Procurement activities

GRI 2-25, 2-26

Procurement management

Procurement activities at the Company are governed by the following documents:

• Unified Procurement Standard of PJSC Rosseti (Regulations on Procurement)
• Liaison Protocol of PJSC Rosseti South’s business units during scheduled procurement of goods, works and services of the Company
• Regulations on the Work of the Central Tender Commission of PJSC Rosseti South
• Regulations on the Work of the Standing Procurement Commission of PJSC Rosseti South

For efficient interaction with suppliers, the Company uses the electronic trading platforms www.rts-tender.ru and www.roseltorg.ru, the functionality of which makes it possible to expand the range of suppliers involved in procurement, as well as provides a competitive environment, thereby contributing to the efficiency of the Company’s procurement activities.

Supply chain management

The Company’s supply chain management strategy aims to optimise the procurement of goods and services through competitive procedures.

Types of suppliers involved in the supply chain:

• Financial and credit organisations
• Contractors (construction and installation, design and survey works, etc.);
• Suppliers (supply of materials, equipment, spare parts, etc.);
• Others (security, mail, administrative services).

Supplies and services for the Company’s needs are provided by organisations from 46 regions of the Russian Federation, but the priority share of suppliers is made up of regional companies (84%).

Results of procurement activities in 2025

In the reporting year, the Company conducted 2,482 procurement procedures for a total of RUB 95.5 billion.

The Company focuses its efforts on improving the information transparency and access of participants to procurements, including mainly electronic procurement procedures. The share of competitive purchases using electronic trading platforms in the reporting year was 98.35% (excluding purchases from a single supplier). There are no suppliers or contractors registered outside the Russian Federation.

Purchases from SMEs

Since 2023, PJSC Rosseti has been implementing a programme to support SMEs in order to encourage them to participate in procurement processes for goods, works, and services required by PJSC Rosseti. The Company, along with other subsidiaries and affiliates of PJSC Rosseti, ensures the implementation of this programme.

In pursuance of the government policy on small and medium-sized business development, the Company approved the programme of the partnership between PJSC Rosseti South and SMEs. This Programme sets forth the measures aimed at searching and supporting reliable, qualified and responsible suppliers (contractors, operators) from among SMEs. The partnership programme outlines the requirements to small and medium-sized enterprises, rules and conditions of joining the programme.

As of yearend 2025, 39 small and medium-sized enterprises joined the partnership programme.

In accordance with Decree of the Government of the Russian Federation No. 1352 dated 11 December 2014, procurements were made and contracts were concluded with suppliers classified as SMEs, worth RUB 27,381.62 million, including VAT, which is 75.92% of the total volume of procurement procedures, including special procurements (where only SMEs could participate in the procurement) worth RUB 11,391.98 million, including VAT, which is 31.59% of the total volume of procurement procedures.

In accordance with the requirements of the Decree of the Government of the Russian Federation, quotas for purchases by specific customers from SMEs were approved at 20% (25% for special purchases). The Company regularly exceeds the plan of purchases from SMEs.