Tatneft' : Regular Meeting of the TATNEFT’s Board Directors Was Held

A regular meeting of the PJSC TATNEFT's Board of Directors chaired by R.N. Minnikhanov, President of the Republic of Tatarstan, was held in Kazan on January 30, 2018.

The Board of Directors' meeting summarized the results of the Company's budget implementation for 2017 and approved the budget for February of the current year.

The information on the work results of the Internal Audit Department was presented to the Board of Directors. Based on the audits' results it was specifacally pointed out that it was necessary to make a transition to an automated procedure for determining the wells' oil production rates and it was required to carry electronic procedures for the sale of petroleum products. A project was implemented in 2017 with participation of the Internal Audit Department to establish a Center for the Purchase of Services, which allowed reducing the costs The Department slso coordinated the operation of the 'Hot Line'. During the reporting period, morewere than 600 communications received with 38% of them reporting on deficiencies and violations, on which relevant measures were taken.

The Board of Directors approved amendments to the Regulation on dividend policy. The determination by the Board of Directors of dividends recommended for approval by the general shareholders meeting will be based on the concept that free cash flow after financing the investment program, performance of obligations and satisfaction of other needs of the Company can be distributed in form of dividends, while the target payout ratio is set at 50% of net income under IFRS or RAS, whichever is the highest. As previously, except for the annual dividends, the Board of Directors can propose to approve interim dividends based on the results for the first quarter, first half and the nine months.

The meeting also discussed a number of other issues of the Company's activities.

Forward Looking and Liability Limitation Statement:

This press release contains certain statements regarding future events and expectations, which are forward looking by nature. Any statement in this press release that is not a historical fact is a forward looking statement and shall include known and unknown risks, uncertainties and other factors that may change the actual results, accomplishments and achievements set forth in such forecasts. PJSC TATNEFT shall assume no obligations to update such statements to reflect the actual results, changes in assumptions or changes in factors affecting these statements. The amounts and percentages referred to or which the referreence was made to in this press release may be given taking into account the round-off and, accordingly, they may differ from the actual indicators and results contained in the Joint-Stock Company's accounting documents. PJSC TATNEFT shall assume no obligation to adjust or reimburse any amounts that may constitute the difference between those specified in this press release and the relevant reporting documents and all payments shall exclusively be made by PJSC TATNEFT in accordance with decisions of the competent Joint-Stock Company's management bodies in the amount and order specified in such decisionsl.