Information about procedure for nomination and election of Board of Directors

The issues related to the size of the Gazprom Board of Directors, election of its Members and early termination of their powers fall within the competence of the General Shareholders Meeting (Article 48, Clause 1.4 of the Federal Law on Joint Stock Companies).

As resolved by the Company’s General Shareholders Meeting, the Board of Directors consists of 11 individuals.

The general rule is that the Board of Directors’ Members are elected for a term until the next annual General Shareholders Meeting. However, by virtue of Article 7, Clause 1.2 of Federal Law No. 292-FZ dated July 14, 2022, in the year 2023 it became possible for general shareholders meetings to elect members of a joint stock company’s board of directors for a term until the third annual general shareholders meeting to take place after the election date. Pursuant to the Resolution made by the annual General Shareholders Meeting of Gazprom on June 30, 2023, the Company’s Board of Directors was elected for a term until the third annual General Shareholders Meeting to take place after the election date.

According to Article 53 of the Federal Law on Joint Stock Companies, shareholders (a shareholder) owning a total of no less than 2 per cent of the Company’s voting shares have (has) the right to put items on the agenda of the annual General Shareholders Meeting and nominate candidates for the Company’s Board of Directors, whose number may not exceed the size of the respective body.

Such proposals shall be received the Company no later than 30 days after the end of a reporting year.

If the proposed agenda of the extraordinary General Shareholders Meeting contains the Board of Directors election item, shareholders (a shareholder) owning a total of no less than 2 per cent of the Company’s voting shares have (has) the right to propose candidates for election to the Company’s Board of Directors, whose number may neither be in excess of the size of the Board of Directors.

Such proposals shall be received by the Company no less than 30 days before the date of the extraordinary General Shareholders Meeting.

The Board of Directors’ Resolution No. 2872 dated December 22, 2016, approved the Procedure for documenting shareholder proposals and requests related to the convocation of the General Shareholders Meeting. The Procedure aims to ensure openness and transparency of the Company’s activities in preparing General Shareholders Meetings and is based on the requirements of the Russian laws and Gazprom’s Articles of Association. The Procedure sets the rules for documenting shareholder proposals and requests, their submission deadlines and content requirements. The Procedure is advisory in any parts thereof not regulated by law and the Company’s Articles of Association.

Pursuant to Article 53 of the Federal Law on Joint Stock Companies, the proposal to put items on the agenda of the General Shareholders Meeting and the proposal to nominate candidates shall contain the name of the respective shareholders (shareholder) together with the number and category (type) of the shares held and shall be signed by the shareholders (shareholder). The proposal to put items on the agenda of the General Shareholders Meeting shall contain the wording for each proposed item, whereas the proposal to nominate candidates shall contain the name and ID details (ID series and/or number, date and place of issue, issuing authority) of each proposed candidate, the name of a body he/she is nominated for, as well as other information on the candidate required by the Company’s Articles of Association or internal documents.

The proposal to put items on the agenda of the General Shareholders Meeting may contain the wording of a decision on each proposed item.

As approved by the Board of Directors’ Resolution No. 2872 dated December 22, 2016, the Procedure for documenting shareholder proposals and requests related to the convocation of the General Shareholders Meeting recommends that the wording of an agenda item be clearly defined and leave no room for multiple interpretations, while the wording of a decision on the agenda item be easy to understand and enable shareholders to express their opinion through a vote.

Should proposals and requests be more than one page in length and/or submitted on behalf of several shareholders, page binding and numbering shall contribute to a most precise will expression of the shareholders (Clause 5.3 of the Procedure for Documenting Shareholder Proposals and Requests Related to the Convocation of the General Shareholders Meeting, as approved by the Board of Directors’ Resolution No. 2872 dated December 22, 2016).

In addition to the items proposed for inclusion into the General Shareholders Meeting agenda by shareholders and to the candidates proposed by shareholders for establishment of the Board of Directors, the Board of Directors shall be entitled to include items into the General Shareholders Meeting agenda, and/or candidates, to the list of candidates for voting on election to the Board of Directors, at its discretion. The number of candidates proposed by the Board of Directors may not exceed the size of the Board of Directors.

The Members of the Board of Directors are elected at the General Shareholders Meeting by cumulative voting.

Cumulative voting is a voting system whereby the number of votes held by each shareholder is multiplied by the number of candidates to be elected to the Board of Directors. A shareholder has the right to cast all of his/her votes for a single candidate or split them among two or more nominees. The candidates with the biggest number of votes are elected to the Company’s Board of Directors.