Board Recommends Dividends

13 November 2018

The Board of Directors of Tatneft recommended to pay 22.26 rubles per each share as the dividend for the third quarter of 2018

On 13 November 2018 the Board of Directors of PJSC Tatneft by absentee voting resolved to convene an extraordinary general meeting of shareholders with the agenda to approve the dividends based on the results for the 9 months of 2018 and the procedure for the payment thereof, and issued a recommendation to the shareholders to approve the dividend per each preferred and ordinary share of the Company based on the results for the 9 months of this year in the amount of 52 rubles and 53 kopecks (5253% of the par value), including the already approved 6 months dividend of 30 rubles 27 kopecks per share. Therefore, the third quarter 2018 dividend recommended by the Board of Directors is 22 rubles 26 kopecks per each preferred and ordinary share of the Company. The total amount of dividends recommended for approval by the extraordinary general meeting of shareholders constitutes approximately 75% of net income under the Russian Accounting Standards for the reporting period.

The Board of Directors upon making its decisions relied on the dividend policy of the Company, which states that free cash flow generated after financing of the investment program, the fulfillment of obligations and satisfaction of other requirements can be distributed in the form of dividends. Since the actual payment of dividends will be carried out at the beginning of 2019, upon determining the amount of dividends for the 9 months of 2018 the Board of Directors took into account the cash flow projection until the end of this year.

The extraordinary general meeting of shareholders will be held on 21 December 2018 by absentee voting. List of persons entitled to participate in the extraordinary general meeting of shareholders will be determined as of 26 November 2018, and the list of persons entitled to the dividends is proposed to be drawn up based on the shareholding as of 9 January 2019.

This press release contains inside information.

Forward-looking statements and waiver of liability: This press release contains statements about future events and expectations that are forward-looking in nature. Any statement in this press release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The amounts and percentages mentioned or referred to in this press release could be presented after rounding and, therefore, they might differ from the actual sums and results contained in the Company's reporting documents. PJSC Tatneft shall bear no responsibility to correct or reimburse any sums which might constitute the difference between the amounts mentioned in this press release and those in respective reporting documents, and all payments are made by PJSC Tatneft exclusively on the basis of decisions made by its authorised corporate bodies in the amounts and within the corporate proceedings set out in such decisions.