Corporate governance

In executing our strategy, Rosneft is focused not only on creating value for our shareholders, but also on adhering to the highest standards of corporate governance.  Indeed, we are convinced that these issues are not distinct and that a commitment to transparent and responsible management of the business is essential to maintaining the trust of the investment community and maximizing the returns we generate for all our shareholders over the long-term.

Good corporate governance is both a prime consideration for our international project partners and a characteristic of the world’s most respected companies.  We believe that good corporate governance benefits all stakeholders in our Company, including our customers, suppliers, partners, employees and shareholders.  As the steward of our shareholders’ interests, Rosneft’s management team will always act in the interests of minority and majority shareholders alike, without distinction.

Transparency in financial reporting is one important aspect of corporate governance.  Rosneft has an established record of releasing quarterly, semi-annual and annual reports under US GAAP, and we will continue this practice in the future.  As part of an ongoing effort to further enhance our US GAAP financial reporting as a public company, we expect to further reduce the time between the end of our financial reporting periods and the publication of our financial results.

One of the most visible manifestations of the Company’s commitment to strong corporate governance principles is the composition of its Board of Directors and board committees. We have recently appointed independent non-executive directors to fill three of the nine board seats:

• Andrey Kostin, President and Chairman of Vneshtorgbank
• Alexander Nekipelov, Vice President of the Russian Academy of Sciences
• Hans-Joerg Rudloff, Chairman of the Executive Committee of Barclays Capital

These highly respected individuals chair the Company’s HR and Remuneration Committee, Strategic Planning Committee and Audit Committee, respectively.