Dividends

Contents

• Dividend Policy
• Dividend History
• FAQ

Dividend Policy

The dividend policy is one of key elements in corporate guidance and a key indicator in maintaining the balance of shareholders’interests.

The main principles of JSC Gazprom Neft’s dividend policy are:

• ensuring the greatest transparency of the dividend allocation mechanism and procedure for its payment. The company formalized its dividend policy, which it had been implementing in recent years within the Provision on Dividend Policy. In the provision, the company fixed a minimum amount of annual dividends on shares: 15 % of the company’s net profit, calculated in accordance with US GAAP
• observing legislation in force in the Russian Federation, the Articles of Association and the company’s bylaws. The right to receive dividends is granted to all shareholders of the register as of the date of compiling the list of shareholders entitled to participate in the General shareholders’ Meeting, at which the resolution to pay dividends was adopted. The registration date for holders of company ADRs is set separately by the depository bank, which is The Bank of New York Mellon
• striving to commit to high standards of corporate governance. The company secured the principle of ensuring positive dynamics of dividend payment values subject to the company’s net profit growth. The approved JSC Gazprom Neft’s Provision on Dividend Policy is posted on the company’s official website, where the history of the company’s dividend payment can be also viewed
• commitment to pay dividends within a short time-span. In September 2010, JSC Gazprom Neft transferred money to the full amount to accounts of its minority shareholders

The resolution of the Annual General shareholders’ Meeting of the company, dated 29 June 2009, established the dividend amount per JSC Gazprom Neft’s ordinary share at 3.57 RUB. The total amount of accrued dividends for the 2009 financial year was 16,926,440,000 RUB.

* Dividends were not paid to the shareholders who failed to provide the data required for dividend transfer under CL.5 of Article 44 of Federal Law No. 208 - FZ 'On joint stock companies', dated 26 December 1995. Dividends accrued on shares of unidentified holders are paid as the shareholders' rights to their securities are established
** Of net profit corrected by one-off revenue and expenditure

Dividend History

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FAQ

• What are dividends?

  Dividends are a portion of the company's net profit distributed to shareholders proportionally, based on the number of shares they own.

• Who decides on the payment of dividends?

  Decisions on the payment, size and form of payment of dividends are made at a general shareholders’ meeting in accordance with procedures laid out by the Russian federal law " Concerning Joint Stock Companies". Dividend totals should not exceed an amount recommended by the Board of Directors of the Company.

• Who has the right to receive dividends?

  Shareholders listed in the corporate register on the eligibility deadline for participating in the shareholder meeting (ex-dividend date) at which dividends are approved, have the right to receive those dividends. The ex-dividend date for holders of ADRs with the right to receive declared dividends is set separately by the depository bank (Bank of New York).

• How often are dividends paid?

  Dividends can by paid quarterly, six-monthly, or annually. The total amount of dividends is determined at the annual general shareholder meeting.

• What is the Company’s long-term dividend policy?

  The Company plans to pay out as dividends a minimum of 15% of net profits received at the end of the reporting period.

• How can I receive my dividend?

  Specialised registrar company CJSC “Specialised registrar - The registrar for gas industry” (CJSC "SR-DRAGa", 71/32 Novocheryomushkinskaya Str., Moscow, 117420) acts as the Company’s agent for payment of dividends. Dividends can be received in one of three ways: post office wire, bank transfer, or in cash from the registrar. The procedure chosen for receiving payment for each shareholder is indicated in the individual registration card maintained by the registrar. The method of dividend payment can be changed by contacting the registrar.

• I was a shareholder as of the ex-dividend date. Why haven't I received my dividend yet?

  In some cases, the problem could be an incomplete registration card (without bank transfer information or tax identification number). If your shares are held by a nominee, it is possible that the delay is because the nominee has not properly notified the registrar about you notification late or incomplete). For clarification, you will need to contact the registrar: 71/32 Novocheryomushkinskaya Str., Moscow 117420; opening hours for shareholders: 9 a.m. – 1.00 p.m. on business days. Consultation and pass ordering for shareholders by phone: +7 (495) 719-39-30; How to find: Novye Cheremushki Metro Station, first car from city centre, trolleybus 60, bus-stop " Novocheryomushkinskaya Str." Phone at +7 (495) 771-73-34.

• I received my dividend by post office transfer and money was withheld for transfer fees. How can I avoid this expense?

  The postal system subtracts a fee from any money transfer. To avoid this cost, you can change your individual registration card and receive payment in cash at the registrar’s office, or by transfer to your personal bank account. In order to change your card, please contact the registrar.

• Should I pay taxes? What are the rates?

  In accordance with the Tax Code of the Russian Federation, the issuer (company) should withhold individual income taxes from dividends. Therefore, you receive payment with taxes already deducted: - legal entities resident in the Russian Federation - 9%<br/> - non-resident legal entities - 15% (*)<br/> - individual residents of the Russian Federation - 9%<br/> - non-resident individuals - 15% (30% until 01.01.2008)

• When filing a tax return, the amount of tax withheld from dividends must be indicated. How may I do that?

  You must contact either the Company or its registrar. They will provide you with a standard declaration on individual income.

• How are taxes withheld for dividends paid to foreign companies?

  The standard tax rate for foreign legal entities is 15%. If your company is a resident of a country with which the Russian Federation has signed a double taxation avoidance treaty, the withholding rate can be reduced. Please contact the Securities Department of JSC Gazprom Neft’ at +7 (495) 961-13-24.