ACRA ASSIGNS AAA(RU) TO THE SERIES 005P-02R (RU000A10DA66) BOND ISSUE OF GAZPROM NEFT PJSC

Credit rating rationale. The issue represents senior unsecured debt of Gazprom Neft PJSC (hereinafter, Gazprom Neft, the Group, or the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA ranks it as equal to other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. In accordance with ACRA’s methodology, the simplified approach was used, according to which the credit rating of the issue is on par with the credit rating of the Company — AAA(RU).

The credit rating of the Company is based on its strong market position and very strong business profile, high level of corporate governance, and the very high likelihood of extraordinary support being provided by PJSC “GAZPROM” (ACRA rating: AAA(RU), outlook Stable) The financial risk profile reflects the Company’s very large size, very high profitability, low leverage, medium coverage, very high liquidity, and medium cash flow.

Gazprom Neft is a Russian vertically integrated oil company with a diversified refining and marketing structure. It is a leader in terms of production volume. The Company operates in the largest Russian oil and gas regions: the Khanty-Mansi and Yamalo-Nenets Autonomous Okrugs, Tomsk, Omsk and Orenburg Regions, and the Republic of Sakha (Yakutia). In addition, the Group implements mining projects abroad. The Company’s main processing facilities are located in Omsk, Moscow, and Yaroslavl.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

regulatory disclosure

The credit rating has been assigned to the series 005P-02R (RU000A10DA66) bond issue of Gazprom Neft PJSC based on the following methodologies: the Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation to determine the credit rating of the bond issue under the national scale for the Russian Federation; Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, models, and key rating assumptions.

The credit rating of the series 005P-02R (RU000A10DA66) bond issue of Gazprom Neft PJSC under the national scale for the Russian Federation has been published for the first time.

The credit rating is expected to be revised within one year.

The credit rating was assigned based on data provided by Gazprom Neft PJSC, information from publicly available sources, and ACRA’s own databases.

The credit rating is solicited and Gazprom Neft PJSC participated in its assignment.

In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.

ACRA provided no additional services to Gazprom Neft PJSC during the year preceding the rating action.

No conflicts of interest were discovered in the course of credit rating assignment.