	189	12		-		201
	LLC Gazpromneft-Razvitie1	-	125	2		13		140
	LLC Gazpromneft-Prirazlomnoye1	-	123	-		-		123
	LLC Gazpromneft-Angara1	33	48	19		2		102
	LLC Gazpromneft-Zapolyarye1	-	56	14		-		70
	LLC Gazprom nedra	-	36	34		-		70
	LLC Gazpromneft-Sakhalin1	-	46	12		-		58
	LLC Gazpromneft-GEO1	-	42	-		-		42
	LLC Gazprom geologorazvedka	-	2	29		9		40
	LLC Gazprom transgaz Yugorsk	-	36	-		-		36
	LLC Enerkom1	-	35	-		-		35
	LLC Gazpromneft-Yarsale1	-	11	3		-		14
	LLC Karabashskye-61	-	-	1		-		1
	Republic of Serbia:	-	3,948	156		-		4,104
	NIS a.d. Novi Sad1	-	3,933	156		-		4,089
	NAFTAGAS - Oil services LLC Novi Sad1	-	7	-		-		7
	NIS PETROL SRL1	-	5	-		-		5
	NIS PETROL doo Banja Luka1	-	3	-		-		3
	Republic of Iraq:	-	632	60		-		692
	Gazprom neft Badra B.V.1	-	356	-		-		356
	Gazprom neft Middle East B.V.1	-	276	60		-		336
	People's Democratic Republic of     Algeria:	-	118	-		-		118
	Gazprom EP International B.V.	-	118	-		-		118
	Plurinational State of Bolivia:	-	104	-		-		104
	GP Exploracion y Produccion, S.L.	-	104	-		-		104
	Romania:	-	91	-		-		91
	NAFTAGAS - Oil services LLC Novi Sad1	-	91	-		-		91
# 3         Payments to Governments (continued)
		Production entitlements	Taxes on income, production or profit	Licence fees, rental fees and other considerations for obtaining and using licences or concessions		Payments for infrastructure improvements		Total
	Republic of Angola	-	47	-		-		47
	NIS a.d. Novi Sad1	-	47	-		-		47
	Total payments	2,830	1,307,098	2,029		3,255		1,315,212

1 Subsidiaries of PJSC Gazprom neft.

The table below sets forth information on payments, broken down by countries and governments (budgets):

	Production entitlements	Taxes on income, production or profit	Licence fees, rental fees and other considerations for obtaining and using licences or concessions	Payments for infrastructure improvements	Total
Russian Federation:	2,830	1,302,158	1,813	3,255	1,310,056
federal budget	54	1,091,535	321	-	1,091,910
budgets of the subjects of    the Russian Federation	2,776	210,474	1,225	722	215,197
local budgets	-	149	267	2,533	2,949
Republic of Serbia:	-	3,948	156	-	4,104
budget of the Republic of Serbia	-	2,951	37	-	2,988
regional budgets	-	95	-	-	95
local budgets	-	902	119	-	1,021
Republic of Iraq:	-	632	60	-	692
budget of the Republic of Iraq	-	356	-	-	356
Ministry of Natural Resources of the Кurdistan Regional Government	-	276	60	-	336
People's Democratic Republic of Algeria:	-	118	-	-	118
Major taxpayer department of the Ministry of Finance	-	118	-	-	118
Plurinational State of Bolivia:	-	104	-	-	104
National Tax Service	-	104	-	-	104
Romania:	-	91	-	-	91
local budgets	-	91	-	-	91
Republic of Angola:	-	47	-	-	47
budget of the Republic of Angola	-	47	-	-	47
Total payments	2,830	1,307,098	2,029	3,255	1,315,212

The Company may be contacted at its registered office:

PJSC Gazprom

16 Nametkina Str., 16

V-420, GSP-7, 117997, Moscow

Russia

Telephone:           +7 (812) 609-41-29

Facsimile:             +7 (812) 609-43-34

www.gazprom.ru (in Russian)

www.gazprom.com (in English)

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