NIS Board of Directors Considered Priorities of the Company’s Development

December 6, 2014

Pursuant to the decision of the Board of Directors, the complex strategy of the Company's development by 2030 will be soon delivered to the shareholders for review. NIS' main priorities in the field of hydrocarbon exploration and production should be increase of the resource base and reservoir efficiency. The Company will continue implementing the program to enhance the gas reservoir efficiency and production rate, as well as developing the projects in the field of electrical energy generation. In view of refining complex development, the Company's efforts will be focused on the projects aimed at improvement of the depth of refining in PanĨevo Oil Refinery, optimisation of the product output, and increase of energy efficiency. The main tasks in the field of logistics and sale development will be to increase the average sales volumes at the Company's fuelling stations and continue the retail network modernization. NIS will continue developing the program of customer loyalty increase and expanding the customer pool. Special attention will be given to cutting down the logistic costs and developing the sales of special products - aviation fuel, bitumen, oils, and bunker fuel. The Board of Directors was informed of the results of the business efficiency increase and costs decrease program in all business segments. In line with the decision, the Company will continue working in this direction.