About the Report
GRI 2-1, 2-2
The Report aims to provide stakeholders with information about the most significant events, production activities, financial results, and sustainable development of the Company, as well as its impact on the economy and environment.
Public Joint-Stock Company Rosseti South may also be referred to herein as PJSC IDGC of the South (the previous name until 14 February 2022), PJSC Rosseti South, Rosseti South or the Company.
REORGANISATION OF PJSC ROSSETI SOUTH
On 1 December 2025, the Company’s reorganisation was completed in the form of a merger with JSC Rosseti Kuban. The reorganisation process took into account the implementation of one of the tasks stipulated by the Energy Strategy of the Russian Federation for the period up to 2050, i.e., the creation of a single state-owned energy complex by consolidating power grid assets on the basis of a single company, PJSC Rosseti South.
Decisions on the reorganisation were taken by the extraordinary General Meetings of Shareholders of PJSC Rosseti South (15 May 2025, Minutes No. 28 dated 16 May 2025) and JSC Rosseti Kuban (16 May 2025, Minutes No. 52 dated 19 May 2025). The merger agreement between PJSC Rosseti South and JSC Rosseti Kuban was signed on 21 May 2025. The merger of the two largest operating companies took place in less than seven months after the decisions had been taken by the extraordinary General Meetings of Shareholders.
Following the Company’s reorganisation, its authorised capital increased 4.6 times, and the share of PJSC Rosseti in the authorised capital of PJSC Rosseti South increased from 84.16% to 96.31%.
The reorganisation aimed at maintaining the reliability and stability of energy supply in the south of Russia, upgrading the service to electric consumers by improving the monitoring mechanism, increasing the level of observability and manageability of grid infrastructure facilities, and creating conditions for rapid response during repair and emergency recovery operations at power grid facilities.
The rights and obligations of JSC Rosseti Kuban were transferred to PJSC Rosseti South by way of universal legal succession. Reliable and uninterrupted power supply to consumers of the Republic of Adygeya, the Krasnodar Territory and the federal territory of Sirius is provided by the Kubanenergo branch.
The Subject of the Report – Aggregating the energy of the South of Russia
Modern technology cannot advance without energy. The Company is driving this technology advancement, supplying energy to the regions’ industrial sector within its remit and the country’s energy sovereignty, while also introducing cutting-edge technology into its internal processes.
PJSC Rosseti South plays a pivotal role in ensuring power supply to six southern regions of the Russian Federation. Despite all the difficulties and challenges of the reporting year, the Company demonstrates seamless operation, ensures reliable power supply to consumers, puts new facilities into operation, and connects hospitals, schools, kindergartens to its power grids, while taking care of the well-being of every resident of the regions where it operates.
In this way, our Company contributes to the implementation of national and regional projects, participating in the common cause together with the entire country. We recognise that the expertise and experience of our staff who are always learning new skills, along with the implementation of cutting-edge technology and careful planning, are the cornerstones for successfully completing the duties assigned by the government and society. We are convinced that only through our continuous efforts to improve people’s quality of life and our responsibility to society we can maintain our leadership in the industry and ensure our success in the future.
Boundaries of the Report
GRI 2-4
This Report contains the Compant’s performance results for 2025 and presents certain important events in the Company’s activities that took place after the reporting date — in the period from 1 January 2026 to the preliminary approval of the Report by the Board of Directors.
This Annual Report has been prepared on the basis of information available to Rosseti South as of the date of the Report. The Annual Report provides an overview of the Company’s results for 2025, as well as the historical changes in indicators for
Most of the Company’s indicators for 2025 disclosed in this Report contain the performance results of the Kubanenergo branch within PJSC Rosseti South for December 2025, and in some cases, to ensure comparability of indicators, as well as the performance results of PJSC Rosseti Kuban for
This Report contains information about the members of the Company’s governing and control bodies, members of the Committees of the Board of Directors and the Corporate Secretary, as well as the amount of their personal remuneration, in full compliance with the requirements of Russian legislation on personal data.
Standards
The 2025 Report was prepared in accordance with international and Russian standards and regulatory requirements, including:
- Federal Law No. 39 ‘On Securities Market’ dated 22 April 1996
- Federal Law No. 208 dated 26 December 1995 ‘On Joint Stock Companies’
- Bank of Russia’s Regulations No. 714-P dated 27 March 2020 ‘On Disclosure of Information by Issuers of Equity Securities’
- Recommendations on disclosure of non-financial information related to activities of public joint-stock companies (Letter of the Bank of Russia No. IN-06-28/49 dated 12 July 2021)
- Code of Corporate Governance approved by the Board of Directors of the Bank of Russia on 21 March 2014 and recommended for application by Letter of the Bank of Russia No. 06-52/2463 dated 10 April 2014 (hereinafter referred to as Code of Corporate Governance of the Bank of Russia)
- GRI 2021 standards with reference
Disclaimer
The Annual Report contains certain forward-looking statements regarding the Company’s business operations, financial and economic performance, plans, projects and expected results. The Report may also include estimates of trends in service/product prices, production and consumption volumes, costs, projected expenditures, development prospects and similar factors, as well as industry and market forecasts, start and end dates of individual projects of the Company.
The Company makes no promises or guarantees regarding the realisation of the results expressed in the forward-looking statements. PJSC Rosseti South disclaims any liability for any losses incurred by individuals or entities that bank on any forward-looking statements. In each individual case, these forward-looking statements are simply one of many scenarios that could occur and shall not be taken as the most likely one.
External assurance of the Report
GRI 2-5
The Report has passed the public assuarance procedure conducted by the Council of the Russian Union of Industrialists and Entrepreneurs on non-financial reporting.
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