Gazprom

Environmental & Social Information • Jun 25, 2021

National Storage Mechanism | Additional information

RNS Number : 1635D

PJSC Gazprom

25 June 2021

PJSC GAZPROM

Consolidated Report on Payments to Governments

For the year 2020

Contents

1                General Information

2                Basis of Preparation

3                Payments to Governments

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 2020 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 2020.

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

the Gazprom Group prepared in accordance with IFRS for the year 2020 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 2020.

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:	11,951	875,913	2,367		4,376		894,607
	LLC Gazprom dobycha Yamburg	-	168,618	31		26		168,675
	LLC Gazprom dobycha Urengoy	-	133,402	123		2		133,527
	LLC Gazpromneft-Khantos1	2	102,611	588		48		103,249
	LLC Gazprom dobycha Nadym	-	88,875	100		2		88,977
	JSC Gazpromneft-Noyabrskneftegaz1	9	81,118	334		175		81,636
	PJSC Gazprom	11,844	58,113	446		1,705		72,108
	LLC Gazpromneft-Yamal1	4	59,272	30		930		60,236
	LLC Gazprom dobycha Astrakhan	-	41,760	8		1		41,769
	OJSC Severneftegazprom	29	28,625	83		25		28,762
	LLC Gazpromneft-Orenburg1	40	25,101	30		49		25,220
	LLC Gazprom dobycha Noyabrsk	-	21,979	81		-		22,060
	LLC Gazprom dobycha Orenburg	-	14,270	31		1,313		15,614
	JSC Vostokgazprom	-	12,429	84		8		12,521
	LLC Gazpromneft-Vostok1	-	11,736	97		28		11,861
	LLC Gazprom neft shelf1	-	11,044	13		7		11,064
	CJSC Purgaz	5	9,252	6		8		9,271
	LLC Gazprom dobycha Krasnodar	-	3,399	49		-		3,448
	JSC Yuzhuralneftegaz1	-	1,303	1		1		1,305
	LLC Gazpromneft-Razvitie1	-	740	66		12		818
	LLC Meretoyakhaneftegaz1	-	754	27		-		781
	LLC Gazpromneft-Palyan1	-	744	5		-		749
	LLC Gazpromneft-Technology Partnerships1	-	288	12		-		300
	LLC Gazpromneft-Zapolyarye1	-	150	36		25		211
	LLC Gazpromneft-GEO1	-	111	-		1		112
	LLC Gazprom nedra	-	52	32		10		94
	LLC Gazpromneft-Yarsale1	18	32	21		-		71
	LLC Gazpromneft-Prirazlomnoye1	-	67	-		-		67
	LLC Gazpromneft-Angara1	-	18	17		-		35
	LLC Gazprom transgaz Yugorsk	-	26	-		-		26
	LLC Gazpromneft-Sakhalin1	-	14	11		-		25
	LLC Enerkom1	-	6	-		-		6
	LLC Gazpromneft-Salym1	-	4	-		-		4
	LLC Gazprom geologorazvedka	-	-	4		-		4
	LLC Karabashskye-61	-	-	1		-		1
	Republic of Serbia:	-	1,480	166		-		1,646
	NIS a.d. Novi Sad1	-	1,419	165		-		1,584
	NAFTAGAS - Oil services LLC Novi Sad1	-	50	1		-		51
	NIS PETROL SRL1	-	11	-		-		11
	Republic of Iraq:	-	371	543		-		914
	Gazprom neft Middle East B.V.1	-	371	543		-		914
	Plurinational State of Bolivia:	-	136	-		-		136
	GP Exploracion y Produccion, S.L.	-	136	-		-		136
	People's Democratic Republic of     Algeria:	-	106	-		-		106
	Gazprom EP International B.V.	-	106	-		-		106
	Republic of Angola	-	36	-		-		36
	NIS a.d. Novi Sad1	-	36	-		-		36
# 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
	Romania:	-	17	-		-		17
	NAFTAGAS - Oil services LLC Novi Sad1	-	13	-		-		13
	NIS PETROL doo Banja Luka1	-	4	-		-		4
	Total payments	11,951	878,059	3,076		4,376		897,462

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:	11,951	875,913	2,367	4,376	894,607
federal budget	37	802,632	335	-	803,004
budgets of the subjects of    the Russian Federation	11,914	73,120	1,798	1,712	88,544
local budgets	-	161	234	2,664	3,059
Republic of Serbia:	-	1,480	166	-	1,646
budget of the Republic of Serbia	-	540	26	-	566
regional budgets	-	64	-	-	64
local budgets	-	876	140	-	1,016
Republic of Iraq:	-	371	543	-	914
budget of the Republic of Iraq	-	371	-	-	371
Ministry of Natural Resources of the Кurdistan Regional Government	-	-	543	-	543
Plurinational State of Bolivia:	-	136	-	-	136
National Tax Service	-	133	-	-	133
Town Hall Santa-Cruz	-	3	-	-	3
People's Democratic Republic of Algeria:	-	106	-	-	106
Major taxpayer department of the Ministry of Finance	-	106	-	-	106
Republic of Angola:	-	36	-	-	36
budget of the Republic of Angola	-	36	-	-	36
Romania:	-	17	-	-	17
budget of Romania	-	13	-	-	13
local budgets	-	4	-	-	4
Total payments	11,951	878,059	3,076	4,376	897,462

The Company may be contacted at its registered office:

PJSC Gazprom

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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