Private Pension Coverage

The corporate pension coverage system is an integral component of the social and human resource policy of Rosneft. According to the Company’s plans, the full pension of a retired employee will amount up to 45% of his or her pre-retirement salary, and will consist of three components. These are state retirement pension, corporate (non-state) pension, and personal funded pension of an employee. The state pension may reach 20% of the pre-retirement salary; corporate pension — up to 10% (depending on average salary in the respective subsidiary).

The personal non-state pension of an employee is formed within the framework of his or her personal funded pension plan with a non-state pension fund and may reach 15% of the pre-retirement salary. The corporate pension program is managed by Neftegarant Non-State Pension Fund established by Rosneft as the key instrument of the unified corporate pension system.

Neftegarant pays non-state pensions using pension reserves formed out of Rosneft’s pension contributions and the income from investing the reserves. Virtually all subsidiaries of the Company have contracts with Neftegarant on pension contributions.

In 2010, a total of over 120 thousand Company employees participated in the corporate pension system; more than 31 thousand persons were paid corporate pensions. A total of RUB 634 mln was paid by Neftegarant as non-state pensions in 2010.