OGZD.L Regulatory News (OGZD)

PJSC GAZPROM

CONSOLIDATED REPORT ON PAYMENTS TO GOVERNMENTS

FOR THE YEAR 2015

1 GENERAL INFORMATION

This consolidated Report on payments to governments (hereinafter "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 governmental bodies by PJSC Gazprom and its subsidiary undertakings (hereinafter "the Group") engaged in exploration, prospection, discovery, development, and extraction of mineral resources (hereinafter "extractive activities"). The Report excludes payments made by the Group entities not engaged in extractive activities.

2 BASIS FOR PREPARATION

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

Associated entities, joint ventures and joint arrangements accounted for using the equity method are excluded from this Report.

The Russian ruble is the presentation currency of this Report and the Consolidated Financial Statements of PJSC Gazprom prepared in accordance with the International Financial Reporting Standards ("IFRS"). All amounts disclosed in this Report are presented in millions of Russian rubles except as noted

Payments made in foreign currencies have been translated to Russian rubles at the average annual exchange rates of respective currencies set by the Central Bank of the Russian Federation.

For the purposes of this Report, "governments" mean any national, regional or local authority, ministry or agency authorized for collection of taxes, budgetary and other payments in accordance with applicable legislation effective as of the date of the occurrence of a payment obligation. For the purposes of this Report, "governments" also include legal entities authorized for collection of taxes, fees and other payments imposed by state authorities.

The Report includes all direct and indirect payments to governments.

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

a) Production entitlements;

b) Taxes on income, production or profits (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, discovery and production bonuses;

f) License fees, rental fees, entry fees and other considerations for licenses or concessions;

g) Payments for infrastructure improvements, except for those that are social expenses in nature.

For the purposes of this 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 tax agent (personal income tax and other similar taxes);

i) Dividends paid to shareholders that are government bodies, 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 2015.

The Report presents payments breakdowns by the following categories:

· Projects for extraction activities;

· Countries in which the Group is engaged in extraction activities.

For the purposes of this Report, a "project" means a legal entity engaged in extraction activities. This definition is based on the existing tax regulations in the Russian Federation where the Group performs most of its extraction activities. In accordance with the effective tax legislation in Russia, 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 Group company is involved in several types of business activities (including extraction activities) and a portion of its tax obligations directly related to extraction activities cannot be determined, the whole tax payment is included in this Report.

Note 31 "Net cash provided by operating activities" in the Consolidated Financial Statements of PJSC Gazprom for the year 2015, prepared in accordance with IFRS, discloses information on taxes paid and other similar payments made in cash by all subsidiaries of the Group (regardless of their types of business activities) in 2015.

3 PAYMENTS TO GOVERNMENTS

The table below sets forth information on payments to governments by the Group in 2015, summarized by projects for extraction activities.

1 Subsidiaries of PJSC Gazprom neft.

The table below sets forth information on payments to governments by the Group in 2015, summarized by countries in which the Group is engaged in extraction activities.

PJSC Gazprom has its registered office at:

PJSC Gazprom

16 Nametkina Street

V-420, GSP-7,

117997, Moscow, Russia

Telephone: (7 495) 719 3001

Facsimile: (7 495) 719 8333, 719 8335

www.gazprom.ru (in Russian)

www.gazprom.com (in English)