Prevention of conflicts of interest

GRI 2-15

The Company is more focused on preventing and reducing the effects of any conflicts of interest among government body members of the Company.

The settlement of conflicts of interest is based on the Code of Corporate Ethics, the Regulations on the Board of Directors and the Regulations on the Management Board of the Company approved by the Company.

As recommended by the Corporate Governance Code of the Bank of Russia, members of the Board of Directors of the Company are advised to refrain from actions that will or may lead to a conflict between their interests and the interests of the Company. The executive bodies of the Company are subject to the duty to act fairly and honestly in the best interests of the Company.

The requirements of art. 82 of the Federal Law on joint stock companies for the sending of notices to PJSC Rosseti South regarding indications of potential interest in the Company’s transactions were satisfied by all members of the management bodies of the Company.