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As per the laws of the Russian Federation, a contract for mandatory audit of accounting (financial) statements of any company where the state owns at least 25% of the authorised capital shall be signed on the basis of an open tender to be conducted at least once in five years in accordance with the procedure prescribed by the Federal Law No. 44-FZ On the Contractual System of the Federal and Municipal Procurement of Goods, Works and Services dated 05 April 2013.

The auditor was selected on the basis of an open tender results. The auditor selection tender for 2018 was conducted in accordance with the Regulations on Open Auditor Selection Tender for Mandatory Annual Audit of Transneft in 2018 and a Review of Interim Consolidated Financial Statements for Q1 2019.

Based on the open tender results, the sole shareholder of Transneft approved KPMG as the Company's auditor for 2018.

Auditor’s Details

Name of the Company's auditor: Joint-Stock Company KPMG (KPMG, JSC).

Location: 16/5 Olimpiysky Prospect, 3rd floor, premises I, office 24E, 129110, Moscow.

Mailing address: 10 Presnenskaya Naberezhnaya, block “C”, etazh 31, 123112, Moscow.

Phone: +7 495 937 4477, fax: +7 495 937 4499

KPMG, JSC is registered with Moscow Registration Chamber. Certificate No. 011.585 dated 25 May 1992.

Included into the Unified State Register of Legal Entities by the Moscow Inter-District Inspectorate No. 39 of the Ministry of Taxes and Levies of the Russian Federation under the No. 1027700125628 dated 13 August 2002. Certificate series 77 No. 005721432.

KPMG, JSC is a member of the Self-Regulatory Organisation of Auditors the Russian Union of Auditors (Association).

Principal entry registration number in the register of auditors and audit organisations: 11603053203

The auditor's remuneration for auditing services, as per the contract for auditing the statements of Transneft for 2018, amounted to RUB 19.5 mln. exclusive of VAT.

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