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ANNUAL REPORT OF S.P. KOROLEV AND SPACE PUBLIC CORPORATION FOR 2019

This Annual Report of S.P.Korolev Rocket and Space Public Corporation Energia (RSC Energia) was prepared based upon its performance in 2019 with due regard for the requirements stated in the Russian Federation Government Decree of December 31, 2010 No. 1214 “On Improvement of the Procedure to Control Open Joint-Stock Companies whose Stock is in Federal Ownership and Federal State Unitary Enterprises”, and in accordance with the Regulations “On Information Disclosure by the Issuers of Outstanding Securities” No. 454-P approved by the Bank of on December 30, 2014 Accuracy of the data contained in this Annual Report, including the Report on the interested-party transactions effected by RSC Energia in 2019, was confirmed by RSC Energia’s Auditing Committee Report as of 01.06.2020.

This Annual Report was preliminary approved by RSC Energia’s Board of Directors on August 24, 2020 (Minutes No. 31). This Annual Report was approved at RSC Energia’s General Shareholders’ Meeting on September 28, 2020 (Minutes No 40 of 01.10.2020).

2 TABLE OF CONTENTS 1. BACKGROUND INFORMATION ABOUT RSC ENERGIA ...... 6 1.1. Company background ...... 6 1.2. Period of the Company operation in the industry ...... 6 1.3. Information about the purchase and sale contracts for participating interests, equities, shares of business partnerships and companies concluded by the Company in 2019 ...... 7 1.4. Information about the holding structure and the organizations involved ...... 8 2. PRIORITY DIRECTIONS OF RSC ENERGIA OPERATION ...... 11 2.1. Information about the Company strategies and development programs (including innovation and investment programs) ...... 11 2.2. Prospects for development of the Company ...... 11 2.3. Level of investment with a breakdown by financing sources in 2019 ...... 12 2.4. Quality Management System in force at the Company ...... 13 2.5. Information about non-core assets alienation program ...... 15 3. REPORT OF THE BOARD OF DIRECTORS ON THE RESULTS OF THE RSC ENERGIA DEVELOPMENT IN THE HIGH-PRIORITY AREAS OF ACTIVITY...... 17 3.1. Financial and economic results of activities in 2015-2019, as well as information about available Key Performance Indicators System ...... 17 3.2. Info about Corporation’s standing in the industry. Major competitors of the Corporation in the industry ...... 19 3.3. The Company’s share in respective market segment in terms of its core business and dynamics of this indicator over the last 3 years ...... 22 3.4. ISS transportation support ...... 23 3.5. Flight operation of space systems ...... 24 3.6. Development and operation of the ISS ...... 28 3.7. Results of scientific programs onboard the ISS RS ...... 29 3.8. Advanced space systems ...... 31 3.9. Design engineering of , space complexes and launch vehicles ...... 32 3.10. Unmanned space complexes and systems ...... 34 3.11. International activities of the Corporation ...... 34 4. ENERGY EFFICIENCY ...... 37 4.1. Measures to enhance energy efficiency ...... 37 4.2. Information about the volume of different types of energy resources used by the Company in 2019 in kind and in ruble terms ...... 38 5. SOCIAL RESPONSIBILITY. PERSONNEL DEVELOPMENT AND SOCIAL POLICY ...... 39 5.1. Personnel policy ...... 39 5.2. Personnel motivation...... 42 5.3. Social policy ...... 45 6. CORPORATE GOVERNANCE ...... 48 6.1. Corporate governance concepts and structure ...... 48

3 6.2. Information about the Company General Shareholders’ Meeting held ...... 51 6.3. Information about the Company Board of Directors ...... 52 6.3.1. Board of Directors’ Regulations...... 52 6.3.2. Company Board of Directors membership ...... 53 6.3.3. Background information about the persons who were the members Board of Directors in 2019 54 6.3.4. Regulations on ad hoc Committees at the Company Board of Directors, their memberships and information about the meetings held ...... 58 6.3.5. Provision on Remuneration of the Company Board of Directors members...... 60 6.3.6. Information about remuneration paid to the Company Board of Directors members in 2019 .....61 6.4. Information about the Company executive bodies ...... 61 6.4.1. Chief Executive Officer of the Company ...... 61 6.4.2. Collective Executive Body of the Company ...... 62 6.4.3. Company Management Board membership ...... 62 6.4.4. Background information about the persons serving on the Company Management Board in 2019 63 6.4.5. Provision on remuneration of the Company executive bodies members ...... 69 6.4.6. Information about remuneration paid to the Company executive bodies members in 2019 ...... 69 7. EQUITY CAPITAL ...... 70 7.1. Equity capital structure ...... 70 7.2. Dividend Policy...... 71 7.3. Information about distribution and disposition of the profit earned by the 2018 performance in 2019...... 74 8. INTERNAL CONTROL AND RISK MANAGEMENT ...... 75 8.1. Description of the key risk factors associated with the Company activities ...... 75 8.2. Internal control ...... 83 8.3. Internal audit ...... 83 8.4. Information about the Company Auditing Committee ...... 84 8.5. Membership of RSC Energia Auditing Committee during the accounting year ...... 86 8.6. Remuneration paid to the Auditing Committee members in 2019 ...... 87 9. ADDITIONAL INFORMATION ...... 89 9.1. Information about the Company’s auditor ...... 89 9.2. Information about the organization keeping records of the rights to the Company outstanding securities...... 89 9.3. Glossary ...... 90 10. APPENDICES ...... 92 APPENDIX 1 / Financial Statements and Audit Report on Reliability of Financial Statements over the Accounting and Previous Years ...... 92 APPENDIX 2 / Information about state backing of RSC Energia activities in the accounting year, including the data on subsidies granted, purpose of their use; information about application of the funds at the accounting year-end ...... 93

4 APPENDIX 3 / Information about the resolutions passed at General Share holders’ Meetings, Board of Directors’ Meetings and meetings of the ad hoc Committees at the Board of Directors ...... 94 APPENDIX 4 / Information about the Company Compliance with the Code of Corporate Governance ...... 131 APPENDIX 5 / Information about large deals in 2019 ...... 166 APPENDIX 6 / Report on the interested-party transactions effected by RSC Energia in 2019 ...... 167 APPENDIX 7 / Information about economic entities with RSC Energia stake in their Charter Capital from 2 up to 20% ...... 178 APPENDIX 8 / Information about affiliated companies with the Company’s stake in the Charter Capital from 20% to 50% ...... 180 APPENDIX 9 / Information about subsidiary companies with the Company’s stake in their Charter Capital from 50 % + 1 share up to 100% ...... 181 APPENDIX 10 / Non-profit organizations the participant (founder) of which is RSC Energia ...... 183 APPENDIX 11 / Information about actual results of executing the Russian federation President and Government orders and instructions ...... 186 APPENDIX 12 / Information about continuing court proceedings in which RSC Energia acts as a plaintiff (defendant on debt claim with indicated total amount of claims made/lodged that may have an impact on RSC Energia operation ...... 199

5 1. BACKGROUND INFORMATION ABOUT RSC ENERGIA

1.1. Company background S.P. Korolev Rocket and Space Public Corporation Energia (also hereinafter referred to as RSC Energia, the Company) is the leading Russian rocket-space enterprise which builds both manned and unmanned space systems, launch vehicles and orbit-to-orbit transportation vehicles, as well as different high-technology systems for non-space applications. Also the Company is the key organization engaged in building and utilization of the International Russian Segment (ISS RS). Company activities are: research and development in the field of natural and technical sciences; research, development and tests aimed to build and operate manned and unmanned space complexes and systems; different classes of launch vehicles and rocket-space systems designed to serve various national economic, scientific purposes, as well as other high-technology products.

Full firm’s name: Публичное акционерное общество «Ракетно-космическая корпорация «Энергия» имени С.П. Королёва» Shortened firm’s name: RSC Energia Full firm’s name in English: S.P. Korolev Rocket and Space Public Corporation Energia Shortened firm’s in English: RSC Energia Status: Public Company Date of incorporation and number of 06.06.1994 No.1430 State Registration Certificate: State agency for registering legal entities: Municipal Administration of Kaliningrad city, Region RF subject where the Company was Moscow Region registered Main State Registration Number (MSRN): 1025002032538 of 21.10.2002 Registered by Interdistrict Inspectorate of Federal Taxation Service No.2, Moscow Region Certificate of its being entered in the Series 50 No. 02516454 United State Register of Legal Entities: Issued by Interdistrict Inspectorate of Federal Taxation Service No.2, Moscow Region Taxpayer Identification Number: 5018033937 Place of business and mailing address: 4A Lenin Street, Korolev city, Moscow Region, 141070, Russia Contact phone: (495) 513-72-48 Fax: (495) 513-86-20, (495) 513-88-70 Press service: (495) 513-80-19 Company e-mail: [email protected] Company web site: www.energia.ru

Web site for disclosing information on the http://www.e-disclosure.ru/portal/company.aspx?id=1615 internet:

1.2. Period of the Company operation in the industry RSC Energia has been conducting business in rocket and space industry since 1946 when a team of developers of long-range ballistic missiles was formed, which was headed and run by the Chief Designer of rocket and space systems and the founder of practical cosmonautics, academician

6 Sergei Pavlovich Korolev. The enterprise became the pioneer in virtually all the fields of rocket and space technology.

At present, RSC Energia is involved in the following major areas of activities: 1. Manned space complexes and systems. • The major customers are State Space Corporation , US National Aeronautics and Space Administration (NASA), (ESA), space agencies of other countries. 2. Unmanned space complexes and systems. • The major customers are Russian and foreign partners. 3. Rocket space systems and launch vehicles. • The major customers are Russian (State Space Corporation ROSCOSMOS, etc.) and foreign partners. RSC Energia is the legal successor to Special Design Bureau-1 (OKB-1), Central Design Bureau of Experimental Machine-building (TsKBEM) and Scientific – Production Association (NPO) Energia after academician S.P. Korolev. The Company was established by the Russian Federation President’s Decree No. 237 dated February 4, 1994 “On the Procedure for Privatizing Scientific and Production Association Energia named after academician S.P. Korolev” and on the basis of the Russian Federation Government Decree No.415 dated April 29, 1994 “On Establishing S.P. Korolev Rocket and Space Corporation Energia”.

1.3. Information about the purchase and sale contracts for participating interests, equities, shares of business partnerships and companies concluded by the Company in 2019 In 2019 the Company did not enter into any purchase and sale contracts for participating interests, equities, shares of business partnerships and companies. The approaches taken to assess expediency/inexpedience of RSC Energia’s participation in subsidiary and affiliated companies (hereinafter referred to as SAC) (based upon an analysis of cost-effectiveness, extent to which the approved KPIs are performed by the SAC; with due regard for specific activities and problems, that each subsidiary or affiliated company is facing) are widely used in current activities. During the accounting year RSC Energia continued its efforts under the Program to handle non-core assets of State Corporation ROSCOSMOS (which the Company joined in 2018) and in accordance with the Register of non-core assets approved by the Company’s Board of Directors (Board of Directors’ Minutes No.8 dated 18.01.2019). The above information is detailed in this Annual Report, item 2.5. The year 2019 saw actual liquidation of ZAO VKB RSC Energia (100% subsidiary company of RSC Energia). The above company was excluded from the Unified State Register of Legal Persons (entry on the termination of activity dated 10.07.2019). Due to the liquidation of ZAO VKB RSC Energia and under RF CC Art. 63, the corporate property remaining upon satisfaction of the creditors’ claims has been transferred to its founder having corporate rights with respect to the legal entity. ZAO VKB RSC Energia owned a 16% spare in the authorized capital of OOO Solnechny Bereg. Under RF CC Art. 93 and Federal Law “On Limited Liability Companies” the above share has been

7 transferred to RSC Energia. The Entry on the share transfer was made in the Unified State Register of Legal Persons on 20.09.2019.

1.4. Information about the holding structure and the organizations involved In order to improve the Russian Federation rocket and space industry organizations management system within a large-scale program to restructure Russian space industry, 2014 saw creation of open joint-stock company entitled “the United Rocket-Space Corporation“ (OAO URSC, at the present time AO URSC) whose shares (100%) had been in federal ownership till November 2016 (Decree of the RF President No. 874 “On Rocket-Space Industry Management System” dated 02.12.2013). According to the Russian Federation Government Direction No. 114-r dated 03.02.2014, RSC Energia’s stock which had been in the Russian Federation ownership (429 497 shares of stock which came to 38.22% of the authorized capital on the date of their transfer) was added to AO URSC charter capital as the Russian Federation contribution. Under the RF Government Direction N 1226-r of 20.08.2009 (taking into account subsequent revised versions) “On approval of the List of Strategic Organizations as well as Federal Bodies of Executive Power ensuring implementation of a common state policy in sectors of the economy where these organizations operate”, RSC Energia was included in the List of Strategic Organizations.

In July 2015 under Federal Law “On State Space Corporation ROSCOSMOS”, State Space Corporation ROSCOSMOS was created (hereinafter referred to as the State Corporation ROSCOSMOS).

State Corporation ROSCOSMOS was set up in order to implement government policy concerning space activity and its regulatory control and legal regulation, as well as place orders for development, manufacture and delivery of space technology and space infrastructure objects. Also the State Corporation ROSCOSMOS is responsible for development of international cooperation in space activity and capitalizing on space activity achievements for further socio-economic in Russia.

State Corporation ROSCOSMOS is an authorized body of administration in the field of space exploration, development and use which is invested with powers to carry out government administration and exercise management of space activity on behalf of the Russian Federation in accordance with the Russian Federation Law “On Space Activity”, as well as regulatory control and legal regulation in this area.

On the basis of the Federal Property Management Agency’s Order No. 799-r of 14.10.2016, the AO URSC stock held in Federal ownership were added to the State Corporation ROSCOSMOS as the property contribution from the Russian Federation. Also the State Corporation ROSCOSMOS owns by right of ownership 378 777 shares of the stock which amounted to 32.1% of the authorized capital as of 31.12.2019. Altogether, 88.1% of RSC Energia’s authorized capital were under the State Corporation ROSCOSMOS direct and indirect control as of 31.12.2019.1 1 Percent of the authorized capital size is indicated without regard for the additionally issued stock which was as of 31.12.2019 in the process of placement.

8 Under the procedure established by the Russian Federation legislation, State Corporation ROSCOSMOS shall exercise powers (functions) of the general manager of budgetary funds; recipient of budgetary funds; chief administrative officer of budget receipts; administrator of budget receipts, state customer; state customer-coordinator; responsible contractor under state armament program; state-funded programs of the Russian Federation; presidential programs; Federal Space Program of Russia; interstate and federal target programs; state order; federal dedicated investment program; programs of Allied state and programs devoted to international cooperation in space activity.

State Corporation ROSCOSMOS is the legal successor of the USSR Ministry of Mechanical Engineering; Russian Space Agency; Russian Aviation-Space Agency and Federal Space Agency with regard to international contracts (agreements) of the Russian Federation for space activity concluded with the agencies and organizations of foreign countries and international organizations (including relevant contract commitments), as well as the legal successor of the Russian Aviation- Space Agency and Federal Space Agency as regards the agreements (contracts) in the above area concluded with federal governmental authorities; governmental authorities of the Russian Federation subjects; bodies of local government and organizations.

In 2018 RSC Energia embarked on the procedures to increase its authorized capital due to receipt of budgetary investments. The Federal Space Program of Russia designed for the 2016 - 2025 period (further referred to as the FSP 16-25), and approved by the Russian Federation Government Decree No. 230 of 23.03.2016 foresaw the following investment projects of RSC Energia: • Reconstruction and technical re-equipment of industrial and administrative building No. 114 in order to create assembly-test complex to mount and test products for manned flights (ATC); • Reconstruction and technical re-equipment of the integrated stand for ground development testing and verification tests for performance under space simulated conditions of components built into large manned space vehicles and unmanned spacecraft, as well as assembled small satellites during their manufacture at RSC Energia; • Reconstruction and technical re-equipment of assembly-test manufacturing; • Reconstruction and technical re-equipment of building 57 and test complex support infrastructure facilities; • Reconstruction and technical re-equipment of buildings Nos.2, 14, 114. Investment Projects are to be funded at the cost of the Federal budget and own means of the Company. During 2019, RSC Energia continued to implement the authorized capital increase procedures. In December 2019 RSC Energia received Federal budgetary funds as part of the government investment contracts in the form of state capital investments being entered into in the course of RSC Energia’s authorized capital increase by placement of additional ordinary shares. As a result, 130 723 shares were entered to the Russian Federation account (in the person of Federal Property Management Agency) as of 31.12.2019. The report on stock issue results was recorded by the Bank of Russia on February 6, 2020. Amendments in RSC Energia’s Articles of Association which reflect change in the authorized capital amount were recorded on 04.03.2020. Amount of the authorized capital is 1310559822,5 rubles and divided into 1310559 stock shares and 462133/561867 ordinary shares. Thus, with due regard for actually placed equities of additional issue (state registration number 1-03-01091-А- 002D):

9 • common stock of RSC Energia owned by the Russian Federation in the person of the Federal Property Management Agency accounted for 14,255%; • common stock of RSC Energia owned by the State Space Corporation ROSCOSMOS accounted for 28,902%; • common stock of RSC Energia owned by the Joint-Stock Company ‘United Rocket Space Corporation’ accounted for 32,772%; • common stock of RSC Energia owned by the Joint-Stock Company ‘Investment Company Razvitiye’ accounted for 14,942% (since January 2020 the above stock have been in entrusted management of the State Corporation ROSCOSMOS; till December 2019 the above stock had been in entrusted management of AO URSC); • common stock of RSC Energia owned by the Closed Company ‘Experimental Machine- building Plant of S.P. Korolev Rocket-Space Corporation Energia’ accounted for 2,717% (since January 2020 the above stock have been in entrusted management of the State Corporation ROSCOSMOS; till December 2019 the above stock had been in entrusted management of AO URSC).

10 2. PRIORITY DIRECTIONS OF RSC ENERGIA OPERATION

2.1. Information about the Company strategies and development programs (including innovation and investment programs) RSC Energia engages in business in accordance with the Plan to implement development strategy created by State Space Corporation ROSCOSMOS for a period up to 2025 and upwards till 2030.

Innovative development of the Company is conducted according to the Innovative Development Program (IDP). Updated IDP of the Company for the 2016-2025 period was approved by the Board of Directors on 21.12.2017.

Medium-term plans of putting IDP measures into effect are developed and updated on an annual basis. IDP implementation progress is monitored annually. Financial Recovery Program is developed: approved as a whole by the Company’s Board of Directors (Minutes No.3 of 16.08.2019); approved by the State Corporation ROSCOSMOS’ management board (Minutes No. PK-183-pr of 03.10.2019); assumed as a basis by the State Corporation ROSCOSMOS’ Supervisory Board (Minutes No. 30-NS of 22.10.2019). 2.2. Prospects for development of the Company MANNED SPACE SYSTEMS RSC Energia is the lead organization on the International Space Station (ISS) Russian Segment (RS) technological and program integration. The Company provides manufacture and launches of MS manned space vehicles and Progress MS cargo vehicles; building and launch of multipurpose laboratory module (MLM); nodal module (NM) and scientific-power module (SPM). Underway is operational use of the ISS Russian Segment; the program of scientific applied research and experiments is constantly expanding. Currently, activities are well underway to extend the ISS operational use till 2028 - 2030. Meanwhile, along with the expanded scientific program, efforts are planned to test deep space manned flight technologies as applied to and Mars, as well as broaden commercial missions. In 2024, it is expected to dock a new-generation unmanned transport spacecraft to the ISS Russian Segment, while in 2025, it is planned to dock a new-generation crew transportation spacecraft (CTS) to the ISS Russian Segment. LUNAR PROGRAM For lunar missions RSC Energia is building crew transportation spacecraft. For its delivery to , space rocket complex (SRC) of super heavy class (SHC) is going to be used; since 2018 underway have been efforts to build the above SRC undertaken by RSC Energia on the State Corporation ROSCOSMOS order. Of fundamental importance is the activity conducted by RSC Energia to substantiate expediency of near-lunar orbital platform. It will make the proposed lunar manned program more flexible and lift many restrictions. This platform can be built using the ISS technologies, including that of SPM. It is anticipated that the Federal Space Program will also include activities having to do with (SM) as part of the SPM-based platform and Lunar Take-Off-and-Landing Complex (LTLC).

11 The pioneer unmanned launch of CTS by super heavy LV is going to be performed in 2028, while 2029 will see its manned launch to lunar orbit. LAUNCH VEHICLES RSC Energia is the lead organization on building a new-generation medium SRC Soyuz 5, as well as creating SRC Baiterek to be implemented by the Republic of . SRC Soyuz 5 is being built to launch unmanned SC from . The Soyuz 5 LV first stage will also become a part of super heavy LV first and second stages units. Flight tests of SRC Soyuz 5 are slated for 2023. Besides, RSC Energia is the main developer of super heavy SRC. In 2019, preliminary design for super heavy SRC was prepared in cooperation with other organizations. In 2020 the technical project is expected to be developed. Flight tests of super heavy SRC are going to start in 2028 (first unmanned launch), while the pioneer manned launch is set for 2029. Also RSC Energia continues activities to build Upper Stages (US) of DM type for launching spacecraft from the cosmodromes: • Baikonur – unmanned SC by M (DM-03) LV; • Plesetsk – building upper stage complex; • Vostochny – there is a good outlook for construction of a similar complex to launch LVs. UNMANNED SPACE SYSTEMS As part of this line of activity, efforts are undertaken to build different spacecraft in the interests of state and commercial customers which are based upon standardized space platform developed under the Yamal project: • space systems of Earth remote sensing; • communication and broadcasting spacecraft; • space complexes and systems under dedicated programs in the national security interests. Underway is cooperation with the Airbus Defence and Space Company, including joint enterprise OOO Energia SAT, aimed at introduction of advanced technologies of manufacturing modern competitive spacecraft, creation of standardized space platform design. 2.3. Level of investment with a breakdown by financing sources in 2019 Actually fulfilled in NAME 2019, thousand rubles SOURCES 1 083 131 Depreciation 180 619 Net profit 0,0 Current assets 0,0 Budgetary investment 902 512 In addition, funds of participants in shared construction 538 823 OUTLAYS 180 619 Acquisition of land plots 0,0 Construction of fixed assets installations 31 424 Acquisition of fixed assets installations 144 994 Conduct of research and development activities, acquisition of intangible assets 4 201 Besides, costs of residential construction 377 206

12 2.4. Quality Management System in force at the Company The Company has adopted and uses Quality Management System (QMS), that was certified by the Quality Management System Certification Authority (QMS CA) “SOYUZCERT”: • in the Military Register system (Certificate of Conformance No. VR 05.1.12617-2018. Certificate validity is from 22.08.2018 till 22.08.2021) for conformance with requirements of GOST R ISO 9001-2015; additional requirements of GOST RV 0015-002-2012, other state military standards SRPP VT, GOST R EN 9100-2011, OST 134-1028-2012 with rev. 1, Provisions RK-98, RK-98-KT, RK-11, RK-11-KT during design, development, production, installation, repair and servicing of weapons and military equipment and rocket and space hardware; • in Federal space technology certification system (Certificate of Conformance No. FSS RT 134.19.3.1.000000.32.19. Certificate validity is from 23.05.2019 till 23.05.2022) for compliance with the requirements established in GOST R ISO 9001-2015; additional requirements of GOST RV 0015-002-2012 and other applicable military standards SR PP VT, GOST R EN 9100-2011, Provisions RK-98, RK-98-KT, RK-11, RK-11-KT, OST 134- 1028-2012 with rev.1 during design, development, production, installation, repair and servicing of rocket-space technology (RST). Serving as the QMS regulatory framework for the Company are national and branch standards, standards of the organization (company). The Company QMS is based upon 63 BS (FS). The main regulatory document establishing the requirements for the Company QMS is Branch Standard 07530238-004-2009 “QMS. Manual on the quality of rocket and space hardware. Basic Provisions”. In 2019: • introduced (authorized to use) were 81 NDs (GOST – 52, OST – 3, Provision – 1, PO – 1, REK – 1, STO – 2, STO of State Corporation ROSCOSMOS – 3, TO – 1, TU – 17); revised are 21 standards (STO, STP) of the Company; • checked for observance were 28 normative documents at the Company’s departments (25) and ZAO ZEM; • reviewed were 182 normative document drafts: 73 GOST drafts; 3 preliminary standard drafts; 49 ISO standard drafts; 35 STO drafts of SC ROSCOSMOS; 2 OST drafts; 1 TU draft; 1 technical requirements draft; 8 II drafts to OST; 2 II drafts to WD; 7 revision drafts to GOST, as well as draft PZ-2019; • developed and put into effect was organization standard STO 07530238-070-2019 Design documentation on rocket-space technology products. Organization and procedure for examination as to compliance with the standardization and unification requirements. In order to resolve the comments made during inspection of the State Corporation ROSCOSMOS committee and check fulfilment of the requirements specified in design, operational and normative documentation, during preparation for and performance of the tests at the Company’s test departments, at the order of RSC Energia’s Director General No.409 of 08.11.2019 the working group conducted activities to verify observance of industrial cleanliness at test facilities of the Company’s test departments. Activities are underway on certifying the Company rocket-space technology. In 2019 the certificates of conformance were issued on:

13 • Upper Stage 11С861-03 No.3L with enhanced power characteristics for insertion of advanced SC into high orbits (Certificate No. FSS KT 134.01.1.4.762510.193.19 of 12.12.2019); • Crew life support equipment as part of CTS Soyuz MS (Certificate No. FSS KT 134.01.1.4.766700.10.19 of 22.02.2019); • Rocket-Space Complex of CTS Soyuz MS and LV Soyuz 2.1a (Certificate No. FSS KT 134.01.1.4.763000.106.19 of 20.08.2019); • Spacecraft Egyptsat-A (Certificate No. FSS KT 134.01.1.4.763800.10.19 of 05.02.2019). Conducted were activities related to inspection of the certified crew transportation spacecraft Soyuz MS and cargo transportation spacecraft Progress MS. Developed were the sections in the Preliminary Design Explanatory notes: SRC SHC; SC with CTS and LV Soyuz-5; SRC Soyuz-5; SUS with respect to ergonomic requirements, certification, compiling catalog; metrological support. Drawn up was the quality assurance program under project ‘Super Heavy Space Rocket Complex. Quality Assurance Program (Preliminary) P50502-371КК43’. By the jointly issued order of RSC Energia Director General and ZAO ZEM Director General No. 102/65 of 22.03.2019, inspection of the participating enterprises (subcontractors) was arranged and carried out: • AO NIIEMI; • AO RKS; • AO NII of Television; • AO NII Submicron; • FSUE UPPO; • AO NIIAO; • UKVZ; • OOO IRZ; • NKB MIUS YFU. In accordance with the requirements stated in STO 07530238-003-2009 ‘QMS. Procedure to exercise author’s supervision during product manufacture’, the author’s supervision during manufacturing process was exercised at ZAO ZEM RSC Energia, as well as author’s inspection prior to products shipment to Baikonur branch was performed. Work is underway in the Company on implementation of state-of-the-art information technologies into quality and reliability management system. Operator’s workstation is created in order to provide computerized data acquisition and exchange system with respect to rocket-space technology technical state and reliability (CDAES TSR RST). Work is underway on development and improvement of electronic system ‘Quality State Monitoring’ which ensures the following: • supply of summary information about nonconformities found in RSC Energia articles and state of their removal in the stages of ground development testing, incoming inspection, assembly and tests at manufacturing plant; prelaunch processing at Processing Facility (PE), Launch Complex (LC) and flight operation; • detection of existing deviations from the regulated procedures of studying nonconformances, criticality of their current state with their subsequent removal (impact on shipment of articles, their launch, etc.);

14 • access to detailed information about nonconformances (date of detection, content, cause, responsible for study, etc.); • presentation of statistical information concerning nonconformances and deviations. RST PRODUCTS RELIABILITY ASSURANCE Performed were organization, technical and normative-procedural activities to assure quality which provided in 2019: • continuously reduced number of waivers during testing the products at the manufacturing plant; prelaunch processing of the products at PF and LC, during flight tests and their intended applications. The waivers did not cause nonconformances; • prevention of emergency situations caused by the Company’s products; ensured performance of vehicle flight programs; • achieved probability of flight program implementation higher than specified: 0,995 for the Soyuz; 0,997 (0,95 required) for the Progress. ASSESSMENT OF QMS EFFICIENCY Within interdepartmental working group responsible for internal audit of RSI enterprises QMS and established together with the RF Ministry of Defense, by State Corporation ROSCOSMOS Order No. LA-305-rsp of July 9, RSC Energia audit and its performance assessment in terms of its product quality assurance were conducted. The results of RSC Energia performance self-appraisal carried out in accordance with State Corporation ROSCOSMOS instruction No. 79-14004 of 20.06.2019 show value of integral performance indicator by 5-point scale equal to 4,66. Thus, its performance concerning quality assurance is adequate on the whole which is verified by absence of accidents and PA/COH from the customer by RSC Energia’s fault during the 2017-2019 period. Since 2017, the List of key performance indicators (KPI) of RSC Energia operation to be defined by the Company’s Board of Directors was supplemented with quality control figures; ‘Failure rate’ and ‘Quality assurance’ established by the State Corporation ROSCOSMOS. The Table gives assessments of the indicator values for 2019.

KPI type KPI name Level Target value Coefficient value t t Decreasing Failure rate А =0 0 KвА = 0 Qt≥100% Decreasing Quality assurance 100% K t=100% (Qt=125%) вQ The indicators were calculated by KPI certificates ‘Failure rate’ and ‘Quality assurance’ approved by the State Corporation ROSCOSMOS Director General. In 2019 no complaints caused by non-conformance to the customer’s requirements were received by RSC Energia as to the quality of complexes (systems), special articles from the government customers.

2.5. Information about non-core assets alienation program In 2018 RSC Energia (Company) on the State Corporation ROSCOSMOS order No.92 of 29.03.2018 joined the Program to handle non-core assets of the State Corporation ROSCOSMOS engaged in space business (further referred to as the Program); Management Board decision dated 17.05.2018 (Minutes No. 7/2018); Board of Directors decision dated 31.05.2018 (Minutes No. 24). During the accounting year, the Company conducted the following activities under the Program requirements:

15 • the Company’s Board of Directors approved the Register of non-core assets (Minutes No.8 of 18.01.2019); • according to item 6.17 of the Program, addition was made to the Register of non-core assets (4 property objects were added to the Register); in so doing, the addition to the Register had been agreed upon by the State Corporation ROSCOSMOS Centralized Committee on handling non-core assets (Minute No. TsK-11-pr of 04.06.2019), approved by the Company Board of Directors (Minutes No.9 of 04.10.2019); • draft Plan of measures to sell non-core assets in order to get preliminary approval on 09.07.2019 had been submitted to RSC Energia management board; instructions were given to perform an analysis of the proposed methods of assets administration for their compliance with the existing legislation (Minutes No.16/2019 of 09.07.2019); work is underway on preparation of the materials for repeat submission of the draft Plan of measures to the Company Management board; • prepared was the proposal to introduce the addition to the Register of non-core assets with respect to 31 property objects; the addition to be made had been agreed upon by the State Corporation ROSCOSMOS Centralized Committee on handling non-core assets (Minutes No. TsK-17-pr of 27.11.2019), on 26.12.2019 it was submitted to the Company Board of Directors for consideration. In 2019, in accordance with the approved Register, the Company sold the following non-core assets:

No. Administration Item Date of asset According Asset name Asset address method under No. sale to Register Register REAL ASSET OBJECTS went into Plot of land (with an area of 30 Pionerskaya St., Korolev 1 48 municipal 12.02.2019 255 m2) city, Moscow Region ownership Buildings within oil 2E Lenin St., Korolev city, liquidation II quarter of 2 20 warehouse Moscow Region (demolition) 2019 STOCK, STAKERS Controlling stake (100%) in 3 1 26B Zemets St., Samara city liquilation 10.07.2019 ZAO VKB RSC Energia

16 3. REPORT OF THE BOARD OF DIRECTORS ON THE RESULTS OF THE RSC ENERGIA DEVELOPMENT IN THE HIGH-PRIORITY AREAS OF ACTIVITY 3.1. Financial and economic results of activities in 2015-2019, as well as information about available Key Performance Indicators System increase/ 2015 2016 2017 2018 2019 decrease 2019/2018 FINANCE INDICATORS Receipts mln 38 519,9 33 828,2 42 373,8 30 534,6 36 571,7 20% rubles Cost value mln 36 885,5 31 571,2 38 884,9 28 144,3 32 831,2 17% rubles Profit before tax mln 1 634,3 - 7 919,0 2 206,2 -922,7 -332,3 64% rubles Net profit mln Significant 590,3 -8 187,8 1 232,4 -2 179,1 48,5 rubles increase Level of capital investments mln 365,4 1 572,5 629,7 296,0 189,5 36% rubles Dividends (declared dividends by mln 151,7 - - - - annual performance results) rubles PRODUCTION FIGURES ISS Russian Segment modules units - - - - - (manufacture/launch) Work-in-process of ISS Russian units 3 3 3 2** 2** Segment modules Crew transport spacecraft units 5/4 3/4 4/4 4/4 4/4 (manufacture/launch) Cargo transport spacecraft units 4/5 4/3 3/3 3/3 3/3 (manufacture/launch) Work-in-process of transport space units 10/9 10/7 8/8 7/7 6/7 vehicles (manned / cargo) Manufactured Upper Stages (state units -/1 -/- -/- -/- -/- order / commercial order) Work-in-process of Upper Stages units 4/- 5/- 5/- 6/- 6/- (state order / commercial order) Launches of spacecraft using Upper Stages (state order / units 1/- -/- -/- -/- 2/- commercial order Orders of unmanned spacecraft units 2/2 2/2 2/2 2/3 2/2 (state order / commercial order) R & D costs mln 34 207,2 28 663,9 36 004,6 23 636,8 28 451,3 20% rubles Innovative products sales share in % 40,1 91,0* 94,5 92,1 93,5 2% receipts * The procedure for calculating the indicator has been updated to take into account the R&D that are being conducted, thus making comparisons with the previous periods incorrect. ** The Node Module (NM) Prichal has been built and is in safe storage pending a decision to launch (to be launched after the launch of the MLM module).

17 LEVEL OF CAPITAL INVESTMENTS, RECEIPTS, MLN RUBLES MLN RUBLES

WORK-IN-PROCESS OF ISS RUSSIAN SEGMENT MODULES, UNITS

NUMBER OF CREW TRANSPORT NUMBER OF ORDERS FOR SPACECRAFT, UNITS UNMANNED SPACECRAFT, UNITS

Government Commercial order

18 KEY PERFORMANCE INDICATORS FOR 2019

This Annual Report presents KPI preset target values approved as of 28.02.2019 by the State Corporation ROSCOSMOS Supervisory Board (SB). On 11.12.2019 RSC Energia Board of Directors looked into the matter of RSC Energia’s Key Performance Indicators to be approved for 2019 (including Director General’s KPIs chart) and resolved that the discrepancies between the target values of KPIs approved at SC ROSCOSMOS SB and those calculated under RSC Energia Financial Recovery Program (FRP) for the 2017-2025 period would be reviewed in the course of assessment of KPI actual achievement by the 2019 performance. Also the preset target values of KPIs calculated using the Financial Recovery Program data are given in the Table below.

No Target value for Unit of Item KPI name Weight 2019 measurement # SB FRP Completion of tasks of the government 1. % reducing down to 50% 100% 100% order Implementation of the approved mission 2. plan of the International Space Station % reducing down to 50% 100% 100% within the established deadlines 3. Quality assurance % reducing down to 30% 100% 100% 4. Failure rate % reducing down to 100% 0 0 5. Net profit mln rubles 10% / reducing down to 10% 607,33 -882,67 Thou. rubles 6. Workforce productivity 25% 3 316,11 2 859,34 per man 7. Overhead budget excess prevention % 15% / Reducing down to 20% 0% 0% Prevention of debt liability amount limit 8. mln rubles 20% 20 221,62 22 262,55 fixed Reducing the balance of treasury 9. % 10% 100% 100% accounts 10. Reduction of accounts payable rate % 20% 100% 100% TOTAL 100 %

3.2. Info about Corporation’s standing in the industry. Major competitors of the Corporation in the industry MANNED SPACE SYSTEMS At present, RSC Energia provides services to deliver and return crews to/from the ISS and holds the monopoly in the manned segment of the world market. Taking into account the current development status of US commercial crew spacecraft (Fig. 1) Starliner (Boeing) and Crew Dragon (SpaceX), and their possible entry into regular service in 2020, it is not expected that the Corporation will dominate the manned spaceflight market.

19

Starliner Crew Dragon Orion Fig. 1. Future US manned spacecraft The US the concurrently develop not only crewed spacecraft for missions into , but also the government-owned crewed spacecraft Orion (made by Lockheed Martin) for missions beyond the low Earth orbit (Fig. 1).

Soyuz (Russia) Dragon Crew (USA) Starliner (USA) (China) Launch mass of the 7.2 ~13.1 ~13.2 8.1 spacecraft, metric ton Crew, number of persons 3 4 4 3 Start of operation, year 2020-2021 2020-2021 2003 Table 1. Main data on manned spacecraft for low-Earth orbit New-generation (Russia) Orion (USA) manned spacecraft (China) Launch mass, metric tons 22.5 25.8 21.6 - 22.5 Crew, number of persons 4 4 3* 2023-2024 (LEO) 2020 Start of flight tests, year 2021 2029-2030 (Moon) * - crew of up to 6 for LEO missions Table 2. Main data on the future manned spacecraft for deep-space missions

In 2019-2020 People’s Republic of China continued preparations for starting the third phase of its Manned Program – the construction of an orbital station in the low Earth orbit. Space transportation support for the Chinese orbital station is provided by the manned spacecraft Shenzhou and cargo spacecraft Tianzhou (Fig. 2). By now, there have been 11 missions of the manned spacecraft Shenzhou, out of which six were carried out in manned mode. PRC is developing a new-generation manned spacecraft for missions to the Moon and into deep space.

Shenzhou Tianzhou Fig. 2. Transportation spacecraft of China

20 The world market segment of cargo delivery to ISS is not monopolized by the Corporation. At present, cargo is delivered to the ISS by both Russian cargo spacecraft Progress and vehicles of the partners (Fig. 3): Japanese cargo spacecraft HTV, as well as US cargo spacecraft Dragon (SpaceX) and (Northrop Grumman Space Services). Flights to the ISS of cargo transportation spacecraft Dragon and Cygnus are carried out within the framework of contracts signed with NASA under commercial resupply services programs.

Dragon Cygnus HTV Fig. 3. Cargo spacecraft of the international partners in the ISS program

According to NASA’s plans, in the fall of 2021, a new player will enter this segment of the market – the Sierra Nevada Corporation with its Dream Chaser spacecraft (Fig. 3). The leader in returning payloads from the ISS is SpaceX. Within the framework of the 19 (as of January 7, 2020) commercial missions completed (18 of them successfully) by Dragon spacecraft under the CRS program of cargoes delivery to the ISS, more than 33 metric tons of payloads were returned to Earth. Every year about 200 kg of payloads are returned onboard manned transportation spacecraft Soyuz (about 50 kg per each mission). However, RSC Energia remains a leader in propellant delivery to the ISS.

Dragon Cygnus Dream Chaser Progress MS HTV (Japan) (USA) (USA) (USA) (Russia) Launch mass, metric tons ~10.0 ~7.5 ~11.3 16.6 7.3 Mass of dry cargo in the pressurized cargo compartment, 1.7 3.5 - 3.7 5.5 5.5 1.8 metric tons up to 1.3 Mass of cargo in the unpressurized 1.6 - 1.5 1.5 (propellant, water, cargo compartment, metric tons gas) Mass of returned cargo, metric tons 1.8 - 2.0 - 1.7 - - Table 4.Cargo transportation spacecraft performance data For now, there is no competition in the segment of advanced habitation modules development, since national space agencies, as a rule, award contracts to their respective national industries. In the long term, the capability to develop habitation modules based on advanced technologies will become one of the preconditions for participation in international projects to study circumlunar space, the Moon, asteroids and Mars, therefore, competition in this field may soon arise. In that case, RSC Energia’s competitors will be Boeing, Lockheed Martin, Airbus Defence and Space, Thales Alenia Space, industrial companies of Japan and other countries.

21 LAUNCH VEHICLES In the segment of upper stages development and operation, the major competitors of RSC Energia are Khrunichev State Research and Production Center (upper stage Briz-M) and Research and Production Association named after S.A. Lavochkin (upper stage Fregat-SB). The analogs of the Block DM upper stage in the world market are the Centaur stage (made by United Launch Alliance - ULA, Lockheed Martin) of the Atlas LV, the ESC-A stage (made by Aérospatiale) of the Ariane LV, the H18 stage (China Great Wall) of the Chinese CZ-3 LV, the second stage of the Japanese H- 2 LV (Mitsubishi Heavy Industries), the third stage GS3 of the Indian GSLV. To improve competitiveness, RSC Energia is developing a new generation of upper stages of the Block DM family with a highly efficient main engine with 5-ton thrust. UNMANNED SPACE SYSTEMS There is growing competition in the segment of development and production of unmanned spacecraft between Russian and foreign companies. Companies Orbital ATK (in 2018 became a part of Northrop Grumman), Space Systems/Loral, and Thales Alenia Space are the major competitors of RSC Energia for commercial contracts in the world market. In the domestic market the RSC Energia competes with OAO Reshetnev Information Satellite Systems in the segment, and with AO RKTs Progress, AO Corporation VNIIEM in the segment of Earth remote sensing satellites. In order to expand its presence in the market of unmanned SC, RSC Energia is working on development of high-orbit observation SC. 3.3. The Company’s share in respective market segment in terms of its core business and dynamics of this indicator over the last 3 years MANNED SPACE SYSTEMS RSC Energia’s share of the market of services to deliver/return crews to/from the International Space Station (ISS) is currently 100%. This share has not changed in the last three years.

Spacecraft 2017 2018 2019 Soyuz MS 4 4 4 (1 unmanned) Table 5. Number of launches of manned spacecraft to the ISS over the period of 2017 through 2019

As for logistics missions to the ISS, the Corporation's market share in terms of the number of spacecraft launched to the ISS in 2019 was 33%, and has not changed over the last 3 years. Spacecraft 2017 2018 2019 Progress MS 3 3 3 Dragon 4 3 3 Cygnus 2 2 2 HTV 0 1 1 Table 6. Number of launches of unmanned spacecraft to the ISS over the period of 2017 through 2019 LAUNCH VEHICLES In the launch vehicles market segment, RSC Energia delivers upper stages of the Block DM type to support launches under government programs. After a long hiatus in deliveries of upper stages which stated in 2015, the Corporation has resumed deliveries of Upper Stages (US) of the Block DM type and in 2019 delivered upper stages for launches of -RG and Elekro-D spacecraft; the domestic market share of the Corporation was 14.3%.

22 US 2017 2018 2019 Fregat-M and MT 6 (1 failure) 7 9 Briz-M 4 2 3 DM-03 0 0 2 Table 7. Numbers of launches of LVs that used upper stages in Russia over the period of 2017 through 2019 UNMANNED SPACE SYSTEMS In the segment of unmanned communications spacecraft and Earth Remote Sensing (ERS) spacecraft of the world space services market, RSC Energia holds the share of less than 1%. Launch of the ERS satellite Egyptsat-A and a SC for special purposes.

3.4. ISS transportation support RSC Energia, being the prime contractor for the Russian Segment of the ISS, continued in 2019 to perform launches of manned spacecraft Soyuz MS and logistics spacecraft Progress within the framework of the ISS transportation support, namely: • performed manufacturing, testing, launching and docking/undocking with/from the ISS of manned spacecraft Soyuz MS and cargo transportation spacecraft Progress MS, including Soyuz MS-11, Soyuz MS-12, Soyuz MS-13, Soyuz MS-14, Soyuz MS-15, Progress MS-09, Progress MS-10, Progress MS-11, Progress MS-12, Progress MS-13; • supported carrying out four expeditions – ISS-58, ISS-59, ISS-60 and ISS-61 (completed in February 2020).

ISS 58/59 ISS 59/60 Soyuz MS-11 Soyuz MS-12 15.03. – 24.06.2019 24.06. – 03.10.2019

ISS 60/61 ISS 61/62 Soyuz MS-13 Soyuz MS-14 03.10.2019 – 06.02.2020 Launched on 06.02.2020 Fig. 4. International crews in 2019.

23 Rendezvous and docking of logistics spacecraft Progress MS-11and Progress MS-12 with the ISS were carried out using a super-fast two-orbit rendezvous profile (Progress MS-11 took 3 hours 21 minutes, Progress MS-12 took 3 hours 19 minutes). Within the framework of the effort to switch to the use of Soyuz-2.1a LV for launches of Soyuz MS spacecraft, the program of the first phase of flight tests of the rocket and space system comprising Soyuz MS spacecraft and Soyuz-2.1a was completed in the course of an unmanned mission of Soyuz MS-14 spacecraft, which flew as a cargo return vehicle. The ISS mission plan for 2020 has been developed and approved, which calls for launching of two transportation spacecraft Soyuz MS and three cargo spacecraft Progress MS.

3.5. Flight operation of space systems As of the end of 2019 the ISS configuration (Fig. 5) was as follows: • The Russian Segment – modules , Zvezda, Pirs, , Rassvet, crew transportation spacecraft Soyuz MS-13, Soyuz MS-15 and a cargo spacecraft Progress MS-13. • The US orbital segment – modules Unity, Destiny, Quest, Harmony, Tranquility, Cupola, Leonardo, BEAM, the European module Columbus, the Japanese module Kibo, multisection truss structure with arrays, radiator panels and logistics carriers, as well as a remote robotic arm and US cargo spacecraft SpX-19 and NG-12.

24

Fig. 5. ISS configuration as of December 31, 2019

1. Service Module Zvezda (SM) 20. External Stowage Platform (ESP2); 2. Mini Research Module No.2 Poisk (MRM2); 21. Laboratory module Destiny (Lab); 3.Crew transportation spacecraft Soyuz MS-13; 22. Robotic arm (SSRMS); 4. Functional cargo unit Zarya (FGB); 23. US cargo spacecraft Cygnus (NG-12); 5. Pressurized Mating Adapter No.1 (PMA1); 24. Node Module Unity (Node1); 6. Z1 truss segment; 25. Japanese Experimental Module (JEM) Kibo 7. Quest Airlock; 26. Permanent Multipurpose Module Leonardo (PMM); 8. S0 truss; 27. Mini Research Module No.1 Rassvet (MRM1) 9. S1 truss; 28. Observation dome Cupola; 10. AMS spectrometer; 29. Node Module Tranquility (Node 3); 11. S3/S4 truss; 30. Transformable module BEAM; 12. S5/S6 truss; 31.Cargo transportation spacecraft Progress MS-13 13. External Stowage Platform (ESP3); 32. P1 truss; 14. Express Logistics Carrier (ELC4); 33. Express Logistics Carrier (ELC1); 15. European laboratory module Columbus (COL); 34. P3/P4 truss; 16. Pressurized Mating Adapter No.3 (PMA3) with International 35. P5/P6 truss; Docking Adapter No.3 (IDA3); 36. Express Logistics Carrier (ELC3); 17. Pressurized Mating Adapter No.2 (PMA2) with International 37. Docking compartment Pirs (DC1); Docking Adapter No.2 (IDA2); 38.Crew transportation spacecraft Soyuz MS-15 18. Node Module Harmony (Node2); 19. US cargo spacecraft Dragon (SpX-19);

Work currently continues on the operation of the Russian Segment of the International Space Station. CHRONOLOGY OF LAUNCHES AND LANDINGS OF SOYUZ SPACECRAFT IN 2019 In 2019, there have been four launches of crew transportation spacecraft to support and maintain the normal operation of the ISS Russian Segment and the space station as a whole: Soyuz MS-12, Soyuz MS-13, Soyuz MS-14 and Soyuz MS-15. The spacecraft delivered to the ISS the crews of expeditions and payloads, provided permanent readiness to rescue the crews in case of contingencies onboard the ISS requiring an urgent evacuation. Commitments of Russia to support missions of international crews to the ISS and implementation of their programs have been met.

25 Spacecraft name, Item # Crew Purpose launch date 1 Commander Providing transportation Soyuz MS-12 Alexei Ovchinin (Roscosmos) to the ISS, carrying out (serial No.742) Flight Engineer the international program 14.03.2019 Nicklaus Hague (NASA) Flight engineer-2 (NASA) 2 Commander Providing transportation Soyuz MS-13 Alexander Skvortsov (Roscosmos) to the ISS, carrying out (serial No.746) Flight Engineer the international program 20.07.2019 (ESA) Flight engineer-2 Andrew Morgan (NASA) 3 * unmanned Providing transportation Soyuz MS-14 to the ISS, carrying out (serial No.743) the international program 22.08.2019 4 Commander Providing transportation Soyuz MS-15 (Roscosmos) to the ISS, carrying out (serial No.744) Flight Engineer the international program 25.09.2019 (NASA) Flight engineer-2 (UAE) The docking of Soyuz MS-14 spacecraft (ser. No. 743) scheduled for August 24, 2019 did not take place because of a malfunction of the Kurs equipment antennas on the side of the MRM-2 module. In order to free up a docking port that had a fully functional set of Kurs equipment antennas, on August 26, 2019, the crew transportation spacecraft Soyuz MS-13 was re-docked in manual mode. On August 27, 2019, Soyuz MS-14 successfully docked with the ISS to the docking port on the SM instrumentation compartment. LANDINGS OF DESCENT VEHICLES OF SOYUZ MS SPACECRAFT IN 2019 In 2019 there have been three landings of Descent Vehicles (DV) of Soyuz MS spacecraft. All the spacecraft crews successfully returned to Earth. The three landings of DVs of Soyuz MS-11, Soyuz MS-14, Soyuz MS-12, after completion of their missions, took place with descent carried out in the automatically controlled descent mode and landing in the designated landing areas. As their payloads, the DVs of Soyuz MS returned results of Russian science programs and programs under contracts with foreign partners. The total mass of returned cargoes was 212.5 kg.

26 Spacecraft name, Returned cargo, kg № Crew landing date Russian NASA Total 1 Soyuz MS-11 Commander 27.4 20.5 47.9 (serial No.741) Oleg Kononenko (Roscosmos) 25.06.2019 Flight Engineer David. Saint-Jacques (CSA) Flight engineer-2 Anne McClain (NASA) 2 Soyuz MS-14 * unmanned 25.6 22.6 48.2 (serial No.743) 07.09.2019 3 Soyuz MS-12 Commander 40.9 23.8 64.7 (serial No.742) Alexei Ovchinin (Roscosmos) 03.10.2019 Flight Engineer Nicklaus Hague (NASA) Hazza Al Mansouri (UAE) Total 128.3 84.2 212.5

SUMMARY OF THE LAUNCHES OF PROGRESS MS LOGISTICS SPACECRAFT IN 2019 In 2019, there have been three launches of cargo transportation spacecraft Progress MS. All the dockings of the spacecraft with the ISS Russian Segment were carried out in automatic mode. The cargoes delivered to orbit enabled to complete to the full extent the mission plan of the ISS Russian Segment for 2019. After the spacecraft completed the attached phase of their missions, they were used to remove from the ISS the expired hardware and crew waste. Mass of delivered cargoes, kg Cargo Docking Name Launch date Undocking date in cargo Propellant Water in date Total Gases compart (actually) Rodnik system ment Progress MS-11 04.04.2019 04.04.2019 29.07.2019 2596.2 1387.8 729.6 420 58.8 (serial No.441) Progress MS-12 31.07.2019 31.07.2019 29.11.2019 2428.5 1502.5 446.1 420 59.9 (serial No.442) Progress MS-13 06.12.2019 09.12.2019 08.07.2020 2723.9 1326.6 926.7 420 50.6 (serial No.443) Total 7748.6 4216.9 2102.4 1260 169.3 Note: Listed for Progress MS-13 are the scheduled date for undocking from the ISS, the planned mass of propellant to supply to the ISS, and the total mass of delivered cargo.

27 3.6. Development and operation of the ISS Multi-purpose Laboratory Module with upgraded operational performance (MLM-U) Nauka Launch mass 20 257 kg The mass of the module within the ISS 24200 kg RS Pressurized volume 70 m³ Volume for science equipment 6 m³ Power for science equipment up to 2.5 kW Number of external workstations 16 Life in orbit 10 years Delivery vehicle Proton-M

MLM-U consists of a Multi-purpose Laboratory Module (MLM) and a Large Objects Attachment Device (LOAD). MLM is to be put into orbit by a Proton-M LV and integrated into the ISS RS. In 2019, within the framework of the final phases of the MLM-U development effort, work was performed to correct the anomalies that had been found during earlier phases. State Corporation Roscosmos issued a Resolution on the subject of manufacturing, testing and launch of MLM-U, Supplement 4 to the statement of work for the constituent part of the ISS R&D project (MLM-U) updating the specified service life of the MLM-U. A package of measures has been developed and approved to minimize risks of using the regular propellant tanks of the MLM-U propulsion system. A work station has been made ready for the MLM-U processing and testing in the pre-launch processing facility at the Baikonur launch site. The launch of MLM-U is scheduled for 2021. Science and Power Module (SPM)

Launch mass 20 890 kg Pressurized volume 92 m3 The orbital altitude for docking with 350 to 410 km the ISS Volumes for scientific equipment and 15 m3+7.6 m3 cargoes Annual average generated electric power at the beginning of life no less than 18 kW 120 V electric power supplied to the ISS RS up to 12 kW Life in orbit 15 years Delivery vehicle Proton-M

2019 saw completion of static and life tests on the mockups of the SPM-1 article. Manufacturing and assembly work was done on vibration strength mockups and the flight model of the SPM. Prototypes of SPM components for stand-alone testing have been built and subjected to stand-alone testing. Working documentation development milestone was completed for the rocket and space complex Proton-SPM, manufacturing of its components began.

28 Node Module (NM) Prichal

Launch mass 4750 kg Mass when attached to the 3 890 kg ISS Mass of delivered cargoes 700 kg Pressurized volume 19 m³ The spherical shell diameter 3300 mm Life in orbit 10 years Delivery vehicle Progress M-UM

NM assembly and all the tests on it were completed in 2014. In view of the fact that the NM is supposed to be docked with the MLM-U (attached to the ISS), since November 17, 2014, it has been held in safe storage at ZAO ZEM of RSC Energia pending Customer’s decision on its launch. Since 2016, the module has been undergoing annual scheduled maintenance as a part of the cargo transportation spacecraft-module.

3.7. Results of scientific programs onboard the ISS RS 2019 saw continued utilization of the Russian Segment of the International Space Station (ISS RS) under programs of applied science research during expeditions ISS-58 (ending phase), ISS-59, ISS- 60, and ISS-61 (starting phase). Experiments were performed in all four modules of the ISS Russian Segment: SM, DC1, MRM1 and MRM2. Major results of science programs in 2019: • 62 experiments were carried out in 1475 sessions, out of which eight experiments were new; • the research was carried out in the interests of 16 principal investigator organizations from the Russian Academy of Sciences, various ministries and agencies; • approximately 1370 hours of crew time were spent on scientific research, taking into account the work done by cosmonauts in their personal time; • delivered to the ISS Russian Segment were 474 kg of scientific equipment and consumables for upgrading and maintaining operational performance of the mission payloads; • as of December 2019, a suite of mission payloads has been formed onboard the ISS RS (taking into account the disposal of the obsolete unused equipment) consisting of 956 items of scientific instrumentation and equipment with a total mass of 1550 kg; • returned to Earth were 86 kits of experimental results with a total mass of more than 241 kg, including urgent cargoes containing biological samples that had been exposed to spaceflight environments. The materials were handed over to principal investigators for processing and analysis. Within the framework of preparations for and implementation of scientific programs onboard the ISS, RSC Energia, besides carrying out the functions of the prime developer of the manned space systems, mission control, developer of scientific equipment, carried out the tasks of the principal investigator for 51 experiments of the Russian long-term program of applied scientific research (which constitutes 17% of their total number), being the prime organization of the Engineering Studies and Experiments subpanel of the Coordinating Scientific and Technical Council of the State

29 Corporation Roscosmos. The results of these experiments are to be used to develop new and improve the existing engineering systems and complexes to support future space missions. One of the promising areas of engineering research onboard the ISS RS is development and developmental testing of robotic systems for various applications. The use of robots in space makes it possible to consistently expand the capabilities for development of new types of spacecraft operating in manned and unmanned modes, improving their functionality, safety, reliability and longevity, reducing operational expenses. Aimed at studying the potential of using a remotely controlled anthropomorphic robotic system in an actual spaceflight environment was a space experiment Ispytatel successfully completed in the ISS RS in 2019, which consisted in a series of sessions of operating an anthropomorphic robotic device having two robotic arms simulating human hand manipulations in master-slave control mode. The anthropomorphic robot Skybot F-850 was delivered to the station onboard the unmanned transportation spacecraft Soyuz MS-14 and activated by Russian crew members of Expedition ISS- 59/60 A. Skvortsov and A. Ovchinin, who, for the first time in the practice of our country’s manned spaceflight, supported a full cycle of its scheduled operations onboard the ISS RS. Also successfully conducted in 2019 onboard the ISS Russian Segment was a scientific educational experiment “Ryaska” (“Duckweed”), where RSC Energia was the principal investigator. The problems studied in that experiment belong to biology courses included in high school and university curricula. In the experimental session conducted during expedition ISS-59, the students were shown some aspects of development of higher plants in zero gravity environment, in particular, they were shown the effect that zero gravity and lighting conditions have on the orientation and development of gravity-and-light-sensing organs of freshwater plant duckweed. It is worth noting the positive fact that onboard the ISS RSS, consistently over a number years, on the initiative of RSC Energia, there have been carried out space experiments related to major general educational subjects: physics (space experiment Physics-Education), chemistry (space experiment Chemistry-Education) and biology (space experiment Ryaska (Duckweed)). Scientific data obtained in these experiments will let high-school and university students to get a deeper understanding of fundamental knowledge about laws of nature and stimulate interest in space studies. After a long hiatus in Visiting Crew (VC) missions to the ISS RS, during the period of September 25 through October 3, 2019, the mission of VC-19 was carried out. The crew of Soyuz MS-15 spacecraft included a Hazza Al Mansouri, a citizen of . The VC mission completed a program of scientific medical experiments and 17 educational and symbolic activities events under the project UAE Mission 1 in the Russian Segment of the ISS. In 2019, as a result of concerted efforts of specialists from all the subdivisions of the Corporation, in spite of the shortage of crew time allotted to the implementation of the program of applied scientific research, the ISS Russian Segment continued to be fully utilized as a unique scientific and engineering laboratory for carrying out and applied research in space. By the end of 2019, the Long-term Program of Applied Scientific Research planned for the ISS RS included 302 experiments, out of which 116 experiments have been completed (38%).

30 186 experiments on the Long-term Program of Applied Scientific Research, which are currently in the implementation or ground preparations phase, are broken down into six areas of research as follows:

• physical and chemical processes and materials in space environment – 25; • Earth and space studies – 40; • humans in space – 23; • space biology and biotechnology – 28; • space exploration technologies – 56; • education and popularization of space research – 14. The suite of the utilization payloads and onboard equipment supporting their operation that was established by the early 2020 onboard the ISS RS modules makes it possible to continue scientific and applied research for widespread adoption of their results on the ground, and for introduction of engineering solutions found in the course of the space mission into the development of new- generation manned and unmanned spacecraft.

3.8. Advanced space systems

NEW-GENERATION CREW TRANSPORTATION SPACECRAFT In 2019 RSC Energia continued work to develop the new-generation Crew Transportation Spacecraft (CTS). The Corporation and its subcontractors were actively working on optimizing the processes of CTS separation and landing, on the parachute system tests, on inter-agency drop tests of Re-entry Vehicle (RV) verifying its re-usability and crew safety under various landing conditions. Completed, in particular, were: • Mockup tests to size the parachute system and asses the feasibility of its installation into the RV; • tests on drogue and braking chutes in aeroballistics and hydrodynamic stands to verify their functionality and strength under operational and heavy-duty conditions; • flight tests (drops from helicopter) of a single main chute to verify its functionality and strength under operational and heavy-duty conditions; A number of measures have been implemented to improve the spacecraft separation and landing, including the following: • the concept of the parachute system suspension and the device for jettisoning the parachute container cover has been changed; • Engineering design modification were made to the structure of the parachute container and its cover; • the concept of RV separation from the propulsion compartment timeline was changed. Using the water channel of the Hydrodynamics Center of the Moscow Complex of TsAGI, tests were run on a RV model involving drops into water under both dead calm and regular rough seas of 3 points. The tests resulted in confirming design loads on the RV during water impact, refining the procedure for calculating the RV pitching/rolling upon the sea, confirming that the RV will not capsize when exposed to regular waves. The TsAGI wind tunnels were used to test two models: weight and venting pulsation model of the ascent unit, as well as the model recreating the parachute container cover jettisoning.

31 Using the human factors engineering CTS mockup, a joint team from RSC Energia and Gagarin Cosmonaut Training Center performed an ergonomic evaluation of a number of items inside the living space of the command module of the CTS RV. This resulted in recommendations to introduce certain modifications in the command module interior to improve the operators' environment. Throughout the year, the Corporation did work on preliminary design of space systems supporting CTS missions to the Moon and in low Earth orbit. For missions within the Earth-Moon system, there are plans to develop a space system at Vostochny launch site which includes a super-heavy launch vehicle. The country’s leadership has made a policy decision to carry out test launches of the CTS from the Vostochny launch site. This position is reflected in the Order of the President of the Russian Federation V.V.Putin No. 721 dated September 18, 2019, which calls for development of the space system, which includes the CTS and a heavy launch vehicle at Vostochny launch site.

WORK ON THE LUNAR PROGRAM CONCEPT On assignments from State Corporation Roscosmos, RSC Energia specialists participated in the activities of interagency teams IECST and SCWG to generate a concept for an international Gateway program. They examined configuration options for possible Russian elements of the platform and the use of a Russian transportation system for crew and cargo delivery. A feasibility analysis of using the Lunar Orbital Platform Gateway for the purposes of the Russian lunar program resulted in a proposal for the missions to the lunar surface that involve delivery of elements of the lunar lander to the platform, their subsequent assembly, storage and maintenance within the Lunar Orbital Platform, in the way similar to the process established for the ISS. The Corporation has looked into the issue of generating a consistent Russian lunar program and has come up with proposals for its basic framework. In particular, they outline major phases in the lunar program and suggest their scope. Preliminary studies have been completed to look into integration between the Russian program and international programs in order to optimize its schedule and expenses.

3.9. Design engineering of spacecraft, space complexes and launch vehicles

UPPER STAGES BLOCK DM-03 Processing and launch of the spacecraft Spektr-RG 2019 saw completion of work on the upper stage adaptation and the launch of the space observatory Spektr-RG for studying astrophysical objects in the X-ray spectrum. The upper stage Block DM-03, together with the launch vehicle Proton-M, injected the spacecraft Spektr-RG into the trajectory that took it to the L2 point in the Sun-Earth system. Processing and launch of the spacecraft Elektro-L No.3 2019 saw completion of work on the adaptation of the launch vehicle for establishing a geostationary hydrometeorological space system, and the launch of the spacecraft Elektro-L No.3 constituting a part of that system. The upper stage Block DM-03, together with the launch vehicle Proton-M, inserted the spacecraft Elektro-L No. into the geostationary orbit.

32 UPPER STAGE BLOCK DM Facility for the upper stage of the Block DM type at the Plesetsk launch site 2019 saw continuation of work on the development of the Upper Stage Block DM Facility at Plesetsk launch site, where 8 equipment items were installed. During that year, ground developmental testing of a new upper stage of the Block DM type was completed, which validated the engineering solutions that were used. In December 2019 the first flight model of the upper stage was accepted by the customer and delivered to the operating organization. Facility for the upper stage of the Block DM type at the Vostochny launch site In 2019 RSC Energia and its subcontractors completed developing a preliminary design for the Upper Stage Block DM Facility at Vostochny launch site. In December 2019 the preliminary design for the Upper Stage Block DM Facility at Vostochny launch site was accepted by the Customer. It is expected that in 2020 a contract will be signed for the next phases of the R&D effort. Medium Space Rocket System Soyuz-5 In 2019, work continued on the development of a space rocket system Soyuz-5, including the work on the development of the preliminary design of the system. By the order of the general designer of State Corporation Roscosmos, appointed to the position of Chief Designer of the Soyuz-5 system was general designer of RSC Energia N.N. Sevastianov. The project scope was defined, work was allocated between RSC Energia and its subcontractors, contractual arrangements started to be put in place. The Council of Chief Designers was set up, and in May 2019 it held its first meeting. Technical and operational project management was established. The special aspects of the preliminary design for the space rocket system Soyuz-5 are as follows: • preliminary designs for Soyuz-5 launch vehicle and its components, as well as for some of the elements of the system were developed and handed over to the State Customer in 2018 within the framework of another R&D project; • funding for some of the system elements is provided from the budget of the Republic of Kazakhstan within the framework of the project to develop space rocket system Baiterek. In view of the fact that during 2019 the AO SP Baiterek could not start providing funds for its portion of the work, the customer – State Corporation Roscosmos – made a decision to re-schedule the acceptance review of the preliminary design for the space rocket system Soyuz-5 for 2020. Super-Heavy Space Rocket System In 2019 RSC Energia and its subcontractors completed developing a preliminary design for the Super-Heavy Space Rocket System. The preliminary design materials contain general information and key performance specifications for the system, as well as radically new systems for orbital transfer – an upper stage using cryogenic propellants and an orbital transfer vehicle to deliver a payload in low lunar orbit during a flight lasting several days. On November 1, 2019, RSC Energia held a meeting of the Corporation’s Scientific and Technical Council with participation of specialists from organizations developing elements of the system,

33 which reviewed and approved the results of development of preliminary designs for the system and its elements. On November 22, 2019, the State Corporation Roscosmos held a joint meeting of the Presidium of Scientific and Technical Council of the State Corporation and the Bureau of the Council of the Russian Academy of Sciences for Space to review the results of preliminary design studies for the super-heavy space rocket system intended for exploration of the Solar system bodies, near-Earth space, the Moon, and for carrying out spacecraft launches, which recognized that result of the preliminary design studies comply with performance specifications and recommended that the state customer accept the preliminary design. In December 2019 the preliminary design for the super-heavy space rocket system at Vostochny launch site was accepted by the Customer. Scheduled for 2020 is development of the engineering design for the super-heavy space rocket system. Sea Launch system In 2019, work was done to assure the return to RSC Energia of the upper stage that had been in storage at the Home Port since 2014.

3.10. Unmanned space complexes and systems The activities in the area of unmanned space complexes and systems include: • development of space systems for communications and broadcasting; • Development of Earth remote sensing spacecraft, including spacecraft for high-resolution optical-electronic observation; • adapting launch systems to the SC in support of the launch; • radiofrequency support for the existing and future projects; • protection under international law of frequency assignments to communications and Earth remote sensing satellite systems; • establishing the ground user segment for unmanned space systems. February 21, 2019 saw a successful launch into orbit of an Earth remote sensing spacecraft Egyptsat-A. The spacecraft in-orbit tests were run with positive results. Upon completion of the tests, the spacecraft was handed over to the Customer for operational use. Work is being done on the technical support for the operation of the spacecraft and the ground segment. Throughout 2019 work was being done on the development of the communications and broadcasting spacecraft Angosat-2. In the first quarter of 2020 a decision was made to transfer some part of work on the project to JSC Information Satellite Systems Reshetnev. At present, RSC Energia examines a number of promising potential projects to develop communications and Earth remote sensing spacecraft in the interests of various customers.

3.11. International activities of the Corporation In 2019 RSC Energia continued work under international programs and contracts. The range of activities included development and delivery of space hardware for various purposes, manned missions to the ISS, in-orbit experiments and services, launch services, etc. Cooperation with foreign partners was carried out on various levels: governments, space agencies, state- and privately-owned companies.

34 A most important task of the Corporation in the age of sanctions was to preserve the partnerships and the level of cooperation achieved over the preceding period of more than forty years. At the same time, the sanctions stimulated the search for new partners and new markets. A number of meetings were held with representatives of space communities of China, India, Egypt, Angola, Saudi Arabia, UAE and other countries. The process of search for possibilities of mutually beneficial cooperation is under way. The Corporation took part in a number of joint ventures. Regular meetings and talks with foreign specialists were held, joint working teams were working.

COOPERATION WITH PARTNERS FROM ABROAD UNDER THE INTERNATIONAL SPACE STATION PROGRAM 2019 saw continuation of work to support integration of the ISS RS with the US On-orbit Segment (USOS) and with the hardware developed by other participants in the ISS program, as well as to support activities to establish international programs for exploration of deep space, including the lunar space. Along with the usual work on the joint management of the ISS program, 2019 saw a significant increase in the amount of work on the coordination of launches of Russian spacecraft and spacecraft of international partners. Considerable attention was paid to certification of safety during flights of the new US crewed spacecraft Dragon Crew and Starliner. There was exchange of hardware, software and documentation within the framework of international cooperation on the ISS. At the requests from State Corporation Roscosmos, reviews were conducted of the proposals for utilization of the ISS RS resources, including cooperation in conducting space experiments and research programs.

INTERNATIONAL COOPERATION IN DEEP SPACE EXPLORATION By order of State Corporation Roscosmos, specialists from the Corporation continued contacts with representatives from NASA and other partners working on the lunar program. Proposals on the Russian segment within the lunar station Gateway and participation of the Russian transportation system in the international lunar program were sent to State Corporation Roscosmos. As ordered by State Corporation Roscosmos, work was done to prepare a response to the invitation from NASA for the Russian side to take part in the Gateway program.

COOPERATION ON ADVANCED PROJECTS WITH COMPANIES FROM ABROAD In 2019, contacts continued with companies Lockheed Martin and Boeing, as well as Space Adventures, with regard to possible further joint work on various advanced projects.

INTERNATIONAL MEETINGS, EXHIBITIONS, SYMPOSIA In 2019, there have been 93 programs drawn up for receiving foreign delegations consisting in total of more than 1400 persons representing about 100 organizations from 25 countries. There were more than 100 meetings set up with specialists from abroad. Participation of foreign partners under the ISS program (NASA, ESA, JAXA) in three meetings of the Council of Chief Designers, as well as participation of NASA representatives in the meetings of

35 the State Commission to review the readiness of the integrated launch vehicle at the processing facility was arranged. At the Baikonur launch site, joint work with foreign partners was supported, and there were trips arranged for 13 teams totaling 60 persons (representatives from NASA, JAXA, ESA, Boeing, , The Mohammed Bin Rashid Centre, etc.). In 2019 RSC Energia took part in the following international exhibitions (as a part of the joint exhibit of the State Corporation Roscosmos) and conferences: • International Aerospace Show MAKS-2019, Zhukovsky, August 27 – September 1, 2019. • International Astronautical Congress IAC 2019, Washington, USA, October 21 – 25, 2019.

36 4. ENERGY EFFICIENCY

4.1. Measures to enhance energy efficiency Energy efficiency at RSC Energia is one of the priorities. It results from a continual increase in the cost of electric energy and other mineral resources used as sources of power. Energy saving measures which are currently being undertaken in the Company will make it possible to reduce energy resources costs having thereby a favorable effect on the enterprise operation engineering and economic figures. Energy saving results in increased profitability at the expense of reduced product cost. Energy saving activities are focused on the following:  modernization of equipment;  application of energy saving processes;  decrease in electric energy losses;  control of equipment modes of operation; In 2019 RSC Energia approved the Program to save energy and enhance energy efficiency during the 2020-2022 period. The Program covers the measures focused on energy saving and enhanced energy efficiency during conduct of the controlled activities (production of thermal energy, power supply, water and sewage effluents transportation). During 2019 the following activities were performed in support of the energy saving and enhanced energy efficiency measures planned.

Volume of expenses in Effect of the implemented measure, Name of measure Measure objectives 2019 expected effect mln rubles Upgrading automatic systems Introduction of monitoring and - Upon completion of upgrading of safety and control of hot- remote control system for boiler automatic systems of safety and water boiler PTVM-50 No10. PTVM-50 No.10 with support of control of hot-water boiler PTVM-50 upper-level control from No.7,8,10 and PTVM-100 No.11, one workstation (WS); working place of boiler operator will - Making arrangements for making 2,5 be made redundant. hot-water boiler PTVM-50 No.10 a - Increase in reliability and efficient part of heat and power plant use of equipment complex including automated control system of hot-water boiler PTVM-50 No.10 in manufacturing processes (ACS real time. MP). Change of drainage system - Reduced unit discharge of salt in - Reduced use of salt for filter and filter medium (sulfonated preparation of chemically purified regeneration by13,9%; coal) for ion-exchange resin of water; - Reduced water consumption (by 1 hydrogen-cationite filter No.4 - Reduced number of regenerations; filter) for loosening and cleaning by for KnVP. - Reduced water consumption for 80%; 2,8 regeneration cycle (own needs); - Half as many number of - Increased service life of cationite;; regenerations; - Possible increase in water - Increased service life of cationite. temperature at filter inlet up to The Annual Saving will be 553,4 70°С. thousand rubles/year. Overhaul of hot-water boiler - Replacement of boiler heat - Increase in boiler efficiency PTVM-50 No.7 with transfer surfaces caused by the 22,4 resulting from replacement of gas replacement of gas burner existing defects; burner systems and adjusted operating systems - increase in boiler efficiency modes. Replacement of lighting Upgrading of interior lighting. Installation of lighting system with 1,35 fixtures for LED light ones. light emitting diodes (LED) will make

37 it possible: - to reduce electric power costs; - to increase illumination intensity at workstations Replacement of 12 Replacement of obsolete Transformers replacement reduced transformers. transformers (with average service idle running losses which had a life of 50 years). positive effect on electric power consumption (its reduction), as well as this measure made it possible: 6,0 - to increase reliable power supply to the Company departments - reduce obsolete equipment repair costs - increase power to connect extra process equipment

4.2. Information about the volume of different types of energy resources used by the Company in 2019 in kind and in ruble terms

2018 2019 Name Cost, rubles Cost, rubles Volume Volume (with VAT 18%) (with VAT 18%) Nuclear power 0 0 0 0 Electrical power 11 215 672 kW*hour 51 215 686,54 12 150 008 kW*hour 60 215 439,65 Heat power 62 686 Gcal 84 661 860,67 57 053 Gcal 86 296 836,84 Electromagnetic energy 0 0 0 0 Oil 0 0 0 0 Steam 249 Gcal 433 651,88 498 Gcal 738 777,01 Low-pressure air 162 000 m3 522 155,45 162 000 m3 531 005,54 High-pressure air 20 000 m3 651 708,10 20 000 m3 662 754,00 Cold water 543 920 m3 11 326 800,53 509 226 m3 11 349 843,29 Liquid effluents 873 487 m3 22 390 372,29 564 444 m3 15 548 635,63 Motor petrol 280 t 10 476 043,2 232,2 t 10 571 544,93 Diesel fuel 128 t 4 741 919,79 140,6 t 6 462 330,03 Furnace fuel oil 0 0 0 0 Natural gas 0 0 0 0 Coal 0 0 0 0 Oil shale 0 0 0 0 Peat 0 0 0 0

38 5. SOCIAL RESPONSIBILITY. PERSONNEL DEVELOPMENT AND SOCIAL POLICY 5.1. Personnel policy Professional, highly qualified and motivated staff is one of the chief assets of the Company and the key to its future success. Raising the productivity of labour and improvement of work quality are the main priorities of the Company personnel policy. Concepts of the Company personnel policy:  Adherence to the traditions established by Designer General, academician S.P. Korolev: to be pioneers in space exploration, go ahead despite all hardships and temporary setbacks.  High professionalism and responsibility of the employees for their performance ensuring efficient production of advanced rocket-space technology and competitiveness on the market of space services.  Unity and cohesion of the collective for carrying out tasks set; coordination of the Company and employees objectives.  Increased personal motivation of each employee for achieving high production results; affording an opportunity for the maximum development of human resources potential as the most important competitive edge of the Company.  Ensuring social protection of the employees and their family members, as well as promotion of job satisfaction in the Company and feeling of pride for belonging to the Company. The main objectives of the personnel policy:  Attraction of gifted and promising young employees to the Company;  Training of personnel in the state-of-the-art technologies of rocketry development; maintaining continuity of work on rocket-space technology development;  Labour motivation of personnel to meet the Company objectives and raise labour productivity.  Optimizing ratio between key production personnel and administrative personnel;  Rotation of managerial personnel, appointment of young managers from personnel reserve; ensuring career development and promotion in the Company due to a high level of professionalism; achievement of steadily high work performance; commitment to the corporate values.  Achievement of a steady status of socially responsible employer by the Company which offers a competitive benefits package both in the region and in the industry and ensures social protection of the employees and their family members.

REGULAR STAFF NUMBER MANAGEMENT (STAFF NUMBER OPTIMIZATION) The main factor specifying the number of regular staff is the Work Program to be performed by the Company.

In 2019, average regular staff number on the payroll at RSC Energia was 7 446 persons, while in 2018 this figure was 7 517. In 2019 regular staff number at RSC Energia was 7 625 persons, while in 2018 this figure was 7 653. In the accounting year RSC Energia employed 647 people, and made redundant 706 persons.

39 In 2019, the number of young employees under 30 years of age was 862 persons. In so doing, dominant were age group from 51 to 60 years (1 914 employees) and in the 31-40 age bracket (1 692 employees). In other age groups the regular staff number is relatively the same: 1 441 employees in the 41-50 age bracket and 1 481 employees in the 61-70 age bracket.

COMPANY PERSONNEL STRUCTURE BY AGE, PERSONS (BAR GRAPH)

30 years and 31-40 years 41-50 years 51-60 years 61-70 years older than 71 younger In the last few years the middle age of RSC Energia employees remains almost the same: 48,3 years in 2019; 48 years in 2018; 47,7 years in 2017.

REINFORCE THE COMPANY WITH THE SKILLED STAFF In order to attract gifted and promising workers, the Company is focused on cooperation with higher educational establishments and secondary professional schools: • 467 students are currently taught at basic faculties of the Company in leading Moscow higher technical schools: N.E. Bauman MSTU; MFTI, HES MIEM; • 636 students specially assigned by the Company are currently taught at 18 leading technical universities acquiring sought-after skills; in 2019, 51 school leavers entered the above technical universities; • Company together with N.E. Bauman MSTU participates in implementing the Program entitled “New DIC Personnel” focused on improvement of content and methods for target training of the students in the interests of industrial complex organizations. In 2019, 54 students sent by the Company took part in the Program; • in Tomsk Polytechnical University, students are trained under online master’s degree program; • Company organizes all kinds of practical training and design work for defending thesis for 1089 students majoring in 50 specialties/professions from 23 educational organizations; • For a faster adaptation and assuming office full-time students were employed and got a part- time job. In 2019, 111 students got jobs in the Company. In order to compensate for loss of the key competencies the Company practices the tutorship system aimed to transfer professional know-how to young employees.

40 COMPANY PERSONNEL STRUCTURE BY EDUCATION, PERSONS (BAR CHART)

Higher education Secondary General secondary Basic general professional education education education Managers Specialists Workers

PERSONNEL APPRAISAL In order to raise labour productivity, optimize staff number, efficiently motivate personnel in the Company, work performance assessment is made, as well as level of workers professional, managerial and corporate competencies is evaluated. Also employees are certified for their adequacy for the jobs they are performing. In 2019, 324 employees were certified for their adequacy for the posts they are holding, including 159 young specialists. As the Company introduced professional standards with the aim to check conformity of the employees to the requirements stated in professional standards, 5 of them were given qualification assessment by 6 skills; 8 employees were certified for compliance with the professional standard requirements. Annual appraisal of 5 661 employees performance was made. In order to determine the employees potential, work out adaptation measures for new employees, build efficient teams, new approaches were used to assess competencies of 409 employees. The appraisal and certification results confirmed a high professional level of the Company employees training. Approved was computerized professional testing system: 24 employees were appraised in this way. With the aim to improve social and production factors affecting attraction and retention of personnel at the enterprise, during the accounting year 12 sociological studies were made with 4 306 employees of the Company involved.

PERSONNEL RESERVE BUILDING UP AND DEVELOPMENT Personnel reserve was created in the Company in order to provide staff continuity, introduce advanced personnel management mechanisms, including strategic (24 persons); tactical (7 persons); advanced (132 persons). 8 managers from the Company departments are included in the branch reserve of the State Corporation ROSCOSMOS (including 3 managers intended for dedicated branch staff reserve Chief Designer School). In 2019, 8 employees from the strategic and tactical personnel reserve received training at IPK ‘Mashpribor’ on the subject of ‘Strategic Thinking’.

41 Implemented was the training program for the third group of the Company advanced personnel reserve; in so doing 20 persons from the above third group were ready to defend their projects. Arranged and conducted were strategic examinations for participants of the Company’s advanced and tactical personnel reserve. 62 personnel reserve participants took part in the examinations. Assessment was given to the managerial potential of young promising employees of the Company in order to create the fourth group of the advanced personnel reserve. 24 of the 36 employees were recommended to putting in the list. 26 employees from the Company’s personnel reserve were promoted, 11 of them were appointed to leading posts.

PERSONNEL TRAINING With the aim to implement the Company Work Program, ensure operation safety, products quality and reliability; raise labour productivity, master advanced and high technologies and new lines of activity, in 2019 2 793 employees were trained in the Company, by the following lines of activity: • scientific manpower training: 44 employees; • personnel reserve training programs: 135 employees; • up-to-date information technologies: 104 employees; • management training in order to keep them informed as to the amended Labor Code: 527 employees; • innovative development programs: 49 employees; • labor safety: 283 employees; • taking part in corporate electronic flow of documents: 110 employees; • upgrading skill category: 24 employees; • acquiring the right to perform and supervise critical operations: 137 employees; • adaptation course for young specialists: 92 employees.

CAREER GUIDANCE FOR SCHOOLCHILDREN As part of the system of continued personnel training “School-higher educational establishment- enterprise” the following career guidance projects are being implemented in order to bring in gifted youth: “Aerospace Class”; XXVII International Space Contest of school children; 5 school teams of RSC Energia taking part in “Air-Engineers School (CanSat)”; project session at educational center Sirius; “Space lessons”, tours to RSC Energia museum and the Center for personnel training and technologies development at ZAO ZEM. Also the Company employees participate in Federal branch events focused on promotion of engineers and workers professions for rocket-space industry. Overall, in 2019 more than 3000 school children took part in the career guidance projects initiated in the Company.

5.2. Personnel motivation Company practices up-to-date wage system aimed at remuneration of labor depending upon employee’s performance and based upon the principles of external wage competiveness, internal justice and easy process of salary-and-wage administration process. The Company wage system enables to achieve step-by-step market level of salaries and wages. In order to increase labor productivity, improve output quality, the Company introduced personnel appraisal system and awarding bonuses system by their performance.

42 In order to retain and further develop scientific-technical and intellectual potential of the Company as the critical factor in ensuring competitiveness on both domestic and world markets of high technologies, implementing advanced strategy of RSC Energia, the Company is successfully executing the Program to improve scientific personnel training system and promote research activity (further referred to as the Program). Under the Program, mechanisms of additional motivation of the Company scientists are developed and approved. So, based on the findings of the Committee on assessment of scientific performance, extra payment for scientific performance was fixed in 2019 for the Company employees having scientific degrees of Candidate and Doctor of Science in the amount varying from 5 000 to 40 000 rubles. In 2019, 148 persons (148 persons in 2018) received extra payment for scientific performance. Under the Program, as well as the results of annual postgraduate students certification, 18 postgraduate students got grants in the amount of 5 000 rubles each on a monthly basis in 2019. In order to implement state guarantees and compensations for reimbursement of material and physiological expenses to the citizens living and working in extreme natural-climatic conditions of the North and special climatic conditions stipulated by the RF law No. 4520-1 dated 19.02.1993, the Company wage system is supplemented with wage increments as a percentage for the employees who are working in the Far North regions, as well as compensation for expenses on travel and baggage carriage to place of vacation and back. In 2019, 12 persons received such a compensation. 30 persons received wage increments as percentage in 2019 (28 persons in 2018, respectively). Key Performance Indicators system is introduced in the Company to promote long-term and sustainable development of the Company core business. KPI system is aimed to represent the Company strategy and long-term development program as specific measures of operational management, assessment of a current state of their achievement and provision of a basis for making long-term and medium-term management decisions.

SALARIES AND WAGES The Company wage system is based upon salary and bonus payment. In particular cases, piecework pay and lumpsum payment are used to pay for specific kind of activities. Official salary (tariff rate) is fixed for each employee on the basis of 20-wage category tariff scale. Payment for work is effected based upon employment agreements, taking into account special conditions and character of work, in accordance with the Regulations on payment for work and material incentives of RSC Energia employees approved by the Company management board.

Indexation of wages of the Company employees is carried out in accordance with the approved regulatory documents of the Russian Federation, the Branch tripartite agreement for the Russian Federation rocket-space industry organizations, as well as the Collective Agreement. In 2019 the Company conducted salary and wages indexation which resulted in the employees’ salaries increase by no less than 8%. Bar Chart No.1 presents dynamics of the Company employees’ average salary growth in accordance with set Form P4.

43 DYNAMICS OF AVERAGE SALARY GROWTH, THOUSAND RUBLES

RSC Energia Moscow Moscow Region Russia

Share of the fixed payments in the Company employees salary and wages amounted to 53,2% in 2019. Pie chart No.2 shows actual salary and wage structure peculiar to the Company employees.

ACTUAL SALARY AND WAGE STRUCTURE PECULIAR TO THE COMPANY EMPLOYEES

Wage rate

Salary increment

Bonus

Payment under Labor Contract

Indirect payments

Average salary of the Company employees for 2019 amounted to 69 298 rubles. Level of average salary increased by 7,5 % in 2019 as compared to that in 2018. Average salary in core business departments amounted to 75 383 rubles. Since December 1, 2019 size of minimum wage for the employees engaged in the Company departments was 15 200 rubles.

44 SOCIAL PARTNERSHIP System of social partnership exists to regulate social-labour relations in the Company. The Company performed a lot of work in 2019 on introducing amendments and supplements to the effective version of the main document reflecting the interests of the Company Administration and its employees, the Collective Agreement for 2018-2020. Benefits package for the Company employees for 2018-2020 is an integral part of the Collective Agreement which indicates size and periods of granting social security guarantees and compensations. Social security of the employees is provided at the cost of the Company funds.

BENEFITS AND COMPENSATIONS Encouragement for professional achievements of the Company specialists and workers is one of the most important morale and material incentives. During the year the Company employees were recommended in accordance with the established procedure for government rewards, awards from Cosmonautics Federation of Russia, Moscow Region Governor and Moscow Region Government, administration of Korolev city. In 2019, 156 employees of the Company received awards and were given titles of the Russian Federation, State Space Corporation ROSCOSMOS, Moscow Region Governor Moscow Region Government, Moscow Regional Duma, Administration of Korolev municipal district, Cosmonautics Federation of Russia. Also the Company employees are given honorary titles by the Code of Work Achievements with payment of incentive bonus for professional work performance. In 2019 1 208 of the Company employees (1 258 employees in 2018) were; awarded in so doing, total amount of cash bonuses was 15,3 million rubles.

5.3. Social policy Social policy of RSC Energia is concentrated on attraction and retaining of qualified personnel, motivating employees to increase their labor efficiency and quality of work, as well as ensuring their social guarantees. RSC Energia is one of the dominant employers of Korolev city, Moscow region, and takes part on a continuous basis in implementing comprehensive municipal social and economic programs in the city. RSC ENERGIA SOCIAL POLICY DIRECTIONS: • private pension plan; • voluntary medical insurance; • housing program; • Company employees holidays and health improvement, including their family members; • identify opportunities for children to attend pre-school institutions; • youth policy; • sports program; • charitable activities; • patriotic education of citizens within the Company’s powers; • giving social aid to the Company employees. Social policy directions are implemented via the Collective Agreement. As part of the social partnership, the Company hosts annual conferences attended by the employer’s, work collective and trade-union committee representatives where progress in the

45 Collective Agreement implementation for the accounting period is discussed, as well as changes approved in the accounting period are brought to the employees notice. In 2019 under the contracts for voluntary medical insurance (further referred to as the VMI) free medical service was provided to the Company employees, including ambulatory-outpatients’ clinic service on the basis of FGBUZ Medical Center (MSCh) No 170 at FMBA of Russia, medical- preventive treatment organizations (MPO) of Baikonur, Kislovodsk, Tuapse, Samara, Moscow, as well as other medical aid services were provided in the leading clinics of Moscow such as consultative-diagnostic, dental, hospital services, including high-technology and rehabilitation- recovery treatment. Medical examinations of the enterprise employees are performed on a regular basis, especially for those whose work proceeds under severe and harmful conditions.. During 2019, 648 VMI policies were executed for newly employed workers and 167 VMI policies were executed for former workers – retired persons of the Company. At the moment, 7 682 employers are insured by VMI and 2 940 retired persons are insured at RSC Energia. In order to ensure social guarantees to the Company employees, the enterprise uses private pension scheme (further referred to as the PPS) which comprises the following programs: “Veteran”, “Parity”, “Key Employee”, “Manager”. The basic principle of the Parity, Key Employee, Manager programs envisages shared participation of the employees (on a voluntary basis) and the Company in generation of employee’s reserves for payment of future pension. Veteran program provides social security of the Company regular staff. In 2019, 112 employees of the Company executed private pension under Veteran PPS Program. An average size of private pension was 13 757 rubles. 23 employees of the Company got compensation lump sum when they declared refusal to receive private pension (in case of notice of rejection submitted). Throughout the year 149 employees of the Company participated in the Parity, Key Employee, Manager Program. In order to provide vacations and health improvement of the employees, their family members, Company veterans, vouchers are provided to RSC Energia’s health resorts with a partial compensation for voucher’s cost. In 2019, 1 912 employees of the enterprise took their holidays at the health resorts (including 350 children of the employees and 443 former employees who got registered in the Company’s Veterans Council). In summer time the Company health resorts welcomed children of the Company employees. During the year 659 children spent their holidays in children’s health camps. During school year, spring and autumn vacations, for RSC Energia employees children additional arrivals devoted to different subjects were arranged in children’s health camp where 128 children took their holidays in 2019. During winter vacations children’s camp “Orlyonok” was arranged on the basis of after-work sanatorium “Podlipky” where 40 children had a rest in 2019. Corporate kindergarten for 290 children located in different city districts is available for the Company employees’ children. During 2019, 222 children of the Company employees attended corporate kindergarten. RSC Energia’s housing program envisages multiple-choice system to provide housing for the Company employees who need housing space: provision of temporary living space by the Company; provision of the Company’s hotel accommodation for those who come from other cities and shared participation in personal residential construction at preference prices.

46 During implementation of housing program in RSC Energia’s residential area, nine multistory dwelling houses with social infrastructure objects were built and put into commission (including two kindergartens). More than two and a half thousand families have already bought comfortable dwelling houses at preference prices. In its internal and external relations, the Company tends to develop its image as a socially responsible employer and maintain a high level of employees’ loyalty.

47 6. CORPORATE GOVERNANCE

6.1. Corporate governance concepts and structure Corporate governance system at RSC Energia is a total combination of the processes ensuring overall management and control of the Company operation. These processes cover relations among shareholders, the Board of Directors and executive bodies and center on harmonizing interests of all participants in corporate relations which involve not only shareholders and managerial bodies, but also potential investors and a wide circle of other interested parties such as customers of services, the Company employees, contracting parties, creditors, partners, government and local communities. RSC Energia considers corporate governance as a means to enhance efficiency in its operation, maintain its image, increase its investment attractiveness. In accordance with State Corporation ROSCOSMOS-developed policy of concerted actions with the companies under the authority of State Corporation ROSCOSMOS, the State Corporation and RSC Energia signed the Regulations on cooperation between the State Space Corporation ROSCOSMOS and RSC Energia devoted to implementation of the within the State Corporation organizations management system and their development. In order to streamline and ensure continuity of corporate governance practice in the Company, the Board of Directors resolved to approve Code of Corporate Conduct (Minutes No 11 dated 29.04.2013). This code is in compliance with current legislation requirements and advanced corporate governance standards, including the Russian Code of Corporate Governance recommended by the Bank of Russia. Appendix 4 to the Annual Report gives a detailed information about the Company adherence to the provisions of the Code of Corporate Governance recommended by the Bank of Russia (Letter from the Bank of Russia N 06-52/2463 “On the Code of Corporate Governance” of 10.04.2014). The Company is a public joint-stock company that carries out all compulsory statutory requirements for information disclosure on the securities market. Relevant information is available to all interested persons on the Internet (official site of the Company: www.energia.ru) and on the Company page in the Center for Corporate Information Disclosure: www.edisclosure.ru/portal/company.aspx?id=1615. RSC Energia’s shareholders can get full and trustworthy information about RSC Energia at the place of its executive body location: 4A Lenin Street, Korolev, Moscow Region. The Board of Directors approved the Regulation on delivery of information at RSC Energia’s shareholders’ request (Minutes No 1 of 07.08.2017). The Company shareholders are provided with reliable and efficient methods to keep records of their right of ownership to shares. The above activity is conducted by a professional participant of securities market – registrar of securities. Shareholders are entitled to take part in RSC Energia management by way of taking decisions on the Company operation issues at General Shareholders’ Meeting.

48 Detailed information about the registrar keeping records of the rights of ownership to the Company’s securities is given in the Annual Report, Section 9 item 9.2. CORPORATE GOVERNANCE AT RSC ENERGIA

GENERAL SHAREHOLDERS’ MEETING

DIRECTOR Establishing managerial AUDITING and control bodies in the GENERAL COMMITTEE Management of the Company, approval of Control over financial and day-to-day operations annual report, financial economic activities of the of the Company statements, profit Company distribution, etc.

BOARD OF DIRECTORS MANAGEMENT Overall management of the Company operation BOARD Management of the day- to-day operations of the Company

BOARD OF DIRECTORS’ INTERNAL AUDIT COMMITTEES: Evaluation of policies,

. Audit Committee provisions and . Personnel and Remuneration procedures in the Committee Company in order to . Strategic Planning, Modernization ensure efficient and Innovative Development management Committee Preliminary consideration of urgent items on the agenda of the Board of Director’ meeting and giving recommendations on them

Election Accountability

49 RSC ENERGIA BOARD OF DIRECTORS’ STATEMENT TO THE EFFECT THAT THE CORPORATE GOVERNANCE CONCEPTS SET OUT IN THE CODE OF CORPORATE GOVERNANCE ARE ADHERED TO RSC Energia understands the importance of the corporate governance concepts set out in the Code of Corporate Governance for doing business successfully in the long-term perspective and ensuring appropriate level of accountability to its shareholders. RSC Energia ensures an equal and fair attitude to all its shareholders in exercising their rights to take part in management of the Company. The corporate governance system and practice provide equal opportunities for all shareholders, namely, holders of shares within one class (type), including minority (small) shareholders and foreign shareholders, and equal attitude of the Company to them, which is made possible due to the following: • reliable and efficient record keeping system for ownership rights to shares maintained by independent registrar; • free disposal and alienation of the shares they own; • early notification of the shareholders about holding general shareholders’ meetings, as well as making information (materials) concerning forthcoming meetings available to all shareholders, including its placement on the Company Internet site; • free access to personal attendance or through his (her) representatives of general shareholders’ meeting, with a voting right on agenda items in compliance with legislation and the Articles of Association; • regular and timely receipt of information about the Company operation and familiarization with the Company documents in the manner prescribed by legislation, the Articles of Association and the Corporate Bylaws; • a possibility to keep managerial bodies actions under control; • a possibility to exercise other rights stipulated by legislation, the Articles of Association of the Company and resolutions adopted at general shareholders’ meeting within the limits of its competence. The Company seeks to make its activities transparent for its shareholders, investors and other interested persons. Company satisfies statutory requirements for information disclosure by public companies. The Company set up and maintains its own Internet site, including its English version. The site presents contact information (telephone, fax, E-mail address) which can be used by interested persons for requesting information they need and discussing topical issues. Shareholders are given an equal and fair opportunity for profit-sharing through receiving dividends. Board of Directors defines major strategic guidelines for the Company operation in terms of its long-term development, key indicators of its activity; conducts strategic management; supervises executive bodies operation, as well as performs other key functions. Decisions on critical issues of the Company operation are taken at the Board of Directors’ meeting, by a two-thirds majority or majority of the elected Board of Directors’ members as a whole. The issues submitted for the Board of Directors consideration are open to across-the-board discussion at the meetings. The Company Articles of Association with due regard for its core business establish additional list of transactions, consideration of which is within the limits of the Board of Directors competence.

The Board of Directors set up and organized the committees for preliminary consideration of critically important issues arising during the Company operation.

50 The Company developed the system of risk management and internal control aimed to ensure reasonable confidence in meeting the objectives set to the Company. Company set up internal audit subdivision functionally subordinate to the Board of Directors. Department operation is governed by the Regulation on Internal Audit Department approved redrafted by the Board of Directors resolution (Minutes No 11 of 30.01.2017). Board of Directors (Minutes No. 15 of 04.03.2019) approved the Program to assure and improve internal audit quality. In an effort to undertake effective measures to prevent and settle conflict of interests, as well as in order to provide common corporate standards in the Company; Policy to Combat Corruption is adopted, as well as other follow-up documents (including the Code of Ethics and Conduct for RSC Energia Employees; Provision on Conflict of Interests at RSC Energia; Provision on the Committee on Meeting the Requirements for Conduct of the Employees and Settling Conflict of Interests at RSC Energia; Provision on “Telephone Hot Line” on the Issues to Combat Corruption at RSC Energia, Provision on “Telephone Hot Line” on the Issues to combat Corruption at RSC Energia; Provision on the Company’s employees reporting on the gifts given; Provision on corruption risks assessment). RSC Energia joined the Anticorrupt Practices Charter. During the accounting period measures aimed to counteract corporate fraud and combat corruption were put into effect. The Company site gives telephones for feedback to report corruption facts. The Company maintains a position that the enterprises operating within the industrial complex of Russia shall not bring in a wide circle of independent directors to handle their matters. Size of remuneration for the Board of Directors members is calculated based upon the Regulations approved by the general shareholders meeting which provides for calculation of remuneration consisting of two parts, fixed and variable. Variable part depends upon financial performance of the Company for a respective year. Size of remuneration of the Board of Directors members is differentiated with respect to scope of responsibilities of a particular Director in the Company Board of Directors in order to take account of additional time required for performance of duties by Chairman of the Board of Directors, member of a particular Committee, Chairman of a Committee. No other forms of short-term motivation and additional material incentives are applied to the Board of Directors’ members. 6.2. Information about the Company General Shareholders’ Meeting held RSC Energia’s extraordinary general shareholders’ meetings was held as absentee voting (Minutes No.36 dated 06.03.2019). Expiration date for receiving voting ballots on the Meeting Agenda: 05.03.2019. The meeting elected new Director General of S.P. Korolev Rocket and Space Public Corporation RSC Energia. RSC Energia’s extraordinary general shareholders’ meetings was held as absentee voting (Minutes No.37 dated 26.03.2019). Expiration date for receiving voting ballots on the Meeting Agenda: 25.03.2019. The meeting considered the issue of RSC Energia’s authorized capital increase. Annual General Shareholders’ Meeting was held at RSC Energia on 26.06.2019 as the joint attendance of the shareholders (Minutes No 38 of 01.07.2019). Federal Law on “Joint-Stock Companies” for the joint-stock companies with the number of shareholders more than 1000 (there are more than 7000 shareholders at RSC Energia) establishes the following procedure for holding general shareholders’ meeting: joint attendance of shareholders to discuss the items put on the

51 agenda and decide on the issues put to the vote, with a preliminary handing in of voting ballots in advance of the coming annual general shareholders’ meeting. Resolutions passed at the annual General Shareholders’ Meeting: • Approved were the Annual Report and annual bookkeeping reporting (Financial Statements) of the RSC Energia for 2018. • Considered was the item of Profit and Loss distribution by the 2018 performance. • Approved was the RSC Energia auditor for 2019. • Elected were the RSC Energia Board of Directors and Auditing Committee members.. Appendix 3 to the Annual Report gives particulars about all the resolutions passed at the General Shareholders’ Meetings 6.3. Information about the Company Board of Directors Board of Directors conducts overall management of the Company operation in the interests of the Company and its shareholders, in accordance with competence laid down in the Russian Federation legislation and RSC Energia’s Articles of Association.

Members of the Board of Directors are elected at General Shareholders’ Meeting via cumulative voting of 11 persons for a period till next Annual General Shareholders’ Meeting. BOARD OF DIRECTORS’ MEETINGS In 2019 the Company Board of Directors held 32 meetings, including: • 19 meetings of the Board of Directors elected on 21.08.2018; • 13 meetings of the Board of Directors elected on 29.06.2019. At its meetings, the Board of Directors considered the matters related to the following aspects of the Company operation: • Drawing up a budget and programs of the Company activities. • Updating Financial Recovery Program of the Company. • Implementation of the Innovative Development Program. • Building corporate structure of the Company. • Setting up collective executive body. • Summarizing of the Company’s financial and business results, as well as its SAC financial and business results. • Monitoring of Quality Management system operation. • Conduct of procurement activity. • Review of the issues concerning placement of additional uncertified registered common stock of RSC Energia. • Organizing and holding of general shareholders’ meetings. • Review of the strategically important projects. • Consideration of interested-party transactions. Appendix 3 to the Annual Report gives particulars about the resolutions passed at the 2019 Board of Directors’ meetings. 6.3.1. Board of Directors’ Regulations The Annual General Shareholders’ Meeting held on 25.06.2016 (Minutes N 30 of 25.06.2016) approved the Board of Directors’ Regulations which specify the Board of Directors work procedure.

52 6.3.2. Company Board of Directors membership RSC Energia’s Board of Directors membership from 29.06.2019 up to now * FIRST NAME, № POSITION PATRONYMIC, SURNAME Andrei Vasilyevich 1. Director General, Joint Stock Company ‘United Rocket Space Corporation’ Zheregelia Sergei Konstantinovich Executive Director in charge of manned space programs, State Space Corporation 2. Krikalev ROSCOSMOS Dmitry Vladimirovich 3. Director General, Joint Stock Company ‘Glavcosmos’ Loskutov Dmitry Olegovich 4. Director General, State Space Corporation ROSCOSMOS Rogozin Konstantin Vladimirovich Chief of Economic Security Department division, State Space Corporation 5. Romanov ROSCOSMOS Sergei Valentinovich Deputy Director General in charge of international cooperation, State Space 6. Saveliev Corporation ROSCOSMOS Nikolai Nikolayevich 7. Director General, Designer General of RSC Energia Sevastiyanov Pavel Anatolievich 8. Executive Director in charge of Economy, State Space Corporation ROSCOSMOS Suvorov Yuri Matevich First Deputy Director General in charge of satellites constellation and advanced 9. Urlichich projects, State Space Corporation ROSCOSMOS Georgy Lvovich Executive Director in charge of contract work, State Space Corporation 10. Forsov ROSCOSMOS Mikhail Nikolayevich Khailov Deputy Director General in charge of unmanned space complexes and systems, State 11. Space Corporation ROSCOSMOS * Board of Directors’ members official positions are given as of 31.12.2019. RSC Energia’s Board of Directors membership from 21.08.2018 to 29.06.2019* FIRST NAME, № POSITION PATRONYMIC, SURNAME 1. Lusine Borisovna Arutyunova Director of Department in charge of contract work, State Space Corporation ROSCOSMOS 2. Nikita Vladimirovich Kazinsky Adviser to Director General, FSUE TsNIImash 3. Sergei Konstantinovich Krikalev Executive Director in charge of manned space programs, State Space Corporation ROSCOSMOS 4. Svetlana Vyacheslavovna Executive Director in charge of corporate activity and assets management, State Kukina Space Corporation ROSCOSMOS 5. Vladimir Vladimirovich Director of Department in charge of capital construction management, State Space Meshkov Corporation ROSCOSMOS 6. Konstantin Vladimirovich Chief Specialist of Economic Security Department division, State Space Corporation Romanov ROSCOSMOS 7. Sergei Yurievich Romanov Director General, RSC Energia 8. Sergei Valentinovich Saveliev Deputy Director General in charge of international cooperation, State Space Corporation ROSCOSMOS 9. Nikolai Nikolayevich Acting Director General, FSUE TsNIImash Sevastiyanov 10. Oleg Petrovich Frolov Executive Director in charge of defense programs implementation, State Space Corporation ROSCOSMOS 11. Mikhail Nikolayevich Khailov Deputy Director General in charge of unmanned space complexes and systems, State Space Corporation ROSCOSMOS * Board of Directors’ members official positions are given as of 31.12.2018

53 6.3.3. Background information about the persons who were the members Board of Directors in 2019 Lusine Borisovna Arutyunova (till 06.2019) Date of birth: 1968 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 04.2013 06.2017 Federal State Unitary Enterprise Adviser to the Director on legal issues; Deputy Director, Head of Legal Department; Deputy Director in charge of legal execution 06.2017 10.2017 State Space Corporation ROSCOSMOS Deputy Director, Contract work Department 10.2017 ** State Space Corporation ROSCOSMOS Director of Department in charge of contract work No participating interest in the Company Charter capital / no common shares in possession Andrei Vasilyevich Zheregelia Date of birth: 1978 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 01.2013 01.2016 Federal Agency for the Russian Federation Deputy Head; State Secretary – Deputy Head state frontier infrastructure 02.2016 05.2018 Joint-Stock Company GLONASS Deputy Director General for cooperation with government bodies and administrative support, Director General 06.2018 * Joint-stock Company ‘United Rocket-Space Director General Corporation’ No participating interest in the Company Charter capital / no common shares in possession Nikita Vladimirovich Kazinsky (till 06.2019) Date of birth: 1980 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 11.2008 06.2018 Joint-Stock ‘Company Gazprom Space Deputy Director of the Center-Head of Department in Systems’ charge of Earth remote sensing target complexes; Head of Directors Office in charge of ERS space systems project management; Deputy General Designer for geoinformation objects development; first Deputy Head of Primary Design Bureau – the first deputy General Designer 06.2018 11.2018 State Space Corporation ROSCOSMOS Executive Director in charge of communications 11.2018 02.2019 Federal State Unitary Enterprise Central Adviser to Director General Research Institute for Machine-building 02.2019 ** S.P. Korolev Rocket and Space Public Adviser to Director General Corporation Energia No participating interest in the Company Charter capital / no common shares in possession

54 Sergei Konstantinovich Krikalev Date of birth: 1958 Education: higher, Candidate of Psychological Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 04.2009 07.2014 Federal state-financed organization Director of the Center Yu.A. Gagarin Research-Test Center for Cosmonauts Training 07.2014 01.2015 Federal state unitary enterprise Central Deputy Director General in charge of Manned Research Institute for Machine-building Programs 01.2015 03.2016 Federal state unitary enterprise Central Deputy Director General in charge of Manned Research Institute for Machine-building Programs 03.2016 * State Space Corporation ROSCOSMOS Executive Director in charge of Manned Space Programs No participating interest in the Company Charter capital / no common shares in possession Svetlana Vyacheslavovna Kukina (till 06.2019) Date of birth: 1977 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2012 01.2017 Federal State Unitary Enterprise “National Deputy Director in charge of finance, economy and Operator handling radioactive waste” managerial control 02.2017 03.2017 State Space Corporation ROSCOSMOS Executive Director in charge of corporate governance, property relations and development 03.2017 ** State Space Corporation ROSCOSMOS Executive Director in charge of corporate activity and property management No participating interest in the Company Charter capital / no common shares in possession Dmitry Vladimirovich Loskutov Date of birth: 1978 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 02.2012 05.2018 Russian Federation Government apparatus Assistant to the Deputy Chairman of the RF Government 06.2018 12.2018 State Space Corporation Roscosmos Director of the International Cooperation Department 12.2018 * Joint-Stock Company Glavcosmos Director General No participating interest in the Company Charter capital / no common shares in possession Vladimir Vladimirovich Meshkov (till 06.2019) Date of birth: 1982 Education: higher, Candidate of Economic Sciences All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 02.2016 02.2017 State Space Corporation ROSCOSMOS Adviser to Director General

02.2017 ** State Space Corporation ROSCOSMOS Director of Department in charge of capital construction management No participating interest in the Company Charter capital / no common shares in possession

55 Dmitry Olegovich Rogozin Date of birth: 1963 Education: higher, Candidate of Philosophy, Doctor of Science (D. Sc.) All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2011 05.2018 Deputy Chairman of the RF Government, RF President’s Special Representative for self-declared Dnestr Republic 05.2018 * State Space Corporation ROSCOSMOS Director General

No participating interest in the Company Charter capital / no common shares in possession Konstantin Vladimirovich Romanov Date of birth: 1986 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 08.2011 02.2016 Moscow Administration of Federal Senior State Officer, Chief State Officer, Deputy Head Antimonopoly Service of Department 02.2016 04.2017 State Space Corporation ROSCOSMOS Leading Specialist of Economic Security Department division 04.2017 * State Space Corporation ROSCOSMOS Chief Specialist of Economic Security Department division No participating interest in the Company Charter capital / no common shares in possession Sergei Yurievich Romanov (till 06.2019) Date of birth: 1957 Education: higher professional, Doctor of Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 07.2012 12.2014 S.P. Korolev Rocket and Space Public First Deputy Designer General, Head of Project Corporation Energia Management Office 03.2014 10.2015 Closed Company ‘Experimental Machine- Director General (job combined with the main job) building Plant of S.P. Korolev RSC Energia’ 12.2014 12.2016 S.P. Korolev Rocket and Space Public Designer General of Manned Space Complexes Corporation Energia 01.2017 08.2018 S.P. Korolev Rocket and Space Public First Deputy Designer General – Chief Designer of Corporation Energia Manned Space Complexes 08.2018 09.2018 S.P. Korolev Rocket and Space Public Acting Director General Corporation Energia 09.2018 01.2019 S.P. Korolev Rocket and Space Public Director General Corporation Energia 01.2019 * S.P. Korolev Rocket and Space Public First Deputy Director General – First Deputy Designer Corporation Energia General Participating interest in the issuer Charter capital, %: 0.00008. Person’s share in the issuer common stock ownership, %: 0.00008 Sergei Valentinovich Saveliev Date of birth: 1965 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs

56 Period Name of organization Job title from till 12.2008 11.2015 Federal Space Agency Deputy Head 11.2015 * State Space Corporation ROSCOSMOS Deputy Director General for international cooperation No participating interest in the Company Charter capital / no common shares in possession Nikolai Nikolayevich Sevastiyanov Date of birth: 1961 Education: higher, Candidate of Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 2008 05.2018 Joint-Stock Company ‘Gazprom Space Designer General, Head of Primary Design Bureau Systems’ 06.2018 09.2018 State Space Corporation ROSCOSMOS Acting First Deputy Director General 09.2018 01.2019 Federal State Unitary Enterprise Central Acting Director General Research Institute for Machine-building 01.2019 03.2019 S.P. Korolev Rocket and Space Public Acting Director General Corporation Energia 03.2019 10.2019 S.P. Korolev Rocket and Space Public Director General Corporation Energia 10.2019 * S.P. Korolev Rocket and Space Public Director General, Designer General Corporation Energia No participating interest in the Company Charter capital / no common shares in possession Pavel Anatolievich Suvorov Date of birth: 1986 Education: higher, Candidate of Economic Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 03.2011 07.2015 State Corporation ‘Bank for development Economist, Team Manager, Managing Director of and foreign economic affairs financial-technical monitoring at Credit Operations (Vnesheconombank)’ Execution Department 07.2015 09.2018 Federal Antimonopoly Service Head of State Procurement Organization Procedures Administration 09.2018 02.2019 State Space Corporation ROSCOSMOS Executive Director for corporate work and property complex managements, Executive Director for business development and commercialization 02.2019 * State Space Corporation ROSCOSMOS Executive Director for Economy

No participating interest in the Company Charter capital / no common shares in possession Yuri Matevich Urlichich Date of birth: 1962 Education: higher, Doctor of Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2014 04.2015 Federal state-financed organization Deputy Head ‘Analytical Center at the Russian Federation Government’ 04.2015 10.2018 Independent nonprofit organization Deputy Head ‘Analytical Center at the Russian Federation Government’ 11.2018 * State Space Corporation ROSCOSMOS First Deputy Director General in charge of satellites constellation development and advanced projects

57 No participating interest in the Company Charter capital / no common shares in possession Georgy Lvovich Forsov Date of birth: 1963 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2012 10.2018 Russian Federation Ministry of Defense Adviser (Deputy Minister of Defense, Russian Federation), Head of government procurement department 10.2018 02.2019 State Space Corporation ROSCOSMOS Executive Director for contract work and procurement organization 02.2019 * State Space Corporation ROSCOSMOS Executive Director for contract work

No participating interest in the Company Charter capital / no common shares in possession Oleg Petrovich Frolov (till 06.2019) Date of birth: 1962 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 09.2012 10.2013 Federal Space Agency First Deputy Head 04.2015 06.2018 Russian Federation Military-Industrial Member of the Commission Board Commission 06.2018 ** State Space Corporation ROSCOSMOS Executive Director in charge of defense programs implementation No participating interest in the Company Charter capital / no common shares in possession Mikhail Nikolayevich Khailov Date of birth: 1973 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 06.2008 02.2016 Federal Space Agency Head of Department in charge of unmanned space complexes and systems, deputy director 02.2016 * State Space Corporation ROSCOSMOS Deputy Director General in charge of unmanned space complexes and systems No participating interest in the Company Charter capital / no common shares in possession * (data submitted as of 31.12.2019) ** (data submitted as of 29.06.2019) 6.3.4. Regulations on ad hoc Committees at the Company Board of Directors, their memberships and information about the meetings held The following ad hoc Committees are set up at the Board of Directors aimed at a thorough analysis of the problems falling within competence of the Board of Directors in strategic planning, internal control and audit, as well as staff and remuneration. The Committees are advisory and consultative bodies ensuring efficient performance by the Board of Directors of their overall management functions within the Company. They operate based upon respective regulations:

58 • Audit Committee Regulations (approved in a revised version by the Board of Directors, Minutes No. 12 of 17.06.2014); • Personnel and Remuneration Committee Regulations (approved by the Board of Directors, Minutes No. 4 of 11.12.2009, with amendments introduced in 2014 and 2015; Minutes No. 10 of 17.12.2014, Minutes No 1 of 03.08.2015); • Strategic Planning, Modernization and Innovative Development Committee Regulations (approved by the Board of Directors, Minutes No. 3 of 26.11.2012; amendments are introduced in 2014 and 2015; Minutes No. 10 of 17.12.2014; Minutes No.1 of 03.08.2015). Appendix 3 to this Annual Report presents detailed information about the resolutions adopted at ad hoc Committees at the Board of Directors in 2019. COMPOSITION OF THE COMMITTEE ON STRATEGIC PLANNING, MODERNIZATION AND INNOVATIVE DEVELOPMENT AT RSC ENERGIA BOARD OF DIRECTORS DURING 2019: Till 29.06.2019: Sergei Konstantinovich Krikalev Vladimir Vladimirovich Meshkov Sergei Yurievich Romanov Sergei Valentinovich Saveliev Nikolai Nikolayevich Sevastiyanov, Chairman After 29.06.2019: Andrei Vasilyevich Zheregelia Sergei Konstantinovich Krikalev Dmitry Vladimirovich Loskutov Sergei Valentinovich Saveliev, Chairman Nikolai Nikolayevich Sevastiyanov Pavel Anatolievich Suvorov COMPOSITION OF THE COMMITTEE ON PERSONNEL AND REMUNERATION AT RSC ENERGIA BOARD OF DIRECTORS DURING 2019 Till 29.06.2019: Sergei Konstantinovich Krikalev Vladimir Vladimirovich Matveychuk, Chairman Vladimir Vladimirovich Meshkov Konstantin Vladimirovich Romanov Sergei Valentinovich Saveliev After 29.06.2019: Vladimir Vladimirovich Matveychuk Konstantin Vladimirovich Romanov Nikolai Nikolayevich Sevastiyanov (since 04.10.2019) Yuri Matevich Urlichich, Chairman Composition of the Audit Committee at RSC Energia Board of Directors during 2019. Till 29.06.2019: Lusine Borisovna Arutyunova Pavel Vyacheslavovich Vinokurov

Sergei Vladimirovich Kapitanov (till 31.01.2019) Svetlana Vyacheslavovna Kukina (till 28.02.2019) - Chairman till 28.02.2019 Artem Vyacheslavovich Melnikov (since 01.02.2019) – Chairman since 01.04.2019

59 Konstantin Vikrorovich Savin (since 01.04.2019) Zhanna Alekseevna Cherkashina (since 01.02.2019) Dmitry Nikolayevich Chirkin (till 31.01.2019) After 29.06.2019: Artem Vyacheslavovich Melnikov, Chairman Aleksander Aleksandrovich Naumov Zhanna Alekseevna Cherkashina (till 14.10.2019) Andrei Fauzi El Said 6.3.5. Provision on Remuneration of the Company Board of Directors members Regulations on Remuneration and Compensations to be paid to RSC Energia’s Board of Directors members is valid at RSC Energia, according to which remuneration to the Board of Directors members shall be paid once a year by the results of accounting fiscal year, upon the resolution passed at General Shareholders’ Meeting. Accounting period for calculating remuneration to the Board of Director’s members is calendar year (fiscal year is coincident with calendar year). Remuneration is paid by the results of accounting fiscal year (with its amount fixed by the resolution passed by General Shareholders’ Meeting) within 3 months after the date of holding AGSM which decided on payment of remuneration and on condition that the Board of Directors member submitted to the Company all the required documents for cash payment. Remuneration of the Board of Directors members includes the following: • remuneration for taking part in the Board of Directors activities (base part); • remuneration by the Company performance in accounting fiscal year (variable part). Size of base remuneration part to the Board of Directors member for participation in the Board of Directors activities for accounting year is calculated as a total remuneration for all meetings in which he participated with due regard for forms of meetings held (with full attendance of the members and by correspondence) and participation procedure (personal presence (including connection to video- and telephone communication), submission of opinion in writing) of the Board of Directors member at the meetings held by the Board of Directors and its Committees. Remuneration is not to be paid in the event that the Board of Directors member did not attend more than 50% of the meetings held (from the date of his election till the time of his authority termination). Remuneration shall not be paid to the Board of Directors member who performs functions of the Company Chief Executive Officer (Director General). Remuneration shall be neither calculated nor paid to the Board of Directors members who are: • persons which are banned by Federal law to take part on a paid basis in for-profit organization managerial bodies activities or otherwise restricted to get any payments from for-profit organizations; • employees of State Corporation ROSCOSMOS; • employees of State Corporation ROSCOSMOS entities.

60 6.3.6. Information about remuneration paid to the Company Board of Directors members in 2019

NAME OF INDEX FOR 2019, THOUSAND RUBLES Remuneration for participation 0 Salary 20 454,84 Bonuses 0 Commissions 0 Other kinds of remuneration 0 TOTAL 20 454,84 Annual General Shareholders’ Meeting at RSC Energia (Minutes No. 38 of 29.06.2019) resolved not to pay, remuneration (emoluments) to the Board of Directors’ members of RSC Energia by the 2018 performance. No other agreements on payment of remuneration to the Board of Directors members except for the payments under the labour contracts entered into with RSC Energia staff members, have been made for current financial year. No other provisions of property to the Board of Directors members except for the payments under the labour contracts entered into with RSC Energia staff members, have been made for the accounting period. 6.4. Information about the Company executive bodies Director General, the Chief Executive Officer, and collective executive body, the Management Board, run the Company and its current activities.

The Company executive bodies are accountable to its Board of Directors and General Shareholding Meeting. 6.4.1. Chief Executive Officer of the Company Sergei Yurievich Romanov Date of birth: 1957 Education: higher professional, postgraduate professional, Doctor of Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 07.2012 12.2014 S.P. Korolev Rocket and Space Public First Deputy Designer General, Head of Project Corporation Energia Management Office 03.2014 10.2015 Closed Company ‘Experimental Machine- Director General (job combined with the main job) building Plant of S.P. Korolev Rocket- Space Corporation’ 12.2014 12.2016 S.P. Korolev Rocket and Space Public Designer General of Manned Space Complexes Corporation Energia 01.2017 08.2018 S.P. Korolev Rocket and Space Public First Deputy Designer General – Chief Designer of Corporation Energia Manned Space Complexes 08.2018 09.2018 S.P. Korolev Rocket and Space Public Acting Director General Corporation Energia 09.2018 01.2019 S.P. Korolev Rocket and Space Public Director General Corporation Energia 01.2019 * S.P. Korolev Rocket and Space Public First Deputy Director General – First Deputy Designer Corporation Energia General Participating interest in the issuer Charter capital, %: 0.00008. Person’s share in the issuer common stock ownership, %: 0.00008

61 On 24.01.2019 RSC Energia Board of Directors (Minutes No10 dated 24.01.2019) passed the resolution to suspend powers assigned to Sergei Yurievich Romanov as the Chief Executive Officer, to designate acting chief Executive Officer and convene extraordinary general shareholders meeting at RSC Energia in order to resolve on election of Chief Executive Officer (Director General). By resolution passed, extraordinary General Shareholders’ Meeting held at RSC Energia (Minutes No36 dated 06.03.2019) elected Nikolai Nikolayevich Sevastiyanov as RSC Energia Director General. Nikolai Nikolayevich Sevastiyanov Date of birth: 1961 Education: higher, Candidate of Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 2008 05.2018 Joint-Stock Company Gazprom Space Designer General, Head of Primary Design Bureau Systems 06.2018 09.2018 State Space Corporation ROSCOSMOS Acting First Deputy Director General 09.2018 01.2019 Federal State Unitary Enterprise Central Acting Director General Research Institute for Machine-building 01.2019 03.2019 S.P. Korolev Rocket and Space Public Acting Director General Corporation Energia 03.2019 10.2019 S.P. Korolev Rocket and Space Public Director General Corporation Energia 10.2019 up to S.P. Korolev rocket and Space Public Director General – Designer General now Corporation Energia Since February 2020 – Director General No participating interest in the Company Charter capital / no common shares in possession * (Data submitted as of 31.12.2019) 6.4.2. Collective Executive Body of the Company In accordance with the Articles of Association existing in the Company, the membership and staff of the Management Board are determined by the Board of Directors. Management Board members are elected for a 5-year period by the Board of Directors with due regard for a proposal put forward by the Company Director General. Only Company employees and/or 100% SAC are entitled to be members of the Management Board. Powers assigned to any Management Board member can be early terminated by resolution of the Board of Directors. Once the labour contract concluded by the Management Board member with the Company (or a 100% SAC) as the employer is cancelled, his powers as the Management Board member are regarded terminated. 6.4.3. Company Management Board membership

FIRST NAME, № JOB TITLE PATRONYMIC, SURNAME Leonid Timofeevich 1. Deputy Director General, Head of Baikonur branch, RSC Energia Baranov Andrei Anatolievich 2. Deputy Director General for scheduled-contract work, RSC Energia Bondarenko Aleksandr Valentinovich 3. Acting First Deputy Designer General in charge of engineering work, RSC Energia Bukharin

62 Pavel Vyacheslavovich 4. First Deputy Director General for financial-economic activity, RSC Energia Vinokurov Aleksandr Gadlievich Deputy Director General for business development and international activity, RSC 5. Derechin Energia Evgeny Alexeevich 6. Head of Department, Chief Engineer, RSC Energia Yermakov Nikita Vladimirovich 7. First Deputy Director General for project management, RSC Energia Kazinsky Sergei Vladimirovich 8. Deputy Director General for quality assurance, RSC Energia Kapitanov Igor Vitalievich 9. Deputy Director General for ISS transport support, RSC Energia Konstandy Yelena Mikhailovna 10. Chief Accountant, RSC Energia Korogodina Alexandr Alexandrovich 11. Deputy Director General, Head of Main Project Management Office, RSC Energia Kuznetsov Director General, ZAO ZEM RSC Energia, adviser to Director General of 12. Igor Evgenievich Maltsev RSC Energia (second job) 13. Mikhail Yurievich Merkulov Deputy Director General for Security, RSC Energia 14. Evgeny Anatolievich Mikrin Designer General, First Deputy Director General, RSC Energia 15. Nikolay Anatolievich Pirogov Adviser to Director General, RSC Energia 16. Sergei Yurievich Romanov First Deputy Director General – First Deputy Designer General, RSC Energia Rashid Makhmutovich First Deputy Designer General for onboard and ground control complexes and 17. Samitov systems, Director of STC, RSC Energia 18. Sergei Anatolievich Saperov Deputy Director General for organization-legal matters, RSC Energia Nikolai Nikolayevich Chairman of the Management Board, Director General, Designer General; since 19. Sevastiyanov February 2020 – Director General, RSC Energia Vladimir Alexeevich First Deputy Designer General for flight operation, tests of rocket-space 20. Solovyov complexes and systems, RSC Energia First Deputy Designer General, Chief Designer of Unmanned Space Complexes 21. Igor Vladimirovich Frolov and Systems, RSC Energia Nikolai Ivanovich Chekin 22. (Withdrawal from RSC Adviser to Director General, RSC Energia Energia 11.12.2019) Posts are given as of 31.12.2019 6.4.4. Background information about the persons serving on the Company Management Board in 2019 Leonid Timofeevich Baranov Date of birth: 1949 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2014 * RSC Energia Deputy Director General, Head of Baikonur branch No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Andrei Anatolievich Bondarenko Date of birth: 1980 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs:

63 Period Name of organization Job title from till 01.2015 07.2015 OAO Gazprom Space Systems Deputy Head of Business Planning Department 07.2015 05.2016 OAO Gazprom Space Systems Head of Planning – Economic Department 05.2016 10.2017 OAO Gazprom Space Systems Deputy Head of PDB in charge of organization- economic matters, Head of PDB investment management department 10.2017 06.2018 AO Gazprom Space Systems Deputy Head of PDB in charge of organization- economic matters 06.2018 12.2018 State Corporation ROSCOSMOS Deputy Director of Department 12.2018 02.2019 FSUE TsNIImash Adviser to Director General 02.2019 10.2019 RSC Energia Adviser to Director General 10.2019 * RSC Energia Acting Director General in charge of scheduled- contract work No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Alexandr Valentinovich Bukharin Date of birth: 1962 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 10.2008 06.2018 AO Gazprom Space Systems Deputy Head of Department, Director of the Center, Deputy Designer General – Director of the Center 06.2018 10.2018 State Corporation ROSCOSMOS Executive Director for quality assurance and reliability 02.2019 10.2019 RSC Energia Adviser to Director General 10.2019 * RSC Energia Acting Deputy Designer General for engineering work

No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Pavel Vyacheslavovich Vinokurov Date of birth: 1975 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 07.2011 08.2014 OAO NPO Energomash Deputy Managing Director for Economics and Finance 08.2014 05.2016 RSC Energia Vice-President for Financial-Economic Activity 05.2016 08.2016 RSC Energia Senior Vice-President for Financial-Economic Activity 08.2016 * RSC Energia First Deputy Director General for Financial-Economic Activity Participating interest in the issuer Charter capital: 0.00017% Person’s share in the issuer common stock ownership: 0.00017% Term of office in accordance with the Labor Agreement: unlimited

64 Aleksandr Gdalievich Derechin Date of birth: 1945 Education: higher professional, postgraduate professional: Candidate of Science All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2014 08.2016 OAO RSC Energia Vice-President for strategy, business development and international activity 08.2016 04.2017 RSC Energia Deputy Director General for strategy, business development and international activity 04.2017 * RSC Energia Deputy Director General for business development and international activity No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Evgeny Alexeevich Yermakov Date of birth: 1984 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 09.2011 01.2015 OAO NPO Energomash Chief power engineer, Deputy Chief engineer for operation; Chief power engineer 01.2015 02.2015 RSC Energia Chief power engineer 02.2015 * RSC Energia Head of Department, Chief engineer 10.2016 * ZAO ZEM RSC Energia Chief engineer (job combined with the main job) No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Nikita Vladimirovich Kazinsky Date of birth: 1980 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 11.2008 06.2018 Joint-Stock Company Gazprom Space Deputy Director of the Center-Head of Department in Systems charge of Earth remote sensing target complexes; Head of Directors Office in charge of ERS space systems project management; Deputy General Designer for geoinformation objects development; first Deputy Head of Primary Design Bureau – the first deputy General Designer 06.2018 02.2019 State Space Corporation ROSCOSMOS Executive Director in charge of communications 02.2019 10.2019 RSC Energia Adviser to Director General 10.2019 * RSC Energia Acting First Deputy Director General in charge of project management No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Sergei Vladimirovich Kapitanov Date of birth: 1958 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs:

65 Period Name of organization Job title from till 12.2014 08.2016 RSC Energia Vice-President for quality assurance 08.2016 * RSC Energia Deputy Director General in charge of quality assurance No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited

Igor Vitalievich Konstandy Date of birth: 1955 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 04.2014 04.2015 RSC Energia Deputy Head of Project Management Office, Head of Department 04.2015 01.2017 RSC Energia Deputy Head of Project Management Office 01.2017 06.2017 RSC Energia Deputy Head of Project Management Office in charge of project coordination and management 06.2017 12.2019 RSC Energia Head of Project Management Office 12.2019 * RSC Energia Deputy Director General For ISS transport support

No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Yelena Mikhailovna Korogodina Date of birth: 1975 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 02.2011 * RSC Energia Chief Accountant No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Alexandr Alexandrovich Kuznetsov Date of birth: 1960 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 2006 2012 RSC Energia Head of Directorate 09.2012 02.2015 RSC Energia First Deputy Designer General, Head of Project Management Office 02.2015 08.2015 RSC Energia Head of Project Management Office 08.2015 10.2016 RSC Energia Deputy Designer General for launch vehicles, Head of Project Management Office 10.2016 * RSC Energia Deputy Director General, Head of Main Project Management Office No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited

66 Igor Yevgenievich Maltsev Date of birth: 1965 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 04.2011 08.2013 OOO Stroyengineering Deputy Director General 07.2014 01.2015 OAO NPO Energomash Head of Department 01.2015 05.2016 AO NPO Energomash Chief Controller 05.2016 09.2016 AO NPO Energomash Deputy Executive Director, Chief Controller

10.2016 02.2017 ZAO ZEM RSC Energia Deputy Director General in charge of Quality 02.2017 * ZAO ZEM RSC Energia Director General 09.2018 06.2019 RSC Energia Adviser to Director General (job combined with the main job) No participating interest in the Company Charter capital / no common shares in possession Term of office as Director General in accordance with the Labor Agreement: 5 years Term of office in accordance with the Labor Agreement as adviser to Director General: unlimited Mikhail Yurievich Merkulov Date of birth: 1960 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 09.1983 12.2014 Serviceman, Federal Security Service of Russia 12.2014 08.2016 RSC Energia Vice-President for Security/Deputy Director General for Security 08.2016 * RSC Energia Deputy Director General for Security No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Yevgeny Anatolievich Mikrin Date of birth: 1955 Education: postgraduate professional, RAS academician, Doctor of Science, professor All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 05.2010 12.2015 RSC Energia First Deputy Designer General, Chief Designer of onboard and ground control complexes and systems; Head of Scientific-Technical Center 12.2015 07.2016 RSC Energia Designer General 07.2016 * RSC Energia Designer General, First Deputy Director General In December 12, 2019 he sold 43 uncertified common registered shares of the Company. No participating interest in the Company Charter capital as of 31.12.2019/no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Nikolay Anatolievich Pirogov Date of birth: 1951 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 01.2013 02.2015 OAO NPO Energomash Adviser to the First Deputy Managing Director, Chief Designer; Adviser to Managing Director for

67 cooperation with government bodies 02.2015 08.2016 RSC Energia Vice-President for cooperation with government bodies 08.2016 04.2017 RSC Energia Deputy Director General for cooperation with government bodies 04.2017 11.2018 RSC Energia Deputy Director General for special projects

11.2018 10.2019 RSC Energia Adviser to Director General 10.2019 * RSC Energia Acting Deputy Director General for projects No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Sergei Yurievich Romanov Data is presented in section “Chief Executive Officer” Rashit Makhmudovich Samitov Date of birth: 1955 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 12.2014 02.2017 RSC Energia Deputy Director of STC 02.2017 * RSC Energia First Deputy Designer General for onboard and ground control complexes and systems, Director of STC His participating interest in the Company Charter capital is 0,0017% Person’s share in the Company common stock ownership is 0,0017% Term of office in accordance with the Labor Agreement: unlimited Sergei Anatolievich Saperov Date of birth: 1968 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 05.2012 09.2014 Served in Counsel’s Office No. 1958, the Served in Counsel’s Office No. 1958, the Register of Register of counsels’ establishments, counsels’ establishments, Moscow Region Moscow Region 09.2014 08.2016 RSC Energia Vice-President for organization-legal matters 08.2016 * RSC Energia Deputy Director General for organization-legal matters No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Nikolai Nikolayevich Sevastiyanov (Chairman) Data is presented in section “Chief Executive Officer” Vladimir Alexeevich Solovyov Date of birth: 1946 Education: higher professional, Doctor of Science; RAS corresponding member, professor All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 02.2009 * RSC Energia First Deputy Designer General for Flight Operation, Tests of Rocket-Space Complexes and Systems No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited

68 Igor Vladimirovich Frolov Date of birth: 1978 Education: higher All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 03.2009 09.2014 RSC Energia Head of Division 09.2014 12.2014 RSC Energia First Deputy Designer General of Unmanned Space Complexes 12.2014 12.2016 RSC Energia Designer General of Unmanned Space Complexes and Systems 01.2017 * RSC Energia First Deputy Designer General, Chief Designer of Unmanned Space Complexes and Systems No participating interest in the Company Charter capital / no common shares in possession Term of office in accordance with the Labor Agreement: unlimited Nikolai Nikolaevich Chekin Date of birth: 1934 Education: higher professional All positions taken by this person in the issuer and other organizations over the last 5 years and at the present time in chronological order, including sideline jobs: Period Name of organization Job title from till 11.2009 * RSC Energia Adviser to Director General

Participating interest in the Issuer Charter capital, %: 0,00288. Person’s share in the issuer common stock ownership, %: 0,00288. Authority as the Management Board member is terminated on 11.12.2019 * (Data is submitted as of 31.12.2019) 6.4.5. Provision on remuneration of the Company executive bodies members There is no fixed remuneration for work in the Company Management Board. Management Board members get payments under the terms of Labour Agreements as the Company employees. 6.4.6. Information about remuneration paid to the Company executive bodies members in 2019

NAME OF INDEX FOR 2019, THOUSAND RUBLES Remuneration for participation 0 Salary 133 849,22 Bonuses 201 Commissions 0 Other kinds of remuneration 0 TOTAL 134 050,22 No property was granted to the Management Board members for the accounting period, except for the payments under the Labor Agreements entered into with RSC Energia employees on the staff. No other agreements on remuneration payments to the Management Board members have been concluded for the current fiscal year, with the exception of the payments under the Labor Agreements entered into with RSC Energia regular staff.

69 7. EQUITY CAPITAL

7.1. Equity capital structure RSC Energia Charter capital amounts to 1 179 836 822,50 rubles as of 31.12.2019 and consists of 1 179 836 non-split stock and 462 133/561 867 shares of uncertified registered common stock with a nominal value of 1 000 rubles each, state registration number of securities: 1-03-01091-A of 30.12.1998 In 2020, the second additional issue of securities was registered, state registration number of them: 1-03-01091-А-002D dated 08.07.2019. The number of RSC Energia’s placed securities issued additionally was 130 723. Report on the second additional issue total was registered on 06.02.2020. In March 2020, amendments to the Articles of Association related to the increased Charter capital were recorded. RSC Energia’s Charter capital now amounts to 1 310 559 822,50 rubles and consists of 1 310 559 stock and 462 133/561 867 uncertified registered common shares with a nominal value of 1 000 rubles each. As of 31.12.2019, the Company does not have at its disposal: • shares made available (listed in the fixed assets) to the Company. • extra shares which can be placed as the result of conversion of the placed securities to be converted into shares or as the result of performance of the commitments under the Company options.

COMPANY SHAREHOLDERS NUMBER AS ON 31.12.2019 Total number of shareholders, including: 6 822 legal persons (including nonresidents) 21 (incl. 1 nominee shareholder) natural persons (including nonresidents) 6 801

COMPANY CHARTER CAPITAL STRUCTURE AS OF 31.12.2019

Legal persons – 94,11802% (1 110 439 shares)

Natural persons – 5,88198% (69 397,822495 shares)

70 SHAREHOLDERS WHOSE STAKE IN THE COMPANY CHARTER CAPITAL IS MORE THAN 2%AS OF 31.12.2019 as of 31.12.2018

AO URSC: 36,40301% (429 497 shares) State Corporation ROSCOSMOS – 32,10419% (378 777 shares) АОAO «ИКIK Razvitie «Развитие» – 16,59763 – 16,59763% % (195 825 shares) Federal Property Management Agency: 4,75497% (56 101 shares) ZAO ZEM RSC Energia – 3,01771% (35 604 shares) Other shareholders holding less than 2% of the Charter capital – 7,12%

Information about shareholding structure and shareholders’ shares in the Charter capital is given without regard for additional stock issue whose placement was drawn up as the report registered in February 2020. Since 09.06.2014 up to now, RSC Energia’s core stock issue are traded in the Third Tier of the List of Securities allowed for sale by Moscow-Stock Exchange. Information about the state of the Company shares market is available on official Web site of Moscow Stock Exchange moex.com (ticker tape message RSC Energia – RKKE). 7.2. Dividend Policy RSC Energia dividend policy is based upon the balance of interests between the Company and its shareholders in determining size of dividend payouts; respect for and strict observance of the shareholders’ rights provided for by active legislation of the Russian Federation, the Company Articles of Association and its By-Laws; the efforts to increase investment attractiveness of the Company and its capitalization. Declaring dividends and their payouts are carried out in accordance with the provisions stated in the Company Articles of Association and requirements stated in Federal Law “On Joint-Stock Companies” as resolved at the General Shareholders Meeting in accordance with the Board of Directors’ recommendations, as well as in line with proposals put forward by the Board of Directors. State Space Corporation ROSCOSMOS is the holding company of RSC Energia and as of 31.12.2019, 88,12%2 of RSC Energia’s Charter capital are under its control (both directly and indirectly). Therefore, the Company dividend policy is based upon respective dividend policy pursued by State Corporation ROSCOSMOS. In order to ensure implementation of RSC Energia’s Financial Recovery Program, the Board of Directors (Minutes No 27 dated 18.06.2018) approved resolution to impose moratorium on dividend payout in distribution of RSC Energia net profit during the 2018-2020 period.

2 Controlling stake has changed because of the increased Charter capital of RSC Energia

71 COMPANY DIVIDEND HISTORY OVER THE 2014-2018 PERIOD 2014 2015 2016 2017 2018 Period for which dividends are paid full year full year full year full year full year Control body that passed a resolution to declare General Shareholders’ General Shareholders’ General Shareholders’ General Shareholders’ General Shareholders’ dividends Meeting Meeting Meeting Meeting Meeting Date of holding General Shareholders’ Meeting 27.06.2015 25.06.2016 24.06.2017 30.06.2018 29.06.2019 Date on which the List of persons entitled to in view of the absence of in view of the absence of in view of the imposed in view of the absence of get dividends for a given dividend period was net profit by the Company net profit by the Company moratorium on dividend net profit by the Company drawn up performance in 2014, no performance in 2016, no payouts, no date on which performance in 2018, no date on which the list of date on which the list of the list of persons entitled date on which the list of persons entitled to get 14.07.2016 person entitled to get to get dividends was to be persons entitled to get dividends was to be made dividends was to be made made out, has been fixe dividends was to be made out, has been fixed out, has been fixed out, has been fixed

Date of making up General Shareholders’ 30.06.2015 No. 29 25.06.2016 No. 30 28.06.2017 No. 31 02.07.2018 No. 33 01.07.2019 No. 38 Meeting Minutes and their number Category (class) of shares common common common common common Size of declared dividends on this category General Shareholders’ General Shareholders’ General Shareholders’ General Shareholders’ (class) of shares per share, rubles Meeting resolved that no Meeting resolved that no Meeting resolved that no Meeting resolved that no dividends on the Company dividends on the cash would be allocated dividends on the Company shares by the 2014 Company shares by the for dividend payouts. shares by the 2018 performance were to be 135 2016 performance were performance were to be calculated and paid as to be calculated and paid calculated and paid for there had been no net for 2016 as there had 2018 as there had been no profit earned been no net profit net profit earned earned. Size of declared dividends in the aggregate on 151 704,1 all shares of a given category (class), thousand 0 (including taxes of 0 0 0 rubles 11 124,6) Source of the declared dividends payment: No net profit Net profit No net profit No net profit - for 2014 for 2015 for 2016 for 2018 Share of the declared dividends in net profit for 0 25,7 0 0 0 the accounting year, %

72 COMPANY DIVIDEND HISTORY OVER THE 2014-2018 PERIOD 2014 2015 2016 2017 2018 Total size of dividends paid on all issuer shares No dividends by the 148 624,4* No dividends by the No dividends by the 2017 No dividends by the 2018 of one category (class), thousand rubles 2014 performance of the (including taxes of 2016 performance of the performance of the performance of the Company were 11 124,6) Company were Company were calculated Company were calculated and paid and paid calculated and paid as calculated and paid as there had been no net there had been no net profit earned profit earned Share of the dividends not received by addressees, % Reasons: - stale data in legal persons payment details; - shareholders not available at the addressees indicated in questionnaires; - no mail transfers are made with certain − 1,7 − − − countries where some of the shareholders – natural persons (nonresidents) are registered; - incorrect particulars for payment stated by the shareholders

Time allowed for payment of declared - for nominee dividends on shares shareholder and professional securities market participant, trustee entered in the Register of Shareholders − – till 28.07.2016; − − − - for other persons entered in the in the Register of Shareholders – till 18.08.2016

* As on the date of 31.12.2019

73 7.3. Information about distribution and disposition of the profit earned by the 2018 performance in 2019 AGSM resolution of 29.06.2019 (Minutes No. 3): • Take note of RSC Energia’s loss by the 2018 performance size of which is 2 179 million rubles. • Not to calculate and pay dividends by the Company performance for 2018 in view of the net profit absence.

74 8. INTERNAL CONTROL AND RISK MANAGEMENT

8.1. Description of the key risk factors associated with the Company activities RSC ENERGIA RISK MANAGEMENT POLICY Acquiring RSC Energia-securities, investors need to take into account that RSC Energia during its economic activities is running the risks related to political, economic situations unfolding in the country, as well as the situation arising in the Russian Federation financial markets. This section presents description of major risks in the Company’s view. RSC Energia cannot assure potential investors that the above risk factors are complete and exhaustive to decide on acquiring the Company stock. Information addressed in this section can be no substitute for investment risk analysis on the part of those who acquired securities. Company reveals, follows up, assesses risk factors and undertakes all measures possible to minimize harmful effects. The factors beyond control of the Company are considered when its activities are being planned. The factors that come under the Company control are taken into account in the package of measures to reduce the risks. Measures to counteract risks at RSC Energia should primarily ensure performance of all commitments assumed by the Company. The basic instrument is insurance against separate risks, first of all, manufacturing risks. The Company introduced internal control system which assured safety of assets, made it possible to increase its operation effectiveness and efficiency. Also internal control system guarantees reporting reliability and authenticity, its compliance with the legislation requirements. Space activity is a licensed activity, therefore, it is critical to RSC Energia to fulfil licensing requirements. The Company properly complies with the licensing requirements established by current legislation. The Company lawyers follow up all changes in the legislation, including draft documents concerning licensing core business. Risk management function is distributed in the Company, i.e. risk identifying and analysis; taking and implementing decisions required to counteract/minimize risk effects are performed by top managers for respective areas of responsibility: • economic risks are managed by First Deputy Director General for Financial-Economic Activity; Project managers; • technical risks are considered by Designer General Deputies for core business activities; • technological risks are undertaken by the Company Chief Engineer, the management of the main technological entity, ZAO ZEM RSC Energia; • legal risks are dealt with by Deputy Director General for organization – legal matters, etc. When responsible top manager does not have enough authority for decision taking or risk may affect several lines of activity, the Board of Management and RSC Energia Director General are to be involved.

75 SPACE INDUSTRY RISKS At the present time, the demand for space services on the world market is gradually increasing. After closure of the Program, the Russian Federation has long been the monopolist on the market of crew and cargo transportation spacecraft. The government order for crew transportation spacecraft Soyuz MS and cargo transportation spacecraft Progress MS is expected to be stable. It is determined by the need to meet international commitments by the Russian Federation to deliver crew members and cargo to support the ISS operation. However, volume of the orders is expected to vary due to the circumstances described below. In accordance with the 2016-2025 Federal Space Program being implemented in Russia, the number of annually launched cargo transport spacecraft has decreased from four to three since 2017. Since 2012, the US Space Agency NASA uses cargo transport spacecraft Dragon to deliver and return cargo to/from the ISS. Since 2013 NASA’s cargo can also be delivered to the ISS via cargo transport spacecraft Cygnus. As a result, NASA’s orders for cargo transportation to the ISS by Progress MS spacecraft have reduced to a minimum at the present time and are being carried out under the agreements made between NASA and State Corporation ROSCOSMOS. NASA is going to start operational use of the Starliner (the Boeing) and Crew Dragon (Space X) commercial manned space vehicles in 2020. The first test mission of Crew Dragon spacecraft (SpaceX) to the ISS in an unmanned mode took place in early March 2019. The flight was performed under the NASA Program on commercial crew spacecraft development. The first manned test flight of the US commercial Crew Dragon (SpaceX) to the ISS is planned to be performed in 2020, provided that tests of the spacecraft launch escape system are successfully completed in January 2020. The pioneer test mission of Starliner spacecraft (CST-100) (the Boeing) was performed in an unmanned mode in December 2019. Because of the off-nominal situation arisen in the course of the spacecraft flight, docking to the ISS failed. The next flight of the Starliner (in an unmanned mode or carrying crew onboard) is expected to be performed no earlier than May 2020. Following an initial period of new US space vehicles reliability demonstration, market prices for flights are likely to decline because of the growing competition which may result in development of manned flights market. As for the domestic market, the Company has no competitors in this line of activity. Steady demand is expected for the Company activities aimed to operate the ISS and use it for specified purposes, including international projects for Earth and space research. Work is underway on new ISS RS modules (MLM-U and SPM). Advanced developments in the field of manned cosmonautics involve building ambitious manned transportation system with crew transportation spacecraft and new generation space rocket complexes of medium and super heavy classes. The above plans are addressed in the 2016-2025 Federal Space Program of Russia. For the Company, space industry risks in the field of manned flights are associated with an increased product and services cost, as well as the ratio between dynamics of this increase and comparative analogs on foreign markets. The most critical factors determining space industry risks for the Company on the world market for unmanned spacecraft manufacture are the following: • keen competition among major manufacturers of spacecraft on the world market;

76 • new world players from the countries with high rates of economic growth (such as China, India, Japan) entering the market of unmanned spacecraft manufacture and launch; • political instability in some developing countries which create potential market for the Company products and services; • imposing sanctions which restrict purchase of electronic components abroad from the leading manufacturers. Also it is worth noting that there is robust competition among national manufacturers of spacecraft such as OAO Information Satellite Systems after academician M.F. Reshetnev, AO RSC Progress, AO NPO after S.A. Lavochkin, etc. In order to prevent possible negative consequences of space industry risks, RSC Energia pursues an active scientific-technical policy of participation in the Federal Space Program, conducts continually search for potential Russian and foreign customers of satellites and foreign partners interested in advanced space technologies. As to RSC Energia-made the DM-type Upper Stages, the Company competes with Russian manufacturers of such Upper Stages as AO FSUE Khrunichev SR&PSC and AO NPO after S.A. Lavochkin. The Company, therefore, is busy all the time with efforts to upgrade technical and operational characteristics of the DM-type Upper Stages in order to ensure its competitive power. COUNTRY AND REGIONAL RISKS One of the main country-related factors having an impact on the national economy, industry and financial system is sanction pressure on Russia which is being currently applied and even expands. In so doing, in spite of continual toughening of the US sanctions against Russia, this pressure to a lesser extent concerns our cooperation in manned cosmonautics programs with NASA. Good points for the Company operation are political stability in the country, relatively low inflation rate and stabilization of the ruble rate with respect to major international currencies, stabilization of oil and gas prices on the world markets. Company is registered and conducts its activities in a central part of the Russian Federation, namely Moscow Region. Risks of exposure to disasters (including hurricanes, earthquakes, etc.) are extremely low. Moscow Region is connected via motor, railway and air transport with all Russian regions, as well as all countries of the world. Risk of possible termination of transportation due to remoteness of the region and/or its being difficult of access is entirely excluded. Moscow Region is regarded as one of the most politically stable areas which does not border directly upon zones of military conflicts, as well as the regions in which there is a high probability of introducing state of emergency. However, current international situation as it stands can generate risks associated with attempts to commit terrorist acts by extremist groups. Thus, the Company puts special emphasis on guarding its premises, as well as IT security. At the present time, explosion of information technologies and digital transformation of modern society are, regrettably, accompanied by a steady growth of cybercrimes. All over the world, we can now observe an increase in typical computer attacks, as well as targeted computer attacks which would create potential risks for a steady and continuous operation of critical business processes in the Company. In order to minimize these risks, the Company undertakes measures on a regular basis to detect, prevent potential computer attacks and eliminate their consequences. Besides, in

77 accordance with the requirements set forth in Federal Law No. 187-FZ “On security of the critical information infrastructure in the Russian Federation” dated July 26, 2017, work is underway in the Company on building comprehensive system protecting critical information infrastructure objects from computer attacks and reacting in response to information security incidents. On 23.09.2019, became effective were the following documents: the Information security policy; the Provision on gaining access to Internet and other external networks. RSC Energia is far away geographically from sites of vehicles prelaunch processing on Processing Facility and Launch Complex of cosmodromes (including Baikonur Cosmodrome). Therefore, the Company operation is associated with risks of its property loss and damage during transportation to point of destination. The Company provides for insurance against these risks. Activities being conducted by RSC Energia on the territory of the Republic of Kazakhstan (Baikonur Cosmodrome) depends upon influence of political and economic factors on interstate relations. Stability in this international activity of the Company is maintained by the following international agreements entered into between Russia and the Republic of Kazakhstan: • Agreement on the use of Baikonur Cosmodrome till 2050; • Treaty on Eurasian Economic Union. The participating countries do their best to create necessary conditions for economic development cooperation; provide coordinated state backing of their priority industries and works; pursue agreed customs policy; develop the united transportation systems. Company is involved in a number of projects for foreign customers located in African countries. In implementation of these projects, insurance instrument is used as well. FINANCIAL RISKS Unstable geopolitical and economic situation may affect financial stability indicators of RSC Energia. Size of proceeds of the sale of goods (works, services) and profit are negatively impacted by inflation risks, changes in exchange rates and risks of changed interests rates on credits. INFLATIONS RISKS Significant increase in growth rate of prices of goods, raw materials, subcontract items may result in increased costs which could affect negatively size of net profit and reduce cash assets. With due regard for an increased value-added tax in 2019, the Bank of Russia forecasted a short- term increase in annual inflation up to 4,5%. At the end of 2019 – beginning of 2020, its gradual decrease down to 4 % was predicted. Monetary policy being pursued by the Bank of Russia makes it possible to assess inflation risks as minimal. Management policy being implemented in the Company and aimed at preserving current assets; maintaining control over debts receivable and rational application of available funds allow to balance inflationary effect (given real inflation level matches the forecasted level) on production capability. EXCHANGE RATE CHANGES RISKS Exchange rate changes may affect economic activities, because the Company is the exporter, as well as the importer of science-intensive and high-technology products.

78 Acute fluctuations of the exchange rates may have both beneficial and negative impacts on RSC Energia financial standing depending upon ratio between currency earnings received and costs of purchasing foreign-made components used in final products. As most of the contracts were concluded in rubles, risk of exchange rates fluctuations is assessed as low or moderate. INTEREST RATE RISKS Duration of output manufacturing cycle implies use of borrowed resources. Throughout the year, the RF CB key interest rate reduced and in the 4th quarter 2019 it reached 6,25% per annum. Overall, since the beginning of the year, FR CB has reduced the rate by 1,25 percentage points. On exposure to external factors, monetary conditions keep easing which could be favorable for RSC Energia in terms of borrowing. LEGAL RISKS Range of the Company legal risks includes the following: risks of losses due to potential illegitimacy of transaction or its improper documentation; infringement of codes and rules of doing business; risks of the party concerned handling a transaction with insufficient authority thereto; risk of lawsuit court judgement duration and costs which involve negative property consequences for the Company; risk of taking inadequate or incorrect legal advice; legally unsettled problems and situations arising in the course of the Company operation; risk of changing current legislation. In order to reduce to a minimum the above risks, the Company arranged the process of agreeing on transactions which involves mandatory coordination of all the transactions with the Company legal department and economic security department. In the course of its contract and purchase activities, the Company is exposed to risks related to its counterparts. Therefore, during execution of civil-legal transactions, as well as during performance of civil-legal commitments arising from the above transactions, the risk factors given below are monitored on a continual basis: • financial instability and insolvency of a contracting party; • unreability of a contracting party; contracting party being unable to provide high-quality goods, work, services; • hidden affiliation, etc. Comprehensive preliminary audit of potential counterparts is performed by assessment of documentation they submit; analysis of information available in open sources and dedicated databases, as well as operational arrangements as field checks can be undertaken (in case of need). Much attention in the Company is given to prevention of offences resulting from corrupt practices and measures to combat corruption as the key factors affecting directly corporate risk level. Measures to prevent and reduce corruption risks are finalized in the Company’s internal regulatory documents (Bylaws) such as Anticorrupt practices policy; Code of ethics and conduct of employees; Provision on reporting the gifts presented to RSC Energia’s employees due to their official position or official duties they are performing; gift handing over and assessment; sale (buyout) and crediting an account with the proceeds received from its sale; Provision on conflict of interests; Provision on the Committee on adherence to the requirements for RSC Energia employees conduct and resolving conflict of interests; Procedure for RSC Energia notifying about the facts indicating that RSC Energia employees are induced to commit corruption offences; Provision on

79 telephone hot line’ on the matters to combat corruption at RSC Energia; Provision on corrupt practice risks at RSC Energia. In February 2019 RSC Energia approved the Plan to combat corruption for the 2019-2020 period. The Company performs checks of adherence to the principles of doing business in an open and fair way. Company procurement activity is heavily regulated, mandatory tender procedures are introduced. The Company monitors on continual basis the standards introduced, keeps their compliance under control and improves them on a regular basis. Changes in legislative acts and by-laws concerning budgetary spending procedure under state order have an impact on the Company economic activities. During the accounting year the Company was putting measures into effect which made it possible to adapt to changes connected with budgetary spending for state order. One of the most important components of legal risks is tax risk. One of the peculiarities of the Russian legislation on taxes and charges is its continuous changeability. The laws making amendments to the Russian Federation Tax Code with respect to changes to specific tax calculation and payment procedure are passed annually. This adds complexity to making medium-term and long-terms forecasts for taxpayer activity, complicates tax planning as a whole. Instability of tax legislation can lead to an increase in the Company’s tax burden. Company continues to carry out an analysis of amendments to existing tax legislation with the aim to reduce tax risks. Since April 2019 Decree of the Russian Federation Government No. 421 dated 11.04.2019 is in force which reads as follows: ‘On exemption from provision of security for performance of an obligation to pay customs duties, taxes with respect to foreign-made goods to be imported within international cooperation in space exploration and use’ (published on Official Internet portal focused on legal information http://www.pravo.gov.ru). The reason for exemption from provision of security for performance of an obligation to pay customs duties, taxes is confirmation to be issued by State Corporation ROSCOSMOS to the organizations and resulting from the examined applications of confirmation that delivery is made within the framework of space exploration and use. This decree of the RF Government made it possible for RSC Energia to get rid of the costs of obtaining bank guarantees or allocation of funds for their submission to the Federal Customs Service (FCS) as security. The Company participates in foreign economic relations; part of its liabilities are expressed in foreign currency; therefore, it is exposed to the risks associated with exchange adjustment change. Significant changes in exchange adjustment rules were not observed during the accounting period; in this connection, these risks are regarded as low.

Changes in the requirements for licensing of the Company core business could result in some additional expenses of the Company related to getting a new license, extension or change of the license already available; however, the Company forecasts the risk of occurring such events as unlikely. RSC Energia meets all license requirements established by active legislation in due time

80 and in full volume; no difficulties whatsoever in extending validity of the available licenses are forecasted by the Company.

During the accounting period, no changes in judicial practice on the matter related to the Company operation (including licensing problems) which could adversely impact the Company performance, as well as the results of current legal proceedings, in which the Company is involved, have taken place. Legal risks associated with changes in the judicial practice on the matters concerning the Company operation which could adversely impact its performance are regarded as minimal.

Appendix 12 to the Annual Report provides information about ongoing court proceedings where the Company acts as a plaintiff or defendant on debt claim. RISKS OF GOODWILL LOSS (GOODWILL LOSS RISK) Risk of incurring losses due to reduced number of the Company customers resulting from poor image of its financial stability and quality of products is assessed as insignificant. The Company has a steady business portfolio based upon state order. The Company discloses information about its operation on a regular basis, it is a creditworthy borrower. The Company products reliability is assured by its quality management certification system and a long-term experience in continuous manufacture and operational use of space technology. STRATEGIC RISK Risk of incurring losses due to improper strategic decisions is estimated as insignificant. RSC Energia holds a dominating position in Russia in the field of manned space flights which makes it active in defining government strategy in this area and, accordingly, in forming a long- term business portfolio. “The Concept of Russian Manned Cosmonautics Development until 2050” developed with the Company participation, provides for further development of manned cosmonautics both on near- earth orbit and beyond it. The Federal Space Program of Russia intended for the 2016-2025 period enables to perform a long-term planning of the Company core business and reduces risk of incurring losses by the Company during implementation of strategic decisions. However, there is still risk of introducing significant changes to the Federal Space Program of Russia which, in its turn, would require updating of the Company long-term plans. Based on its high performance in the field of manned Programs, the Company diversifies its business developing lines of activities related to building satellites and launch vehicles.

81 RISKS RELATED TO THE COMPANY OPERATION Possible loss of customers, turnover with which accounts for at least 10% of the total proceeds of the Company products (work, services) sale, is insignificant, because during the five complete fiscal years the Russian Federation has been such a customer. In 2016 State Corporation ROSCOSMOS took over the state customer’s functions from the Federal Space Agency, while the main scope of work of RSC Energia is being performed within the 2016- 2025 Federal Space Program. During the accounting period the Company is exposed to the risks associated with current legal proceedings in which RSC Energia is involved and which can affect the Company operation. Appendix 12 to the Annual Report covers information about RSC Energia’s participation in the legal proceedings in the event that this participation might affect the Company’s financial-economic activity. Company conducts activities which under the Russian Federation legislation are possible, provided that there is a special authorization (license). Therefore, the Company during conduct of its core business is exposed to risk associated with being unable to extend its licenses, license suspension or recall. RSC Energia meets all license requirements, as well as takes all actions required to get new licenses (if necessary), keep licenses in force/extend their validity and minimize the risk of licenses suspension and recall. At the present time, no preconditions of legal, economic or political character which could lead to complicating the procedure or reduce probability of extending validity of the licenses being used by RSC Energia have been revealed. The Company liability for debts incurred by its subsidiary companies may arise in accordance with the RF current legislation. In accordance with the Russian Federation Civil Code provisions and provisions of the Federal Law “On Joint-Stock Companies” No 208-FZ of 26.12.1995, shareholders of Russian joint-stock company are not liable for commitments (debts) of its subsidiary companies and are only running the risk of their investments loss. However, in some cases specified by legislation when “the parent company” is in a position to define decisions to be taken by “the subsidiary company”, “the parent company” may be brought to joint and several liability or secondary liability. Accordingly, RSC Energia as the parent company of the subsidiary companies, in which RSC Energia owns more than 50% of the Charter capital and has the right to give binding instructions, may become liable for their debts. Performance of similar obligations may affect adversely the Company performance. However, taking into account absence of legal proceedings in which the Company acts as the defendant on liabilities incurred by subsidiary, affiliated and other companies, the Company does not find materiality criterion in the risks related to occurrence of liability for third persons debts, including its subsidiary companies.

Company manufacturing activity involves a possibility of causing damage to environment and risk of civil responsibility arising from it due to expenses on efforts to be made to repair such damage. In order to mitigate such risks, the Company monitors all manufacturing processes with the aim to adhere to the corresponding environmental protection standards throughout all phases of its activity; implements measures to ensure environmental protection and mitigate environmental impact. In addition, the Company conducts civil liability insurance of hazardous object owner for causing damage resulting from accident which occurred on hazardous object; civil liability insurance of enterprises as sources of increased danger (radiation), as well as risks insurance in case of causing

82 damage due to defects in work which could affect safety of capital construction objects in compliance with the existing legislation requirements. 8.2. Internal control Internal control at RSC Energia is to provide reasonable confidence in the Company capability to ensure efficiency and effectiveness in its activity, including achievement of financial and operating indicators; safeguard of assets; timeliness and faithfulness of accounts, adherence to internal rules (by-laws) and procedures. Internal control is a permanent, continual process being implemented by the Company’s Board of Directors, Audit Committee at the Company’s Board of Directors, Auditing Committee of the Company, internal audit department, executive bodies (Management Board, Director General), management of functional departments in accordance with authority given to them and stated in constituent and internal documents of the Company. In 2019, in pursuance of the order No. 96 dated 08.04.2019 issued by State Corporation ROSCOSMOS “On approval of the Concept of building vertically integrated system of internal control and audit at State Corporation ROSCOSMOS” and in order to unify internal control and audit departments operation at RSC Energia, appropriate organization and functional transformations were initiated. Control-Auditing Department was reorganized into Economic Security Department; financial- economic auditing tasks are performed by internal audit department; Regulations on internal on internal control system at RSC Energia got preliminary approval from the Audit Committee at the Company’s Board of Directors. In 2020, the Company will continue building internal control system following the principles underlying internal control system stated in the Concept of building vertically integrated system of internal control and audit at State Corporation ROSCOSMOS. The internal control system operating in the Company is part of the management system which enables to take decisions aimed to enhance financial-economic activity efficiency, minimize operational and financial risks. 8.3. Internal audit Internal Audit Department (subsequently referred to as the IAD) is a structural subdivision operating independently of the Company executive body whose activity is under direct control of the Company Board of Directors. IAD activity is based upon the principles underlying internal control system stated in the Concept of building vertically integrated system of internal control and audit at State Corporation ROSCOSMOS. The IAD activity is governed by the Internal Audit Department Regulations approved by the Board of Directors’ decision (Board of Directors Minutes No 11 of 30.01.2017). Chief internal auditor carries out management of IAD. Chief internal auditor is functionally subordinate to the Company Board of Directors and cooperates with the Company Board of Directors Audit Committee (further referred to as the Audit Committee) during performance of his official duties. In order to optimize the management process, the Company Director General carries out administrative management of the Chief internal auditor.

83 In accordance with the Internal Audit Department Regulations, the first concern of the IAD is to ensure an independent impartial audit and making recommendations to increase efficiency in the Company operation at the expense of a unified, systematized and consistent approach to an assessment and improved efficiency in internal control, risk and corporate governance. In accordance with the primary goal, IAD performs the following functions: • assessment of the internal control system efficiency of the Company, its subsidiary and affiliated companies (subsequently referred to as the SAC), making recommendations on the assessment results. Assessment is made according the following directions: o efficiency and effectiveness of financial-economic activity; o safeguard of assets; o faithful presentation of accounts (both external and internal); o compliance with the legislation requirements and the corporate statutory acts (CSA). • appraisal and making recommendation on the results of risk management system efficiency assessment relative to: o revealed existing risks and potential of arising new types of risks; o correct risks assessment; o efficiency of actions undertaken to manage risks; o reporting on major risks status and actions taken for their control. • assessment of corporate governance systems existing in the Company, as well as security and efficiency of information systems (IT audits); making recommendations on the results of the enhanced efficiency assessment. • check of the earlier detected faults removal for its completeness, quality and timeliness and implementation of the measures aimed to enhance efficiency of business processes. • development, adoption and continual improvement of internal audit concept; common methodology of internal audit. 8.4. Information about the Company Auditing Committee Auditing Committee operation procedure is based upon the Regulations on RSC Energia’s Auditing Committee to be approved at the Company’s General Shareholders’ Meeting. Election of the Auditing Committee members and early termination of their powers are within, the limits of the Company’s General Shareholders’ Meeting competence. Auditing Committee is elected every year at Annual General Shareholders’ Meeting of the Company and carries out control over RSC Energia financial-economic activity. Auditing Committee members cannot serve simultaneously on the Board of Directors as its members, as well as hold other posts in the Company managerial bodies. The Company’s financial-economic activity auditing is conducted by the Company’s performance for one year, as well as at any time on the Auditing Committee’s initiative; by resolution passed at General Shareholders’ Meeting, Board of Directors or at the request submitted by the Company’s shareholder (shareholders) owning in the aggregate no less than 10 (ten) percent of the Company’s voting shares. At the Auditing Committee request, persons holding posts in the Company managerial bodies and other Company employees shall submit the documents on the Company’s financial-economic activity within 5 (five) business days from the time of respective request being received. Auditing Committee is empowered to require calling extraordinary General Shareholders’ Meeting at the Company.

84 Auditing Committee consists of 9 (nine) members. The Auditing Committee takes a decision by majority of its members’ votes. At the Board of Directors’ request the Auditing Committee members can attend its meetings. In the event that the Auditing Committee membership is less than 5 (five), the Auditing Committee has no right to conduct its activity. In this case, the Board of Directors shall convene extraordinary General Shareholders’ Meeting to form a new Auditing Committee membership. Auditing Committee shall submit to the Board of Directors within no less than 40 (forty) days prior to annual General Shareholders’ Meeting the report summarizing annual auditing of the Company’s financial-economic activity. Auditing Committee’s reports summarizing the Company’s financial-economic activity auditing shall cover the following: 1) substantiation of faithfulness of data included in the reports and other financial documentation of the Company; 2) information about the facts of violating the procedure for keeping financial statement records established by the Russian Federation legislation, as well as violation of legislation during conduct of financial-economic activity. Major objectives set by the Auditing Committee are: • inspection of the Company financial documentation, bookkeeping reporting, property inventory reports, comparison of the above documents with primary accounting data; • checking the accuracy and completeness of bookkeeping, fiscal accounting, cost accounting, statistics; • verification of the accuracy in implementing profit-distribution decisions taken at RSC Energia over the accounting fiscal year; • checking the accuracy of and promptitude in payments to the budget and off-budget funds; • confirmation of the accuracy of data to be included in the Company Annual Report, the report on interested-party transactions; annual bookkeeping reporting, reports for taxation bodies, statistical bodies, bodies of state administration and control; • analysis of the Company financial standing; • checking of compliance with the legislation established procedure for effecting large deals and interested-party transactions; • checking decisions taken by the Company managerial bodies on financial-economic activity for its compliance with the legislation in force, the Articles of Association and other bylaws of the Company.

85 8.5. Membership of RSC Energia Auditing Committee during the accounting year Membership of RSC Energia Auditing Committee from 29.06.2019 up to now*: FIRST NAME, No. POSITION PATRONYMIC, SURNAME 1. Aleksei Viktorovich Lead specialist of Economic Security Department, State Corporation Alekseev ROSCOSMOS Office 2. Yulia Valerievna Chief specialist of Economy and Budget Planning Department, FSUE Vorobyova Organization Agat 3. Yulia Borisovna Chief internal auditor, RSC Energia Yegorova 4. Denis Valerievich Chief Specialist of Checks Management Office at Economic Security Zinkovskiy Department, State Corporation ROSCOSMOS 5. Artem Vyacheslavovich Director of Internal Audit Department, State Corporation ROSCOSMOS Melnikov 6. Ksenia Konstantinovna Head of Center, AO Russian Space Systems Portnova 7. Nikolai Aleksandrovich Chief expert of Internal Audit Department, State Corporation ROSCOSMOS Sevashko 8. Zhanna Alekseevna Chief specialist of Internal Audit Department, State Corporation ROSCOSMOS Cherkashina 9. Deputy Director of Corporate Governance and Property Relations, executive Dmitry Vladimirovich director for corporate governance and property relations, director of corporate Shangin governance and property relations department, AO URSC * Positions of the Company Auditing Committee members are presented as of 31.12.2019

Membership of RSC Energia Auditing Committee from 30.06.2018 through 29.06.2019**: FIRST NAME, No. POSITION PATRONYMIC, SURNAME 1. Head of Economic Security and Corrupt Practices Counteraction Office at Rinat Faisovich Gabitov Economic Security Department, State Corporation ROSCOSMOS 1. 2. Aslan Mukhamedovich Chief Specialist of Economic Security Office at Economic Security Department, Dyshekov State Corporation ROSCOSMOS 2. 3. Alexandr Alexeevich Head of Office Checks Management Office at Economic Security Department, Zelepukin State Corporation ROSCOSMOS 3. 4. Denis Valerievich Chief Specialist of Checks Management Office at Economic Security Zinkovskiy Department, State Corporation ROSCOSMOS 4. 5. Vasily Borisovich Chief Specialist of Economic Security Office at Economic Security Department, Goroschenko State Corporation ROSCOSMOS 5. 6. Chief Specialist of Economic Security and Corrupt Practices Counteraction Oleg Yurievich Mamayev Office at Economic Security Department, State Corporation ROSCOSMOS 6. 7. Yekaterina Pavlovna General Counsel, RSC Energia Polezhaeva 7. 8. Andrey Vladislavovich Director of State Secret and Information Security Department, State Rebrina Corporation ROSCOSMOS 8. 9. Manager of Corporate Governance and Property Complex Department, State Sergei Nikolayevich Rylov Corporation ROSCOSMOS ** Positions of the Company Auditing Committee members are presented as of 29.06.2018

86 8.6. Remuneration paid to the Auditing Committee members in 2019 NAME OF INDEX FOR 2019, THOUSAND RUBLES Remuneration for participation 0 Salary 1 395,18 Bonuses 136,39 Commissions 0 Other kinds of remuneration 0 TOTAL 1 531,57 Since 2013, RSC Energia put into effect Provision on Remuneration and Compensations to be paid to RSC Energia Auditing Committee members, according to which remuneration to the Auditing Committee members is to be paid by the results of accounting fiscal year and by resolution passed by the Company General Shareholders’ Meeting once a year (approved by AGSM of 06.07.2013, with amendments made by AGSM of 30.06.2018). Auditing Committee members are to be remunerated by the results of accounting fiscal year for their taking part in the Auditing Committee activity concerning inspections of annual financial- economic activity in the Company, as well as for their participation in unscheduled audits carried out on the Auditing Committee’s initiative, by resolution adopted at General Shareholders’ Meeting, Board of Directors, at the request of the shareholder who holds in the aggregate at least 10% of the Company voting stock. Size of remuneration to the member of the Auditing Committee is calculated from ten salaries of Class 1 for payment for work under the List of managers, specialists, officials and workers positions at RSC Energia with respect to grades of payment for labour (base amount) Size of remuneration calculated according to the Regulations will be decreased by 10% for each meeting at which the Auditing Committee member was not present. Size of remuneration calculated according to the Regulations will increase by 10% for each meeting devoted to unscheduled check, but not higher than 50% of the base amount for each unscheduled check. If the Auditing Committee member did not take part in more than 50% of the annual inspection meetings held (from the time of his election till termination of his powers) or in more than 50% of the meetings devoted to unscheduled checks, remuneration for participation in respective inspection shall not be calculated and paid. Remuneration to be paid to the Auditing Committee Chairman will increase by 15%. Remuneration shall be paid within 3 months following the date of holding the Company General Shareholders’ Meeting which resolved to pay remuneration, provided that the Auditing Committee member submits to the Company all the documents required for payment of cash. Remuneration shall be neither calculated nor paid to the Auditing Committee members who are: • persons which are banned by Federal Law from taking part on a paid basis in for-profit organization managerial bodies activity or otherwise restricted to get any payments from for-profit organizations; • State Corporation ROSCOSMOS employees; • State Corporation ROSCOSMOS organizations employees.

87 For the accounting period, no other granting of property has been made to the Auditing Committee members, except for the payments effected under the labour agreements concluded with RSC Energia’s regular staff. Also RSC Energia Annual General Shareholders’ Meeting (Minutes No. 38 of 29.06.2019) resolved not to pay any remuneration to RSC Energia’s Auditing Committee members by the 2018 performance of the Company.

88 9. ADDITIONAL INFORMATION

9.1. Information about the Company’s auditor Full firm’s name: Joint stock company BDO Unicon Shortened firm’s name: AO BDO Unicon Place of business: 125 Varshavskoye shosse, blg 1/11, office 50, Moscow, 117587. Mailing address: BC Preo-8, 8 Preobrazhenskaya ploschad, Moscow, 123610 TIN: 7716021332 MSRN: 1037739271701 Telephone: (495) 797-5665 Fax: (495) 797-5660 E-mail address: E-mail: [email protected] Web: www.bdo.ru Data on the auditor’s membership in self-regulating auditing organizations: Full name: Self-regulating auditing organization “Russian Auditors Union” (Association) (SRO RSA). Information about license for work associated with state secret: License number: GT № 0095218 Registration number: 29937 of 05.05.2017 Issued by Russian Federation Security Service Administration of Moscow and Moscow Region. Term of license validity: till 15.02.2022 9.2. Information about the organization keeping records of the rights to the Company outstanding securities Person who maintains the register of the Issuer registered securities holders: Registrar Full firm’s name of the Registrar: Joint Stock Company «Specialized Registrar – Holder of the Gas Industry Shareholders’ Register», branch of ZAO AO Draga in Korolev. Shortened firm’s name: AO Draga (branch of AO Draga in Korolev) Place of business: 71/32 Novocheryomushkinskaya Street, Moscow, Russia, 117420 Branch address: 4A Tsiolkovsky Street, Korolev city, Moscow Region, Russia, 141070 Tel.: (495) 513-88-54 Fax: (495) 513-88-53 License number: 045-13996-000001 Date of issuing license: 26.12.2003 License term of validity: unlimited

89 9.3. Glossary Abbreviations and acronyms used in the Annual Report Abbreviation Meaning DLR German Aerospace Center (Deutsches Zentrum für Luft- und Raumfahrt) ESA European space agency NASA National Aeronautics and Space Administration АС USOS US Orbital Segment АРМ Automated workstation АСУиК Waste collection system АСУ ТП Automated control system for manufacturing processes БРС On-board Radio System ВА Reentry vehicle ВК СС БСВ Computer system of the system for communications with the onboard ГОСА Annual General Shareholders’ Meeting ГрО Cargo compartment ДЗО Subsidiaries and Affiliates ДЗЗ ERS Earth Remote Sensing ДМС Voluntary Health Insurance КА SC Spacecraft КД Design Documentation ККУ Corporate management code КПЭ KPI Key Performance Indicators КРК Space Rocket System КЭ SE Space experiment МИМ MRM Mini Research Module МКС ISS International Space Station МЛМ MLM Multipurpose Laboratory Module МЛМ-У MLM-U Multipurpose Laboratory Module with Upgraded performance НИОКР R&D Research and Development НПИ Scientific-Applied Research НЭМ SPM Science and Power Module ОВА Internal audit department ОКР Development Work ОЛПП Near-lunar man-tended platform. ПИР Innovative Development Program ПКК Manned space system ПТК Crew Transportation Spacecraft РБ US Upper Stage РН LV Launch Vehicle РН СТК SHLV Super Heavy Launch Vehicle РОС Russian Orbital Station РС RS Russian Segment СА DV Descent Vehicles САС LES Launch Escape System СБИ OMS Onboard Measurement System СБИК Assembly and Testing Facility CД Board of Directors: СКРО Radiation environment monitoring system СМ SM Service Module СМК Quality Management System СОТР TCS Thermal Control System СОУ Operations management system СТК Super-heavy

90 СТО Proprietary standard СТП Company standard СР Relay satellite СРО Self-regulating organizations СЧ ОКР Constituent part of Research and Development effort СУБК Onboard Equipment Control System СУДН GN&CS Guidance, Navigation and Control System ТЗ SoW Statement of Work ТГК Cargo Transportation Vehicle ТМ Transformable module ТПК Crew Transportation Spacecraft УМ Node Module ФГБ FGB Functional Cargo Module ФКП Federal Space Program ШМ Airlock module ЭРДУ Electrical propulsion system Units of measurement used in the Annual Report 0С Degree of Celsius г Year Гкал Gcal gigacalorie ед. Unit кВт kW kilowatt кг. kg kilogram кгс/см2 kg/cm2 kilogram-force per square centimeter м² m2 square meter м3 m3 cubic meter млн. mil. million мм mm millimeter млрд. bln billion МПа MPa Megapascal руб. rub т t ton тыс. thou. thousand чел. persons

91 10. APPENDICES

APPENDIX 1 / Financial Statements and Audit Report on Reliability of Financial Statements over the Accounting and Previous Years The Financial Statements and Audit Report on Financial Statements over the accounting and previous years can be found in a separate book «Financial Statements of S.P. Korolev Rocket and Space Public Corporation Energia for 2019 and 2018».

92 APPENDIX 2 / Information about state backing of RSC Energia activities in the accounting year, including the data on subsidies granted, purpose of their use; information about application of the funds at the accounting year-end Amount of Application of Item Project, purpose of use Source of funds finance in 2019 funds in 2019 No (thousand rubles) (thousand rubles) 1.* Allocating a grant to implement research Federal State Budgetary project “Study of principles and Agency “Russian Basic development of methods of autonomous Research Fund” (FGBU motion control of space platforms RFFI) 700,00 700,00 with rotating solar sails”.

2.* Allocating a grant to implement research Federal State Budgetary project “Development and study of the Agency “Russian Basic principles of applying the method of mobile Research Fund” (FGBU 700,0 700,0 cellular automatic devices to the task of RFFI) designing adaptive algorithms controlling motion of space-based autonomous vehicles flight” Total 1 400,0 1 400,0 *Under the projects supported by FGBU RFFI, Grantee is a natural person, team of natural persons (research workers, postgraduate students, students, research organization specialists and scientific service officials who joined their efforts to submit research project to the Contest) who were awarded the Fund’s grant by the Contest results. Under the above projects, the Company creates conditions of research project implementation; receives to its account funds (grant) made available by the Fund to the Grantee by the Contest results; makes settlements in accordance with the Grantee’s instructions.

93 Appendix 3 / Information about the resolutions passed at General Share holders’ Meetings, Board of Directors’ Meetings and meetings of the ad hoc Committees at the Board of Directors INFORMATION ABOUT GENERAL SHAREHOLDERS’ MEETINGS HELD EXTRAORDINARY GENERAL SHAREHOLDERS’ MEETING HELD ON 05.03.2019 (MINUTES NO. 36 OF 06.03.2019) Items on the Agenda Resolutions passed On early termination of powers of the existing Terminate ahead of time the powers given to the Chief Executive Officer (Director General) in force Sergei Yurievich Chief Executive Officer (Director General) at RSC Romanov at S.P. Korolev Rocket and Space Public Corporation Energia Energia On election of RSC Energia’s Chief Executive Elect Nikolai Nikolayevich Sevastianov as Chief Executive officer (Director General) of S.P. Korolev Rocket and Space Officer (Director General) Public Corporation Energia EXTRAORDINARY GENERAL SHAREHOLDERS’ MEETING HELD ON 25.03.2019 (MINUTES NO. 37 OF 26.03.2019) Items on the Agenda Resolutions passed On increased Charter capital of RSC Energia 1. Increase Charter capital of S.P. Korolev Rocket and Space Public Corporation Energia by placement of additional certified registered common stock (further referred to as the Stock) on the following terms: a) Number of the Stock to be placed: 193 800 (one hundred ninety three thousand eight hundred) certified registered common stock. b) Nominal value of each share of stock: 1000 (one thousand) rubles. c) Method of the stock placement: closed subscription. d) Price of the Stock placement: price of one share placement (including exercising priority right to acquire additional stock to be placed) will be determined by RSC Energia’s Board of Directors in accordance with Art. 77 of Federal Law No. 208-FZ “On Joint Stock Companies” dated 26.12.1995 no later than right from the start of the Stock placement. e) Method of payment of the Stock to be placed: payment of additionally issued Stock is to be made by funds in the Russian Federation rubles as non-cash transaction. f) Circle of persons among which the Stock are supposed to be placed (circle of potential acquirers): - Russian Federation in the person of State Space Corporation ROSCOSMOS, MSRN 1157700012502, - Russian Federation in the person f Federal Property Management Agency, MSRN 1087746829994. g) Rights provided by this kind of Stock, their category (type) in case of their being placed, are in accordance with the rights provided by the earlier placed stock of the same category (type) in compliance with the Articles of Association of RSC Energia and the Russian Federation legislation. i) Other terms of additional Stock placement according to the legislation in force shall be determined by the Decision on extra issue of securities to be approved by the Board of Directors resolution. 2. By the results of the Stock placement, introduce into RSC Energia’s Articles of Association the amendments associated with the increased number of placed uncertified registered common stock and size of RSC Energia’s Charter capital, as well as the decreased number of the authorized uncertified registered common stock.

94 29.06.2019 ANNUAL GENERAL SHAREHOLDERS’ MEETING (MINUTES NO. 38 OF 01.07.2019) Items on the agenda Resolutions passed Approval of RSC Energia’s Annual Report 2018 Approve RSC Energia’s Annual Report for 2018

Approval of RSC Energia’s Annual Financial Approve RSC Energia’s Annual Financial Statements for 2018 Statements for 2018 On RSC Energia’s profit and loss distribution by the Take note of RSC Energia loss by the 2018 performance to the extent of 2 179 million rubles 2018 performance On size, due dates and methods of dividend payouts Not to calculate and pay the dividends by the 2018 performance due to the absence of net profit by the 2018 performance by the 2018 performance On payment of remuneration for work in the Board Not to pay remuneration to RSC Energia’s Board of Directors members by the 2018 performance of Directors of RSC Energia On payment of remuneration for work as the Not to pay remuneration to RSC Energia’s Auditing Committee members by the 2018 performance Auditing Committee member of RSC Energia Approval of RSC Energia auditor for 2019 Approve RSC Energia auditor for 2019, AO BDO Unicon, the winner of open tender for the right to enter into a contract for provision of audit services with respect to Annual Financial Statements by RAS, as well as audit of consolidated Financial Statements by IAS at RSC Energia Election of RSC Energia Board of Directors Elect the Company Board of Directors members (by cumulative voting): members 1. Andrei Vasilievich Zheregelia 2. Sergei Konstantinovich Krikalev 3. Dmitry Vladimirovich Loskutov 4. Dmitry Olegovich Rogozin 5. Konstantin Vladimirovich Romanov 6. Sergei Valentinovich Saveliev 7. Nikolai Nikolayevich Sevastianov 8. Pavel Anatolievich Suvorov 9. Yuri Matevich Urlichich 10. Georgiy Lvovich Forsov 11. Mikhail Nikolayevich Khailov

Election of RSC Energia Auditing Committee Elect the Company Auditing Committee members (by voting): members 1. Aleksei Viktorovich Alekseev 2. Yulia Valerievna Vorobyova 3. Yulia Borisovna Yegorova 4. Denis Valerievich Zinkovsky 5. Artem Vyacheslavovich Melnikov 6. Ksenia Konstantinovna Portnova 7. Nikolai Aleksandrovich Sevashko 8. Zhanna Alekseevna Cherkashina 9. Dmitry Vladimirovich Shangin

95 INFROMATION ABOUT THE BOARD OF DIRECTORS’ MEETINGS HELD3 In 2019, 32 Board of Directors meetings were held in the Company, including 19 meetings of the Board of Directors elected on 21.08.2018 and 13 meetings of the Board of Directors elected on 29.06.2019. 17.01.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 8 OF 18.01.2019) Items on the Agenda Resolutions passed 1. Consideration of the Report on the Company’s 1.1. Take note of the Report on RSC Energia performance (including the results of RSC Energia / ZAO ZEM RSC Energia performance over the 9 months of 2018, including: consolidated Work Program implementation) over the 9 months of 2018. - Director General Report in accordance with 1.2. Note that ZAO ZEM RSC Energia failed to achieve the established budgetary indicators concerning average staff number standard form of CEO report; and Wages Fund as compared with those target figures for 9 months of 2018 and failed to reach target figure for labor - reference information about achievement of key productivity. performance indicators; 1.3. Charge RSC Energia management to make sure to achieve the consolidated target figures for the staff number and Wages - reference information about draft budget Fund by the 2018 performance indicators implementation; - report on State Order assignments performance; - reference information about progress in implementing action plans to reduce RSC Energia accounts balance and debts receivable relative to performance of state contracts whose customer is State Corporation ROSCOSMOS; - Report on QMS operation, quality maintenance, reliability and safety of rocket-space technology - Report on effecting large deals and interested-party transactions. 2. Agreement of the nominees for election to SAS 2. In accordance with provisions set forth in Article 28 (subpara 47, para 1) of RSC Energia Articles of Association, to agree boards of directors and their auditing committees upon the nominees proposed by RSC Energia Management Board to be elected to SAS boards of directors and their auditing who were proposed by RSC Energia Management committees. Board. According to the provisions of Article 32 (para 4) of RSC Energia Articles of Association, agree upon the candidacy of S.Yu. Romanov (RSC Energia Director General) for election to the Board of Directors of Limited Liability Company Energia Satellite Technologies. 3. On non-core assets register of RSC Energia 3. Approve the Non-core assets register of RSC Energia

3 Information treated as confidential is not presented in the Annual Report.

96 23.01.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 9 OF 24.01.2019) Items on the Agenda Resolutions passed On interested-party transaction 1. Accept in accordance with the provisions set forth in Art.83 of EZ “On Joint-Stock Companies” the request made by K.V. Romanov, the Board of Directors member, for holding RSC Energia’s Board of Directors’ meeting to solve the matters on consent to effecting interrelated interested-party transactions: - supplementary agreements to loan agreements No. 1-2011 of 27.05.2011, No. 1-2012/L of 26.03.2012, No. 5-2012/L of 01.10.2012, No. 1-2013/L of 13.02.2013, No. 1-2015/L of 08.04.2015, No. 2-2015/L of 31.08.2015, No. 1-2016/L of 15.04.2016, between the Lender, RSC Energia, and the Borrower, OOO Energia-Logistics, - supplementary agreements to loan agreements No. 1-2010 of 12.04.2010, No. 2-2010 of 07.07.2010, No. 3-2010 of 20.10.2010, No. 1-2011/O of 08.09.2011, No. 1-2014/O of 05.02.2014, between the Lender, RSC Energia, and the Borrower, OOO Energia-Overseas as well as consider the above matters as part of this Board of Directors meeting. 2.1. Determine total price of the interrelated interested-party transactions: supplementary agreements to loan agreements No. 1-2011 of 27.05.2011, No. 1-2012/L of 26.03.2012, No. 5-2012/L of 01.10.2012, No. 1-2013/L of 13.02.2013, No. 1- 2015/L of 08.04.2015, No. 2-2015/L of 31.08.2015, No. 1-2016/L of 15.04.2016, between the Lender, RSC Energia, and the Borrower, OOO Energia-Logistics, to the extent of 4 068 391 393, 02 (four billion sixty eight million three hundred ninety one thousand three hundred ninety three) rubles 02 copecks, including maximum amount of the principal and maximum amount of the accrued interest from the date of the loans being extended till 31.12.2019 2.2. Give consent to effect interrelated interested-party transactions, supplementary agreements to loan agreements No. 1- 2011 of 27.05.2011, No. 1-2012/L of 26.03.2012, No. 5-2012/L of 01.10.2012, No. 1-2013/L of 13.02.2013, No. 1-2015/L of 08.04.2015, No. 2-2015/L of 31.08.2015, No. 1-2016/L of 15.04.2016, between the Lender, RSC Energia, and the Borrower, OOO Energia-Logistics, which fix new periods of loan repayment – 31.12.2019, for a total amount of 4 068 391 393, 02 (four billion sixty eight million three hundred ninety one thousand three hundred ninety three) rubles 02 copecks, including maximum amount of the principal and maximum amount of the accrued interest from the date of the loans being extended till 31.12.2019 Information about the transaction terms, as well as the persons representing their parties shall not be disclosed prior to making the transactions. Note: For RSC Energia these transactions are interested-party transactions, because State Corporation ROSCOSMOS is the holding company of the companies as the parties to the transaction. 3.1. Determine total price of the interrelated interested-party transactions: supplementary agreements to loan agreements No. 1-2010 of 12.04.2010, No. 2-2010 of 07.07.2010, No. 3-2010 of 20.10.2010, No. 1-2011/O of 08.09.2011, No. 1-2014/O of 05.02.2014, between the Lender, RSC Energia, and the Borrower, OOO Energia-Overseas, to the extent of 5 281 100 054, 74 (five billion two hundred eighty one million and one hundred thousand fifty four) rubles 74 copecks, including maximum amount of the principal and maximum amount of the accrued interest from the date of the loans being extended till 31.12.2019 3.2. Give consent to effect interrelated interested-party transactions – supplementary agreements to loan agreements No. 1- 2010 of 12.04.2010, No. 2-2010 of 07.07.2010, No. 3-2010 of 20.10.2010, No. 1-2011/O of 08.09.2011, No. 1-2014/O of 05.02.2014, between the Lender, RSC Energia, and the Borrower, OOO Energia-Overseas, which fix new periods of loan repayment – 31.12.2019; for a total amount of 5 281 100 054, 74 (five billion two hundred eighty one million and one hundred thousand fifty four) rubles 74 copecks, including maximum amount of the principal and maximum amount of the

97 accrued interest from the date of the loans being extended till 31.12.2019. Information about the transaction terms, as well as the persons representing their parties shall not be disclosed prior to making the transactions. Note: For RSC Energia these transactions are interested-party transactions, because State Corporation ROSCOSMOS is the holding company of the companies as the parties to the transaction. 24.01.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 10 OF 24.01.2019) Items on the Agenda Resolutions passed 1. On suspension of powers of Chief Executive 1. Suspend powers of RSC Energia Director General Sergei Yurievich Romanov on January 24, 2019. Officer (Director General) of RSC Energia and Appoint Nikolai Nikolayevich Sevastianov as acting Director General of RSC Energia on January 25, 2019 till appointment appointing acting Chief Executive Officer (Director of new Chief Executive Officer (Director General) of RSC Energia by extraordinary General Shareholders’ Meeting at RSC General) of RSC Energia Energia 2. On reelection of the Chairman and Deputy 2. Due to the application submitted by N.N. Sevastianov, Chairman of the Board of Directors, for going out of office, elect Chairman of RSC Energia’s Board of Directors Sergei Valentinovich Saveliev as the Chairman of the Board of Directors at RSC Energia Elect Sergei Konstantinovich Krikalev as the Deputy Chairman of the Board of Directors at RSC Energia 3. On calling extraordinary General Shareholders’ 3. Convene extraordinary general shareholders’ meeting at RSC Energia as absentee voting. Meeting at RSC Energia 4. On approval of the agenda for extraordinary 4. Approve the following agenda for extraordinary General Shareholders’ Meeting at RSC Energia: General Shareholders’ Meeting at RSC Energia. 1). On early termination of powers of the existing Chief Executive Officer (Director General) of RSC Energia. 2). On election of Chief Executive Officer (Director General) of RSC Energia. 5. On fixing the date for ceasing to receive voting 5. Fix the date for ending voting ballots reception at extraordinary General Shareholders’ Meeting RSC Energia: March 5, ballots and determining mail address at which the 2019. Mail address at which the completed ballots can be sent: 141070, 4A Lenin Street, Korolev, Moscow Region, Russian completed ballots will be sent. Federation 6. On fixing the date for drawing up the list of 6. Fix the date for determining (recording) the persons entitled to take part in extraordinary General Shareholders’ Meeting of persons entitled to take part in extraordinary General RSC Energia: February 4, 2019. Shareholders’ Meeting of RSC Energia. 25.01.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 11 OF 28.01.2019) Items on the Agenda Resolutions passed On private pension provision of V.L. Solntsev No resolution was passed.

31.01.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 12 OF 01.02.2019) Items on the Agenda Resolutions passed 1. On putting up a nominee to be elected to the post 1. Put up candidacy of Nikolai Nikolayevich Sevastianov to be elected to the post of Chief Executive Officer (Director of Chief Executive Officer (Director General) of General) of RSC Energia at extraordinary General Shareholders’ Meeting of RSC Energia. RSC Energia

98 2. On approval of: 2. Approve: - form and text of voting ballots on the agenda items - voting ballot form and text on the agenda items to be considered at extraordinary General Shareholders’ Meeting (further at extraordinary General Shareholders’ Meeting; referred to as EGSM) of RSC Energia; - text of information leaflet to be sent together with - information leaflet text to be sent (handed in) to the shareholders simultaneously with voting ballots on the EGSM agenda voting ballots; items at RSC Energia; - draft wordings of EGSM agenda items resolutions; - draft wordings of EGSM agenda items resolutions to be forwarded in electronic form to nominee shareholder recorded in - Procedure to notify the shareholders about holding the register of shareholders; extraordinary General Shareholders’ Meeting at RSC - procedure to notify the shareholders about holding extraordinary General Shareholders’ Meeting at RSC Energia. Energia. 3. On determining the list of submittals to be 3.1. Approve the List of information (materials) to be submitted to the shareholders during preparation for holding presented to the shareholders during preparation for extraordinary General Shareholders’ Meeting at RSC Energia holding extraordinary Shareholders’ Meeting of RSC 3.2. Approve the Procedure for information (materials) submission to the shareholders during preparation for holding Energia and the procedure for their submission extraordinary Shareholders’ Meeting at RSC Energia 4. On setting up secretariat for extraordinary General 4. Set up Secretariat to finalize the results of holding extraordinary General Shareholders’ Meeting at RSC Energia with the Shareholders’ Meeting. following membership proposed:  Galina Vladimirovna Piskareva,  Ilya Igorovich Dontsov 5. On changing membership of the Audit Committee 5.1. Terminate powers of the following members of the Audit Committee at RSC Energia Board of Directors: at Board of Directors of RSC Energia. - Dmitry Nikolayevich Chirkin, acting Director of FSUE Organization Agat; - Sergei Vladimirovich Kapitanov, Deputy Director General for quality assurance, RSC Energia.

5.2. Elect the following persons to the Audit Committee at RSC Energia Board of Directors: - Artem Vyacheslavovich Melnikov – Director of Internal Audit Department, State Corporation ROSCOSMOS; - Zhanna Alekseevna Cherkashina – Head of Office, Internal Audit Department, State Corporation ROSCOSMOS. 08.02.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 13 OF 11.02.2019) Items on the Agenda Resolutions passed 1. On putting forward the item to increase Charter 1.1 Put forward the item to increase RSC Energia’s Charter capital by placement of additional certified registered common capital of S.P. Korolev Rocket-Space Public stock at extraordinary General Shareholders’ Meeting of RSC Energia. Corporation Energia at extraordinary General 1.2. Propose as per subpara 23, para 1, Art. 28 of RSC Energia’s Articles of Association to pass the following resolutions at Shareholders’ Meeting of RSC Energia. RSC Energia’s General Shareholders’ Meeting: Increase the Charter capital of S.P. Korolev Rocket and Space Public Corporation Energia by placement of additional certified registered common stock (further referred to as the stock) on the following terms: a) Number of the stock to be placed: 193 800 (one hundred ninety three thousand eight hundred) certified registered common stock. b) Nominal value of each share of stock: 1000 (one thousand) rubles. c) Method of Stock placement: closed subscription. d) Price of the Stock placement: price of one share placement (including exercising priority right to acquire additional stock to be placed) will be determined by RSC Energia’s Board of Directors in accordance with Art. 77 of Federal Law No. 208-FZ “On Joint-Stock Companies” dated 26.12.1995 no later than right from the start of the Stock placement.

99 e) Method of payment of the Stock to be placed: payment of additionally issued Stock is to be made by funds in the Russian Federation rubles as non-cash transaction. f) Circles of persons among which the Stock are supposed to be placed (circle of potential acquirers): - Russian Federation in the person of State Space Corporation ROSCOSMOS, MSRN 1157700012502, - Russian Federation in the person of Federal Property Management Agency, MSKN 1087746829994. g) Rights provided by this kind of Stock, their category (type) in case of their being placed, are in accordance with the rights provided by the earlier placed stock of the same category (type) in compliance with the Articles of Association of RSC Energia and the Russian Federation legislation. h) Other terms of additional Stock placement according to the legislation in force shall be determined by the Decision on extra issue of securities to be approved by the Board of Directors resolution. 1.3. By the results of the Stock placement, introduce into RSC Energia’s Articles of Association the amendments associated with the increased number of placed uncertified registered common stock and size of RSC Energia’s Charter capital, as well as the decreased number of the authorized uncertified registered common stock. 2. On calling extraordinary General Shareholders’ 2. Convene extraordinary General Shareholders’ Meeting at RSC Energia as absentee voting. Meeting at RSC Energia. 3. On approval of the agenda for RSC Energia 3. Approve the following agenda for extraordinary General Shareholders’ Meeting of RSC Energia: extraordinary General Shareholders’ Meeting. - On increased Charter Capital of RSC Energia. 4. On fixing the date for the end of voting ballots 4. Determine the date for the end of voting ballots receipt at extraordinary General Shareholders’ Meeting of RSC Energia: receipt and mailing address to direct the completed March 25, 2019. Mailing address for sending the completed ballots: 141070, 4A Lenin Street, Korolev, Moscow Region, ballots. Russian Federation. 5. On fixing the date for drawing up the List of 5. Determine the date on which the persons entitled to take part in extraordinary General Shareholders’ Meeting of RSC persons entitled to take part in extraordinary General Energia are identified (recorded): 28.02.2019. Shareholders’ Meeting of RSC Energia. 6. On approval of: 6. Approve: - form and text of voting ballots on the agenda items - Form and text of voting ballot on the agenda items concerning extraordinary General Shareholders’ Meeting at RSC for extraordinary General Shareholders’ Meeting at Energia; RSC Energia; - text of information leaflet to be sent with voting - text of information leaflet to be sent (handed in) to the shareholders simultaneously with voting ballots by correspondence ballots; on the agenda items of extraordinary General Shareholders’ Meeting at RSC Energia; - draft decision wordings on the agenda items for extraordinary General Shareholders’ Meeting at RSC - draft decision wordings on the agenda items for extraordinary General Shareholders’ Meeting at RSC Energia which are to Energia which are to be sent in electronic form to be sent in electronic form to nominee shareholders entered in the Shareholders’ Register. nominee shareholders entered in the Shareholders Register ; - procedure to inform the Shareholders about forth - the procedure to inform the shareholders about forthcoming extraordinary General Shareholders’ Meeting at RSC Energia. coming extraordinary General Shareholders’ Meeting at RSC Energia. 7. On determining the List of information (materials) 7.1. Approve the List of information (materials) to be provided to the shareholders in preparation for holding extraordinary to be submitted to the shareholders in preparation for General Shareholders’ Meeting at RSC Energia holding extraordinary General Shareholders’ 7.2. Approve the procedure for information (materials) submission to the shareholders in preparation for holding at RSC Meeting RSC Energia and its submission procedure Energia extraordinary General Shareholders’ Meeting.

100

8. On setting up Secretariat for extraordinary General 8. Set up Secretariat to finalize the results of extraordinary General Shareholders’ Meeting at RSC Energia with the following Shareholders’ Meeting. membership: Galina Vladimirovna Piskareva, Illya Igorevich Dontsov. 22.02.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 14 OF 25.02.2019) Items on the Agenda Resolutions passed 1. Consideration of the proposals put forward by the 1.1. Accept from RSC Energia shareholders (Federal Property Management Agency – the holder of 4,755% of the voting shareholders as per Art. 53 of Federal Law “On stock; State Space Corporation ROSCOSMOS – the holder of 32,104% of the voting stock) proposals concerning the Agenda Joint-Stock Companies: for annual General Shareholders’ Meeting at RSC Energia; proposals for nominating the candidates to RSC Energia’s Board of Directors and Auditing Committee as satisfying the requirements set out in RSC Energia Articles of Association, Federal Law “On Joint-Stock Companies and other legal acts. 1.1. On putting the items on the agenda of annual 1.2. Put on the Agenda of annual General Shareholders’ Meeting the following items put forward by RSC Energia General Shareholders’ Meeting; shareholder, Federal Property Management Agency, the holder of 4,755% of the voting stock: 1. Approval of the Company’s annual report. 2. Approval of the Company’s annual Financial Statements. 3. Approval of the Company’s profit distribution by the 2018. 4. On dividends size, dates and method of payment by the 2018. 5. Election of the Company’s Board of Directors (Supervisory Council) members. 6. Election of the Company’s Auditing Committee members (auditor). 7. Approval of the Company’s auditor. 1.2. On adding the shareholders-nominated 1.3. Include the following candidates put forward by RSC Energia shareholders (Federal Property Management Agency – the candidates to the List of candidates for election to the holder of 4,755% of the voting stock; State Space Corporation ROSCOSMOS – the holder of 32,104% of the voting stock) in Board of Directors of RSC Energia; the List of candidates for voting during election to the Board of Directors at RSC Energia annual General Shareholders’ Meeting: 1. Dmitry Olegovich Rogozin 7. Pavel Anatolievich Suvorov 2. Yuri Matevich Urlichich 8. Konstantin Vladimirovich Romanov 3. Sergei Valentinovich Saveliev 9. Andrei Vasilievich Zheregelia 4. Mikhail Nikolayevich Khailov 10. Dmitry Vladimirovich Loskutov 5. Sergei Konstantinovich Krikalev 11. Nikolai Nikolayevich Sevastianov 6. Georgy Lvovich Forsov 12. Olga Alekseevna Kuleshova

1.3. On adding the shareholders-nominated 1.4. Include the following nominees proposed by RSC Energia shareholders (Federal Property Management Agency – the candidates to the List of candidates for election to holder of 4,755% of the voting stock; State Space Corporation ROSCOSMOS – the holder of 32,104% of the voting stock) in RSC Energia’s Auditing Committee. the List of candidates for election to the Auditing Committee at annual General Shareholders’ Meeting: 1. Artem Vyachslavovich Melnikov 6. Aleksei Viktorovich Alekseev 2. Nikolai Aleksandrovich Sevashko 7. Margarita Sergeevna Kirelenko 3. Zhanna Alekseevna Cherkashina 8. Yulia Valerievna Vorobyova 4. Yulia Borisovna Yegorova 9. Dmirty Vladimirovich Shangin 5. Ksenia Konstantinovna Portnova 10. Anna Yurievna Merkulova

101 04.03.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 15 OF 04.03.2019) Items on the Agenda Resolutions passed 1. On determining a maximum size of auditor’s 1. As per subpara 28.3, para 1, Art. 28 of RSC Energia’s Articles of Association, approve initial (maximum) price of auditor’s services payment for 2019. services for holding Tender for selection of auditor of RSC Energia’s financial statements by RAS and IAS for 2019: 10 020 951,40 rubles (ten million twenty thousand nine hundred fifty one rubles 40 copecks), including VAT of 20% in the amount of 1 670 158,57 rubles (one million six hundred seventy thousand one hundred fifty eight rubles 57 copecks). 2. Consideration of Work Plan of RSC Energia’s 2. As per subpara 55, para 1, Art. 28 of RSC Energia’s Articles of Association approve Internal Audit Department Work Plan Internal Audit Department for 2019. for 2019.

3. On draft Program to assure and improve internal 3. As per subpara 32, para 1, Art. 28 of RSC Energia’s Articles of Association, approve the Program to assure and improve audit quality internal audit quality

4. On compliance with the requirements set forth in 4. Take note of the submitted information about RSC Energia’s compliance with the requirements set forth in the anticorrupt the anticorrupt practices legislation and prevention of practices legislation and prevention of corruption and other offences in day-to-day activities (quarter 4, 2018). corruption and other offences in day-to-day activities (quarter 4, 2018). 5. On the Policy of giving by RSC Energia’s 5. Due to the fact that the Policy of giving by RSC Energia’s independent auditor services other than auditing is no longer independent auditor services other than auditing. relevant, as well as according to the recommendations made by the Audit Committee of RSC Energia’s Board of Directors (Minutes No. 2 of 25.01.2019), recognize the Policy of giving by RSC Energia’s independent auditor services other than auditing as null and void (approved by the Board of Directors, Minutes No. 14 of 25.03.2015). 6. On charitable activities to give assistance to 6. As per subpara 45, para 1, Art. 28 of RSC Energia’s Articles of Association, approve making the transaction having to do Educational Fund “Talent and Success”. with giving charitable assistance to Educational Fund “Talent and Success” on the following terms: Parties to the contract: - S.P. Korolev Rocket and Space Public Corporation RSC Energia (Charitable organization). - Educational Fund “Talent and Success” (Beneficiary). Subject of the contract: - Giving charitable assistance by transfer into the Beneficiary’s ownership of the following property: - mock-up vehicle - mock-up vehicle Price of the contract: - Property is transferred into ownership free of charge Aggregate book value of the property to be transferred is 1 954 237,00 rubles. Other terms: Transfer of property is performed in order to promote activity related to education, science, culture, art, knowledge publicity, spiritual personal development according to para 1, Art.2 of Federal Law No. 135-FZ “On charitable activity and volunteering” dated 11.08.1995 and shall not be imposed by VAT as per subpara 12, para 3, Art. 149 of the RF TC. Property transfer is purposeful act of charitable endowment to provide the Beneficiary’s activity set forth in its charter, including arrangement of Science and Art Park “Sirius” exposition subject zone devoted to cherishing scientific-technical and technological heritage of rocket-space industry, developing scientific-technical creative work and assisting in professional

102 guidance of children and youth. 7. On long-term lease transactions. 7.1.1. As per subpara 40, para 1, Art. 28 of RSC Energia’s Articles of Association, approve the transaction – Supplementary agreement No. 4 to Lease Contract No. 75/246-13 of 24.02.2014 between RSC Energia (Lessor) and ZAO ZEM RSC Energia (Lessee) on putting out on loan on paid use over the period from 01.01.2014 till 31.08.2023 of nonresidential premises (part of building) with a total area of 977,3 m2 in industrial-administration building No. 114 (inv. No. 0100452) located the following address: 4A Lenin Street, Korolev, Moscow Region, 141070: - part of building No. 50:45:0040401:330/1, on the 1st floor, with a total area of 602,0 m2; - part of building No. 50:45:0040401:330/2, on the 1st floor, with a total area of 48,4 m2; - part of building No. 50:45:0040401:330/3, on the 4th floor, with a total area of 326,9 m2 (further referred to as the contract) On the following terms: Parties to the transaction: - S.P. Korolev Rocket and Space Public Corporation Energia (Lessor). - ZAO ZEM RSC Energia (Lessee) Subject of transaction: Introduce the following alterations to the essential Contract provision on rental amount (since 01.01.2019): 1. Maximum rental consists of permanent and variable parts and comes to 42 047 214,73 rubles (forty two million forty seven thousand two hundred fourteen rubles 73 copecks), incl. VAT: 1.1. Permanent rental over the entire period of the contract validity from 01.01.2014 till 31.08.2023 is 37 756 096,16 rubles (thirty seven million seven hundred fifty six thousand ninety six rubles 16 copecks), incl. VAT at the rate effective during relevant period. The above amount consists of: - 19 203 945,20 rubles (nineteen million two hundred and three thousand nine hundred forty five rubles 20 copecks), incl. VAT at 18%, from 01.01.2014 till 31.12.2018; - 18 552 150,96 rubles (eighteen million five hundred fifty two thousand one hundred fifty rubles 96 copecks), incl. VAT at 20%, from 01.01.2019 till 31.08.2023 (fore casted period). 1.2. Variable part of rental over the entire period of the contract validity from 01.07.2015 till 31.08.2023 (with due regard for the forecast from 01.11.2018 through 31.08.2023) is 4 291 118,57 rubles (four million two hundred ninety one thousand one hundred eighteen rubles 57 copecks), incl. VAT. The above amount comprises the following: - 1 302 620,81 rubles (one million three hundred and two thousand six hundred twenty rubles 81 copecks) incl. VAT, from 01.07.2015 through 31.10.2018 (in fact). Over the period from 01.01.2014 till 01.07.2015 communal utilities payments were not included in the rental, they were paid by power supply organization directly; - 2 988 497,76 rubles (two million nine hundred eighty eight thousand four hundred ninety seven rubles 76 copecks), incl. VAT, from 01.11.2018 till 31.08.2023 (forecasted period). 7.1.2. During review of rental or entering into a new contract, recommend the Company to determine rental on the basis of report (reports) on rent market value assessment prepared by independent appraiser (para 8.1 of the Program to handle non- core assets of State Corporation ROSCOSMOS). 7.2.1. As per subpara 40, para 1, Art. 28 of RSC Energia’s Articles of Association, approve the transaction – Supplementary agreement No. 7 to Lease Contract No. 103/216-06 between RSC Energia and OOO Iplana dated 28.06.2006 on putting out on loan for paid use from 01.01.2006 through 31.12.2020 building and nonresidential premises, with a total area of 5 639,0 m2: - nonresidential basement No. 3; nonresidential premises No. 13-16, 18-23, 49a, 50, 52-54, 56-73 on the1st floor; No. 80-83, 85 on the 2nd floor; No. 102, 104, 140-149, 151-157, 159-162, 174-176 on the 3rd floor located in building No. 81 (Building

103 for nonstandard equipment) at the address: 4A Pionerskaya Street, Korolev, Moscow Region; - building No. 86 (cornices storehouse) located at the address: 4A Pionerskaya Street, Korolev, Moscow Region, on the following terms: Parties to the transaction: - S.P. Korolev Rocket and Space Public Corporation Energia (Lessor)); - OOO Iplana (Lessee). Subject of the transaction: Introduce the following alterations to the Contract terms: 1. Fix rental for the validity period of the contract from 01.01.2006 till 31.12.2020 in the amount of 283 580 789,66 rubles (two hundred eighty three million five hundred eighty thousand seven hundred eighty nine rubles 66 copecks) incl. VAT at the rate effective during relevant period: - 231 298 321,82 rubles ( two hundred thirty one million two hundred ninety eight thousand three hundred twenty one rubles 82 copecks) incl. VAT at 18%, from 01.01.2006 through 31.12.2018; - 52 282 467,84 rubles (fifty two million two hundred eighty two thousand four hundred sixty seven rubles 84 copecks); incl. VAT at 20%, from 01.01.2019 till 31.12.2020 (forecasted period). Lessee effects payments for electric energy supply and additional thermal energy consumption as steam under separate contracts. 2. Add to the Contract commitment undertaken by the Lessor to insured for its own account and in its (Lessor’s) favor risk of damage to leased property and its accidental loss for its full insured value and for a lease period, starting from the date of the Supplementary agreement state registration till 31.12.2020. 29.03.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 16 OF 01.04.2019) Items on the Agenda Resolutions passed 1. On termination of RSC Energia’s participation in 1.1. As per RSC Energia’s Articles of Association (subpara 34, para 1, Art. 28), approve termination of RSC Energia’s OOO RSC Energia-Project. participation in OOO RSC Energia-Project by alienation (sale) of stake (100%) in the charter capital of OOO RSC Energia- Project (further referred to as Asset) owned by RSC Energia. 1.2. Determine type of procedure to sell the Asset: by public offering. 1.3. Determine initial Asset value which shall not be lower than the price fixed in the report prepared by independent appraiser OOO RusBusinessOtsenka (Assessment report No.06890-18-K of 26.12.2018: 1 014 000 (one million fourteen thousand) rubles. 1.4. Charge RSC Energia management to ensure to make amendments to the charter of RSC Energia-Project relative to changing of the name prior to the Asset alienation 2. On changing the membership of RSC Energia 2.1. Elect to the Audit Committee of RSC Energia’s Board of Directors Konstantin Viktorovich Savin, Chief specialist of Board of Directors Audit Committee Internal Audit Department, State Corporation ROSCOSMOS 2.2. Due to going out of the Audit Committee S.V. Kukina who performed duties of the Chairman of the Committee, elect Artem Vyacheslavovich Melnikov as the Chairman of the Audit Committee at RSC Energia’s Board of Directors 3. On approval KPIs for Chief internal auditor of 3. As per subpara 57, para 1, Art. 28 of RSC Energia’s Articles of Association, approve the list and target figures of the Key RSC Energia Performance Indicators (KPI) for Chief internal auditor of RSC Energia for 2018 (from the date of assuming office 21.08.2018 till 31.12.2018). 4. Consideration of the Internal Audit Department 4.1. As per subpara 55, para 1 Art. 28 of RSC Energia’s Articles of Association take note of the report of RSC Energia’

104 report on the progress in work plan implementation Internal Audit Department on the progress in work plan implementation for 2018. for 2018. 4.2. Charge the Internal Audit Department to exercise control over the extent to which the measures were taken to implement auditors’ recommendations by the results of RSC Energia auditing by RAS for 2017 in 2018. Submit the report summarizing auditing to the Audit Committee 12.04.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 17 OF 15.04.2019) Items on the Agenda Resolutions passed 1. On managers key performance indicators and 1. In pursuance of follow-up control of the Board of Directors resolution on RSC Energia joining the Procedural instructions motivation system to use key performance indicators in State Corporation ROSCOSMOS and its entities, as well as to ensure unconditional achievement of RSC Energia-established key performance indicators, RSC Energia Director General shall: 1.1. Provide within time limit till 31.05.2019 correct decomposition of key performance indicators (further referred to as KPI) between RSC Energia managers down to the 3rd management level (tree of objectives) according to the Procedural instructions to use key performance indicators in State Corporation ROSCOSMOS and its entities; quarterly monitoring of KPI achievement and personal responsibility of managers for their achievement, as well as introduce changes to RSC Energia personnel wage system (for 3rd-level management executives) which tie all accruals of stimulating and motivating character (bonuses and other remuneration for production and other results or periods of activity; stimulating additional payments/increments to tariff rates and basic salaries, etc.) to achieved key performance indicators. 1.2. Within time limit till 28.06.2019 submit to the Board of Directors report on implementation of item 1.1 included in this Resolution. 2. On decomposition of RSC Energia key 2. In pursuance of follow-up control of the Board of Directors resolution on RSC Energia joining the Procedural instructions performance indictors (further referred to as KPI) to use key performance indicators in State Corporation ROSCOSMOS and its entities (further referred to as the Procedure), as between subsidiary organizations well as to ensure unconditional achievement of RSC Energia-established key performance indicators (further referred to as KPI), Director General shall provide within time limit till 28.06.2019 submission to RSC Energia Board of Directors report on ensuring decomposition of RSC Energia KPI with respect to KPI for subsidiary organizations and monitoring of KPI achievement (interim assessment) by subsidiary organizations under the Procedure 19.04.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 18 OF 22.04.2019) Items on the Agenda Resolutions passed 1. On calling annual General Shareholders Meeting (AGSM) at RSC Energia: 1.1. On fixing date, time, place and form of AGSM 1.1. Convene annual General Shareholders’ Meeting at RSC Energia on June 29, 2019 at 11 a.m. (registration starts at 10 a.m.) in RSC Energia’s conference hall on the 3rd floor of Building 67 (4A Lenin Street, Korolev, Moscow Region, on the premises of RSC Energia) in the form of a meeting (joint attendance of the shareholders to discuss agenda items and pass resolutions on the issues put to vote), with preliminary sending (handing in) of voting ballots to the shareholders prior to holding annual General Shareholders’ Meeting. Mailing address at which the completed ballots can be sent: 141070, 4A Lenin Street, Korolev, Moscow Region, Russian Federation 1.2. On approval of AGSM agenda 1.2. Approve the following Agenda for annual General Shareholders’ Meeting of RSC Energia:

105 1. Approval of RSC Energia’s annual General Shareholders’ Meeting for 2018. 2. Approval of annual financial statements of RSC Energia for 2018. 3. On Profit and Loss distribution at RSC Energia by the 2018 performance. 4. On size, dates and method of dividend payouts by the 2018 performance. 5. On remuneration payment for serving on the Board of Directors of RSC Energia. 6. On remuneration payment for work in the Auditing Committee of RSC Energia. 7. Approval of RSC Energia’s auditor for 2019. 8. Election of RSC Energia’s Board of Directors members. 9. Election of RSC Energia’s Auditing Committee members. 1.3. On fixing the date for recording the persons 1.3. Date on which the persons entitled to take part in annual General Shareholders’ Meeting at RSC Energia are determined empowed to take part in AGSM. (recorded): 04.06.2019. 15.05.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 19 OF 17.05.2019) Items on the Agenda Resolutions passed On target figures of reduction in nonproductive 1.RSC Energia Director General shall: expenditures of the Company in 2019 and rise in 1.1. Provide in due time till 31.12.2019 reduction in nonproductive expenditures of the Company in 2019. labor productivity of the Company during 2019-2021 1.2. In due time till 31.05.2019 place for consideration of the Board of Directors comprehensive action plan to reduce nonproductive expenditures during the 2020-2021 period, with due regard for reduced nonproductive expenditures of RSC Energia in 2019 for carrying out assignment to reduce nonproductive expenditures by 15% (as a whole) during the 2019-2021 period. 1.3. Provide achievement of labor productivity indices during 2019-2021 period as per Appendix No. 2 to the minutes. 1.4. Provide within the dates fixed in items 1-3 taking decisions by the subsidiary companies specified in Appendix No. 2 to the minutes on reduction on nonproductive expenditures and achievement of labor productivity indices. 27.05.2019 MEETING (MINUTES NO. 20 OF 28.05.2019) Items on the Agenda Resolutions passed 1. Consideration of the Report on the 2018 1.1. As per subpara 2, para 1, Art.28 of RSC Energia’s Articles of Association, take note of the Report on the 2018 performance, including: performance, including reports on the progress in implementing the Consolidated Work Program of RSC Energia and ZAO - Director General’s report in accordance with ZEM RSC Energia for 2018 state order execution; debts receivable state; financial-economic activity of essential subsidiary standard form CEO report, companies of RSC Energia. - report on key performance indicators Note failure to achieve the following indicators stated in the Consolidated Work Program for 2018: net profit, receipts, labor achievement; productivity, off-budget receipts, implementation of state order assignments, failure rate. - report (reference information) on performance of Note failure to perform by ZAO ZEM RSC Energia the established budgetary indicators on average staff member and WF as State Order assignments; compared with target indicators for 2018 and failure to achieve target index of labor productivity. - report on the effected large deals and interested- 1.2. Take note of information about KPI achievement results in 2018. Due to failure to achieve the indicators ‘Failure rate’ party transactions; and ‘State order execution, the estimate level of the combined index of key performance indicators achievement was 0%. - report (reference information) about debts It is possible to update values of actual key performance indicators achievement for 2018 following the resolution passed by receivable and its management, including pastdue Supervisory Board of State Corporation ROSCOSMOS on actual implementation of key performance indicators by

106 debts; significant entities of State Corporation ROSCOSMOS for 2018. - report (reference information) on progress in 1.3. In accordance with para 1.1, Art. 81 of Federal Law “On Joint-Stock Companies”, approve the Report on the interested- implementing action plans to reduce RSC Energia’s party transactions concluded by RSC Energia 2018. account balances and debts receivable relative to state contracts execution whose customer is State Corporation ROSCOSMOS; - reference information about financial-economic activity of significant subsidiary companies of RSC Energia (further referred to as the Company), including their entering into transactions in pursuance of the instructions or by the Company’s consent, except for cases of voting at the Company on the issue of transaction approval at General Shareholders’ Meeting of subsidiary company, as well as transaction approval by the Company’s managerial body, provided that the need for approval like that is stipulated in the articles of association of the Company and/or subsidiary company. 2. Consideration of RSC Energia’s Annual Report 2.1. As per subpara 4, para 1, Art.28 of RSC Energia’s Articles of Association, approve in advance RSC Energia’s Annual for 2018, as well as its annual financial statements. Report for 2018, including its annual financial statements, and submit it for approval to RSC Energia’s annual General Shareholders’ Meeting. Note that the Auditing Committee’s resolution is available. Note that there is report prepared by the auditor of AO BDO Unicon which confirms faithfulness of data presented in annual financial statements of RSC Energia for 2018. 2.2. Take note of the loss to the extent of 2 179 million rubles by the 2018 performance of RSC Energia. 3. Internal Audit Department report, including 3. Take note of the submitted information. Note that bank services are provided only by credit institutions meeting the information about: requirements of Supervisory Board of State Corporation ROSCOSMOS (Minutes No. 4-NS of 25.03.2016), and included in 1) compliance with the requirements set out in the the list of authorized banks. approved Provision on credit risks management; Recommend the Company guided by Standard Provision, with due regard for the existing documents and peculiarities of the 2) on carrying out decision taken by the Supervisory Company’s organization-functional structure, develop, agree upon with treasury department of State Corporation Board of State Corporation ROSCOSMOS (Minutes ROSCOSMOS the Provision on management of RSC Energia’s credit risks with its subsequent approval. No. 4 of 25.03.2016) on dealing with credit institutions. 4. On proposals to annual General Shareholders’ 4.1. Due to the loss to the extent of 2 179 million ruble at RSC Energia by the 2018 performance, not to put forward the Meeting of RSC Energia for the procedure to proposals for profit distribution and dividends payouts. distribute profit and loss of RSC Energia by the 2018 4.2. Recommend annual General Shareholders’ Meeting not to calculate and not to pay any dividends by the 2018 performance, as well as pay dividends. performance due to no profit earned.

5. On proposals to pay remuneration to RSC 5. Board of Directors as per subpara15 and 16, para 1, Art. 28 of RSC Energia’s Articles of Association, recommends the Energia’s members of Board of Directors. General Shareholders’ Meeting to take the following decision: not to pay remuneration to the Board of Directors members by the 2018 performance because of RSC Energia’s difficult financial situation and the need to implement financial recovery

107 program. 6. On proposals to pay remuneration to RSC 6. Board of Directors as per subpara15 and 16, para 1, Art. 28 of RSC Energia’s Articles of Association, recommends the Energia’s Auditing Committee members General Shareholders’ Meeting to take the following decision: not to pay remuneration to the Auditing Committee members by the 2018 performance because of RSC Energia’s difficult financial situation and the need to implement financial recovery program Besides, the Board of Directors heard the report delivered by RSC Energia’s Director General N.N. Sevastianov on basic provisions of the updated Financial Recovery Program of RSC Energia (further referred to as FRP) and discussed the issue on the need to look into draft FRP at the Board of Directors Meeting set for June 2019 29.05.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 21 OF 29.05.2019) Items on the Agenda Resolutions passed 1. On added List of candidates for voting on election 1. As per para 7, Art. 53 of Federal Law “On Joint-Stock Companies”, include Denis Valerievich Zinkovsky in the list of to the Auditing Committee of RSC Energia candidates for voting on election to RSC Energia’s Auditing Committee at annual General Shareholders’ Meeting. 2. On determining the list of information (materials) 2.1. Approve the List of information (materials) to be submitted to the shareholders in preparation for holding annual General to be submitted to the shareholders in preparation for Shareholders’ Meeting (further referred to as AGSM) at RSC Energia. forthcoming AGSM and its submission procedure, as 2.2. Approve information (materials) submission procedure for the shareholders in preparation for RSC Energia’s AGSM. well as the procedure for communicating information 2.3. Determine the following procedure for communicating information about holding AGSM to the shareholders: about holding AGSM to the shareholders -as per para 1, Art. 19 f RSC Energia’s Articles of Association, message no later than 30 (thirty) days before the date of AGSM shall be placed on RSC Energia’s official site of information-telecommunication network of Internet: www.energia.ru. - message no later than 30 (thirty) days before the date of AGSM (as per para 9, Art. 8.9 of Federal Law No. 39-FZ “On Securities Market” of 22.04.1996) shall be submitted to the branch of AO Draga, Korolev (Registrar), in electronic form (as electronic document) for subsequent sending at the address of nominee shareholder entered in the Shareholders’ Register of RSC Energia. 3. On approval of voting ballots form and text on the 3. Approve: agenda items for AGSM as well as the text of - voting ballots form and text on the agenda items of annual General Shareholders’ Meeting of RSC Energia; information leaflet to be sent with voting ballots. - text of information leaflet for distribution (handing in) to the shareholders simultaneously with voting ballots on the agenda items for annual General Shareholders’ Meeting of RSC Energia 4. On approval of draft decisions on the agenda items 4. Approve draft decision wordings on the agenda items for annual General Shareholders’ Meeting of RSC Energia which for AGSM to be sent in electronic form to nominee shall be sent in electronic form to nominee holder of stock entered in the Register. holder of stock entered in the Shareholders’ Register 5. On the results of tender for RSC Energia’s auditor 5. Take note of information about candidacy of RSC Energia’s auditor for 2019 – AO BDO Unicon, the winner of open selection for 2019. tender for selection of audit organizations to conduct annual compulsory audit of financial statements by RAS and the consolidated financial statements by IAS. 6. On compliance with the requirements set forth in 6. Take note of the submitted information about RSC Energia’s compliance with the requirements set forth in anticorrupt anticorrupt practices legislation and prevention of practices legislation and prevention of corruption and other offences during day-to-day activities (quarter 1 of 2019). corruption and other offences during day-to-day activities (for quarter 1 of 2019). 7. On request made by auditor of AO BDO Unicon 7. Approve the Clarifications in writing at the request of auditor of AO BDO Unicon with respect to RSC Energia’s Financial

108 as regards the consolidated financial statements of Statements for 2018 prepared according to IAS. RSC Energia for 2018 prepared according to IAS. 13.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 22 OF 14.06.2019) Items on the Agenda Resolutions passed On reasons for reduced proceeds received by 1.1. Take note of RSC Energia Director General report on the reasons for reduced proceeds of the Company in 2018 under organizations and working out measures to prevent contract commitments. disruptions of the state contract execution schedules. 1.2. Director General of RSC Energia shall submit to the Board of Directors in due time till 28.06.2019: - comprehensive action plans to ensure contract commitments implementation based upon the report stated in item 1 of this resolution; - package of measures to prevent disruptions of the effective state contract execution schedules. 17.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 23 OF 18.06.2019) Items on the Agenda Resolutions passed On approval of the Decision on additionally issued As per subpara 12, para 1, Art.28 of RSC Energia’s Articles of Association, on the basis of the decision to increase Charter securities of RSC Energia capital of RSC Energia taken at extraordinary General Shareholders’ Meeting on March 25, 2019 (Minutes No. 37 of 26.03.2019), approve the Decision on additional issue of the securities of S.P. Korolev Rocket and Space Public Corporation Energia 19.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 24 OF 20.06.2019) Items on the Agenda Resolutions passed On labor contract with acting Chief Executive Approve labor contract with acting Chief Executive Officer (Director General) of RSC Energia N.N. Sevastianov and charge Officer (Director General) of RSC Energia S.V. Saveliev, the Chairman of the Board of Directors at RSC Energia, to sign it on behalf of RSC Energia 21.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 25 OF 21.06.2019) Items on the Agenda Resolutions passed On interested-party transactions. 1.1. Accept the request coming from the Board of Directors’ member K.V. Romanov for holding RSC Energia’s Board of Directors meeting in order resolve the issue on securing consent to making interested-party transaction: contract between the Customer, State Corporation ROSCOSMOS, and the Contractor, RSC Energia, for provision of FGB management and support services to perform tasks of engineering support, as well as look into this issue within current Board of Directors’ meeting 1.2. Define that firm contract price of provision of FGB management and support services to perform engineering support tasks between the Contractor, RSC Energia, and the Customer, State Corporation ROSCOSMOS, is 381 559 425, 80 (Three hundred eighty one million five hundred fifty nine thousand four hundred twenty five) rubles 80 copecks, VAT at the rate 0%.

109 1.3. Give consent to the interested-party transaction, the contract for provision of FGB management and services to perform engineering support tasks, between the Contractor, RSC Energia, and the Customer, State Corporation ROSCOSMOS, at the firm price of 381 559 425, 80 (Three hundred eighty one million five hundred fifty nine thousand four hundred twenty five) rubles 80 copecks, with VAT at 0% and time of performance on December 31, 2020. Contract terms are applicable to the parties relationship originating from June 01, 2018. Note: For RSC Energia this transaction is interested-party transaction, because State Corporation ROSCOSMOS is the party to this transaction and the holding company relative to the other party, RSC Energia, RSC Energia Board of Directors members S.V. Saveliev, O.P. Frolov, M.N. Khailov are the members of State Corporation ROSCOSMOS Management Board; RSC Energia’s Board of Directors member S.K. Krikalev is representative of the transaction party – State Corporation ROSCOSMOS 2.1. Accept the request coming from the Board of Directors’ member K.V. Romanov for holding RSC Energia’s Board of Directors meeting in order to resolve the issue on securing consent to making interested-party transaction; Supplementary agreement No. 10 to lease contract No. 30/701-14 of March 27, 2014 between the Lessor, RSC Energia, and the Lessee, ZAO ZEM RSC Energia, for putting out on loan and use of buildings and nonresidential premises, as well as look into this issue at current Board of Directors’ meeting 2.2. Determine that maximum rental in accordance with Supplementary agreement No. 10 to lease contract No. 30/701-14 of 27.03.2014 on putting out on loan and use of buildings and nonresidential premises with a total area of 24 690, 7 m2, between the Lessor, RSC Energia, and the Lessee, ZAO ZEM RSC Energia, consists of permanent and variable parts and amounts to 144 268 053, 71 (one hundred forty four million two hundred sixty eight thousand fifty three) rubles 71 copecks for 1 (one) year, including VAT at 20%, in so doing: amount of rental permanent part is 131 750 887, 92 (one hundred thirty one million seven hundred fifty hundred eight hundred eighty seven) rubles 92 copecks, incl. VAT 20%, maximum possible amount of rental variable part is calculated by cost of cold water supply, water disposal and electric power and predictably will be 12 517 165, 79 (twelve million five hundred seventeen thousand one hundred sixty five) rubles 79 copecks per year, incl. VAT at 20% 2.3. Give consent to interested-party transaction, Supplementary agreement No. 10 to lease contract No. 30/701-14 of 27.03.2014 between the Lessor, RSC Energia, and the Lessee, ZAO ZEM RSC Energia, for putting out on loan and use of buildings and nonresidential premises with a total area of 24 690, 7 m2 located at the following addresses: a) Premises I – 4A Lenin street, Korolev, Moscow Region: - office premises on the 1st floor (Nos. 48-58, 61, 82, 83) and 2nd floor (Nos. 470, 472-489, 499, 526-528, 531) Production-administrative building No. 1 with lean-to (autoclave) and rooms in structure 120 (KNS) (inv. No. 0100434), with a total area of 966, 4 m2; - office premises on the 1st floor (Nos. 56-67, 72-82, part 83 (5,6 m2), 84, 87, 230, 249-265); on the 2nd floor (Nos. 420, 426- 471, part 472 (36,3 m2), 473-480, 498, 509-512, 514-516, 522, 523, 526, 534, 535, 550-561, 566-572, 572a); on the 3rd floor (Nos. 614-663, 665-726, 733-736); on the 4th floor (Nos. 742-789) of Production-administrative building No. 2 (inv. No. 0100435), with a total area of 11 713,6 m2; - office room on the 1st floor (No. 26) of Production-administrative building No. 10 (inv. No. 0100439) area of which is 24, 7 m2; - office room on the 1st floor (No. 10y) of Production-administrative building No. 11 (inv. No. 0100440) with an area of 65, 6 m2; - office premises on the 3rd floor of Block A and the 2nd floor of Block B (Nos. 183-200, 202, 203, 210); on the 3rd floor of

110 Block B (Nos. 231-261, 269-273); on the 4th floor of Block B (Nos. 280-318) of Production-administrative building No. 14 (inv. No. 0100441), with a total area of 2 240,7 m2; - office premises on the 1st floor (No. 32) and 2nd floor (Nos. 12-15) of Production-administrative building No. 38 (inv. No. 0100444), with a total area of 166, 5m2; - office premises on the 2nd floor (Nos. 3-6, 8-10, 12, 15, 15а) and on the 3rd floor (Nos. 23, 25, 26, 28) of Production- administrative building No. 39 (inv. No. 0100445), with a total area of 260,1 m2; - office premises on the 1st floor (Nos. 7, 11, 21, 29, 30, 32, 34); on the 2nd floor (Nos. 1-5, 7, 11, 21, 23); on the 3rd floor (Nos. 2, 5-12, 16, 19-27) of Production-administrative building No. 88 (inv. No. 0100453), with a total area of 1 180,9 m2 ; - office premises on the fifth floor (Nos. 718, 726-736) and the 6th floor (No. 835) of Production-administrative building No. 114 (inv. No. 0100452), with a total area of 505, 9 m2; b) Premises II – 4A Lenin street, Korolev, Moscow Region: - office premises on the 2nd floor (Nos. 379, 382, 421-430); on the 3rd floor (Nos. 521, 526, 528-531, 533-541, 551-557); on the 4th floor (Nos. 606-610, 662, 663, 664, 666); on the 5th floor (Nos. 670, 671, 726-728, 730-732) of Production- administrative building No. 1 (Block of cold hops) (inv. No. 0100460), with a total area of 1 345,7 m2; - office premises on the 2nd floor (Nos. 154, 186, 203-211); on the 3rd floor (Nos. 232, 247, 271, 272, 279, 280); on the 5th floor (Nos. 349, 350, 392) of Building 6 (Instrument – making building of precision engineering) (inv. No. 0100358), with a total area of 675,2 m2 - office premises on the 1st floor (Nos. 1-10); on the 2nd floor (Nos. 40-57); on the 3rd floor (Nos. 70-83); on the 4th floor (Nos. 90-102) of Building 77 (Module 1-2 with extension of office premises and amenity rooms) (inv. No. 0100467), with a total area of 1 690, 2 m2; - office premises on the 2nd floor (Nos. 178-187, 189-191, 194, 199, 200); on the 3rd floor (Nos. 216, 220-228, 230); on the 4th floor (Nos. 253, 256, 260-263) of Production-administrative building No. 83 (inv. No. 0100463), with a total area of 721, 5 m2; c) beyond RSC Energia’s premises: - office premises on the 1st floor (Nos. 1-10, 12, 15-21, part 22 (18,8 m2), 23-44); on the 2nd floor (Nos. 27-50); on the 3rd floor (Nos. 1-13, 21-35, 37-47) of Administrative building (Block 69) at the address: 1 Dzerzhinsky passage, Korolev, Moscow Region (inv. No. 0100109), with a total area of 2 044, 7 m2, and in this building basement (room No. 8), with an area of 14, 5 m2; - office premises (the entire building) of Building 26 (Entrance check-point) at the address: 2e Lenin Street, Korolev, Moscow Region (inv. No. 0100473), with a total area of 50, 8 m2; - production premises (the entire building) of Nonresidential building (heat generation enterprise) at the address: 26B Kaliningradskaya Street, Korolev, Moscow Region (inv. No. 0100475), with a total area of 640, 0 m2; - office premises on the 1st floor (Nos. 39-44) of Building 79b (Technical training department ) at the address: 2B Grabina Street, Korolev, Moscow Region (inv. No. 0100483), with a total area of 76, 8 m2; - office premises (the entire building) of Building 131 (Entrance check-point) at the address: 109 Yaroslavskoye shosse, Mytischy, Moscow Region (inv. No. 0100332), with a total area of 40, 7 m2; - office premises (the entire building) of Building 133 (shower room) at the address: 109 Yaroslavskoye shosse, Mytischy, Moscow Region (inv. No. 0100334), with a total area of 266, 2 m2, at maximum possible price (rental) for 1 (one) year to the extent of 144 268 053, 71 (one hundred forty four million two hundred sixty eight thousand fifty three) rubles 71 copecks, incl. VAT at VAT 20% consisting of: -permanent part of rental for one year in the amount of 131 750 887, 92 (one hundred thirty one million seven hundred fifty

111 thousand eight hundred eighty seven) rubles 92 copecks, incl. VAT at 20%, -maximum possible variable part of rental to be calculated by cost of cold water supply, water disposal and electric power which predictably amounts to 12 517 165, 79 (twelve million five hundred seventeen thousand one hundred sixty five ) rubles 79 copecks per year, incl. VAT at 20%. Terms of Supplementary agreements No. 10 are applicable to the parties’ relationship originated since 01.06.2019. Note: For RSC Energia this transaction is interested-part transaction, because State Corporation ROSCOSMOS is the holding company of the parties to the transaction, RSC Energia’s Management Board members P.V. Vinokurov, Y.A. Yermakov and Y.A. Mikrin are the members of ZAO ZEM RSC Energia’s Management Board; the member of RSC Energia’s Management Board I.Y. Maltsev is Director General and Chairman of Management Board of ZAO ZEM RSC Energia. 3.4. Call attention of the Company to advisability of bringing in independent appraisers for calculating rental rates. 28.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 26 OF 28.06.2019) Items on the Agenda Resolutions passed 1. On setting up working bodies of General 1.1. Set up Presidium of RSC Energia’s annual General Shareholders’ Meeting in the following membership: Shareholders’ Meeting (Presidium Secretariat) and 1. Lusine Borisovna Arutyunova 6. Nikolai Nikolayevich Sevastianov appointing the person in charge of running annual 2. Sergei Konstantinovich Krikalev 7. Oleg Petrovich Frolov General Shareholders’ Meeting. 3. Konstantin Vladimirovich Romanov 8. Mikhail Nikolayevich Khailov 4. Sergei Yurievich Romanov 9. Vladimir Alekseevich Solovyov 5. Sergei Valentinovich Saveliev 1.2. Set up Secretariat of RSC Energia’s annual General Shareholders’ Meeting in the following membership: Galina Vladimirovna Piskareva Illya Igorevich Dontsov 1.3. Approve Vladimir Alekseevich Solovyov as the person running annual General Shareholders’ Meeting at RSC Energia. 2. Consideration of the Report on implementing 2.1. Approve the Report on the results of implementing RSC Energia’s Innovative Development Program (IDP) for 2018. Innovative Development Program of RSC Energia 2.2. Note failure to achieve 2 of the 7 key performance indicators stated in IDP: indicator of proceeds increase per employee 2018 over the accounting period relative to its level in 2011: target figure – 104%, actual value – 65%; ratio of R&D volume expenses to total receipts: target figure – 85%, actual value – 77%. 3. Consideration of the consolidated financial 3. Take note of the consolidated financial statements of RSC Energia for 2018 prepared under IAS Standards. Note that the statements of RSC Energia’s Group by IAS for 2018 consolidated financial statements of RSC Energia for 2018 prepared under IAS Standards have been published by established date (29.04.2019). 4. Consideration of annual reports of the Board of 4.1. Approve the report of RSC Energia’s Board of Directors Audit Committee for the 2018-2019 corporate year. Directors committees on the results of their operation 4.2. Approve the report of the Personnel and Remuneration Committee of RSC Energia’s Board of Directors for the 2018- 2019 corporate year 5. On carrying out orders given by RSC Energia’s 5. Take note of information about carrying out the orders issued by RSC Energia’s Board of Directors for the 2018-2019 Board of Directors corporate year

112 08.07.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 1 OF 09.07.2019) Items on the Agenda Resolutions passed 1. On election of RSC Energia’s Chairman of the 1. Elect Dmitry Olegovich Rogozin, Director General of State Corporation ROSCOSMOS, as the Chairman of the Board of Board of Directors Directors at RSC Energia. 1. On election of Deputy Chairman of the Board of 2. Elect Yuri Matevich Urlichich, the First Deputy Director General for orbital cluster development and advanced projects of Directors at RSC Energia. State Corporation ROSCOSMOS, as Deputy Chairman of the Board of Directors at RSC Energia. 14.08.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 2 OF 15.08.2019) Items on the Agenda Resolutions passed On interested-party transaction 1.1. Accept the requests from Director General, the member of RSC Energia’s Board of Directors N.N. Sevastianov and the member of RSC Energia’s Management Board P.V. Vinokurov for holding RSC Energia’s Board of Directors meeting on resolving the issue on interested-party transaction: agreement on using during launch of crew transport spacecraft Soyuz MS- 13 (works’ number 746) of launch vehicle Soyuz-FC No. Н15000-069, assembly-protective unit 11S517А3 No. U15000-082 and replenishment of the above injection equipment, between RSC Energia and State Corporation ROSCOSMOS and look into this issue during this Board of Directors meeting. 1.2. Approve interested-party transaction, the agreement between RSC Energia and State Corporation ROSCOSMOS on the following terms: a) for launch of crew transport spacecraft Soyuz MS-13 (works’ number 746) State Corporation ROSCOSMOS provides the following injection (launch) equipment to RSC Energia within no later than 5 days from the date of the Agreement being signed: -launch vehicle (LV) Soyuz FG No. Н15000-069; -assembly-protective unit (APU) 11S517А3 No. U15000-082; b) RSC Energia transfers to State Corporation ROSCOSMOS replenishing injection equipment: -launch vehicle (LV) “Soyuz-2” of Phase 1a No. Y15000-040 within the time limit of no later than December 20, 2019; -assembly-protective unit (APU) 11S517А3 № Y15000-092 within the time limit of no later than August 31,2019; c) regard LV Soyuz FG No. N15000-069 and Soyuz-2 of Phase 1а No. Y15000-040, APU 11S517А3 No. U15000-082 and No. Y15000-092 as equivalent and of equivalent value in terms of tasks to be performed. Note: For RSC Energia this transaction is interested-party transaction, because State Corporation ROSCOSMOS is the party to the transaction and the holding company of the other party – RSC Energia; RSC Energia Chairman of the Board of Directors O.D. Rogozin is the Director General, the Supervisory Board member and representative of the party to the transaction – State Corporation ROSCOSMOS; the members of RSC Energia’s Board of Directors S.V. Saveliev, Yu.M. Urlichich, M.N. Khailov are the members of State Corporation ROSCOSMOS Management Board. 14.08.2019 MEETING (MINUTES NO. 3 OF 16.08.2019) Items on the Agenda Resolutions passed 1. On approval of the updated Financial Recovery 1.1. As per subpara 1, para 1, Art.28 of RSC Energia’s Articles of Association, approve RSC Energia’s Financial Recovery Program of RSC Energia Program as a whole. Charge RSC Energia to update Financials Recovery Program of RSC Energia with due regard for the

113 comments made relative to clarifying manufacturing program under the RF Ministry of Defense orders and commercial orders, based upon size of financing from Federal budgetary funds by limits set for State Corporation ROSCOSMOS; detailed work plan to increase business efficiency, including study of taxation problems and measures to sell RSC Energia’s stock. 1.2. In addition, submit the following: -proposals for Russian orbital cluster development on the ISS basis and other space vehicles; -proposals for commercialization of manned flights (to be agreed upon with International Cooperation Department and Manned Space Flights Programs of State Corporation ROSCOSMOS); -proposals to use ISS modules to mature new technical and processing solutions for different spacecraft transform the station into test center, including external station functional capabilities. 2. On Sea Launch project 2. RSC Energia shall submit to the Audit Committee of RSC Energia Board of Directors and State Corporation ROSCOSMOS package proposal to solve the problem of the debts arising from financing of the Sea Launch project referred to the Russian organizations affiliated to RSC Energia. RSC Energia’s Director General shall bring up the issue in the Board of Directors in case of need. RSC Energia shall submit to the Board of Directors’ members and State Corporation ROSCOSMOS the following information: -on rights of claim against state-owned enterprise PA Yuzhmash () arising within the frame work of the Sea Launch Project; -on RSC Energia’s commitment to the Boeing Company of Final amicable settlement with it. 3. On Agreement of RSC Energia’s operational 3. Director General of RSC Energia N.N. Sevastianov shall upgrade operational structure of RSC Energia guided by the structure and the nominees for filling posts of 2nd – comments made by the Board of Directors members and submit it for consideration to the Board of Directors’ Chairman for level management its subsequent bringing up in the Board of Directors meeting at RSC Energia. 4. On early termination of powers by current 4. Consideration of the issue on early termination of powers by current members of RSC Energia’s Management Board, members of RSC Energia’s Management Board, on determining RSC Energia’s Management Board membership and election of new members of RSC Energia’s Management determining RSC Energia’s Management Board Board is postponed till next Board of Directors meeting. membership and election of new members of RSC Energia’s Management Board. 5. On approval of labor contact with chief executive 5. Approve Supplementary agreement No. 1 to Labor contract of 20.06.2019 with Director General of RSC Energia officer (Director General) of RSC Energia. N.N. Sevastianov as redrafted (attached to it). 22.08.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 4 OF 26.08.2019) Items on the Agenda Resolutions passed On interested-party transaction. 1.1. Accept as per provisions of para 1, Art. 83 of FZ “On Joint-Stock Companies” the request coming from the member of RSC Energia’s Management Board P.V. Vinokurov on holding RSC Energia’s Board of Directors’ meeting to resolve the issue on consent to interested-party transaction: Contract of Guarantee No. 00140017/60544200-p1 between the Guarantor, RSC Energia, and the Bank, Sberbank, for ZAO ZEM RSC Energia (Debtor, Beneficiary) and consider this issue at this Board of Directors’ meeting. 1.2. Determine that maximum price of the transaction under Contract of Guarantee No. 00140017/60544200-p1 between the Guarantor, RSC Energia, and the Bank, Sberbank, for ZAO ZEM RSC Energia (Debtor, Beneficiary) may be 2 369 424 657,53 (two billion three hundred sixty nine million four hundred twenty four thousand six hundred fifty seven) rubles 53 copecks. In so doing, the maximum price is composed of:

114 -1 500 000 000, 00 (one billion five hundred million) rubles which is the Loan amount ( credit facility limit under the Loan Agreement concluded between the Bank and the Debtor); -869 424 657,53 (eight hundred sixty nine million four hundred twenty for thousand six hundred fifty seven) rubles 53 copecks which is a maximum possible sum of interest for using loan funds by the Loan Agreement. 1.3. Give consent to the interested-party transaction – implementing Contract of Guarantee No. 00140017/60544200-p1 between the Guarantor, RSC Energia, and the Bank, Sberbank, for ZAO ZEM RSC Energia (Debtor, Beneficiary), according to which the Guarantor commits itself to be responsible to the Bank for performance by the Debtor of all commitments under Master Agreement No. 00140017/60544200 on open-end framework bank credit line with deferential interest rates of July 21, 2017, entered into between the Bank and the Debtor, including the following: - commitment to repay the Principal (credit); - commitment to pay interest for credit use and make other payments under the Master Agreement; - commitment to pay penalties; - reimbursement of legal and other Bank expenses related to exercising rights under the Master Agreement and the contract; - repayment of loan amount under the Master Agreement and rebate of interest for use of someone else’s funds calculated according to Art. 395 of the Russian Federation Civil Code, provided that the Master Agreement is invalid or the Master Agreement is regarded as null and void (not concluded). Period of repayment under the Master Agreement is no later than June 30, 2023. Validity period of the Contract of Guarantee is from the date of signing the contact through June 30, 2026. Maximum price of the transaction under the Contract of Guarantee may be 2 369 424 657,53 (Two billion three hundred sixty nine million four hundred twenty four thousand six hundred fifty seven) rubles 53 copecks. Note. This transaction for RSC Energia is the interested-party transaction, because the members of RSC Energia’s Board of Directors Management Board P.V. Vinorkurov, Y.A. Yermakov, Y.A. Mikrin are the members of ZAO ZEM RSC Energia Management Board are the Beneficiaries under the transaction; the member of RSC Energia Management Board I.Y. Maltsev is Director General, the Chairman of Management Board at ZAO ZEM RSC Energia 23.08.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 5 OF 23.08.2019) Items on the Agenda Resolutions passed On request of auditor from AO BDO Unicon for Approve Clarifications in writing at the request of auditor from AO BDO Unicon with respect to the consolidated Financial RSC Energia’s records by IAS for 6 months of 2019 Statements of RSC Energia by IAS for 6 months 2019.

28.08.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 6 OF 29.08.2019) Items on the Agenda Resolutions passed On interested-party transaction 1. Accept as per provisions stated in para 1, Art. 83 of FZ “On Joint-Stock Companies” the request coming from the member of RSC Energia’s Board of Directors member P.V. Vinokurov for holding RSC Energia’s Board of Directors meeting to resolve the issue on consent to make interested-party transaction: Loan Agreement No. 07-19 KL between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK, for opening credit facility and consider this issue at current Board of Directors meeting.

115 2. Determine that maximum price of the transaction under Loan Agreement No. 07-19 KL between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK, for opening credit facility may be 1 741 917 808, 22 (One billion seven hundred forty one million nine hundred seventeen thousand eight hundred and eight) rubles 22 copecks. In so doing, maximum price is composed of the following: - 1 000 000 000, 00 (One billion) rubles which is maximum possible outstanding amount under the loan agreement; - 741 917 808, 22 (seven hundred forty one million mine hundred seventeen thousand eight hundred and eight) rubles 22 copecks which is maximum possible sum of interest for using loan funds under the loan agreement. 3. Given consent to the interested-party transaction – entering into Loan Agreement No. 07-19 KL between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK. Note: This transaction for RSC Energia is the interested-party transaction, because State Corporation ROSCOSMOS is the holding company of the companies regarded as the parties to the transaction, Chairman of RSC Energia’s Board of Directors D.O. Rogozin is the chairman of the Board of Directors of AO ROSCOSMOSBANK 06.09.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 7 OF 09.09.2019) Items on the Agenda Resolutions passed 1. On cancellation of the current contract with RSC 1. Take decision on cancellation of the current contract with RSC Energia registrar. Energia’s registrar 2. On approval of RSC Energia’s registrar and terms 2.1. Approve Registrar of AO VTB as RSC Energia’s registrar. of contract with it 2.2. Approve contract terms with AO VTB Registrar with the contract price up to 100 thousand rubles per year. 2.3. RSC Energia’s Director General shall initiate consideration by the subsidiary companies Boards of Directors the issues on cancellation of the current contracts with the registrars and approval of AO VTB Registrar as the companies’ registrar. 2.4. Director General of RSC Energia shall inform the Corporate Governance Department of State Corporation ROSCOSMOS within the time limit till 01.09.2019 about furnishing notifications to the registrars about early cancellation of the contracts. 3. Approval of RSC Energia’s Board of Directors’ 3.1.1. Approve membership of the Personnel and Remuneration Committee of the Board of Directors at RSC Energia: committees membership, election of the committees V.V. Matveichuk, K.V. Romanov, Yu.M. Urlichich. chairmen 3.1.2. Elect Yuri Matevich Urlichich as the chairman of the Personnel and Remuneration Committee of RSC Energia’s Board of Directors. 3.2.1. Approve membership of the Audit Committee of RSC Energia’ Board of Directors: A.V. Melnikov, A.A. Naumov, Zh.A. Cherkashina, EL Said Andrei Fauzi. 3.2.2. Elect Artem Vyacheslavovich Melnikov as the Chairman of the Audit Committee of RSC Energia Board of Directors 3.3.1. Approve membership of the Strategic Planning, Modernization and Innovative Development Committee of RSC Energia’s Board of Directors: A.V. Zheregelia, S.K. Krikalev, D.V. Loskutov, N.N. Sevastianov, S.V. Saveliev, P.A. Suvorov. 3.3.2. Elect Sergei Valentinovich Saveliev as the Chairman of the Strategic Planning, Modernization and Innovative Development Committee of RSC Energia Board of Directors.

116 23.09.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 8 OF 24.09.2019) Items on the Agenda Resolutions passed On agreement of operational structure at RSC Agree upon RSC Energia’s operational structure with due regard for special opinion voiced by D.O Rogozin Energia 03.10.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 9 OF 04.10.2019) Items on the Agenda Resolutions passed 1. On supplementing Non-core assets register at 1. Approve Supplements to the Non-core assets register of RSC Energia (Minutes No. 8 of 18.01.2019 approved by the Board RSC Energia of Directors) 2. On agreement of combining by N.N. Sevastianov 2. As per para 4, Art. 32 and subpara 47, para 1, Art. 28 of RSC Energia’s Articles of Association, agree upon the candidacy of the posts held in managerial bodies of other legal of N.N. Sevastianov (Director General of RSC Energia) of his election to the Board of Directors of Limited Liability entities. Company Energia Satellite Technologies, as well as give consent to combining by N.N. Sevastianov of the above post in case of his election. 3. On supplementing membership of the Personnel 3. Elect Nikolai Nikolayevich Sevastianov, RSC Energia’s Director General, to the Personnel and Remuneration Committee and Remuneration Committee of RSC Energia’s of RSC Energia’s Board of Directors. Board of Directors. 4. On determining price of placement of additional 4. As per Subpara 11, para 1, Art. 28 of RSC Energia’s Articles of Association, determine the price of placement of additional certified registered common stock of RSC Energia certified registered common stock of RSC Energia: Price of placement of additionally issued securities (including exercising priority right to acquire additional stock to be placed) is 6904 (Six thousand nine hundred and four) rubles per one certified registered common stock. 25.10.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 10 OF 28.10.2019) Items on the Agenda Resolutions passed On interested-party transaction 1. Accept as per provisions of para 1, Art. 83 FZ “On Joint-Stock Companies”, the request coming from N.N. Sevastianov, Director General of RSC Energia, for holding RSC Energia’s Board of Directors meeting to solve the issue on consent to making the interested-party transaction: Loan Agreement No. 10-19 KL between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK, on opening of credit facility and consider this issue at this Board of Directors’ meeting. 2. Determine that maximum price of the transaction under Loan Agreement No. 10-19 KL between the Borrower, RSC Energia, and the Lender, AO ROCOSMOSBANK, for opening of credit facility may be 2 533 417 808,22 (Two billion five hundred thirty three million four hundred seventeen thousand eight hundred and eight) rubles 22 copecks. In so doing, maximum price is composed of: - 1 500 000 000,00 (One billion five hundred million) rubles which is maximum possible outstanding amount under the loan agreement; - 1 033 417 808,22 (One billion thirty three million four hundred seventeen thousand eight hundred eight) rubles 22 copecks which is maximum possible sum of interest for using loan funds under the loan agreement. 3. Give consent to making the interested-party transaction – entering into Loan Agreement No. 10-19 KL between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK, according to which the Lender commits itself to extend

117 funds to the Borrower by means of opening credit facility in its favor, with limit of indebtedness of 1,5 billion (One billion five hundred million) rubles, while the Borrower commits itself to repay the received loan amount to the Lender along with the accrued interest, no later than December 31, 2025. Maximum transaction price under the Loan Agreement may be 2 533 417 808,22 (Two billion five hundred thirty three million four hundred seventeen thousand eight hundred and eight) rubles 22 copecks. Credit limit size and its availability period: Availability period Limit size during availability period (in RF rubles) From the date of meeting preliminary conditions 1 500 000 000 (One billion five hundred million) (Article 4 of the Loan Agreement No. 10-19 KL) till September 29, 2024 From September 30, 2024 till December 30, 2024 1 250 000 000 (One billion two hundred fifty million) From 31 December, 2024 till March 30, 2025 1 000 000 000 (One billion) From March 31, 2025 till June 29, 2025 750 000 000 (Seven hundred fifty million) From June 30, 2025 till September 29, 2025 500 000 000 (Five hundred million) From September 30, 2025 till December 31, 2025 250 000 000 (Two hundred fifty million) The Borrower obtains credit ty sending a notification about credit granting and use to the Lender. The Lender shall consider this notification about credit granting and use and the documents attached hereto during 1 (one) working day from the date of its being received. Rate of interest for the credit use: at least 8,25% per annum and 9,5% per annum as a maximum. Specific interest rate is determined in notification about credit granting (separate tranche). Interest payment period: interest shall be paid by the Borrower to the Lender no later than the last working day of the interest period, on the date of expiration of each particular tranche validity period and on the date of full and final repayment of the credit. Interest period (period of time during which the Borrower shall pay interest accrued by the Lender on the credit use): 1 (one) calendar month; Procedure for the Principal repayment: the Borrower shall repay the Principal (by one installment or several installments) in credit currency on the following dates: on the first day of each availability period, provided that on that day amount of the principal exceeds limit of indebtedness established for this availability period, and on the date of expiration of each particular tranche validity period (amounting to current indebtedness on this tranche); Repayment period for the received loan amount to the Lender along with the accrued interest is no later than December 31, 2025. Note. For RSC Energia this transaction is the interested-party transaction, because State Corporation ROSCOSMOC is the holding company relative to the companies as parties to the transaction; RSC Energia’s Board of Directors Chairman D.O. Rogozin is the Chairman of the Board of Directors at AO ROSCOSMOSBANK. 15.11.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 11 OF 18.11.2019) Items on the Agenda Resolutions passed 1. On approval of auditors services payment amount 1. Approve price of auditor’s services for auditing annual Financial Statements by RAS and consolidated Financial for 2019 Statements by JAS at RSC Energia for 2019 in the amount of 7 080 000,00 rubles (seven million eighty thousand rubles 00 copecks), incl. VAT at 20% in the amount of 1 180 000,00 rubles (One million one hundred eighty thousand rubles 00

118 copecks). 2. Approval of Work Plan of RSC Energia’s Board 2. Approve Work Plan of RSC Energia’s Board of Directors for 2019/2020 corporate year. of Directors for 2019/2020 corporate year. 3. On using RSC Energia’s Reserve Fund resources 3. As per subpara 3, 4, Art. 9 of RSC Energia’s Articles of Association, direct Reserve Fund resources in the amount of 168 560 thousand rubles to cover losses for the previous years. 4. Consideration of draft Provision on corruption 4. As per subpara 59, Art. 28 of RSC Energia’s Articles of Association, approve the Provision on corruption risks assessment risks assessment at RSC Energia at RSC Energia 11.12.2019 MEETING (MINUTES NO. 12 OF 12.12.2019) Items on the Agenda Resolutions passed 1. Consideration of the Consolidated Work Program 1. Take note of the submitted work program, including financial-economic activity indicators (financial plan) of integrated (Financial Plan) of RSC Energia and ZAO ZEM structure of RSC Energia and ZAO ZEM RSC Energia for 2019 corresponding to RSC Energia’s Financial Recovery RSC Energia for 2019 Program (FRP) for the 2019-2025 period, approved as a whole by RSC Energia’s Board of Directors (Minutes No. 3 of 16.08.2019), approved by the Management Board of State Corporation ROSCOSMOS (Minutes No. PK-183-pr of 03.10.2019) and accepted as a basis by Supervisory Board of State Corporati0on ROSCOSMOS on October 22, 2019 (Minutes No. 30-NS). 2. Approval of RSC Energia’s key performance 2. Note that target values of the submitted key performance indicators (KPI) of RSC Energia’s operation for 2019 developed indicators for 2019 (including Director General’s according to RSC Energia’s Financial Recovery Program (FRP) for the 2019-2025 period and approved as a whole by RSC KPI chart). Energia’s Board of Directors (Minutes No. 3 of 16.08.2019), approved by the Management Board of State Corporation ROSCOSMOS (Minutes No. PK-183-pr of 03.10.2019) and accepted as a basis by Supervisory Board of State Corporation ROSCOSMOS on October 22, 2019 (Minutes No. 30-NS), are different from target values of KPI indicators adopted by Supervisory Board of State Corporation ROSCOSMOS on February 28, 2019. The above discrepancies are to be reviewed during assessment of actual KPI achievement by the 2019 performance by the Management Board of State Corporation ROSCOSMOS. Established date is May 2020. 3. On membership of RSC Energia’s Management 3.1. Terminate ahead of time the powers of the Management Board members: Board. P.V. Vinokurov, Y.A. Yermakov, Y.M. Korogodina, A.A. Kuznetsov, I.Y. Maltsev, M.Yu. Merkulov, Y.A. Mikrin, N.A. Pirogov, S.Yu. Romanov, S.A. Saperov, V.A. Solovyov, I.V. Frolov, N.I. Chekin. 3.2. Approve the following membership of RSC Energia’s Management Board: 1. L.T. Baranov 11. A.A. Kuznetsov 2. A.A. Bondarenko 12. I.Y. Maltsev 3. A.V. Bukharin 13. M.Yu. Merkulov 4. P.V. Vinokurov 14. Y.A. Mikrin 5. A.G. Derechin 15. N.A. Pirogov 6. Y.A. Yermakov 16. S.Yu. Romanov 7. N.V. Kazinscky 17. R.M. Samitov 8. S.V. Kapitanov 18. S.A. Saperov 9. I.V. Konstandy 19. V.A. Solovyov 10. Y.M. Korogodina 20. I.V. Frolov 3.3. Note that RSC Energia’s Director General N.N. Sevastianov is the 21st member of the Management Board.

119 4. On liquidation of OOO Project 4. Taking into account the resolution passed by RSC Energia’s Board of Directors (Minutes No. 16 of 01.04.2019), due to absence of the proposals to acquire stake in the charter capital of OOO Project, according to RSC Energia’s Articles of Association (subpara 46, para 1, Art. 28), approve the resolution on voluntary liquidation of OOO Project which is a 100% subsidiary company of RSC Energia. RSC Energia shall make inspection of OOO Project’s chief executive officer actions in terms of their possible consequences resulting in steady financial insolvency of economic entity. Besides, the meeting heard the report on draft Financial Plan of RSC Energia operation for 2020 and planning period from 2021 through 2022 which is to be discussed; respective instructions were given. 20.12.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 13 OF 20.12.2019) Items on the Agenda Resolutions passed On interested-party transaction 1. Transaction between RSC Energia and AO ROSCOSMOSBANK. 1.1 Accept in accordance with provision set forth in para 1, Art. 83 of FZ “On Joint-Stock Companies” the request coming from the member of RSC Energia Management Board P.V. Vinokurov for holding RSC Energia’s Board of Directors meeting to resolve the issue on consent to making interested-party transaction: Loan Agreement No. 18-19 KL between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK, on opening credit facility and look into this issue at this Board of Directors’ meeting. 1.2.1. Take into account that Loan Agreement No. 18-19 KL is interrelated to Loan Agreements No. 07-19 KL of 12.09.2019 (approved by the Board of Directors, Minutes No. 6 of August 29, 2019); No. 10-19 KL of 14.11.2019 (approved by the Board of Directors, Minutes No. 10 of October 28, 2019) (further referred to as the interrelated transactions). 1.2.2. Determine that maximum possible price of Loan Agreement No. 18-19 KL to be concluded may be 6 343 553,97 thousand rubles (Six billion three hundred forty three million five hundred fifty three thousand nine hundred seventy) rubles and is composed of: - maximum possible sum of indebtedness under the loan agreement: 4 500 000,00 thousand rubles (four billion five hundred million) rubles; - maximum possible sum of interest for loan funds use: 1 843 553,97 thousand rubles (One billion eight hundred forty three million five hundred fifty three hundred thousand nine hundred seventy) rubles. 1.2.3. Take into account that maximum price of the interrelated transactions between the Borrower, RSC Energia, and the Lender, AO ROSCOSMOSBANK, may be 10 169 400 274,20 (Ten billion one hundred sixty nine million four hundred thousand two hundred seventy four) rubles 20 copecks. In so doing, maximum price is composed of: - 7 000 000 000,00 (Seven billion) rubles which is a maximum possible sum of indebtedness on the interrelated loan agreements No. 07-19 KL, No. 10-19 KL, No. 18-19 KL; - 3 169 400 274,20 (Three billion one hundred sixty nine million four hundred thousand two hundred seventy four) rubles 20 copecks which is a maximum possible sum of interest for loan funds use under the interrelated loan agreements No. 07-19 KL, No. 10-19 KL, No. 18-19 KL. 1.3.1. Give consent to making interested-party transaction – conclusion of Loan Agreement No. 18-19 KL between the Borrower, RSC Energia, and the Lender, AO ROCOSMOSBANK, according to which the Lender shall extend funds to the Borrower by opening credit facility in its favor with limit of indebtedness - 4 500 000 000, 00 (four billion fine hundred million) rubles, while the Borrower shall repay the received loan amount to the Lender along with the accrued interest no later than December 31, 2024.

120 Maximum price under the Loan agreement may be 6 343 553,97 thousand rubles (Six billion three hundred forty three million five hundred fifty three thousand nine hundred seventy) rubles. Credit limit size and its availability period under agreement No. 18-19 KL: Availability period Limit size during availability period (in RF rubles) From the date of granting the first tranche through July 31, 4 500 000 000 (Four billion five hundred million) 2023 From August 01, 2023 through August 31, 2023 4 250 000 000 (Four billion two hundred fifty million) From September 01, 2023 through September 30, 2023 4 000 000 000 (Four billion) From October 01, 2023 through October 31, 2023 3 750 000 000 (Three billion seven hundred fifty million) From November 01, 2023 through November 30, 2023 3 500 000 000 (Three billion five hundred million) From December 01, 2023 through December 31, 2023 3 250 000 000 (Three billion two hundred fifty million) From January 01, 2024 through January 31, 2024 3 000 000 000 (Three billion) From February 01, 2024 through February 29, 2024 2 750 000 000 (Two billion seven hundred fifty million) From March 01, 2024 through March 31, 2024 2 500 000 000 (Two billion five hundred million) From April 01, 2024 through April 30, 2024 2 250 000 000 (Two billion two hundred fifty million) From May 01, 2024 through May 31, 2024 2 000 000 000 (Two billion) From June 01, 2024 through June 30 2024 1 750 000 000 (One billion seven hundred fifty million) From July 01, 2024 through July 31, 2024 1 500 000 000 (One billion hundred million) From August 01, 2024 through August 31, 2024 1 250 000 000 (One billion two hundred fifty million) From September 01, 2024 through September 30, 2024 1 000 000 000 (One billion) From October 01, 2024 through October 31, 2024 750 000 000 (Seven hundred fifty million) From November 01, 2024 through November 30, 2024 500 000 000 (Five hundred million) From December 01, 2024 through the date of full and final 250 000 000 (Two hundred fifty million) repayment of the credit The Borrower obtains credit by sending a notification about credit granting and use to the Lender. The Lender shall consider this notification about credit granting and use along with the documents attached hereto during 1 (one) working day from the date of its being received. Rate of interest for the credit use: the Borrower shall pay the Lender interest for the credit use at the annual interest rate of 8,9 (eight point nine) percent. In the event that key interest rate of the Bank of Russia changes relative to the index existing on the date of this agreement being concluded, the Lender has the right to change interest rate for the credit use unilaterally (with no supplementary agreement entered into) proportionally with varying key rate of the Bank of Russia downwords or upwards. In so doing, rate of interest shall not be lower than 8,2 (eight point two) annual interest rate or be higher than 9,5 (nine point five) annual interest rate. Interest payment period: interest shall be paid by the Borrower to the Lender no later than the last working day of the interest period, on the date of expiration of each particular tranche validity period and on the date of full and final repayment of the credit. Interest period (period of time during which the Borrower shall pay interest accrued by the Lender on the credit use): 1 (one) calendar quarter. Procedure for the Principal repayment: the Borrower shall repay the Principal (by one installment or several installments) in credit currency on the following dates: on the first day of each availability period, provided that on that day amount of the principal exceeds limit of indebtedness established for this availability period and on the date of expiration of each particular

121 tranche validity period (amounting to current indebtedness on this tranche). Repayment period of the received loan amount to the Lender along with the accrued interest is no later than December 31, 2024. Provision of secured obligations under the Loan Agreement: entering into contract of guarantee with the Guarantor, State Space Corporation ROSCOSMOS (TIN 7702388027), with the Guarantor’s liability limit of 4 900 000 000 (Four billion nine hundred million) rubles. 1.3.2. Bind RSC Energia to agree upon raising (receipt) of each tranche within the credit facility with respective operational departments of State Corporation ROSCOSMOS. Note: For RSC Energia this transaction is the interested-party transaction, because State Corporation ROSCOSMOS is the holding company of the companies as parties to the transaction, chairman of RSC Energia’s Board of Directors D.O. Rogozin is the chairman of the Board of Directors of AO ROSCOSMOSBANK. 2. Transaction between State Corporation ROSCOSMOS and RSC Energia. 2.1. Accept the request coming from the member of RSC Energia’s Management Board P.V. Vinokurov for holding RSC Energia’s Board of Directors to resolve the issue on consent to making the interested-party transaction: entering into contract for performance of works (provision of services) on space flight to be conducted by crew transport spacecraft Soyuz MS carrying space flight participants to the Russian Segment of the International Space Station, between the Customer, State Corporation ROSCOSMOS, and the Contractor, RSC Energia, and consider this issue at this Board of Directors meeting 2.2. Determine firm price of the contract between the Customer, State Corporation ROSCOSMOS, and the Contractor, RSC Energia, for performance of works (provision of services) on space flight to be conducted by crew transport spacecraft Soyuz MS carrying space flight participants to the International Space Station Russian Segment, in the amount of 2 573 774 232 (two billion five hundred seventy three million seven hundred seventy four thousand two hundred thirty two) rubles 00 copecks. 2.3. Give consent to making the interested-party transaction: contract for performance of works (provision of services) on space flight to be conducted by crew transport spacecraft Soyuz MS carrying space flight participants to the International Space Station Russian Segment, in the volume and on the terms foreseen in the Technical Direction, between the Customer, State Corporation ROSCOSMOS, and the Contractor, RSC Energia, at the firm price 2 573 774 232 (two billion five hundred seventy three million seven hundred seventy four thousand two hundred thirty two) rubles 00 copecks, with works performance period from 01.04.2019 through 31.08.2022. Note: For RSC Energia this transaction is the interested-party transaction, because State Corporation ROSCOSMOS is the holding company of RSC Energia and party to the transaction; RSC Energia’s Board of Directors Chairman D.O. Rogozin is Director General, the member of the Supervisory Board, the Management Board Chairman of the transaction party – State Corporation ROSCOSMOS; the member of RSC Energia’s Board of Directors M.N. Khailov is the Management Board member and representative of party to the transaction – State Corporation ROSCOSMOS; RSC Energia’s Board of Directors members S.V. Saveliev, Yu.M. Urlichich are the Management Board members of party to the transaction, State Corporation ROSCOSMOS.

122 INFORMATION ABOUT HOLDING THE COMPANY’S BOARD OF DIRECTORS COMMITTEES MEETINGS AUDIT COMMITTEE’S MEETINGS 25.01.2019 MEETING (MINUTES NO. 2 OF 25.01.2019) Items on the Agenda Resolutions passed 1. Consideration of the Internal Audit Department 1.1. Take note of the Internal Audit Department Report on the results of Work Plan implementation for quarter III, 2018. Report by the results of Work Plan implementation 1.2. Recommend RSC Energia’s management to work out action plans to eliminate problems resulting in contract terms for quarter III of 2018. violations. Internal Audit Department shall conduct monitoring of progress in the above action plans implementation. 2. Consideration of the Internal Audit Department 2. Ensure prior approval of the Internal Audit Department Work Plan for 2019, recommend RSC Energia’s Board of Work Plan for 2019. Directors to approve the above Work Plan. 3. Consideration of draft Provision on internal audit 3.1. Ensure prior approval of draft Provision on internal audit quality assurance and improvement program. quality assurance and improvement program. 3.2. Recommend RSC Energia’s Board of Directors to approve the Provision on internal audit quality assurance and improvement program.

4. Consider draft Supplementary agreement to the 4.1. According to the Policy to perform by RSC Energia external auditor services other than auditing (approved by Minutes contract for provision of services other than auditing SD No.14 of 25.03.2015), agree upon basic terms of Supplementary agreement to contract No. BDO-3410-1603-17 of by external auditor of RSC Energia – AO BDO 29.11.2017 for provision by AO BDO Unicon auditor of services other than auditing under Assignment No. 5 on the Unicon. following terms: Parties to the transaction: Customer: RSC Energia; Contractor: AO BDO Unicon. Subject of the transaction: Assignment No. 6 – Performance of consulting services for taxation analysis of the issues addressed in Addendum No. 1 to the assignment having to do with the Sea Launch Project. Cost of services to be performed by the Contractor according to Assignment No. 6 is 554 000 (five hundred fifty four thousand) rubles; in addition, there is VAT in the amount of 99720 (ninety nine thousand seven hundred twenty) rubles. 4.2. Submit the auditors’ work results under the above supplementary agreement to RSC Energia’s Board of Directors members for their familiarization. 4.3. Place for consideration of the Board of Directors and recommend to cancel the Policy to perform by RSC Energia external auditor services other than auditing due to loss of its urgency. 13.03.2019 MEETING (MINUTES NO. 3 OF 14.03.2019) Items on the Agenda Resolutions passed Due to withdrawal of S.V. Kukina from the Elect A.V. Melnikov as the presiding person at the Committee’s meetings putting him in charge of signing resolutions on Committee, who exercised powers of the calling regular meetings of the Committee and minutes of these meetings until RSC Energia’s Board of Directors adopts Committee’s Chairman, as per para 10.1 of the resolution on election of new Chairman of the Committee. Provision on the Audit Committee, it was proposed to elect the presiding person from the available members of the Committee

123 1. Consideration of the results of studying by RSC 1.1. Take note of the submittals. Recommend RSC Energia’s Board of Directors to charge the Internal Audit Department to Energia’s executive bodies and its SAC (subject to check to see if action taken to implement the auditors recommendations resulting from auditing in 2017 and 2018 by RAS is compulsory audit by RAS) of the auditors’ adequate. Submit audit results report to the Audit Committee. recommendations resulting from the 2017 auditing 1.2. Y.B. Yegorova shall prepare and submit to the Committee’s members Explanatory note on the auditors comments such by RAS. as the Risks attributed to recognition of general overhaul expenditures during current period; the Risks attributed to acquiring goods (works, services) from the counterparts with indications of unscrupulous taxpayers (para 12 and para 13 of the Table entitled” RSC Energia’s auditing results”, respectively). Established date is 22.03.2019. 1.3. RSC Energia management shall prepare and submit to the Committee members Explanatory note on the comment: “Revealed is the cost of equipment for compressor station No. 1 short-delivered by the lessor which was recognized in the balance sheet for 2017…” (para 1, Table “Result of auditing AO Teplo RSC Energia”). Established date is 22.03.2019. 1.4. Issue on “The Consideration of the results of studing by RSC Energia’s executive bodies and its SAC (subject to compulsory audit by RAS) of the auditors’ recommendations resulting from the 2017 auditing by RAS” shall be reviewed repeatedly after performance of the action item as per para 1.3 of these minutes. 2. Consideration of the Internal Audit Department 2. Take note of the Internal Audit Department Report on the results of work plan implementation for quarter IV of 2018. Report on the results of work plan implementation Recognize that the internal audit department needs to be more proactive in its operation, undertake more effort to strengthen for quarter IV of 2018. control over legitimacy of financial-economic activity being conducted. 3. Consideration of the Report on internal audit 3. Take note of the Report on internal audit quality control; to become more proactive in elimination of the defects included quality control. in the Plan for internal audit function development for 2019, with due regard for the comments made. 4. Consideration of the proposals to define the list 4.1. Y.B. Yegrova shall prepare proposals for making changes/additions to the Provision on internal audit department and and target figures of key performance indicators for submit them to the Committee for prior agreement, with a subsequent approval by RSC Energia’s Board of Directors. RSC Energia’s Chef internal auditor. 4.2. Approve on a preliminary basis the list and target figures of the Key performance indicators (KPIs) for RSC Energia’s Chief internal auditor for 2018 (from the date of taking office on 21.08.2018 till 31.12.2018). As per subpara 57, para 1, Art. 28 of RSC Energia’s Articles of Association, recommend the Board of Directors to approve the KPI list and target figures for RSC Energia’s Chef internal auditor for 2018. 4.3. Update Key performance indicators (KPI) list and target figures for RSC Energia’s Chief internal auditor for 2019, with due regard for the comments made; submit them for follow-up consideration to the Committee. 5. In addition, on the initiative exercised by Internal 5. By the results of RSC Energia’s internal control system audit conducted by the committee of State Corporation Audit Department of State Corporation ROSCOSMOS, recommend RSC Energia’s Director General to put respective departments in charge of the following: ROSCOSMOS the Committee looked into the issue - place for consideration of the Board of Directors the issue on approval of the provision on internal control system (updating “On consideration of RSC Energia financial- it if necessary); economic activity audit results”; with auditing - draw up the provision on risk management system; conducted by the committee at State Corporation - place for consideration of the Board of Directors the issue on approval of the provision on risk management system. ROSCOSMOS during the period from October 30, 2018 till February 4, 2019, relative to eliminating the noted shortcomings in the organized internal control system at RSC Energia. Further to the above 6. Besides, the Committee proposed the Board of Directors elect to the Committee Konstantin Viktorovich Savin, the chief specialist of the Internal Audit Department at State Corporation ROSCOSMOS.

124 11.04.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 4 OF 12.04.2019) Items on the Agenda Resolutions passed 1. On fixing the date, time and place for holding the 1. Establish as per para 3.2 of the Provision on Tender Committee and procedure for holding tender for the right to enter into tender for the right to enter into a contract for a contract for performance of services to audit annual financial statements by RAS, as well as audit the consolidated financial performance of services to audit annual financial statements by IAS of S.P. Korolev Rocket and Space Public Corporation Energia: statements by RAS, as well as audit the consolidated - date and time of holding the tender - 14.05.2019 10:00 am; financial statements of RSC Energia by IAS for - place of holding the tender: 4A Lenin Street, Korolev city, Moscow Region, 141070. 2019. 2. Consideration of the Tender documentation and 2. Approve the Tender documentation and text of the Notice of holding the tender for the right to enter into a contract for text of the Notice of holding the tender for the right performance of services to audit annual financial statements by RAS, as well as audit the consolidated financial statements by to enter into a contact for performance of services to IAS. audit annual financial statements by RAS, as well as audit the consolidated financial statements of RSC Energia by IAS for 2019. 26.04.2019 MEETING (MINUTES NO. 5 OF 26.04.2019) Items on the Agenda Resolutions passed 1. On submission of written clarifications at the 1.1. Provide prior agreement of draft Written clarifications at the request of AO BDO Unicon auditor relative to the request of AO BDO Unicon auditor relative to the consolidated financial statements of RSC Energia for 2018 prepared according to IAS (further referred to as the Written consolidated financial statements of RSC Energia for clarifications). 2018 prepared by IAS. 1.2. Recommend RSC Energia’s Board of Directors to adopt the Written clarifications adding to them more information if necessary. 13.05.2019 MEETING (MINUTES NO. 6 OF 14.05.2019) Items on the Agenda Resolutions passed 1. Consideration of draft RSC Energia Annual 1.1. Take note of RSC Energia’s Annual Report for 2018, including annual financial statements with auditor’s report (further Report for 2018, including financial statements with referred to as the Annual Report). auditor’s report. 1.2. As there is no final resolution adopted by the Auditing Committee on the date of holding the meeting, postpone final review of draft Annual Report. After Submission to the Committee members of the Auditing Committee findings, provide follow-up consideration of draft Annual Report (as absentee voting). 2. Consideration of the Report on the interested-party 2.1. Take note of the Report on the interested-party transactions effected by RSC Energia in 2018. transactions effected by RSC Energia in 2018. 2.2. As there is no final resolution adopted by the Auditing Committee on the date of holding the meeting, postpone final review of the issue. After submission to the Committee members of the Auditing Committee findings, provide follow-up consideration of the issue (as absentee voting).

125 07.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 7 OF 10.06.2019) Items on the Agenda Resolutions passed 1. Consideration of draft RSC Energia’s Annual 1.1. Take note of RSC Energia’s Annual Report for 2018, including financial statements with auditor’s report. Report for 2018, including financial statements with 1.2. Note that there is the Auditing Committee’s resolution confirming validity of data addressed in RSC Energia’s Annual auditor’s report (repeatedly). Report for 2018. 2. Consideration of the Report on the interested-party 2.1. Take note of the Report on the interested-party transactions effected by RSC Energia in 2018. transactions effected by RSC Energia in 2018 2.2. Note that there is the Auditing Committee’s resolution confirming validity of data addressed in RSC Energia’s Report on (repeatedly). the interested-party transactions effected by RSC Energia in 2018. 20.06.2019 MEETING (MINUTES NO. 8 OF 24.06.2019) Items on the Agenda Resolutions passed 1. Consideration of the results of studying by RSC 1.1. Take note of the submittals. Energia’s SAC executive bodies (subject to 1.2. In view of dismissal of criminal case regarding I.M. Baskin and A.C. Konovalov as per para 3, part 1, Art. 24 of RF Code compulsory audit by RAS) the auditors’ of Criminal Procedure: recommendations, with due regard for auditing - to instruct RSC Energia’s management to ensure in due time till 01.07.2019 presenting claims for recovery of damages results by RAS for 2017; the Audit Committee regarding the above persons (provided that the claims have not been lodged earlier); resolutions (Minutes No. 3 of 14.03.2019), as well as - prepare draft application to prosecutor’s office for checking legality and legal relevance of the decisions taken to stop a auditing for 2018. criminal case with respect to the above persons and in due time till 01.07.2019 submit it for approval to the Audit Committee’s Chairman. 1.3. As the criminal case concerning the former director in charge of AO Teplo RSC Energia Y.V. Sysolyatin is currently under consideration in the court, instruct RSC Energia management to ensure in due time till 01.07. 019 lodging claims for recovery of damages in relation to the above person (provided that the claims have not been lodged before). 2. Consideration of the proposals to set the Key Consideration of the second agenda item is postponed – till the next meeting of the Committee. performance indicators list and target figures for Chief internal auditor of RSC Energia for 2019. 3. Consideration of the Internal Audit Department 3.1. Take note of the Company’s Internal Audit Department report for quarter I of 2019. report on work plan implementation for quarter I of 3.2. Bring to the attention of the Chief internal auditor the need to be more proactive, undertake timely measures by reporting 2019. the results of auditing and defects found out to RSC Energia Director General. 4. On preparation of the recommendations to the 4.1. Recommend the Board of Directors to determine (by the results of the tender held) price of auditor’s services for auditing Board of Directors on approval of the auditor’s annual financial statements by RAS and the consolidated financial statements of RSC Energia by IAS for 2019 in the amount services payment amount by the results of the held of 7 080 000,00 rubles (Seven million eighty thousand rubles 00 copecks), including VAT at 20% amounting to 1 180 000,00 tender for audit organizations selection. rubles (One million one hundred eighty thousand rubles 00 copecks). 4.2. In view of the need to receive more clarifications concerning the Audit Committee’s terms of reference on the issue of determining auditor’s services price, prepare and send at the address of Corporate Governance Department of State Corporation ROSCOSMOS and Legal Department of State Corporation ROSCOSMOS respective inquiry. 5. Consideration of the Consolidated financial 5.1. Note that the consolidated financial statements of RSC Energia for 2018 by IAS have been submitted and published by statements of RSC Energia Group by IAS for 2018. established date (29.04.2019). 5.2. Taking into account auditor’s report prepared by AO BDO Unicon, take note of the consolidated financial statements of

126 RSC Energia by IAS 2018. 19.09.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 1 OF 19.09.2019) Items on the Agenda Resolutions passed 1. On preparing recommendations to the Board of 1. Recommend the Board of Directors to approve the price of auditors services for auditing annual financial statements by Directors on approval size of auditor’s services RAS and the consolidated financial statements by RAS and the consolidated financial statements of RSC Energia by IAS for payment. 2019 in the amount of 7 080 000,00 rubles (Seven million eighty thousand rubles 00 copecks), including VAT at 20% totaling 1 180 000,00 rubles (One million one hundred eighty thousand rubles 00 copecks). 17.10.2019 MEETING (MINUTES NO. 2 OF 21.10.2019) Items on the Agenda Resolutions passed 1. Consideration of RSC Energia’s Board of 1.1. Approve as a whole Work Plan for the Audit Committee of RSC Energia Board of Directors for 2019-2020 corporate Directors Audit Committee’s Plan of meetings for year. 2019-2020 corporate year. 1.2. Prepare for the committee’s regular meeting the proposals to add to the Plan more issues on RSC Energia and its SAC financial-economic activity which are of significant value and/or bear a high level of risk. 2. Consideration of draft Provision on assessment of 2. Approve the submitted draft Provision on corruption risks assessment at RSC Energia with due regard for approval given corruption risks at RSC Energia. by Economic Security Department of State Corporation ROSCOSMOS; recommend the Board of Directors as per subpara 59, para 1, Art. 28 of RSC Energia’s Articles of Association to approve the above Provision. 3. Consideration of the Internal Audit Department 3. Take note of RSC Energia’s Internal Audit Department report for quarter II of 2019. report on Work Plan execution results for quarter II of 2019. 4. Consideration of draft Regulations “General rules 4. Update with due regard for the comments made the submitted draft Regulations “General rules for audit planning and for audit planning and making”. making”; place for repeated consideration of the Committee. 25.12.2019 MEETING (MINUTES NO. 3 OF 26.12.2019) Items on the Agenda Resolutions passed 1. Consideration of the updated Plan of meetings for 1.1. Update the Audit Committee Plan of meetings for 2019/2020 corporate year, requesting beforehand the proposals from the Audit Committee at RSC Energia Board of the Audit Committee members, RSC Energia Internal Audit Department, RSC Energia Economic Security Department on Directors for 2019-2020 corporate year. adding to the plan of problematic issues concerning financial-economic activity of RSC Energia and its SAC which are of significant value and/or bearing high risk level. 1.2. Add to the agenda of the Committee’s regular meeting the issue on considering information about the detected disruption in RSC Energia IS operation (regarding electronic components (EEE parts) purchases and certification) resulting in initiating criminal proceedings; to assign Y.V. Larionova as the speaker on this issue. 2. Consideration of draft Provision on RSC Energia’s 2. Approve the submitted draft Provision on RSC Energia’s internal control system (further referred to as the Provision), internal control system. recommend RSC Energia’s Board of Directors to approve this Provision as per subpara 56, para 1, Art. 28 of RSC Energia Articles of Association. 3. Consideration of draft Regulations “General rules 3. Approve the submitted draft Regulations “General rules for audit planning and making” (further referred to as the for audit planning and making” (repeatedly). Regulations); recommend the Board of Directors to approve the above Regulations as per subpara 56, para 1, Art. 28 of RSC

127 Energia Articles of Associations. 4. Consideration of draft document specifying the 4.1. Approve the Provision on the Tender Committee and the procedure for holding a tender for the right to enter into a procedure for the tender on RSC Energia auditor contract for performance of services on auditing annual financial statements by RAS, as well as auditing the consolidated selection for 2020. financial statements by IAS of S.P. Korolev Rocket and Space Public Corporation RSC Energia (further referred to as the Provision). 4.2. Recommend the Board of Directors to approve the above Provision as per subpara 28.1, para 1, Art. 28 of RSC Energia’s Articles of Association. 4.3. Prepare address of the Committee’s Chairman A.V. Melnikov to RSC Energia’s Director General N.N. Sevastianov on the need to draw up and approve in due time till 30.01.2020 Action Plan for RSC Energia’s joining the Provision on procurement of goods, works, services of the State Space Corporation ROSCOSMOS, with obligatory appointment of the persons responsible for its implementation. Forward the Copy of the above address to the Chairman of the Board of Directors of RSC Energia D.O. Rogozin. Submit the approved Action Plan to the Committee members. 5. Consideration of the proposals for composition of 5.1. Recommend to make changes to the list of the candidates to the Tender Committee for holding auditor selection tender the Tender Committee for selecting RSC Energia’s regarding replacement of P.V. Vinokurov by other candidate representing line of financial-economic activity. auditor for 2020. 5.2. Place for consideration of the Committee the issue on approval of the composition of the Tender Committee for holding auditor selection tender by means of absentee voting (due date is 31.12.2019). 6. Consideration of the proposals to establish Key 6.1. Update the Key performance indicators (KPI) list and target figures for RSC Energia’s Chief internal auditor for 2019, performance indicators list and target figures for taking as a basis of the KPI list set to the Head of Internal Audit Department of State Corporation ROSCOSMOS, submit internal auditor of RSC Energia 2019. them for repeat examination. 6.2. Develop with due regard for the comments made the Key performance indicators (KPI) list and target figures for RSC Energia’s Chief Internal auditor for 2020 and place them for consideration at the Audit Committee meeting in January 2020. 31.12.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 4 OF 9.01.2020) Items on the Agenda Resolutions passed 1. On composition of the Tender Committee on 1.1. Agree upon in advance the following membership of the Tender Committee on holding a tender for auditor selection: I.A. auditor selection for RSC Energia for 2020. Alyoshina, A.B. Kosenko, T.P. Fomina, A.O. Ruzyev, N.V. Simakova, P.V. Melentiev, L.Yu. Gorodetskaya (the Committee secretary with no voting right). 1.2. Submit the Tender Committee membership for approval to the Board of Directors; recommend the Board of Directors to approve the proposed Tender Committee membership and put I.A. Alyoshina, the head of competitive purchases arrangement department, in charge of the Committee’s chairman.

PERSONNEL AND REMUNERATION COMMITTEE MEETINGS 25.01.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 4 OF 25.01.2019) Items on the Agenda Resolutions passed On agreement of RSC Energia’s corporate structure; 1.1. Agree upon redrafted corporate structure of RSC Energia. - candidacy for appointment to the post of the First 1.2. Agree upon appointing Sergei Yurievich Romanov to the post of First Deputy Director General – the First Deputy Chief Deputy Director General – First Deputy Chief Designer.

128 Designer. 17.05.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 5 OF 17.05.2019) Items on the Agenda Resolutions passed 1. On proposals made to RSC Energia’s annual 1. Recommend the Board of Directors as per subpara 15 and 16, para 1, Art. 28 of RSC Energia’s Articles of Association to general shareholders meeting to pay remuneration to propose to the general shareholders’ meeting not to pay remuneration to the Board of Directors members by the Company’s the Board of Directors members for 2018. performance in 2018 due to difficult financial standing of RSC Energia and the need to implement Financial Recovery Program. 2. On recommendations RSC Energia’s general 2. Recommend the Board of Directors as per subpara 15 and 16, para 1, Art. 28 of RSC Energia’s Articles of Association to shareholders’ meeting on remuneration payment to propose to the general shareholders’ meeting to resolve not to pay remuneration to the Auditing Committee members by the the Auditing Committee members for 2018. 2018 performance due to difficult financial standing of RSC Energia and the need to implement Financial Recovery Program. 11.06.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 6 OF 13.06.2019) Items on the Agenda Resolutions passed 1. Consideration of labor contract terms for acting 1.1. Ensure preliminary approval of the labor contract terms with the person who performed duties of acting Chief Executive CEO of RSC Energia. Officer (Director General) of RSC Energia – N.N. Sevastianov. 1.2. Recommend the Board of Directors to approve the labor contract with acting Chief Executive Officer (Director General) of RSC Energia N.N. Sevastianov. 27.09.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 1 OF 27.09.2019) Items on the Agenda Resolutions passed On agreement of combining by N.N. Sevastianov of Guided by para 4, Art. 32 and subpara 47, para 1, Art. 28 of RSC Energia’s Articles of Association, recommend the Board of the posts filled in managerial bodies of other legal Directors to agree upon the candidacy of N.N. Sevastianov (RSC Energia’s Director General) for his election to the Board of entities. Directors of Limited Liability Company Energia Satellite Technologies, as well as give consent to N.N. Sevastianov combining the above post in case of his being elected.

STRATEGIC PLANNING, MODERNIZATION AND INNOVATE DEVELOPMENT COMMITTEE MEETING

30.09.2019 MEETING AS ABSENTEE VOTING (MINUTES NO. 1 OF 30.09.2019) Items on the Agenda Resolutions passed 1. On price of placement of additional certified 1. Take note of information about the results of RSC Energia’s stock assessment by independent appraiser (OOO LAIR) registered common stock of RSC Energia. (Report No. А-30649/19 of 16.09.2019, further referred to as the Assessment Report). On condition that the Assessment Report received ample recognition from the self-regulatory organization of appraisers, recommend RSC Energia’s Board of Directors to determine price of additionally issued securities (including exercising priority right to acquire additional stock to be placed): 6904 (six thousand nine hundred four) rubles per one certified registered common stock.

129 REPORT ON THE BOARD OF DIRECTORS’ MEMBERS PARTICIPATION IN THE MEETINGS HELD BY BOARD OF DIRECTORS AND ITS COMMITTEES THROUGHOUT 2019* Strategic Planning, Participation Personnel and Modernization and Board of Directors members Independent in the Board Auditing Remuneration Innovative in accounting year Director of Directors’ Committee Committee Development meetings Committee L.B. Arutyunova (from 21.08.18 till 19/19 7/5[2] 29.06.2019) A.V. Zhregelia 13/11(1) 1/1 (from 29.06.2019 up to now) S.K. Krikalev (from 21.08.18 till 32/24[1] 3/2[1] 1[1] 29.06.2019 from 29.06.2019 up to now) S.V. Kukina (from 21.08.18 till 7/7 1/1 28.02.2019) D.V. Loskutov 13/13 1(1) (from 29.06.2019 up to now) O.D. Rogozin 13/13[4] (from 29.06.2019 up to now) K.V. Romanov (from 21.08.18 till 32/32 4/4 29.06.2019; from 29.06.2019 up to now) S.Yu. Romanov (from 21.08.18 till 19/18[2] 29.06.2019) S.V. Saveliev (from 21.08.18 till 32/32[3] 3/3 1/1 29.06.2019; from 29.06.2019 up to now) N.N. Sevastianov (from 21.08.18 till 32/32[6] 1/1 29.06.2019; from 29.06.2019 up to now) P.A. Suvorov 13/13 1/1 (from 29.06.2019 up to now) Yu.M. Urlichich 13/11[2] 1/1 (from 29.06.2019 up to now) G.L. Forsov 13/13 (from 29.06.2019 up to now) O.P. Frolov (from 21.08.18 till 19/17[1] 29.06.2019) M.N. Khailov (from 21.08.18 till 32/29[3] 29.06.2019; from 29.06.2019 up to now) * Data in the Table given in format 5/3(1) [2] means that the Director could take part in five meetings of the committee (Board), personally took part in three meetings, sent his written opinion to another meeting; two more meetings he attended without taking part in the vote with respect to all agenda items, because he was not entitled to voting on those items. If the number of the meetings which the Director could attend is equal to the number of meetings which the Director did actually attend, this means that the director was active in work of the Board of Directors and (or) relevant Committee.

130 Appendix 4 / Information about the Company Compliance with the Code of Corporate Governance This Section gives an assessment of corporate governance quality at RSC Energia and the Report on compliance with the Code of Corporate Governance principles and recommendations provided by the Bank of Russia. Brief description of the most important aspects of corporate governance model and procedure in the Company is given in the Annual Report section “Corporate Governance”

Description of the procedure used to evaluate adherence to the corporate governance principles assigned by the Code of Corporate Governance:  when evaluating adherence to the corporate governance principles, the Company Articles of Association and the Company bylaws provisions are analyzed for compliance with the Code recommendations;  corporate governance quality in RSC Energia is evaluated based upon the Procedure for Corporate Governance Quality Self-Appraisal in the Companies with State Participation approved by the Order issued by Federal Property Management Agency No 306 of 22.08.2014;  adherence to corporate governance principles assigned by the Code of Corporate Governance was evaluated in accordance with the report form on compliance with the Code of Corporate Governance principles and recommendations which is to be made part of an annual report of the joint-stock company whose stock are introduced to organized tenders (Letter of Advice from Bank of Russia No IN-06-52/8 of 17.02.2016 “On Disclosure of Report on Compliance with the Code of Corporate Governance Principles and Recommendations as Part of Annual Report of Public Joint-Stock Company”). Key reasons, factors and (or) circumstances on the strength of which the Company fails to comply with or complies if not in full volume with the corporate governance principles assigned in the Code of Corporate Governance, as well as corporate governance mechanisms and tools used by the Company in place of those recommended by the Code of Corporate Governance are given in the Table shown below (in the column of the same name). PLANNED (EXPECTED) ACTIONS AND MEASURES TO IMPROVE THE CORPORATE GOVERNANCE MODEL AND PROCEDURE Company intends to eliminate most of the inconsistencies by changing organization of managerial bodies operation, introduce new institutions and corporate procedures; make amendments to the existing normative documents, as well as approve new ones (RSC Energia’s Articles of Association, Code of Corporate Governance; Regulations on General Shareholders Meetings; Regulations on Board of Directors; bylaws which involve in-house regulatory and procedural documents on organization of risk management system, internal control and internal audit within the Company). In so doing, the Company belonging as the entity to State Corporation ROSCOSMOS adheres and will adhere to the corporate governance principles being implemented by State Corporation ROSCOSMOS.

131 ASSESSMENT OF CORPORATE GOVERNANCE QUALITY IN THE COMPANY (components of corporate governance quality self-appraisal)

Assessment Components Number of Component weight in Actual Maximu Level of questions general assessment, % points m points correspondence, % I. Shareholders’ rights 22 14 66,5 79 84 II. Board of Directors 56 37 118 202 58 III. Executive management 5 7 27 38 71 IV. Information transparency and disclosure 15 25 103 135 76 V. Risk management, internal control and internal audit 16 11 37 63 59 VI. Corporate social responsibility, business ethics 6 6 18 31 58 General assessment 120 100 369,5 548 67

132 REPORT ON COMPLIANCE WITH RSC ENERGIA CODE OF CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS

This Report on compliance with the Code of Corporate Governance principles and recommendations was considered by RSC Energia’s Board of Directors at its meeting as absentee voting held on 21.08.2020 (Minutes No 31 of 24.08.2020), as part of the Annual Report. Board of Directors confirms that data given in this Report contains compete and trustworthy information about RSC Energia’s compliance with the Code of Corporate principles and recommendations for 2019. Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle 1.1 Company shall ensure equitable and fair relations regarding all shareholders when they exercise their rights to taking part in the Company management 1.1.1 Company shall create for its shareholders most 1. There are the Company By-Laws in open access  compliance favorable conditions for their taking part in approved by general shareholders meeting and regulating □ partial general meeting; conditions for taking a procedures to hold general meeting. compliance reasonable position with respect to agenda of 2. Company offers an easy way to communicate with it, □ non- general meeting, coordination of their efforts, as such as “hot line”, E-mail or Internet forum which makes it compliance well as giving their view on matters under possible for shareholders to give their views and send their consideration questions concerning the agenda during preparations for holding general meeting. The above actions were taken by the Company on the eve of each general meeting held over the accounting period. 1.1.2 Procedure to notify about holding general 1. Notice about general shareholders meeting to be held  compliance Information about who proposed the meeting and submission of materials to general shall be placed (issued) on Internet site not later than 30 days □ partial items on the GSM agenda and who meeting enables shareholders to prepare prior to general meeting. compliance nominated the candidates to BOD and thoroughly for attending it. 2. Notice about forthcoming meeting shall indicate venue AC shall be made available to the □ non- of a meeting and documents required for admission to shareholders as a separate reference as compliance building. part of the submittals to GSM. 3. Shareholders were provided access to information about who proposed agenda items and who put up candidates to the Company Board of Directors and Auditing Committee.

133 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle 1.1.3 In the course of holding general meeting, 1. During the accounting period, shareholders were  compliance shareholders were afforded an opportunity to afforded an opportunity to ask questions to the Company □ partial gain unobstructed and prompt access to executive bodies and Board of Directors’ members both on the compliance information about a meeting and its submittals; eve of annual general meeting and in the course of its □ non- ask questions to the Company executive bodies operation. compliance and Board of Directors members, communicate 2. Board of Directors’ position (including special opinions to each other. inserted in the Minutes) with respect to each item on the agenda of the general meetings held was made part of the submittals to be sent to general shareholders’ meeting. 3. Company provided access to the List of persons entitled to attend general meeting of the shareholders who have the right thereto starting on the date the Company received it, in all cases of holding general meetings in the accounting period. 1.1.4 Exercising shareholder’s right to request calling 1. In the accounting period shareholders were given a □ compliance Existing Articles of Association set due general meeting; put up candidates for election chance to make proposals to be inserted in the agenda  partial date for putting proposals on the agenda to managerial bodies and make proposals to be annual general meeting within at least 60 days after the end compliance of GSM: 45 days after calendar year is included in the agenda of general meeting did of respective calendar year. over. □ non- not involve unjustified difficulties. 2. During the accounting year, the Company did not refuse The Company takes it that a 45 day- compliance to put proposals on the agenda or for candidates to the period is long enough for making Company bodies on the ground of misprints and other proposals. The Company will revert to insignificant shortcomings in shareholder’s proposal. the point concerning extending the period of submission of applications during preparations for the redrafted Articles of Association. This criterion can be satisfied in full volume on condition that relevant decision is taken by the majority shareholder, State Corporation ROSCOSMOS 1.1.5 Each shareholder had an opportunity to 1. Company By-laws (its in-house policy) state the □ compliance By-laws have no provisions under which exercise his voting right freely following the provisions under which each participant of general meeting □ partial each participant of GSM could require procedure which is the easiest and most can require copy of ballot he (she) completed and certified compliance copy of ballot completed by him and convenient for him. by counting commission before respective meeting is over. certified by counting commission before  non- respective meeting is over. Actually, the compliance

134 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle above provisions are being implemented. These recommendations will be implemented in preparation of the redrafted GSM Regulations. This criterion can be satisfied on condition that relevant decision is taken by the majority shareholder, State Corporation ROSCOSMOS 1.1.6 Company-established procedure to hold general 1. When holding general shareholders’ meeting in the form □ compliance Board of Directors did not consider the meeting provides equal opportunity for all of a meeting (joint attendance of all shareholders), sufficient  partial item on using telecommunication persons present at a meeting express their time was allowed for presenting reports on agenda items and compliance facilities for making remote access opinion and ask the questions they are for discussion of these items. available to shareholders to take part in □ non- interested in. 2. Candidates for election to managerial and control bodies GSM. compliance of the Company were available for answering shareholders’ The Articles of Association do not questions at the meeting where they as nominees were put to address the provisions on a possibility of a vote. remote access to voting at GSM. 3. In taking decisions on preparation and holding general Shareholders have an opportunity to shareholders’ meetings, Board of Directors considered the forward the ballots completed to the item on using telecommunication facilities for making Company before holding a meeting. remote access available to shareholders to take part in Taking into account that most of the general meetings during the accounting period. shareholders reside in Moscow Region, during preparations for a meeting special office at the place of the Company location is set up for the shareholders so that they could familiarize themselves thoroughly with the materials and get explanations if necessary, as well as ask questions both orally and in writing; also there is ballot- box at the above office. 1.2 Shareholders are granted an equal and fair opportunity to share in profits of the Company by getting dividends 1.2.1 Company developed and introduced transparent 1. Dividend policy is developed, approved by Board of □ compliance Dividend policy provisions do not cover and clear mechanism for determining size of Directors and disclosed in the Company.  partial consolidated indicators of financial dividends and their payouts. 2. If the Company dividend policy uses RSC Energia’s compliance accounting. As RSC Energia is added to reporting indicators to determine size of dividends, then the List of the companies coming within

135 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle corresponding provisions of dividend policy shall take into □ non- the jurisdiction of State Corporation account consolidated indicators of financial accounting. compliance ROSCOSMOS, RSC Energia’s dividend policy is based upon relevant policy pursued by State Corporation ROSCOSMOS. 1.2.2 Company does not take decision on dividend 1. Company dividend policy gives clearly defined  compliance Net profit obtained. payouts in the event that this decision (while instructions with respect to financial/economic □ partial not formally violating the limitations circumstances under which the Company shall not pay compliance established by legislation) is not economically dividends. □ non- justified and can lead to misrepresentation of compliance the Company operation. 1.2.3 Company shall protect existing shareholders 1. During the accounting period, the Company did not take  compliance against infringement of their rights. action resulting in infringement of dividend rights of the □ partial existing shareholders. compliance □ non- compliance 1.2.4 Company aims to exclude use by shareholders 1. In order to prevent use by shareholders of other methods □ compliance Members of the managerial bodies are of other methods to get profit (income) at the to get profit (income) at the Company expense other than  partial bound to report any conflicts of interest Company expense other than dividends and dividends and liquidating value, the Company By-laws state compliance or self-interest in effecting transactions. liquidating value control mechanisms which ensure timely reveal of RSC Energia’s Articles of Association □ non- transactions and approval procedure for transactions with stipulate the procedure for the Board of compliance the persons affiliated with the existing shareholders (persons Directors compulsory approval of entitled to be in charge of votes related to voting stock) property transactions of the company, when the law does not recognize formally these apart from those provided for by FL transactions as interested-party transactions. “On Joint-Stock Companies”. Continuous records are kept of and updated in the List of persons concerned (legal and natural) designed for in-house use in order to find out if the parties take interest in transactions. The Company and its SAC introduced the Anticorrupt Practices; the Provision on Conflict of Interests; the Code of Ethics and Conduct of employees and

136 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle some other documents. The Procurement Regulations are effective and based on the concepts of information transparency of procurement, absence of discrimination and unreasonable restrictions on competition with respect to procurement parties. In RSC Energia’s opinion, the mechanisms existing in the Company are both effective and adequate to prevent any persons (including the persons affiliated (connected) to major Shareholders) from getting unreasonable income at the Company’s expense. 1.3 Corporate governance system and practice ensure equal conditions for all the shareholders who own shares of the same category (type), including minority (small) shareholders and foreign shareholders, as well as the Company attitude to shareholders based on equality 1.3.1 Company created conditions for fair attitude to 1. During the accounting period, the procedures to control  compliance each shareholder on the part of the Company potential conflicts of interest among the existing □ partial managerial bodies and officials in charge of shareholders were efficient; the Board of Directors paid due compliance control, including those conditions which attention to the conflicts between the shareholders if such □ non- ensure impermissibility of abuses on the part of were the case. compliance major shareholders with respect to minority shareholders. 1.3.2 Company does not take actions which lead or 1. Quasi-treasury stocks are not available, nor were they  compliance In December 2016, the quasi-treasury can lead to artificial redistribution of corporate involved in the voting process during the accounting period. □ partial stocks were transferred to OAO URSC control. compliance into entrusted administration; therefore, according to the trust agreements, □ non- voting rights at the meeting are handed compliance over to the trustee; so, in taking decisions put to the vote at the GSM after December 2016, risks of potential corporate control takeover was prevented.

137 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle On December 27, 2019 trust agreements on block of shares management were cancelled by agreement of the parties. On January 29, 2020 the blocks of shares in the ownership of AO IK Razvitiye and ZAO ZEM RSC Energia were transferred in trust of State Corporation ROSCOSMOS 1.4 Shareholders are provided with reliable and efficient methods to record rights to shares, as well as an opportunity to alienate freely and without encumbrance the shares they own 1.4 Shareholders are provided with reliable and 1. Quality and reliability of activity to keep register of  compliance efficient methods to record their rights to securities owners being conducted by the Company registrar □ partial shares, as well as an opportunity to alienate meet the requirements of the Company and its shareholders. compliance freely and without encumbrance the shares they □ non- own. compliance 2.1 Board of Directors provides strategic management of the Company; defines basic principles and approaches to organization of risk management and internal control system in the Company; monitors the Company executive bodies operation; as well as performs other key functions. 2.1.1 Board of Directors is responsible for taking 1. Board of Directors acts within the limits of authority set  compliance decisions on appointment to and discharge from forth in the Articles of Incorporation which provides for □ partial posts held in executive bodies, including due to appointment to, discharge from posts held and defining compliance improper performance by them of their duties. contract terms regarding executive bodies members. □ non- Also the Board of Directors exercises control 2. Board of Directors considered report (reports) of compliance over the Company executive bodies so that they single-member executive body and collective executive body act on the approved development strategy and on progress in implementation of the Company strategy. core business of the Company 2.1.2 Board of Directors determines basic long-term 1. During the accounting period, the Board of Directors  compliance guidelines for the Company operation; meetings considered the issues with respect to progress in □ partial evaluates and approves key indicators of its implementation and updating of the strategy; approval of compliance operation and major business objectives of the financial-economic plan (budget) of the Company. Also □ non- Company; assesses and approves the strategy criteria and figures (including interim figures) of the compliance and business plans by core activities of the strategy and business plan implementation were reviewed. Company. 2.1.3 Board of Directors defines concepts and 1. Board of Directors defined concept and approaches to □ compliance Approaches to risk management system approaches to risk management and internal risk management and internal control system organization in  partial organization are under discussion.

138 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle control system organization in the Company. the Company compliance Auditing Committee at the Board of 2. Board of Directors gave assessment of risk management □ non- Directors approved the Regulations on and internal control system in the Company over the compliance Internal Audit Department which secure accounting period the functions of the Company risk control and assessment functions for the above department. In order to tighten internal control, the Board of Directors took decision on practicability of a quarterly review of the issues concerning compliance with the requirements of the drive to combat corruption (appropriate legislation). The Board of Directors did not make an assessment of the risk management and internal control system. However, the holding company, State Corporation ROSCOSMOS, performed all-round check of financial-economic activities at RSC Energia in 4th quarter of 2018, including assessment of efficiency in internal audit, risk management and internal control system. The check results testified that the Company’s internal control system was on the whole effective and in conformity with the Company’s scope and nature of activity. Recommendations were made to improve the existing internal control system. By the results of the above check it is planned to elaborate some of the Company’s Bylaws concerning risk management and internal control. Board of Directors (Minutes No. 15 of 04.03.2019) approved the Program to assure and improve internal audit quality.

139 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle The Audit Committee (Minutes No. 2 of 21.10.2019) approved draft Provision on corruption risks assessment at RSC Energia, taking into account the approval given by the Economic Security Department of State Corporation ROSCOSMOS. The Board of Directors (Minutes No. 11 of 18.11.2019) approved the Provision on corruption risks assessment at RSC Energia. The Board of Directors’ Audit Committee reviewed and approved draft Provision internal control system at RSC Energia during the accounting period (Minutes No. 3 of 26.12.2019) and recommended the Board of Directors to adopt that Provision. The Board of Directors (Minutes No. 14 of 30.01.2020) reviewed and adopted the Provision on internal control system at RSC Energia. 2.1.4 Board of Directors defines concepts and 3. Board of Directors defined concept and approaches to  compliance Approaches to risk management system approaches to risk management and internal risk management and internal control system organization in □ partial organization are under discussion. control system organization in the Company. the Company compliance Auditing Committee at the Board of 4. Board of Directors gave assessment of risk management □ non- Directors approved the Regulations on and internal control system in the Company over the compliance Internal Audit Department which secure accounting period the functions of the Company risk control and assessment functions for the above department. In order to tighten internal control, the Board of Directors took decision on practicability of a quarterly review of the issues concerning compliance with the requirements of the drive to combat

140 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle corruption (appropriate legislation). The Board of Directors did not make an assessment of the risk management and internal control system. However, the holding company, State Corporation ROSCOSMOS, performed all round check of financial-economic activities at RSC Energia in 4th quarter of 2018, including assessment of efficiency in internal audit, risk management and internal control system. The check results testified that the Company’s internal control system was on the whole effective and in conformity with the Company’s scope and nature of activity. Recommendations were made to improve the existing internal control system. By the results of the above check it is planned to elaborate some of the Company’s Bylaws concerning risk management and internal control. Board of Directors (Minutes No. 17 of 15.04.2019) took decision on KPI decomposition among the managers down to 3rd management level in accordance with the Procedural instructions for KPI use in State Corporation ROSCOSMOS; quarterly monitoring of KPI achievement and personal responsibility of the managers for their implementation, as well as making changes to the wage system for the managers down to the 3rd management level which foresee that all premium accruals of stimulating and motivating character shall be tied to

141 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle KPI achieved. 2.1.5 Board of Directors plays a crucial role in 1. Board of Directors plays a crucial role in prevention,  compliance prevention, revealing and settlement of internal revealing and settlement of internal conflicts. □ partial conflicts between the Company bodies, 2. Company developed the system identifying the compliance shareholders and employees. transactions involving conflicts of interest, as well as the □ non- system of measures aimed to settle conflicts like that. compliance 2.1.6 Board of Directors plays a crucial role in 1. Board of Directors approved the Provision on □ compliance No formalized Provision on information ensuring transparency of the Company, timely information policy.  partial policy has been approved yet. Company and complete disclosure of information by the 2. Company assigned persons responsible for pursuing compliance discloses information provided for by Company; easy access of shareholders to the information policy. current legislation for public □ non- Company documents. corporations. compliance There is also the Provision on relations with mass media, press service is operating. The Board of Directors approved the Provision on information delivery at the request of RSC Energia shareholders. By Director General’s Order, Information security policy was put into effect 2.1.7 Board of Directors exercises control over 1. During the accounting period the Board of Directors  compliance The Board of Directors reviews at corporate governance practice in the Company considered the matter concerning corporate governance in □ partial regular intervals the reports on RSC and plays a crucial role in important corporate the Company. compliance Energia’s Work Program events of the Company. implementation. □ non- compliance 2.2 Board of Directors is accountable to the Company shareholders 2.2.1 Information about the Board of Directors 1. Company Annual Report over the accounting period  compliance Board of Directors operation is assessed operation shall be disclosed and made available covers information about attendance by each of the directors □ partial annually and this assessment includes to shareholders. of the Board of Directors’ and Committees’ meetings. compliance evaluation of the committees 2. Annual Report comprises information about main performance. Assessment results are □ non- assessment results of the Board of Directors operation during considered at Board of Directors’ compliance the accounting period. meeting. This assessment is given in the Annual Report as part of information

142 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle about the Board of Directors’ meetings (resolutions passed) in the accounting period. 2.2.2 Chairman of the Board of Directors is available 1. Company established transparent procedure which  compliance Shareholders are afforded an for communication with the Company ensures that shareholders can forward to the Board of □ partial opportunity to turn to the Chairman of shareholders. Directors their questions and positions they hold. compliance the Board of Directors in writing, as well as ask questions in writing at □ non- general shareholders’ meeting with compliance attendees present. 2.3 Board of Directors is an efficient and professional managerial body of the Company; has the authority to make impartial judgments and take decisions which meet the interests of the Company and its shareholders. 2.3.1 Only those persons who have impeccable 1. Procedure to assess efficiency in the Board of Directors’ □ compliance Procedure to assess efficiency in the business and personal reputation, acquired operation established in the Company comprises (among  partial Board of Directors operation is not knowledge, skills and experience required to other things) evaluation of job skills of the Board of compliance approved. take decisions falling within competence of Directors members. Quality of the Board of Directors □ non- the Board of Directors and essential to perform 2. During the accounting period, the Board of Directors (or operation is assessed annually. compliance its functions efficiently, are elected to the Board its Committee on nominations) evaluated the nominees to the Assessment includes evaluation of the of Directors as its members. Board of Directors in terms of their experience, knowledge, committees operation. business reputation, absence of conflicts of interest, etc. Assessment results are considered at Board of Directors meeting. Assessment of the nominees was not made. Information on whether the Board of Directors nominees have the required experience, knowledge, etc. can be found in information materials for GSM. 2.3.2 Company Board of Directors members are 1. In all cases of holding general shareholders’ meeting □ compliance Nominees evaluation, as well as elected via a transparent procedure which whose agenda included the items of Board of Directors  partial assessment of nominees conformity to enables the shareholders to get full information election, the Company submitted to the shareholders compliance independence criteria have not been about the nominees to form a true notion of personal data on all nominees to be elected to the Board of performed. The Issuer’s Quarterly □ non- their personal and professional qualities. Directors; results of these nominees evaluation performed by Report presents information about who compliance the Board of Directors (or its Committee on nominations); of the Board of Directors members can information about nominee conformity to criteria of be considered as independent director. independence according to the recommendations 102-107 Information about personal data, work stated in the Code, as well as nominees’ consent in writing to experience and written consent to be

143 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle be elected to the Board of Directors. elected to the Board of Directors was made available to the Shareholders. Company sticks to the opinion formed in State Corporation ROSCOSMOS that a wide circle of independent directors shall not be brought in for work in the companies operating in the field of Industrial Complex of Russia. 2.3.3 Board of Directors membership is balanced in 1. As part of the procedure for assessment of the □ compliance With due regard for peculiarities of terms of its members qualification, their Board of Directors performance made during the accounting  partial building up membership of the Board of experience, knowledge, business qualities; period, the Board of Directors analyzed its own needs compliance Directors indicated in items 2.3.1-2.3.2, Board of Directors enjoys confidence among regarding job skills, experience and business skills. Board of Directors did not make any □ non- the shareholders. assessment of own needs regarding compliance qualification, experience and business skills. Board of Directors membership currently in force is highly skilled and enjoys confidence among the shareholders. 2.3.4 Membership of the Company Board of 1. As part of the procedure for Board of Directors □ compliance Board of Directors membership of 11 Directors enables to arrange Board of Directors assessment made in the accounting period, the Board of  partial persons enables to set up Committees at operation in a most efficient manner, including Directors considered the matter concerning conformity of the compliance the Board of Directors, as well as ensure a possibility to set up Board of Directors’ Board of Directors membership with the Company needs and that the shareholders, who own at least □ non- Committees, as well as ensures that important shareholders’ interests. 7.5% of stock, can elect their nominee to compliance minority shareholders can elect nominee they the Board of Directors, which enables to are voting for to the Board of Directors. conclude thus the Board of Directors membership is in agreement with the Company needs and shareholders’ interests. 2.4 Sufficient number of independent directors is in the Board of Directors membership 2.4.1 A person is regarded as independent director if 1. During the accounting period, all independent  compliance he (she) is proficient enough in his(her) Board of Directors members met all criteria of independence □ partial profession, have a broad experience and indicated in the Code recommendations 102-107 or were compliance independence to take his own stand; can make regarded as independent by the decision of the Board of □ non-

144 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle impartial and fair judgments not influenced by Directors. compliance executive bodies of the Company, separate groups of shareholders or other parties concerned. In so doing, it should be noted that in normal conditions nominee (elected member of the Board of Directors) cannot be regarded as independent in case of his being tied to the Company, its major shareholder, important counterpart or the Company competitor or to the government. 2.4.2 Nominees to the Board of Directors members 1. During the accounting period, Board of Directors (or □ compliance Board of Directors did not make an are assessed for their satisfying criteria of Committee on nominations) made an opinion about □ partial opinion about independence of the independence, as well as independent Board of independence of each nominee to Board of Directors and compliance nominees due to peculiarities of Board Directors members are reviewed for their presented relevant report to the shareholders. of Directors staff selection indicated in  non- satisfying criteria of independence on a regular 2. During the accounting period, the Board of Directors (or item 2.4.3. compliance basis. When making this assessment, content Committee on nominations at the Board of Directors) Company plans to take into account the shall govern form. considered at least once independence of the existing Code recommendations on developing members of the Board of Directors which are referred to in the procedures specifying actions to be the Company Annual Report as independent directors. taken by independent members of the 3. Company developed the procedures defining required Board of Directors actions to be taken by a member of the Board of Directors in Criteria of Board of Directors members the event that he ceases to be independent, including his independence will be set forth in the commitment to inform the Board of Directors about it in a redrafted Regulations on the Board of timely manner. Directors. This criterion can be implemented, provided that the majority shareholder State Corporation ROSCOSMOS takes appropriate decision. Board of Directors members were assigned to furnish information about changed data in form presented. 2.4.3 Independent directors account for no less than 1. Independent directors account for no less than one-third □ compliance Independent directors account for less one-third of the elected Board of Directors of the elected Board of Directors staff. □ partial than one-third of the elected Board of staff. compliance Directors staff. (The Board of Directors membership elected at Annual General  non-

145 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle compliance Shareholders’ meeting in June 2019 2018 has no independent directors brought in. The Company takes the view practiced by State Corporation ROSCOSMOS that independent directors shall not be involved in operation of the companies engaged in business of the RF DIC. Specific character of equity capital structure and space industry in itself add complexity to adhering to this Code principle. The Board of Directors is composed, primarily, of the representatives from the majority shareholder State Corporation ROSCOSMOS. This criterion can be implemented, provided that the majority shareholder takes appropriate decision. In the future, RSC Energia does not rule out a possibility to have independent members in the Board of Directors membership according to the Code recommendations 2.4.4 Independent directors play a crucial role in 1. Independent directors (with no conflicts of interest) give a □ compliance Significant corporate actions are open to prevention of internal conflicts in the Company preliminary estimate of significant corporate actions which □ partial discussion in all aspects at the Board of and taking significant corporate actions. may entail conflict of interests, then this estimate results are compliance Directors meetings. Besides, important submitted to the Board of Directors matters are to be agreed upon in advance  non- with the holding company, State compliance Corporation ROSCOSMOS. 2.5 Chairman of the Board of Directors helps to perform functions assigned to the Board of Directors in a more efficient way 2.5.1 Chairman of the Board of Directors is elected 1. Chairman of the Board of Directors is independent □ compliance Chairman of the Board of Directors is from independent directors; or senior director or senior independent director is chosen from the  partial not independent director. Specific independent director is chosen from the elected elected independent directors. compliance character of the equity capital structure independent directors who shall coordinate 2. Role, rights and responsibilities of the Chairman of adds complexity to adhering to the Code

146 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle work being performed by independent directors the Board of Directors (senior independent director if □ non- principle. and interface with the chairman of Board of appropriate) are defined properly in the Company By-laws. compliance Role, rights and responsibilities of the Directors. Board of Directors are clearly defined properly in the Regulations on the Board of Directors.. All members of the Board of Directors may communicate directly with the Chairman of the Board of Directors. 2.5.2 Chairman of the Board of Directors creates 1. Work efficiency of the Chairman of the Board of □ compliance Quality of the Board of Directors work constructive atmosphere during meetings being Directors was evaluated as part of the procedure to assess  partial is assessed annually. Overall assessment held, free discussion of the matters put on the performance of the Board of Directors operation over the compliance covers assessments of the committees agenda of a meeting; follow-up control of accounting period. work. Performance of the committees □ non- decisions taken at the Board of Directors. operation is considered at the Board of compliance Directors meeting. No assessment of work efficiency of the chairman of Board of Directors was made separately. Chairman of the Board of Directors creates constructive atmosphere of the meetings being held, free discussion of the matters, follow-up control of the decisions taken at the Board of Directors. 2.5.3 Chairman of the Board of Directors takes action 1. Company By-laws make the Chairman of the Board  compliance required to timely provide members of the of Directors responsible for ensuring timely presentation of □ partial Board of Directors with information essential to the materials on the Board of Directors meeting agenda compliance take decisions on the agenda items. items to the Board of Directors members. □ non- compliance 2.6 Board of Directors members act in good faith and reasonably in the Company interests, as well as its shareholders, based upon adequate information, with due diligence and circumspection 2.6.1 Board of Directors members take decisions 1. Company By-Laws establish that member of the Board □ compliance Recommendations on the issues with due regard for all information available, of Directors shall inform the Board of Directors in the event  partial concerning avoidance of conflict of in the absence of conflict of interests with of any conflict of interests concerning any agenda item of compliance interests by the Board of Directors equitable attitude to the Company the Board of Directors or its committee meeting, before member are implemented, provided for □ non- shareholders, within customary entrepreneurial discussion starts of respective agenda item. in the By-laws (Anticorrupt Practices at compliance

147 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle risk. 2. Company By-laws provide for that Board of Directors RSC Energia). No procedure was member shall abstain from voting on any item which implies established under which the Board of conflict of interest. Directors could obtain professional 3. Company establishes the procedure under which the advice on the issues falling within its Board of Directors may obtain professional advice on the competence at the Company’s expense. issues falling within its competence at the Company’s expense. 2.6.2 Rights and responsibilities of the Board of 1. Company adopted and issued the By-laws which  compliance Directors members are clearly defined and set clearly define rights and responsibilities of the Board of □ partial forth in the Company By-Laws. Directors members. compliance □ non- compliance 2.6.3 Board of Directors members have enough time 1. Individual attendance of the Board of Directors and  compliance Regulations on the Board of Directors to perform their duties. committees meetings, as well as time allowed to prepare for □ partial provides for that the Board of Directors taking part in the meetings were taken account of in the compliance members in case of changed personal procedure for assessment of the Board of Directors data shall forward to the Company □ non- performance during the accounting period. changes entered in the form which compliance 2. In accordance with the Company By-Laws, the Board of includes data on taking part in Directors members shall inform the Board of Directors about managerial bodies of other entities. their intention to join managerial bodies of other entities (apart from subsidiary and allied companies of the Company), as well as about the fact of this assignment. 2.6.4 All members of the Board of Directors are 1. In accordance with the Company By-Laws, Board of □ compliance No finalized program of familiarization afforded an equal opportunity to gain access to Directors members are granted the right to gain access to  partial measures for newly-elected members of the Company documents and information. documents and make inquiries concerning the Company and compliance the Board of Directors is available. Newly-elected members of the Board of its subsidiary and allied companies, while executive bodies These recommendations are □ non- Directors get sufficient information about the of the Company are bound to present respective information implemented by forwarding the compliance Company and Board of Directors’ operation and documents. Company’s By-laws (including them in within the shortest period possible. 2. Finalized program of familiarization for newly-elected electronic form) to the newly-elected members of the Board of Directors is available in the Board of Directors members, provision Company. of the Company’s secretary contact data (which is not provided for in the By- laws).

148 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle 2.7 Board of Directors meetings, preparation for them and participation of the Board of Directors members in them ensure efficient operation of the Board of Directors. 2.7.1 Board of Directors meetings are held as 1. Board of Directors held at least six meetings over the  compliance required, with due regard for scope of work and accounting period. □ partial challenges the Company faces during a definite compliance period of time. □ non- compliance 2.7.2 Company By-laws establish the procedure for 1. Company approved the By-laws defining the  compliance preparation and holding meetings of the Board procedure for preparation and holding Board of Directors □ partial of Directors which makes it possible for the meetings which also states that notice about holding a compliance Board of Directors to prepare properly for meeting shall be made as a rule at least 5 days before a date □ non- them. of its holding. compliance 2.7.3 Form of a meeting to be held by Board of 1. Articles of Incorporation or By-Laws of the □ compliance Critical problems are solved at the full- Directors shall be determined taking into Company stipulate that critical problems (according to the  partial time meetings of the Board of Directors, account urgency of the agenda items. Critically List given in recommendation 168 of the Code) shall be compliance but no mention was made about it in the important problems shall be solved at full-time considered at full-time meetings of the Board of Directors. By-Laws. In taking a decision on form □ non- meetings. of a meeting to be held by the Board of compliance Directors, the Chairman of the Board of Directors takes into account the recommendations provided by the Code of Corporate Governance and importance and urgency of the item, as well as a possibility of personal attendance of the meeting by most of the Board of Directors members. The company takes it that the redrafted Regulations on the Board of Directors should embody a possibility of BOD members to take part in the Board of Directors by means of telecommunication facilities (using video-, teleconferencing). Telecommunication facilities are also available for those taking part in operation of the Board of Directors

149 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle committees 2.7.4 Decisions on critical problems concerning the 1. RSC Energia’s Articles of Incorporation stipulate  compliance Decisions on critical issues are taken by Company operation are taken at Board of that decisions on critically important issues stated in □ partial qualified majority of 2/3 of the votes or Directors meeting by qualified majority or recommendation 170 of the Code shall be taken at Board of compliance by majority vote of all the elected Board majority vote of all the elected Board of Directors’ meeting by qualified majority of no less than of Directors members. □ non- Directors members. three-fourths of the votes or by majority vote of all the compliance elected Board of Directors members 2.8 Board of Directors sets up Committees for preliminary consideration of critically important issues concerning the Company operation 2.8.1 Committee on Audit consisting of independent 1. Board of Directors set up the Committee on Audit □ compliance The Committee on Audit does not directors is set up to preliminarily review the consisting exclusively of independent directors.  partial include independent directors in view of issues concerning supervision over financial- 2. Company By-laws set forth tasks to the Committee on compliance the Company’s position taken regarding economic activity of the Company. Audit, including tasks addressed in recommendation 172 of independent directors. This criterion can □ non- the Code. be implemented in full volume on compliance 3. At least one member of the Committee on Audit being condition, that the majority shareholder, independent director shall have an experience and State Corporation ROSCOSMOS, takes knowledge in the field of financial statement preparation, appropriate decision. analysis, assessment and audit. In the future, RSC Energia does not rule 4. Meetings of the Committee on Audit were held at least out a possibility to elect adequate once a quarter during the accounting period. member of the Board of Directors’ independent members in order to set up the Committee on Audit according to the Code recommendations. External experts are included in the Committee membership. The rest of the recommendations are adhered to. 2.8.2 For preliminary consideration of the issues 1. Board of Directors set up the Committee on □ compliance Committee on Personnel and concerning efficient and transparent Remuneration represented by only independent directors.  partial Remuneration does not include remuneration practice, the Committee on 2. Chairman of the Committee on Remuneration is compliance independent directors due to the view Remuneration was set up which consists of independent director who is not chairman of the Board of taken by the Company with respect to □ non- independent directors and is headed by Directors. independent directors. compliance independent director who is not chairman of 3. Company By-laws set tasks to the Committee on This criterion can be implemented in full the Board of Directors. Remuneration, including those addressed in recommendation volume on condition that the majority 180 of the Code. shareholder, State Corporation ROSCOSMOS, takes appropriate

150 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle decision. In the future, RSC Energia does not rule out a possibility to elect adequate number of the Board of Directors’ independent members in order to set up the Committee on Personnel and Remuneration according to the Code recommendations. External experts are included in the Committee membership, the rest of the recommendations are adhered to. 2.8.3 For preliminary consideration of the issues 1. Board of Directors set up the Committee on nominations □ compliance Tasks set to the Committee on concerning personnel planning (continuity (or its tasks addressed in recommendation 186 of the Code  partial nominations are partially implemented planning), professional staff and efficient are fulfilled by other Committee); most of the Committee’s compliance within the framework of the Committee operation of the Board of Directors, the members are independent directors. on Personnel and Remuneration. □ non- Committee on nominations (appointments, 2. Company By-laws define tasks set to the Committee on compliance personnel) was set up; most of its members are nominations (or respective Committee with the combined independent directors. functions), including the tasks stated in recommendation 186 of the Code). 2.8.4 With due regard to the Company Scope of 1. Over the accounting period, the Company Board of □ compliance The Board of Directors believes that the work and risk level, the Board of Directors Directors considered the issue of whether its Committees’  partial existing Committee’s membership is in made sure that its Committees’ staff is in full membership is consistent with the Board of Directors compliance full agreement with the objectives and agreement with the objectives which are to be objectives and aims of the Company operation. Additional the scope set by the Company. The □ non- achieved by the Company during its operation. Committees either were set up, or were recognized as issues of setting up other (new) compliance Additional Committees were either set up, or unnecessary. Committees were not initiated; nor were recognized as unnecessary (Committee on they considered. Strategy, Committee on Corporate Governance, Committee on ethics, Committee on Risk Management, Budget Committee, Committee on Health, Safety and Environment, etc.) 2.8.5 Composition of the Committees was selected so 1. Board of Directors Committees are headed by □ compliance During the accounting period the that it was possible to hold thorough discussion independent directors.  partial committees are not headed by of the issues being considered beforehand with 2. Company By-laws (policies) stipulate the compliance independent directors, because the due regard for different opinions. provisions under which the persons who are not members of Company maintains the position □ non- the Committee on Audit, Committee on Nominations and relative to independent directors.

151 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle Committee on Remuneration, may attend meetings of the compliance This criterion can be implemented in Committees only at the invitation of the chairman of full volume, provided that the majority relevant Committee. shareholder State Corporation ROSCOSMOS takes adequate decision. In the future, RSC Energia may elect sufficient number of the Board of Directors’ members to set up the Committees according to the Code recommendations. The persons with a broad experience in the committee operation problems could be appointed as the committees’ chairmen. The Regulations on committees provide for clauses under which the persons who are not the members of the Committees may not attend committees’ meetings unless they are invited by chairman of relevant committee in person. 2.8.6 Committees chairmen keep the Board of 1. During the accounting period, chairmen of the  compliance Directors and its chairman informed about Committees reported on the committees operation to the □ partial operation of their committees. Board of Directors on a regular basis compliance □ non- compliance 2. Board of Directors ensures quality assessment of the Board of Directors, its Committees operation and Board of Directors’ members performance 2.9.1 Board of Directors operation quality assessment 1. Self-appraisal or outside assessment of the Board of □ compliance Assessment of the Board of Directors is aimed to determine level of efficiency of the Directors operation performed during the accounting period,  partial operation is made every year and Board of Directors, Committees operation, included evaluation of the committees activities, compliance includes evaluation of the committees Board of Directors’ members performance; performance of certain members of the Board of Directors operation. The assessment results in the □ non- degree of their work conformity with the and the Board of Directors as a whole. accounting period were considered at compliance Company changing needs; to boost Board of 2. Results of self-appraisal or outside assessment of the Board of Directors meeting held as Directors activity and identify areas where their the Board of Directors performed during the accounting absentee voting meeting due to “tight” activity can be improved. period, were reviewed at full-time meeting of the Board of work schedule of the chairman and Directors. members of the Board of Directors in

152 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle the accounting period. 2.9.2 Assessment of the Board of Directors, 1. In order to make an independent assessment of the □ compliance Board of Directors work quality is Committees operation and Board of Directors Board of Directors work quality, an outside organization □ partial assessed annually. members performance is made on a regular (consultant) was brought in by the Company during the compliance During the accounting period, outside basis at least once a year. Outside organization three last accounting periods at least once. organization was not brought in due to  non- (consultant) is brought in to assess extra expenses restraint. compliance independently quality of the Board of Directors work at least one time per three years. 3.1 Corporate Secretary of the Company carries out current efficient interaction with shareholders; coordinates the Company actions relative to protection of shareholders’ rights and interests; supports efficient Board of Directors’ operation. 3.1.1 Corporate Secretary has knowledge, experience 1. Company adopted and made public its in-house □ compliance Board of Directors found it inadvisable and qualification sufficient to be able to document: Provision on Corporate Secretary. □ partial to introduce a position of RSC perform duties he is entrusted with; also he has 2. Company Internet site and Annual Report present compliance Energia’s corporate secretary (Minutes impeccable reputation and enjoys confidence on personal data on Corporate Secretary, degree of detailing of No4 of 20.02.2012) due to the fact that  non- the shareholders’ part. which is identical to those for Board of Directors and legislation is vague about it. Also Board compliance executive management members of the Company. of Directors noted that there is no requirement about binding introduction of the above position in current legislation. Permanent position of corporate secretary is not introduced in the Company. The By-laws establish that the Board of Directors elects its secretary who actually performs functions of corporate secretary. 3.1.2 Corporate Secretary is granted independence 1. Board of Directors approves corporate secretary □ compliance Board of Directors elects secretary of from executive bodies of the Company and given appointment, his discharge from the position, as well as  partial the Board of Directors who actually authority and resources required to fulfill tasks extra remuneration. compliance performs corporate secretary functions set to him (her). and at any time the Board of Directors □ non- may take a decision on his (her) compliance reelection. Extra remuneration for performance of corporate secretary functions is not provided for.

153 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle 4.1 Size of remuneration being paid by the Company is sufficient to attract, motivate and retain the persons with competence and qualification required for the Company. Remuneration to the Board of Directors, executive bodies members and other key officials of the Company is paid in accordance with the remuneration policy adopted in the Company. 4.1.1 Size of remuneration granted to the Board of 1. Company adopted the By-laws such as the Policy □ compliance Document defining the procedure for Directors, executive bodies members and other (policies) of remuneration for the Board of Directors,  partial remuneration calculation and payment key officials by the Company provides executive bodies members and other key officials, which compliance and reimbursement of expenses to the adequate motivation for their efficient service clearly define approaches to remuneration of the above BOD members is adopted. Principles of □ non- which makes it possible for the Company to persons. remunerating executive bodies members compliance attract and retain competent and highly skilled and other key personnel are based upon specialists. In so doing, the Company prevents using KPIs. The Procedural guidelines size of remuneration unreasonably higher than on the KPI use in State Corporation required, as well as unreasonably great gap ROSCOSMOS and related between sizes of remuneration of the above organizations were put into effect. persons and the rest of the employees of the Developed and applied are KPI charts Company. for executive bodies members. The Board of Directors resolved that changes shall be made to the wage system for the 3rd – level management executives which require that stimulating and motivating bonuses shall be tied to KPI achieved 4.1.2 Company Policy on remuneration was 1. During the accounting period, the Committee on □ compliance In the accounting period, the results of established by the Committee on Remuneration remuneration reviewed the remuneration policy (policies) □ partial applying remuneration principles with and approved by RSC Energia Board of and its implementation practice and submitted respective compliance respect to executive bodies members Directors. Board of Directors assisted by the recommendations to the Board of Directors in case of need. and other key personnel based upon  non- Committee on Remuneration monitors KPIs were reviewed. These assessment compliance introduction and implementation of the results can provide background for remuneration policy in RSC Energia, as well as updating the existing documents reviews it and amends it if necessary. regulating the remuneration procedure. During the accounting period, the Personnel and Remuneration Committee considered the proposals to annual general shareholders’ meeting for remuneration payment to the Board of Directors and Auditing Committee

154 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle members for 2018 and submitted adequate recommendations to the Board of Directors. 4.1.3 Company Remuneration Policy covers 1. Company remuneration policy (policies) covers □ compliance See Comments to item 4.1.1 and 4.1.2 transparent mechanisms for determining size of transparent mechanisms for determining size of  partial remuneration to be paid to the Board of remuneration to the Board of Directors, executive bodies compliance Directors, executive bodies members and other members and other key officials, as well as regulates all non-compliance key officials of RSC Energia, as well as kinds of payments, benefits and privileges to be granted to regulates all kinds of payments, benefits and the above persons. privileges to be granted to the above persons. 4.1.4 Company defines the policy of compensating 1. Company remuneration policy (policies) or other  compliance for expenses (compensations) specifying the By-laws of RSC Energia establish rules for compensating □ partial List of costs to be reimbursed, as well as level for expenses incurred by the Board of Directors, executive compliance of service that the Board of Directors, executive bodies members and other key officials. □ non- bodies members and other key officials of the compliance Company may claim. This policy may be part of the Company remuneration policy. 4.2 Remuneration system of the Board of Directors members ensures that the Directors’ financial interests come closer with long-term financial interests of the shareholders. 4.2.1 Company pays fixed remuneration on annual 1. Fixed annual remuneration is the only monetary □ compliance The Company-approved document basis to the Board of Directors members. reward of the Board of Directors members for their service □ partial which determines the procedure for Company shall not pay remuneration for in the Board of Directors during the accounting period. compliance remuneration of the Board of Directors attendance of separate meetings of the Board of members, provides for payment of  non- Directors or its Committees. Company does not remuneration consisting of two parts: compliance practice forms of short-term motivation and fixed and variable. additional incentive fees with respect to the Variable part depends upon the Board of Directors members. Company financial results during corresponding year. Size of remuneration to the Board of Directors members is differentiated depending on volume of duties to be performed by director in the Board of Directors so that additional time spent on performance of the chairman of the Board of Directors, Committee

155 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle member, chairman of the Committee functions is reflected. With respect to the Board of Directors members, not any forms of short-term motivation and extra incentive fees are used. 4.2.2 Long-term equity ownership tends to draw 1. If any in-house document (documents) such as the  compliance In-house document on remuneration nearer financial interest of the Board of Company remuneration policy (policies) provides for □ partial does not provide for making the shares Directors and long-term interests of the granting of the Company shares to the Board of Directors compliance available to the Board of Directors shareholders. In so doing, the Company does members, clearly-defined rules of equity ownership by the members. □ non- not make dependent the rights to sell shares on Board of Directors members aimed to encourage long-term compliance achievement of specific performance possession of these shares shall be foreseen and made indicators; neither the Board of Directors public. members take part in options programs. 4.2.3 Company does not provide for any additional 1. Company does not provide for any additional  compliance payments or compensations in case of early payments or compensations in case of early termination of □ partial termination of powers by the Board of the Board of Directors members powers due to handover of compliance Directors members due to handover of control control over the Company or other circumstances. □ non- over the Company or other circumstances. compliance 4.3 Remuneration system for executive bodies members and other key officials of the Company provides for dependence of remuneration on the Company performance and their personal contribution to achievement of the results. 4.3.1 Remuneration of executive bodies members and 1. During the accounting period, annual efficiency □ compliance The Company documents currently in other key officials of the Company is indicators approved by the Board of Directors were applied  partial force which regulate top management determined so that reasonable and justified to determine size of variable remuneration to be paid to compliance remuneration procedure provide for size relation between fixed part and variable part of executive bodies members and other key officials of the of remuneration tied to KPI. □ non- remuneration is ensured based upon the Company. In the event that the facts of illegal compliance Company performance and personal 2. During the recent assessment of the remuneration bonus payments to employees are (individual) contribution of employee to the end system for executive bodies members and other key established, RSC Energia is ready to result. officials, the Board of Directors (Committee on reimburse for the expenses under the Remuneration) made sure that the Company practiced RF labour legislation, including judicial efficient relation between the fixed remuneration part and recourse which is regarded as the most its variable part. effective method for bonus payments 3. Company provides for the procedure ensuring return of reimbursement. bonus payments to the Company which were illegally received by the executive bodies members and other key

156 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle officials of RSC Energia. 4.3.2 Company has implemented the program to 1. Company has implemented the program of long- □ compliance In the near future, the Company does motivate executive bodies members and other term motivation for members of the Company executive □ partial not intend to implement this program key officials of the Company in the long run by bodies and its other key officials by using RSC Energia’s compliance due to the risks associated with conflict using its stock (options or other derivatives stock (financial instruments based upon the Company stock). of interests which may arise from top  non- based upon RSC Energia’s stock). 2. Program of long-term motivation for executive management activity. compliance bodies members and other key officials of the Company envisages that the right to sell the stock and other financial instruments involved in this program becomes effective not earlier than three years after the date of their being made available. In so doing, the right to sell them is tied to achievement by them of specific indicators of the Company operation. 4.3.3 Amount of compensation (“golden parachute”) 1. Amount of compensation (“golden parachute”) to  compliance Amount of compensation is determined to be paid by the Company in the event of early be paid by the Company in the event of early termination of □ partial as being equal to three average monthly termination of the powers to executive bodies the powers to executive bodies members or key executives compliance salaries. members or key executives on the Company’s on the Company’s initiative and in the absence of acts in □ non- initiative and in the absence of acts in bad faith bad faith on their part did not exceed double the amount of compliance on their part shall not be higher than double the fixed part of annual remuneration during the accounting amount of fixed part of annual remuneration. period. 5.1 Company established efficiently operating risk management and internal control system aimed to ensure reasonable confidence in achievement of the objectives set to the Company. 5.1.1 Company Board of Directors established 1. Functions of different control bodies and □ compliance Risk management and internal control concepts and approaches to organizing risk subdivisions of the Company with respect to risk  partial system is currently under development. management and internal control system in management and internal control system are clearly defined compliance The Company set up internal audit RSC Energia in the Company By-laws/corresponding corporate policy department subordinate functionally to □ non- approved by the Board of Directors. the Board of Directors. Also economic compliance security department subordinate to executive bodies was established. Risk management function is distributed among the departments. The Economic Security Office of the Company implements package of measures focused on organizing risk management

157 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle and internal control system to prevent and combat corruption. Board of Directors Audit Committee approved the Regulations on internal audit department which secure functions of the department related to risk control and assessment in the Company. Also the Audit Committee approved the Regulations on internal control system of RSC Energia. In order to tighten internal control, the Board of Directors reviewed on a regular basis the issues of compliance with the requirements of anticorrupt practice laws and prevention of corruption and other infringements during day-to-day activities over the accounting period. The Audit Committee during the accounting period approved draft Provision on assessment of corruption risks at RSC Energia, with due regard for the approval received from the Economic Security Department of State Corporation ROSCOSMOS. The Board of Directors (Minutes No. 11 of 18.11.2019) approved the Provision on assessment of corruption risks at RSC Energia. 5.1.2 Company executive bodies ensure development 1. Company executive bodies provided distribution of  compliance and maintenance of efficiently operating risk functions and powers regarding risk management and □ partial management and internal control system in the internal control system among managers (heads) of compliance Company. divisions and departments accountable to them. □ non- compliance 5.1.3 Company risk management and internal control 1. Company approved the policy to act against corruption.  compliance The Company approved Anticorrupt system gives an impartial, fair and clear idea 2. Company developed a simple method to inform the practices policy, as well as other follow-

158 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle about current standing and prospects of RSC Board of Directors or its Committee on Audit about the □ partial up documents were accepted (including Energia; ensures integrity and transparency of facts of violating law, internal procedures, code of ethics of compliance Code of Ethics and Conduct of the its reporting, as well as acceptability of the risks RSC Energia. □ non- Company Employees; Regulations on the Company faces. compliance reporting by RSC Energia’s employees information about their being given gifts due to their position or official duties they perform, handing gifts over and their assessment, selling (buyout) and crediting an account with the amount received from their sale; Regulations on Conflict of Interests; Regulations on the Committee on meeting the requirements for official conduct of employees and settlement of conflict of interests; the Procedure to notify RSC Energia about the facts of reporting incitement of the Company employees to committing corruption offences; Provision on “hot line” on the issues to combat corruption in the Company). The accounting period saw the efforts undertaken to combat corporate fraud and corruption. The Company site places telephone numbers for feedback communication in order to report the facts of corruption. The Company is included in Consolidated Register of Anticorruption Charter of Russian Business Participants. 5.1.4 Company Board of Directors undertakes all 1. During the accounting period, the Board of □ compliance During the accounting period, the required measures to make sure that the risk Directors or the Committee on Audit at the Board of  partial Committee on Audit gave assessment of management and internal control system Directors assessed efficiency of the risk management and compliance internal control system efficiency every existing in the Company is consistent with the internal control system operation. Information about the quarter. With respect to risk □ non- concepts and approaches to its organization main results of the assessment made is part of the Company management and internal control system compliance

159 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle defined by the Board of Directors and operates Annual Report. efficiency, see Note to item 2.1.3. efficiently. 5.2 For systematic independent assessment of reliability and efficiency of the risk management and internal control system, as well as the corporate governance practice, the Company arranges conduct of internal audit. 5.2.1 For conduct of internal audit, the Company set 1. For conduct of internal audit in the Company  compliance Internal Audit Department functionally up separate organizational department or separate organizational department of internal audit □ partial accountable to the Committee on Audit independent outside organization is brought in. subordinate functionally to the Board of Directors was set compliance was set up. Functional and administrative accountability of up or independent outside organization was brought in □ non- internal audit department are differentiated. which was based upon the same principle of accountability. compliance Internal audit department is functionally subordinate to the Board of Directors. 5.2.2 Internal Audit Department gives assessment of 1. During the accounting period, assessment was given □ compliance Assessment of the internal control internal control system efficiency; assessment of efficiency of the risk management and internal control  partial system efficiency by particular lines of of risk management system efficiency, as well system as part of internal audit activity. compliance activity was made as review and as corporate governance system. Company 2. Company uses generally accepted approaches to approval by the Board of Directors □ non- employs generally accepted standards for internal control and risk management. Committee on Audit of quarterly reports compliance internal audit activity. submitted by the Internal Audit Department. Also refer to the explanations given to item 2.1.3. 6.1 Company and its activity are transparent for the shareholders, investors and other persons concerned. 6.1.1 Company formulated and adopted information 1. Board of Directors of RSC Energia approved its □ compliance Board of Directors has not approved the policy which ensures efficient information information policy formulated with due regard for the  partial Company information policy. RSC communication with the Company, recommendations stated in the Code. compliance Energia is guided by the legislation shareholders, investors and other persons 2. Board of Directors (or one of its Committees) considered requirements for information disclosure □ non- concerned. the issues concerning the Company adherence to its by joint-stock companies. compliance information policy at least once over the accounting period. Procedure to submit information to shareholders is stated in the Articles of Association (Art.42) and the Provision on information submission at the request of RSC Energia shareholders approved by the Board of Directors (Minutes No 1 of 07.08.2017). The Company established its own Internet site and supports it (also

160 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle English version of the site is maintained); this site places (among other things) the shareholders’ section with relevant information. The site presents contact data (phone, fax, E- mail address) which can be used by the persons concerned for requesting information and discussing various matters. 6.1.2 Company shall disclose information about the 1. Company discloses information about the Company  compliance corporate governance system and practice, corporate governance system and corporate general □ partial including detailed information about adherence governance concepts being used at RSC Energia, including compliance to the principles and recommendations set forth its Internet site. □ non- in the Code. 2. Company discloses information about the membership compliance of its executive bodies and Board of Directors, independence of the Board members and their participation in the Committees at the Board of Directors (as defined in the Code). 3. Should there be any person exercising control over the Company, RSC Energia shall issue memorandum concerning this person exercising control with respect to his intentions regarding corporate governance in the Company. 6.2 Company promptly discloses full, urgent and reliable information about its operation to ensure that reasonable decisions are taken by the Company shareholders and investors. 6.2.1 Company shall disclose information according 1. Company information policy defines approaches and □ compliance Company follows the legislation to the principles of regularity, consistency and criteria for determining information which could affect  partial requirements for information disclosure promptitude, as well as accessibility, reliability, assessment given to the Company and value of its securities, compliance by joint-stock companies. completeness and comparability of data being as well as the procedures ensuring prompt disclosure of Company established and supports its □ non- disclosed. information like that. own Internet site. Also the English compliance 2. In the event that the Company securities circulate on version of its site is maintained. The foreign organized markets, disclosure of pertinent Company places its Annual Report in information both in the Russian Federation and on these English on its site. Foreign shareholders markets is performed simultaneously and equivalently hold insignificant number of the during the accounting year. Company shares. 3. If foreign shareholders hold significant number of the Company shares, then information is disclosed not only in

161 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle Russian, but also in one of the most commonly-used foreign languages. 6.2.2 Company avoids formalistic approach to 1. During the accounting period, the Company disclosed  compliance Company discloses annual and semi- information disclosure and makes public both annual financial statements and semi-annual financial □ partial annual financial statements prepared by pertinent information about its activity, even statement prepared by IAS standards. The Company Annual compliance IAS standards. The financial statements though disclosure of this information is not Report over the accounting period covered annual financial prepared by RAS standards is an □ non- provided for in the legislation. statements prepared by IAS standards along with the integral part of the Annual Report. compliance auditor’s report. 2. Company discloses full information about capital structure as per Recommendation 290 of the Code which can be found in the Annual Report and on the Internet site of the Company. 6.2.3 Annual Report as one of the most important 1. Company Annual Report contains information about  compliance instruments of information communication with the key aspects of the Company operation and its financial □ partial the shareholders and other parties concerned performance. compliance covers information which makes it possible to 2. Company Annual Report addresses information about □ non- give assessment of the Company annual ecological and social aspects of the Company activity. compliance performance. 6.3 Company shall furnish information and submit documents at shareholders’ requests in accordance with the principles of equal availability and being free from encumbrance. 6.3.1 Company shall furnish information and submit 1. Company information policy establishes □ compliance Formalized provision on information documents at shareholders’ requests according unencumbered procedure to provide the shareholders access  partial policy has not been approved. Board of to the principles of equal availability and being to information, including information about the legal compliance Directors approved the Provision on free from encumbrance. entities as subsidiary companies at shareholders’ request. information submission at the request of □ non- RSC Energia shareholders. compliance Company furnishes information and submits documents at shareholders’ requests in accordance with the principles of equal availability and being free from encumbrance. The Company site places the procedure for information presentation to shareholders and information about amount of payment for making document copies.

162 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle 6.3.2 When the Company makes information 1. During the accounting period the Company did not  compliance During the accounting period, the available to the shareholders, the balance is kept refuse to meet shareholders’ requests for furnishing of □ partial shareholders were never refused to meet between specific shareholders’ interests and information or these refusals were well-grounded. compliance their requests about making relevant interests of the Company itself which tries to 2. There are cases specified by the Company information non-compliance information available. Confidential maintain confidentiality of important policy when the shareholders are notified about confidential information may be made available with □ non- commercial information with a potential character of information and they commit themselves to certain restrictions and never will be compliance significant effect on its competiveness. keep it confidential. made available until confidentiality agreement has been signed (the above conditions were stipulated in the Provision on the procedure for information delivery at the shareholders’ requests approved by RSC Energia’s Board of Directors). 7.1 Actions that affect to a considerable extent or may affect equity capital structure and financial standing of the Company and shareholders’ position, respectively, (Material corporate actions) shall be conducted on fair terms ensuring adherence to the rights and interests of shareholders, as well as other parties concerned. 7.1.1 Material corporate actions mean reorganization 1. Company Articles of Incorporation determine the list  compliance Company Articles of Association do not of the Company; acquisition of 30% and more of transactions or other actions recognized as material □ partial use term “material corporate actions”, of voting shares of RSC Energia (take-over), corporate actions and criteria for their determination. Taking compliance but define a reasonably long list of the making major transactions by the Company; decisions on material corporate actions falls within transactions and actions decisions upon □ non- increase or decrease in the charter capital of the competence of the Board of Directors. In those cases when which are to be taken by the Board of compliance Company; conduct of listing and delisting of the legislation directly assigns conduct of these corporate Directors. In cases when the issues are the Company stock; as well as other actions actions to the competence of general shareholders’ meeting, referred to by the legislation to which can result in significant changes of the the Board of Directors shall give the shareholders competence of general shareholders’ shareholders rights or affect their interests. RSC corresponding recommendations. meeting, the Board of Directors shall Energia Articles of Association determine the 2. Company Articles of Association recognize the provide corresponding list (criteria) of transactions or other actions following corporate actions as material (as a minimum): recommendations on which qualified being material corporate actions; such actions reorganization of the Company; acquisition of 30% and majority (2/3 of their total number) will being referred to competence of the Company more of its voting shares (take-over); making major take decision. Board of Directors. transactions by the Company; increase or decrease in the charter capital of the Company; listing and delisting of the Company stock. 7.1.2 Board of Directors plays a crucial role in taking 1. Corporate provides for the procedure according to □ compliance The procedure is not foreseen, because decisions or giving recommendations on which independent directors declare their position on □ partial there are no independent directors material corporate actions; in so doing, the material corporate actions prior to their approval. compliance involved in the Company. In fact, the Board of Directors relies upon position taken by Chairman of the Board of Directors

163 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle independent directors of the Company.  non- aims to ensure taking decisions on compliance critical issues by unanimous voting of all Board of Directors members. 7.1.3 In taking material corporate actions affecting 1. Company Articles of Association with due regard for □ compliance Company Articles of Association do not shareholders’ rights and legitimate interests, all special features of its operation set lower criteria for  partial use term “material corporate actions”, shareholders of the Company are afforded equal assigning the Company transactions to material corporate compliance but set lower criteria for assigning the conditions; moreover, additional measures actions than minimum criteria stipulated by law. Company transactions to the Board of □ non- protecting the rights and legitimate interests of 2. During the accounting period, all material corporate Directors competence than it is compliance the Company shareholders are foreseen in the actions went through the approval procedure prior to their stipulated by law. event that mechanisms stipulated by law and being taken. aimed to protect the shareholders rights are not well enough. In so doing, the Company does not only follow formal requirements of current legislation, but also adheres to the corporate governance principles stated in the Code. 7.2 Company procedure for taking material corporate actions makes it possible for the shareholders to get full information about actions like that on time; to influence taking these actions and guarantee adherence to and adequate level of their rights protection while taking these actions 7.2.1 Information about taking material corporate 1. During the accounting period the Company  compliance During the accounting period the actions is disclosed with clarifying the reasons disclosed information about its material corporate actions, □ partial Company disclosed information as for, conditions and consequences of taking including the reasons for them and due dates for taking compliance messages about material facts. Also the these actions. these actions. Company discloses information on its □ non- Internet site. compliance 7.2.2 Rules and procedures related to taking material 1. Company By-laws provide for the procedure to bring □ compliance Company distinguishes other categories corporate actions by the Company are set forth independent appraiser in to provide assessment of property  partial of transactions in effecting of which in RSC Energia’s By-laws. being alienated or acquired under big deal or interested-party compliance their price shall be determined by transaction. independent appraiser involved □ non- 2. Company By-laws provide for the procedure to bring (transactions having to do with compliance independent appraiser in to provide assessment of RSC acquisition/alienation of real property, Energia’s stock acquisition and redemption. stock (shares) of other joint-stock 3. Company By-laws provide for the extended list of companies, etc.). The documents reasons for which RSC Energia Board of Directors members (Provision on Procurement Activity and and other persons stipulated by law are recognized interested other documents) specifying the in the Company transactions. procedure for bringing third persons in

164 Status of compliance with Explanations of deviation from Item Criteria for assessment of compliance with corporate Corporate Governance Principles corporate assessment criteria for compliance with No governance principle governance corporate governance principle principle to provide services (including those of appraisers) are effective in the Company. The Company currently does not intend to extend the List of reasons for interest due to the fact that the Company prepared a wide list of the transactions assigned to the Board of Directors competence. In addition, there is the procedure for transactions agreement effective in the Company which makes it possible to reveal indications of informal interest or conflict of interests.

165 APPENDIX 5 / Information about large deals in 2019 Information about large deals effected by RSC Energia during accounting year, including the List of the transactions made by RSC Energia during the accounting year and recognized in accordance with Federal Law «Joint-Stock Companies» as large deals, as well as other transactions, effecting of which is subject to the procedure for large deals approval as stipulated in the Company Articles of Association, each transaction being accompanied by information about its material terms and the Company managerial body which took decision on its approval No transactions recognized by Federal Law «On Joint-Stock Companies» as large deals and requiring approval by appropriate Company managerial bodies have been effected in the accounting year. Company Articles of Association do not lay down other cases when large deals approval procedure provided by the Federal Law «On Joint-Stock Companies» is applied to the transactions being effected by the Company.

166 APPENDIX 6 / Report on the interested-party transactions effected by RSC Energia in 2019 Report on the interested-party transactions effected by RSC Energia in 2019 is prepared in accordance with the requirements set out in para 1.1, Art.81 of Federal Law «On Joint Stock Companies» and attached as the Appendix to this Annual Report on the 2019 performance.

Report on the interested-party transactions effected by RSC Energia in 2019 was approved by RSC Energia Board of Directors at its meeting held on August 24, 2020 (Minutes No 31 of 24.08.2020).

167 REPORT ON THE INTERESTED-PARTY TRANSACTIONS EFFECTED BY RSC ENERGIA IN 2019

Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval State Corporation ROSCOSMOS is the holding company for Minutes for agreement of the contract price attached to the contract for ZAO ZEM RSC the transaction parties; RSC Energia Management Board members P.V Vinokurov, Y.A. Yermakov and Y.A. Mikrin are performance of work on manufacture of SC No. 2 complete items. Energia (Customer) No request for 1. 06.02.2019 the members of ZAO ZEM RSC Energia Management Board; No disclosure of information Setting fixed price at Phase 11.1 of Contract in the amount of RSC Energia approval 130 307 777 rubles. the member of RSC Energia Management Board I.Y. Maltsev (Contractor) is Director General and Chairman of Management Board at ZAO ZEM RSC Energia. Interrelated transactions: supplementary agreements to loan agreements Message about material fact “Information No. 1-2011 of 27.05.2011, No. 1-2012/l of 26.03.2012, No. 5-2012/L of about the issuer’s Board of Directors meeting 01.10.2012, No. 1-2013/L of 13.02.2013, No. 1-2015/L of 08.04.2015., RSC Energia Board of held, as well as about the following decision No. 2-2015/L of 31.08.2015, No. 1-2016/L of15.04.2016. (Lender) Directors State Corporation ROSCOSMOS is the holding company for taken by the issuer’s Board of Directors: on 2. 16.04.2019 Subject of S/A: making amendments to the contract terms: changing loan OOO Energia- Minutes No. 9 the companies as the parties to the transaction interested-party transaction approval”. repayment period: no later than 31.12.2019. Logistics (Borrower) of 24.01.2019 Transaction size is 4 068 391 393,02 rubles which includes maximum Message about material fact “On making of principal debt and maximum amount of interest from the date of granting the interested-party transaction by the the loan and till 31.12.2019 interested-party transaction by the issuer” Interrelated transactions: supplementary agreements to loan agreements Message about material fact “Information No. 1-2010 of 12.04.2010, No. 2-2010 of 07.07.2010, No. 3-2010 of about the issuer’s Board of Directors meeting RSC Energia 20.10.2010, No. 1-2011/O of 08.09.2011, No. 1-2014/O of 05.02.2014. Board of held, as well as about the following decision (Lender) Subject of S/A: making amendments to the contract terms: changing loan Directors State Corporation ROSCOSMOS is the holding company for taken by the issuer’s Board of Directors: on 3. 16.04.2019 repayment period: no later than 31.12.2019. OOO Energia- Minutes No. 9 the companies as the parties to the transaction interested-party transaction approval”. Overseas Transaction size is 5 281 100 054, 74 rubles which includes maximum of 24.01.2019 Message about material fact “On making of (Borrower) principal debt and maximum amount of interest from the date of granting the interested-party transaction by the the loan and till 31.12.2019 interested-party transaction by the issuer” State Corporation ROSCOSMOS is party to the transaction and State Corporation the holding company for the other party – RSC Energia; RSC Message about material fact “Information Contract for provision of FGB management and support services to Board of ROSCOSMOS Energia’s Board Directors’ members S.V. Saveliev, O.P. about the issuer’s Board of Directors meeting 19.06.2019 perform engineering support tasks at the firm price of 381 559 425,80 Directors 4. (Customer) Frolov, M.N. Khailov are the members of ROSCOSMOS State held, as well as about the following decision rubles, with due date of 31.12.2020. Minutes No. 25 Corporation Management Board; the member of RSC Energia taken by the issuer’s Board of Directors: on RSC Energia of 21.06.2019 (Contractor) Board of Directors S.K. Krikalev is the representative of the interested-party transaction approval”. transaction party – State Corporation ROSCOSMOS. State Corporation ROSCOSMOS is the holding company for SA No.47 to the contract for performance of work on manufacturing life RSC Energia the transaction parties; RSC Energia Management Board support system elements (water tanks, filling indicators, halves). members P.V Vinokurov, Y.A. Yermakov and Y.A. Mikrin are 20.06.2019 (Customer) No request for 5. Subject of S/A No. 47: changing work performance dates by calendar the members of ZAO ZEM RSC Energia Management Board; No disclosure of information approval plan milestones till June 2019, as well as setting tentative price under the ZAO ZEM RSC the member of RSC Energia Management Board I.Y. Maltsev contract as a whole in the amount of 412 091 132,45 rubles. Energia (Contractor) is Director General and Chairman of Management Board at ZAO ZEM RSC Energia.

168 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval State Corporation ROSCOSMOS is party to the transaction and State Corporation the holding company for the other party – RSC Energia; RSC Contract to provide space flight services to foreign national implementing ROSCOSMOS Energia’s Board Directors’ members S.V. Saveliev, O.P. the program of flight to the International Space Station Russian Segment No request for 6. 16.07.2019 (Customer) Frolov, M.N. Khailov are the members of ROSCOSMOS State No disclosure of information at the firm price of 138 203 758, 06 rubles and due date of 30.06.2020. approval Corporation Management Board; the member of RSC Energia RSC Energia (Contractor) Board of Directors S.K. Krikalev is the representative of the transaction party – State Corporation ROSCOSMOS. Agreement to use launch vehicle Soyuz FG, assembly-protective unit and replenish the above injection equipment during launch of crew transportation spacecraft Soyuz MS-13, on the following terms: a) the following injection equipment is provided to launch crew State Corporation ROSCOSMOS is party to the transaction and transportation spacecraft Soyuz MS-13 by State Corporation the holding company of the other party, RSC Energia; ROSCOSMOS to RSC Energia no later than 5 days from the date of the Chairman of RSC Energia Board of Directors D.O. Rogozin is Message about material fact “Information Board of Agreement being signed: State Corporation Director General, the member of Supervisory Board and about the issuer’s Board of Directors meeting Directors 7. 18.07.2019 -launch vehicle Soyuz-FG; ROSCOSMOS representative of the transaction party – State Corporation held, as well as about the following decision Minutes No. 15 -assembly-protective unit; ROSCOSMOS; RSC Energia Board of Directors members taken by the issuer’s Board of Directors: on RSC Energia of 15.08.2019 б) RSC Energia transfers to State Corporation ROSCOSMOS the S.V. Saveliev, Yu.M. Urlichich, M.N. Khailov are the interested-party transaction approval”. replenishing injection equipments: members of State Corporation ROSCOSMOS Management - launch vehicle Soyuz-2 of Phase 1a, no later than 20.12.2019; Board. - assembly-protective unit, no later than 31.08.2019; в) the cost of the injection equipment to be received and transferred is recognized as equal. S/A No.9 to the Lease Contract between the Lessor and the Lessee on putting out on loan since 01.01.2019 of buildings and nonresidential premises with a total are of 24638,4 m2 located at the following addresses: a) premises I: 4A Lenin Street, Korolev, Moscow Region: - office premises on the 1st floor (Nos 48-58, 61, 82, 83) and 2nd floor (Nos 470, 472-489, 499, 526-528, 531) of Production-administrative building No. 1 with lean – to (autoclave) and premises of structure 120 (KNS) (inv. No. 0100434), with total area of 966,4 m2.; st 2 - office premises on the 1 floor (Nos 56-67, 72-82, part 83 (5,6 m ), 84, State Corporation ROSCOSMOS is the holding company for 87, 230, 249-265); on the 2nd floor (Nos 420, 426-471, part 472 (36,3 m2), RSC Energia (Lessor) the transaction parties; RSC Energia Management Board 473-480, 498, 509-512, 514-516, 522, 523, 526, 534, 535, 550-561, 566- members P.V Vinokurov, Y.A. Yermakov and Y.A. Mikrin are rd th No request for 8. 18.07.2019 572, 572а); on the 3 floor (Nos 614-663, 665-726, 733-736); on the 4 ZAO ZEM RSC the members of ZAO ZEM RSC Energia Management Board; No disclosure of information approval floor (Nos 742-789) of Production-administrative building No. 2 (inv. Energia (Lessee) the member of RSC Energia Management Board I.Y. Maltsev No. 0100435), with total area of 11 713,6 m2 st is Director General and Chairman of Management Board at - office premises on the 1 floor (No.26) of Production-administrative ZAO ZEM RSC Energia/ building No. 10 (inv. No. 0100439), with total area of 24,7 m2; - office premises on the 1st floor (No. 10yu) of Production-administrative building No.11 (inv. No. 0100440), with total area of 65 6 m2.; - office premises on the 3rd floor of Block A and 2nd floor of Block B (Nos 183-200, 202, 203, 210); 3rd floor of Block B (Nos 231-261, 269- 273); 4th floor of Block B (Nos 280-306, 309-318) of Production- administrative building No. 14 (inv. No. 0100441), with total area of 2 188,4 m2; - office premises on the 1st floor (No. 32) and 2nd floor (Nos 12-15) of Production-administrative building No. 38 (inv. No. 0100444), with total

169 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval area of 166,5 m2; - office premises on the 2nd floor (Nos 3-6, 8-10, 12, 15, 15а) and 3rd floor (Nos 23,25, 26, 28) of Production-administrative building No. 39 (inv. No. 0100445), with total area of 260,1 m2; - office premises on the 1st floor (Nos 7, 11, 21, 29, 30, 32, 34); 2nd floor (Nos 1-5, 7, 11, 21, 23); the 3rd floor (Nos 2, 5-12, 16, 19-27) of Production-administrative building No. 88 (inv. No. 0100453), with total area of 1 180,9 m2; - office premises on the 1st floor (Nos 718, 726-736) and the 6th floor (No. 835) of Production-administrative building No. 114 (inv. No. 0100452), with total area of 505,9 m2; b) Premises II: 1A Grabin Street, Korolev, Moscow Region - office premises on the 2nd floor (Nos 379, 382, 421-430); 3rd floor (Nos 521, 526, 528-531, 533-541, 551-557); 4th floor (Nos 606-610, 662, 663, 664, 666); 5th floor (Nos 670, 671, 726-728, 730-732) of Production- administrative building No. 1 (Block of cold shops, inv. No. 0100460), with total area of 1345,7 m2; - office premises on the 2nd floor (Nos 154, 186, 203-211); 3rd floor (Nos 232, 247, 271, 272, 279, 280); 5th floor (Nos 349, 350, 392) of Building (Instrument block of precision Machine-building) (inv. No. 0100358), with total area of 675,2 m2; - office premises on the 1st floor (Nos 1-10); 2nd floor (Nos 40-57); 3rd floor (Nos 70-83); 4th floor (Nos 90-102) of Building 77 (Module 1-2 with office-living premises extension) (inv. No. 0100467), with total area of 1 690,2 m2; - office premises on the 2nd floor (Nos 178-187, 189-191, 194, 199, 200); 3rd floor (Nos 216, 220-228, 230); 4th floor (Nos 253, 256, 260-263) of Production-administrative building No. 83 (inv. No. 0100463), with total area of 721,5 m2; c) beyond RSC Energia’s premises’: - office premises on the 1st floor (Nos 1-10, 12, 15-21, Part 22 (18,8 m2), 23-44); 2nd floor (Nos 27-50); 3rd floor (Nos 1-13, 21-35, 37-47) of Administrative building (Block 69) at the following address: 1 Dzerzhinsky passage, Korolev, Moscow Region (inv. No. 0100109), with total area of 2 044,7 m2 and in the basement of this building (room No. 8), with total area of 14,5 m2; - office premises (the whole building) of Building 26 (Check post) at the address: 2e Lenin Street, Korolev, Moscow Region (inv. No. 0100473), with total area of 50,8 m2; - production premises (the entire building) of Nonresidential building (not house) at the following address: 26B Kaliningradskaya Street, Korolev, Moscow Region (inv. No. 0100475), with total area of 640,0 m2; - office premises on the 1st floor (Nos 39-44) of Building 796 (Technical training department0 at the following address: 2B Grabin Street, Korolev, Moscow Region (inv. No. 0100483), with total area of 76,8 m2; - office premises (the whole building) of Building 131 (Check post) at the address: 109 Yaroslavskoye shosse, Korolev, Moscow Region (inv.

170 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval No. 0100332), with total area of 40,7 m2; - production premises (the entire building) of Building 133 (Shower room) at the address: 109 Yaroslavskoye shosse, Korolev, Moscow Region (inv. No. 0100334), with total area of 266,2 m2, at maximum possible price (rental) for 1 (one) year totaling 143 991 483, 95 rubles, incl. VAT at 20% which is composed of the following: -permanent part of the rental per year is 131 474 318, 16 rubles, incl. VAT at 20%, -maximum possible variable part of the rental to be calculated based upon the cost of cold water supply, water disposal and electric power which predictably amounts to 12 517 165, 79 rubles per year (incl. VAT at 20%). S/A No.10 to the Lease Contract between the Lessor and the Lessee for putting out on loan of buildings and nonresidential premises with a total area of 24690,7 m2 located at the following addresses: a) premises I: 4A Lenin Street, Korolev, Moscow Region: - office premises on the 1st floor and 2nd floor of Production- administrative building No. 1 with extension (autoclave) and premises of structure 120 (KNS), with total area of 966, 4 m2; - office premises on the 1st floor, 2nd floor, 3rd floor, 4th floor of Production-administrative building, with total area of 11 713,6 m2; - office premises on the 1st floor Production-administrative building, with total area of 24,7 m2; - office premises on the 1st floor of Production-administrative building, with total area of 65,6 m2; - office premises on the 3rd floor of Block A and the 2nd floor of Block B; rd th 3 floor of Block B; 4 floor of Block B as part of Production- RSC Energia State Corporation ROSCOSMOS is the holding company for administrative building, with total area of 2240,7 m2; the transaction parties; RSC Energia Management Board (Lessor) Board of Message about material fact “Information - office premises on the 1st floor and 2nd floor of Production- members P.V Vinokurov, Y.A. Yermakov and Y.A. Mikrin are about the issuer’s Board of Directors meeting 2 ZAO ZEM RSC Directors 9. 23.07.2019 administrative building, with total area of 166, 5 m ; the members of ZAO ZEM RSC Energia Management Board; held, as well as about the following decision nd rd Energia (Lessee) Minutes No. 25 - office premises on the 2 floor and 3 floor of Production- RSC Energia Management Board member I.Y. Maltsev is taken by the issuer’s Board of Directors: on 2 of 21.06.2019 administrative building, with total area of 260,1 m ; Director General and Chairman of Management Board at ZAO interested-party transaction approval”. - office premises on the 1st floor, 2nd floor, 3rd floor of Production- ZEM RSC Energia. administrative building, with total area of 1180,9 m2; - office premises on the 5th floor and 6th floor of Production- administrative building, with total area of 505, 9 m2; b) Premises II: 1A Grabin Street, Korolev, Moscow Region - office premises on the 2nd floor, 3rd floor, 4th floor, 5th floor of Production-administrative building (Block of cold shops), with total area of 1 345,7 m2; - office premises on the 2nd floor, 3rd floor, 5th floor of the Building (Instrument block of precise Machine-building), with total area of 675,2 m2; - office premises on the 1st floor, 2nd floor, 3rd floor, 4th floor of the Building (Module 1-2 with extension of service-living rooms), with total area of 1 690, 2 m2; - office premises on the 2nd floor, 3rd floor, 4th floor of Production-

171 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval administrative building, with total area of 721, 5 m2; c) beyond RSC Energia’s premises’: - office premises on the 1st floor, 2nd floor, 3rd floor of Administrative building located at the address: 1 Dzerzhinsky passage, Korolev, Moscow Region, with total area of 2 044, 7 m2 and in this building basement of 14, 5 m2; - office premises (the entire building) of the Building (check post) at the address: 2e Lenin street, Korolev, Moscow Region, with total area of 50,8 m2; - production premises (the entire building) of nonresidential building (hot house) at the address: 26B Kaliningradskaya Street, Korolev, Moscow Region; with total area of 640, 0 m2; - office premises on the 1st floor of the Building (technical training department) at the address: 2b Grabin Street, Korolev, Moscow Region, with total area of 76, 8 m2; - office premises (the whole building) of Building (check post) at the address: 109 Yaroslavskoye Shosse, Mytischi city, Moscow Region, with total area of 40, 7 m2; - production premises (the entire building) of Building (shower room) at the address: 109 Yaroslavskoye shosse, Mytischi city, Moscow Region, with total area of 266,2 m2, - at maximum possible price (rental) for 1 (one) year in the amount of 144 268 053,71 rubles, incl. VAT at 20% which is composed of the following: permanent part of the rental per year is 131 750 887,92 rubles, incl. VAT at 20%, maximum possible variable part of the rental to be calculated based upon the cost of cold water supply, water disposal and electric power which predictably amounts to 12 517 165,79 rubles per year (incl. VAT at 20%).

RSC Energia Contract for work performance (provision of services) on subject “Flight (Customer) engineering support of product (FGB Zarya) as part of the ISS RS” at No request for State Corporation ROSCOSMOS is the holding company for 10. 04.07.2019 No disclosure of information tentative (limit) price of 197 923 617, 45 rubles, with work performance AOGKNPTs after approval the companies as the parties to the transaction date: 31.12.2020. M.V. Khrunichev (Contractor) S/A No. 6 to the Contract for CPDE on subject “Extended service life of AOGKNPTs after FGB Zarya product till 2020 due to advancement and manufacture of M.V. Khrunichev No request for State Corporation ROSCOSMOS is the holding company for 11. 17.09.2019 orbital replaceable units onboard the station” , with work completion date (Customer) No disclosure of information approval the companies as the parties to the transaction under the Contract 30 11.2020 and firm price of the contract totaling 485 RSC Energia 750 000,00 rubles and VAT at 0%. (Contractor) Sberbank RSC Energia Management Board members P.V. Vinokurov, Contract of Suretyship between the Guarantor, RSC Energia, and Bank, Message about material fact “Information (Bank) Yu.A. Yermakov, and Y.A. Mikrin are the member of ZAO Sberbank, for ZAO ZEM RSC Energia (the Debtor Beneficiary), under Board of about the issuer’s Board of Directors meeting ZEM RSC Energia Management Board; RSC Energia which the Guarantor shall be responsible to the Bank for all the Directors held, as well as about the following decision 12. 27.09.2019 RSC Energia Management Board member I.Y. Maltsev is Director General, commitments to be performed under the Master Agreement on opening Minutes No. 4 taken by the issuer’s Board of Directors: on (Guarantor) Chairman of the Management Board at ZAO ZEM RSC renewable frame credit line which differential interest rates from of 26.08.2019 interested-party transaction approval”. Energia. 21.07.2017 entered into between the Bank and the Debtor, with include: ZAO ZEM RSC Message about material fact “On making of

172 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval - liabilities for the principal (credit) repayment; Energia (Debtor, the interested-party transaction by the - liabilities for payment of interest on the credit use and other payments Beneficiary) interested-party transaction by the issuer” under the Master Agreement; - liabilities to pay penalties; - reimbursement of legal and other expenses incurred by the bank and related to exercising the rights under the Master agreement and the contract; - repayment of the credit amount under the Master agreement and interest on the use of the loan funds accrued according to Art. 395 of the Civil Code of the Russian Federation in case of the Master Agreement being invalid or recognized as not being concluded. Period of credit repayment under the Master agreement is not later than 30.06.2023. Validity of the Suretyship is from the date of the contract being signed through 30.06.2026. Maximum price of the transaction under the contract of Suretyship can be 2 369 424 657, 53 rubles. Loan Agreement (opening of the credit line) between the Borrower, RSC Energia, and the creditor AO ROSCOSMOS. Limit of indebtedness: 1 billion rubles Maximum transaction price under the Loan Agreement may be 1 741 917 808, 22 rubles. Rate of interest on the credit use is: 9,2 % per annum. Interest due date: the Borrower shall pay interest to the Creditor not later than the last business day of interest period; on the date of expiration of Message about material fact “Information each particular tranche validity period and on the date of full and final about the issuer’s Board of Directors meeting AO held, as well as about the following decision credit repayment. ROSCOSMOSBA Board of State Corporation ROSCOSMOS is the holding company of Interest period (period of time during which the Borrower shall make Directors the transaction parties; RSC Energia’s Chairman of the Board taken by the issuer’s Board of Directors: on 13. 12.09.2019 NK (Creditor) payment of interest charged by the Creditor on the credit being used) is 1 Minutes No. 6 of Directors D.O. Rogozin is the Chairman of the Board of interested-party transaction approval”. RSC Energia calendar month. of 29.08.2019 Directors at AO ROSCOSMOSBANK. Message about material fact “On making of (Borrower) The Principal repayment procedure: the Borrower shall repay the the interested-party transaction by the principal (by one installment or by several installments) in credit currency interested-party transaction by the issuer” on the following, dates: on the first day of each availability period in the event that on this day amount of the principal exceeds limit of indebtedness established for the said availability period, as well as on the date of expiration of each particular tranche validity period (to the extent of current indebtedness on this tranche). Due date on performance of commitments under the transaction: 31.12.2025. State Corporation ROSCOSMOS is party to the transaction and S/A No. 6 to the contract for DE performance and provision of services the holding company of the other party, RSC Energia; RSC for rotation and rescue by CTS Soyuz MS of 6 (six) assigned State Corporation Energia Chairman of the Board of Directors D.O. Rogozin is by the American Party in in the scope of modification to the international ROSCOSMOS Director General, the Supervisory Board member and No request for 14. 31.07.2019 contract between State Corporation ROSCOSMOS and NASA. (Customer) representative of the transaction party – State Corporation No disclosure of information approval Subject of S/A: making amendments to the calendar plan and payment RSC Energia ROSCOSMOS; the members of RSC Energia Board of schedule, as well as setting firm (fixed) price of the entire contract (Contractor) Directors S.V. Saveliev, Y.M. Urlichich, M.N. Khailov are the totaling 5 619 320 922,00 rubles. members of State Corporation ROSCOSMOS Management Board.

173 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval S/A No. 7 to the contract for performance of work on manufacturing State Corporation ROSCOSMOS is the holding company for instruments and assemblies to extend service life of product FGB-1 till the transaction parties; RSC Energia Management Board 2020 RSC Energia members P.V Vinokurov, Y.A. Yermakov and Y.A. Mikrin are Subject of S/A: changing the contract terms relative to deletion of (Customer) No request for 15. 20.12.2019 the members of ZAO ZEM RSC Energia Management Board; No disclosure of information milestone No. 59, to revise prices set for milestones Nos. 11, 21, 22, 30, approval ZAO ZEM RSC RSC Energia Management Board member I.Y. Maltsev is 33, 36, 39, 46–53, 57, 58, 60, 61 and transform them in fixed ones; as Energia (Contractor) Director General and Chairman of Management Board at ZAO well as setting tentative price under the contract as a whole totaling ZEM RSC Energia. 232 853 968,00 rubles. Loan Agreement between the Borrower, RSC Energia, and the creditor AO ROSCOSMOS. The Creditor shall grant the Borrower the funds by means of opening the credit line in its favor with limit of indebtedness of 1,5 billion rubles, while the Borrower shall repay the received amount of credit to the Creditor along with interest accrued by the time not later than 31.12.2025. Maximum price of the transaction under the Loan Agreement may be 2 600 136 986, 30 rubles. Interest rate on the credit to be used is not lower than 8,7% per annum and not higher than 10% per annum. Specific interest rate is fixed in the Message about material fact “Information advice of granting credit (particular tranche). about the issuer’s Board of Directors meeting AO held, as well as about the following decision Interest due date: the Borrower shall pay interest to the Creditor not later ROSCOSMOSBA Board of State Corporation ROSCOSMOS is the holding company of than the last business day of the interest period, on the date of expiration Directors the transaction parties; RSC Energia’s Chairman of the Board taken by the issuer’s Board of Directors: on 16. 14.11.2019 NK (Creditor) of each particular tranche validity period and on the date of full and final Minutes No. 9 of Directors D.O. Rogozin is the Chairman of the Board of interested-party transaction approval”. credit repayment; RSC Energia of 24.01.2019 Directors at AO ROSCOSMOSBANK. (Borrower) Message about material fact “On making of Interest period (period of time during which the Borrower shall pay the the interested-party transaction by the Creditor the interest charged for the credit being used) is 1 (One) calendar interested-party transaction by the issuer” year; Principal repayment procedure: the Borrower shall repay the principal in credit currency on the following date: on the first day of each availability period in the event that on this day amount of the principal exceeds limit indebtedness established for this availability period, as well as on the date of expiration of each particular tranche validity period (in the amount of current indebtedness on such a tranche); Period of repayment of the received credit amount to the Creditor together with the interest accrued is not later than 31.12.2025. Contract for provision of services for rotation and rescue of two State Corporation ROSCOSMOS is the transaction party and astronauts assigned by the US Party in the scope of modification No. 327 the holding company of the other party - RSC Energia; RSC to the international contract between State Corporation ROSCOSMOS State Corporation Energia Chairman of the Board of Directors D.O. Rogozin is and NASA of December 16, 1993. ROSCOSMOS Director General, the Supervisory Board member and Works are performed under the Technical specification and Services No request for 17. 06.11.2019 (Customer) representative of the transaction party – State Corporation No disclosure of information Schedule. approval ROSCOSMOS; the members of RSC Energia Board of Price of the contract is firm (fixed) and amounts to 193 099 136, 14 RSC Energia Directors S.V. Saveliev, Y.M. Urlichich, M.N. Khailov are the rubles. Date of commencement of the contract services performance is (Contractor) members of State Corporation ROSCOSMOS Management April 01, 2019; date of services performance completion is April 30, Board. 2021.

174 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval State Corporation ROSCOSMOS is the transaction party and the holding company of the other party - RSC Energia; RSC Contract for provision of services for integration of the International Energia Chairman of the Board of Directors D.O. Rogozin is Space Station Russian Segment (ISS RS) with the ISS US Segment and State Corporation Director General, the Supervisory Board member; the equipment to be built by other ISS Program participants, as well as ROSCOSMOS Management board Chairman of the transaction party – State support of international programs to investigate and develop near-lunar No request for Corporation ROSCOSMOS; the member of RSC Energia 18. 12.12.2019 (Customer) No disclosure of information space and the Moon in the scope and on the terms provided for in the approval Board of Directors S.K. Krikalev is representative of the Technical Specification, at the firm price of 183 132 632, 00 rubles, VAT RSC Energia transaction party – State Corporation ROSCOSMOS; the at 0%,, with the dates for services performance from 01.01.2019 through (Contractor) members of RSC Energia Board of Directors S.V. Saveliev, 30.04.2020 Yu.M. Urlichich, M.N. Khailov are the members of the Management Board of the transaction party – State Corporation ROSCOSMOS. S/A No. 8 to the contract for works (services) performance on subject “Performance of development effort and provision of services for State Corporation ROSCOSMOS is the transaction party and rotation and rescue by CTS Soyuz MS of 6 astronauts assigned by the the holding company of the other party - RSC Energia; RSC American party in the scope of modification No.* to the international Energia Chairman of the Board of Directors D.O. Rogozin is contract between ROSCOSMOS and NASA of January 27, 2016 on the Director General, the Supervisory Board member; the following basic terms: State Corporation Management board Chairman of the transaction party – State -added to the calendar plan is new milestone No.23 (requirements for ROSCOSMOS No request for Corporation ROSCOSMOS; the member of RSC Energia 19. 11.12.2019 statement of work are in agreement with TS and supplements to TS) at (Customer) No disclosure of information approval Board of Directors S.K. Krikalev is representative of the the price of 27 349, 10 thousand rubles, with work completion date under RSC Energia transaction party – State Corporation ROSCOSMOS; the the milestone: 30.03.2020, (Contractor) members of RSC Energia Board of Directors S.V. Saveliev, -deleted milestone No. 12 from the calendar plan, Yu.M. Urlichich, M.N. Khailov are the members of the -determined is firm (fixed) price of the contract totaling Management Board of the transaction party – State Corporation 5 641 397 422, 00 rubles, ROSCOSMOS. -due dates of performance of the contract works: commencement - November 2014; completion - March 2020 State Corporation ROSCOSMOS is the transaction party and the holding company of the other party - RSC Energia; RSC Energia Chairman of the Board of Directors D.O. Rogozin is Message about material fact “Information Contract for performance of works (services) to provide space flight Director General, the Supervisory Board member; the about the issuer’s Board of Directors meeting State Corporation held, as well as about the following decision onboard crew transportation spacecraft Soyuz MS to the International ROSCOSMOS Board of Management board Chairman of the transaction party – State Space Station Russian Segment of space flight participants in the scope Directors Corporation ROSCOSMOS; the member of RSC Energia taken by the issuer’s Board of Directors: on 20. 23.12.2019 (Customer) and on the terms provided for in the Technical Specification at the firm Minutes No. 13 Board of Directors S.K. Krikalev is representative of the interested-party transaction approval”. price of 2 573 774 232 rubles, with work performance dates from RSC Energia of 20.12.2019 transaction party – State Corporation ROSCOSMOS; the (Contractor) Message about material fact “On making of 01.04.2019 through 31.08.2022 members of RSC Energia Board of Directors S.V. Saveliev, the interested-party transaction by the Yu.M. Urlichich, M.N. Khailov are the members of the interested-party transaction by the issuer” Management Board of the transaction party – State Corporation ROSCOSMOS. Loan Agreement No. 18-19 KL under which the Creditor shall grant the Message about material fact “Information Borrower the funds by opening the credit line with limit of indebtedness about the issuer’s Board of Directors meeting equal to 4 500 000 000, 00 rubles, while the Borrower shall repay the AO Board of State Corporation ROSCOSMOS is the holding company of held, as well as about the following decision Creditor the credit with interest accrued by the time not later than ROSCOSMOSBA Directors the transaction parties; RSC Energia’s Chairman of the Board taken by the issuer’s Board of Directors: on 21. 30.12.2019 31.12.2024. NK (Creditor) Minutes No. 13 of Directors D.O. Rogozin is the Chairman of the Board of interested-party transaction approval”. Maximum price under the Loan agreement may be 6 343 553, 97 RSC Energia of 20.12.2019 Directors at AO ROSCOSMOSBANK. Message about material fact “On making of thousand rubles. (Borrower) Receipt of the credit shall be performed by the Borrower by forwarding a the interested-party transaction by the notice of the credit receipt and use to the Creditor. interested-party transaction by the issuer”

175 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval Creditor shall consider the notice of credit receipt and use ,as well as the documents attached to it within 1 (One) business day from the date of its being received. Interest rate for utilization of the credit: the Borrower shall pay the Creditor interest on the credit utilization at the rate of 8,9% per annum Should the key interest rate of the Bank of Russia change relative to the indicator existing on the date of this Agreement being entered into, the Creditor is entitled unilaterally (without entering into supplementary agreement) to change interest rate of the Bank of Russia downwards or upwards. In so doing, rate of interest shall not be lower than 8,2% per annum or exceed 9,5% per annum. Interest due date: interest shall be paid by the Borrower to the Creditor not later than the last business day of interest period, on the date of each particular tranche validity period expiration and on the date of full and final credit repayment; Interest period (period of time during which the Borrower shall pay interest on the credit utilization charged by the Creditor) is 1 calendar month; Principal repayment procedure: the Borrower shall repay the principal (by one installment or by several installments) in credit currency on the following dates: on the first day of each availability period in the event that on this day amount of the principal exceeds limit of indebtedness established for a given availability period and on the date of expiration of each particular tranche validity period ( in the amount of current indebted ness on this tranche); Period of repayment of the received credit amount to the creditor along with interest accrued: not later than 31.12.2024; Security for liabilities under the Loan Agreement: entering into contract of Suretyship with the Guarantor – State Space Corporation ROSCOSMOS (TIN 7702388027), with limit of liability of the Guarantor totaling 4 900 000 000 rubles Contract for performance of work to manufacture and assemble compartments; provide assembly and other operations at Integrated Test State Corporation ROSCOSMOS is the holding company for Message about material fact “On making of Facility (ITF); commissioning of CTS Soyuz MS; outfitting of CTS ZAO ZEM RSC the transaction parties; RSC Energia Management Board the interested-party transaction by the Soyuz MS with personal equipment (three kits) according to the members P.V Vinokurov, Y.A. Yermakov and Y.A. Mikrin are Energia (Customer) No request for interested-party transaction by the issuer” 22. 25.12.2019 documentation of General Designer on CTS Soyuz MS; prelaunch the members of ZAO ZEM RSC Energia Management Board; approval processing of CTS “Soyuz MS”; operational use of CTS Soyuz MS DM RSC Energia RSC Energia Management Board member I.Y. Maltsev is Message about material fact “On making of in ILV launch and its post-flight deservicing, at the firm price of 2 134 (Contractor) Director General and Chairman of Management Board at ZAO the interested-party transaction by the 533 842, 00 rubles: commencement of work performance on April 01, ZEM RSC Energia. interested-party transaction by the issuer” 2019; completion of work on April 15, 2022 S/A No. 10 to the contract for performance of work (services) on subject State Corporation ROSCOSMOS is the transaction party and “Performance of development effort and services in support of rotation State Corporation the holding company of the other party - RSC Energia; RSC and rescue by CTS Soyuz MS of 6 (six) astronauts assigned by the ROSCOSMOS Energia Chairman of the Board of Directors D.O. Rogozin is No request for 23. 25.12.2019 American Party in the scope of modification No. 277 to the international (Customer) Director General, the Supervisory Board member and No disclosure of information approval contract between ROSCOSMOS and NASA No. NAS15-101100 of RSC Energia representative of the transaction party – State Corporation December 16, 1993” (Contractor) ROSCOSMOS; the members of RSC Energia Board of Subject of S/A: updating the price of one of the contract milestone (11) Directors S.V. Saveliev, Y.M. Urlichich, M.N. Khailov are the

176 Ite Date of Information Subject of transaction / Parties to Interested parties for transactions whose size is more m effecting about Reference to Internet web site Material conditions transaction than 2% - reason for interest No. transaction approval and the entire contract (former firm price of 5 627 035 962 rubles;, members of State Corporation ROSCOSMOS Management current firm price is 5 618 882 012 rubles) Board.

Director General, RSC Energia I.Y. Ozar

177 APPENDIX 7 / Information about economic entities with RSC Energia stake in their Charter Capital from 2 up to 20% Size of dividends Company’s stake received in the Location, Full firm’s name Shortened firm’s name in the legal entity Purpose of the Company’s stake accounting year TIN, MSRN Charter Capital by the Company, rubles Corporation “ILS ILS International C-T Corporation, Wilmington, 17% (Class B Promotion of the Company products and No dividend International Launch Launch Services, Inc. Delaware state, USA share with no services on the international market. At the payouts in the Services, Inc.” dividend payouts) present time, due to change in the accounting year shareholding structure of the ILS. International Services, impossibility to participate in the Board of Director’s activities of the above company, inefficiency in the Company participation in terms of any positive economic, political, social results achieved, the subject at issue is termination of its participation in this firm. Joint-Stock Company AO Gazprom Space 77B Moskovskaya Street, 16.16% Implementation of Yamal satellite No dividends "Gazprom Space Systems” Systems Schyolkovo, Moscow Region, communication development and manufacture were paid in the 141112 accounting year TIN: 5018035691 MSRN: 1025002045177 Limited Liability Company OOO Solnechny Bereg Office 309, 30 Sportivnaya 16 % Activity focused on provision of temporary No dividends ‘Solnechny Bereg’ * Street, Samara, 443030, accommodation and organization of holidays were paid in the TIN: 6315626106 and other entertainment accounting year MSRN: 1096315003950 SL Aerospace S.a.r.l Sea Launch S.a.r.l. 58, rue Charles Martel, L-2134 15% (preference Promotion of the Company products and No dividends Luxembourg, Grand Duchy of shares) services on the international market, deriving were paid in the Luxembourg profits from commercial SC launches from accounting year Sea-based Launch Platform. Due to sale of the assets of the Sea-based Launch Platform, the company conducts no activities. It is in the process of preparation for liquidation. Joint-Stock Company “Center ZAO TsSKT 4 Pionerskaya Street, Korolev, 2.33 % Scientific-technical expertise, certification of 17 400 for Rocket – Space Moscow Region, Russia, 141070 RST articles Technology Certification” TIN: 5018034722 MSRN: 1035003364098

178 * Since 20.09.2019 (entry in the Unified State Register of Legal Entities) as the result of transfer of the share in ownership of the liquidated legal entity (ZAO VKB RSC Energia) to its founder (RSC Energia)

179 APPENDIX 8 / Information about affiliated companies with the Company’s stake in the Charter Capital from 20% to 50% Size of dividends Company’s sake received in the Location, Full firm’s name Shortened firm’s name in the legal entity Purpose of the Company’s stake accounting year TIN, MSRN Charter Capital by the Company, rubles Joint-Stock Company AO NPK RECOD Blg 6/1, 40 Maryina Roscha, 3rd 26.57% Use of space business results for the benefit No dividend “Scientific – Production passage, Moscow, Russia, of Russian regions economy payouts in the Corporation RECOD” 127018 Bankruptcy activities are underway accounting year TIN: 7715700042 MSRN: 1087746601271

180 APPENDIX 9 / Information about subsidiary companies with the Company’s stake in their Charter Capital from 50 % + 1 share up to 100% Size of dividends Company’s stake received in the Location, Full firm’s name Shortened firm’s name in the legal entity Purpose of the Company’s stake accounting year TIN, MSRN Charter Capital by the Company, rubles Close Company ZAO ZEM RSC 4A Lenin Street, Korolev, 100% Manufacture of manned and cargo space No dividends “Experimental Machine- Energia Moscow Region, Russia, vehicles, orbital stations; production of were paid in the building Plant of S.P. 141070 articles and rocket-space complex accounting year Korolev Rocket and Space TIN: 5018037000 components Public Corporation Energia” MSRN: 1025002028314 Public Company AOIK Razvitiye 4A Lenin Street, Korolev, 100% Investment activity No dividends “Investment Company Moscow Region, Russia, were paid in the Razvitiye” 141070 accounting year TIN: 5018166567 MSRN: 1145018006088 Limited Liability Company OOO Project 4A Lenin Street, Korolev, 100% Investment activity. No dividends Project (RSC Energia- Moscow Region, Russia, Liquidation process is underway were paid in the Project till 23.05.2019) 141070 accounting year TIN: 5018128089 MSRN: 1085018005368 Joint-Stock Company AO Teplo RSC Energia 4A Lenin Street, Korolev, 100% Ensuring efficient management and No dividends “Teplo RSC Energia”** Moscow Region, Russia, operation of the Company power supply were paid in the 141070 services, ensured supply of power resources, accounting year TIN: 5018138369 water supply MSRN: 1095018005279 Limited Liability Company LCC OIME 4 Lenin Street, Korolev, 100% Social component of the Company business. No dividends “Orthopedic Industry Moscow Region, Russia, Ensuring manufacture and deliveries of were paid in the Moscow Energia” 141070 prosthetic-orthopedic products, technical accounting year TIN: 5018035726 equipment for rehabilitation of disabled MSRN: 1025002037191 persons, equipment, medical facilities; component items and materials for their production to enterprises of the Russian Federation and other countries Close Company ZAO BELROSSAT Office 416, blg 5, 15, P.Brovka 70% Development and operation of space No dividends BELROSSAT Street, Minsk, Belarus, 220072 systems, satellite and ground were paid in the telecommunication systems, provision of accounting year

181 telecommunication services to subscribers in the Republic of Belarus and foreign countries. No business activity Limited Liability Company OOO Energia SAT 1A Grabin Street, Korolev, 51% Manufacture of unmanned spacecraft and No dividends “Energia Satellite Moscow Region, Russia 141070, space objects, prelaunch processing of space were paid in the Technologies* TIN: 5018155195 objects for their injection into orbit; control of accounting year Note:It is not affiliated with MSRN: 1135018000259 space objects in space. respect to RSC Energia owing to special features intrinsic to corporate contract. Joint-Stock Company AO Energia-Telecom 4A Lenin Street, Korolev, 50,1 % Development, manufacture, commissioning No dividends “Energia-Telecom” Moscow Region, Russia 141070, and operational use (for communication, radio were paid in the TIN: 5018138640 and TV broadcasting) of satellite accounting year MSRN: 1095018005576 communication components and systems based upon unmanned spacecraft.

182 APPENDIX 10 / Non-profit organizations the participant (founder) of which is RSC Energia

Company’s stake Location, Full firm’s name Shortened firm’s name in the legal entity Purpose of the Company’s stake TIN, MSRN Charter Capital Private pre-school educational institution DOU Lesovichok 14A Severnaya Street, 100% Social project, secured admission of the kindergarten “Lesovichok” of general Korolev, Moscow Region, Company employees children to this pre-school education development type, RSC Energia Russia, 141070 educational establishment. TIN: 5018117827 MSRN: 1075000002615 Non-state education institution Regional- NOU RONUPK Personal- 2 Grabin Street, Korolev, - Providing for Company personnel training, Branch Scientific-Educational Production Cosmos Moscow Region, 141070 advanced vocational training, Company Complex “Personal-Cosmos” TIN: 5018044181 employees retraining MSRN: 1035003362624

International Association of Space Activity MAKD 42 Schepkin Street, Moscow, − Taking part in proposals for improvement of Participants 107996 space activity, its regulatory and legal TIN: 7702579590 framework; participation in exhibitions, MSRN: 1057748543577 workshops, making use of consulting services International Astronautical Federation, MAF 100 Avenue de Suffren 75015 − Promotion of space research, dissemination of nongovernmental nonprofit organization Paris France space knowledge, building up International (IAF) Community of Experts

Association Technological Platform NP “TP “NISS” 52 Lenin Street, − Participation in programs and innovative projects “National Information Satellite System” Zheleznogorsk, Krasnoyarsk development in order to create and develop (previously was Non-profit partnership Territory RF, 662972 perspective new products, services and set of “Technological Platform National TIN: 2452195158 “breakthrough” technologies for a sharp increase Information Satellite System). MSRN: 1122468058349 of the new generation automatic spacecraft user properties’ parameters and personal package space service availability

183 Company’s stake Location, Full firm’s name Shortened firm’s name in the legal entity Purpose of the Company’s stake TIN, MSRN Charter Capital Association of organizations for promotion Association NKTP Office II, 4/10 Sadovaya- - Participation in establishing government of rocket-space industry “National Space Triumfalnaya Street, Moscow, economic innovations and ensuring government Technological Platform” 127006 leading positions on the international market of TIN: 7710479736 space systems; (previously was the Non-Profit Partnership MSRN: 1127799005157 Participation in developing long-term scientific “National Space Technological Platform”) and application research strategy and its regular updating; The Russian products and services promotion.. Self-regulatory organization ‘Association of SRO AS 8 Lesnaya Street, microdistrict - Supervision of the Association members builders, Mezhregionstroyalians’ * Mezhregionstroyalians* Severny, Domodedovo, activity with respect to their adherence to the Moscow, 142000 requirements of the Russian Federation TIN: 7701167434 legislation concerning urban development; MSRN: 1117799014420 technical management, including the Association members compliance with the requirements set in the standards on work performance processes involving construction, reconstruction, capital repairs of capital construction projects approved by the National Association of self-regulatory organizations; Control rules; Standards and the Association in- house documents. Non-profit partnership ‘National NP NatsProject Blg 1, 25 Malaya Dmitrovka - Conduct of activities to design, build and repair Organization of Designers’ Street, Moscow, buildings and facilities Russia127006, TIN: 7709443100 MSRN: 1097799022023

184 Company’s stake Location, Full firm’s name Shortened firm’s name in the legal entity Purpose of the Company’s stake TIN, MSRN Charter Capital All-Russian Sectoral Association of OOOR SoyuzMash Rossiya Blg 3, 3 Gorokhovsky - Exchange of information, including information Employers “Russian Machinebuilders pereulok, Moscow, 101990, concerning new technologies development and Union” TIN: 7702226033 introduction coming from research institutions and MSRN:Н 1027739077431 engineering plants. Development of managers and engineering personnel; Arranging up-to-date training system and recovery of continuity of machine-building complex professional personnel; Pursuing government youth policy concerning technical education and training of skilled workers, engineering personnel for machine- building industry. All-Russian Sectoral Association of OOOR “SR RKP of Russia” 22 Novozavodskay Street, - Major objectives of the Employers’ Union are: Employers “Rocket-Space Industry Moscow, 121087 representation of legitimate interests and Employers’ Union of Russia” TIN: 7730240495, protection of rights of the Employers’ Union MSRN: 1177700021850 members in the field of social-industrial relations and associated economic relations acting in concert with governmental bodies, local self- government bodies, trade unions and their associations, other non-profit organizations; achievement of purpose for the benefit of the society and other purposes.

*As per para 1, part 5, art. 33191-FZ, by way of voluntary termination of the membership in SRO AS Stroykonsolidatsia (for Moscow) and transfer to SRO AS Mezhregionstroyalians (for Moscow Region).

185 APPENDIX 11 / Information about actual results of executing the Russian federation President and Government orders and instructions In accordance with the Decree No. 874 by the President of the Russian Federation dated December 2, 2013 “On the Rocket and Space Industry Management System” in order to improve the system of management of organizations in the rocket and space industry – the Company’s stock owned by the Russian Federation (429 497 shares, 38,22 %), were contributed as the stake of the Russian Federation to the Charter capital of the open joint-stock company “United Rocket-Space Corporation” (OAO URSC at the present time). As a result, after September 23, 2014, only those orders are applicable to the Company, which deal with the companies that have an indirect stake of the Russian Federation in their charter capital. In addition, on December 19, 2016 package of shares of RSC Energia owned by ZAO ZEM RSC Energia (35 604 shares %) and AO IK Razvitiye (195 825 shares %). was transferred in trust to AO URSC. Therefore, AO URSC over the accounting period managed in the aggregate (both directly and indirectly) 56,2% of RSC Energia’s Charter capital. On December 27, 2019 the trust agreements on trust management of the blocks of shares were cancelled as agreed by the parties. On January 29, 2020 the stock were transferred to trusteeship of State Corporation ROSCOSMOS (the said blocks amount to 19,62% of the Charter capital). Russian Federation in the person of Federal Property Management Agency owned 100 % of the block of shares of OAO URSC till November 2016. In July 2015 Federal Law No. 215-FZ of 13.07.2015 set up State Space Corporation Roscosmos. By Rosimuschestvo’s order No. 799-r of 14.10.2016 URSC stock were contributed as the stake of the Russian Federation to State Corporation ROSCOSMOS. During increase in RSC Energia’s Charter capital which occurred: • according to the resolution passed at extraordinary general shareholders’ meeting held on 19.03.2018 (Minutes No. 32 of 20.03.2018), the Russian Federation in the person of Federal Property Management Agency acquired 56 101 shares; • according to the resolution passed at extraordinary general shareholders’ meeting held on 25.03.2019 (Minutes No. 37 of 26.03.2019), the Russian Federation in the person of Federal Property Management Agency acquired 130 723 shares. the resultant stake of the Russian Federation in the person of Federal property Management Agency amounted to 14,26% of the total number of RSC Energia’s common stock placed. On December 31, 2019 the controlling stake of the government amounted to in the aggregate 93,59% of the total number of the stock placed; in so doing, State Corporation ROSCOSMOS and AO URSC ensure 79,33% of the total number of the stock placed.

186 LIST OF MAJOR ORDERS AND INSTRUCTIONS OF THE RUSSIAN FEDERATION PRESIDENT AND GOVERNMENT ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS 1. NON-CORE ASSETS ALIENATION 1.1. Non-Core assets alienation program Subparagraph “k”, paragraph Non-Core assets The Board of Directors (BOD) is to: 1) analyze the On the date of 15.07.2011 (minutes No 1) the Board of Directors 1 of the Order of RF President alienation program assets of the AO to justifiably identify non-core of the Company approved the Program of alienation (sale) of non- dated December 6, 2011, Pr- assets (NCA), 2) provide review and make a core assets owned by RSC Energia; on 20.06.2012 (Minutes No. 3668 resolution on Non-Core Assets (NCA) Alienation 9) the Board of Directors approved addendum to the Program of Program (to approve) alienation (sale) of non-core assets of the Company and extended Additionally: not only need these NCA be alienated, the dates for taking action in support of the Program but they also must be beyond the AO sphere of implementation. influence Efforts to implement the above Non-core assets alienation Subparagraph “v”, paragraph Also classified as non-core assets can be shares in program have been completed. 2 of the Order of RF President the subsidiaries and affiliates which are not involved When considering the issue concerning draft Program of the V.V. Putin No. 596 of in the core activities. Company financial recovery, the Board of Directors (Minutes 07.05.2012 “On Long-Term No 1 of 18.08.2016) passed the following resolution: along with Government Economic Policy core departments of State Corporation ROSCOSMOS to make sure to determine (update) the list of the Company non-core assets (assets not involved in the programs of the Company core business) and develop the program of handling non-core assets. The Board of Directors (Minutes No 24 of 31.05.2018) decided on RSC Energia joining the Program to handle non-core assets of State Corporation ROSCOSMOS (further referred to as the The letter from State Program). Corporation ROSCOSMOS The Board of Directors (Minutes No 8 of 18.01.2019) approved No SK-3548 of 05.04.2018 the Register of the non-core assets of RSC Energia. “On conduct of the corporate Directions from the common shareholder were sent to the procedure for State subsidiary companies (ZAO ZEM RSC Energia and AO Teplo Corporation ROSCOSMOS RSC Energia) to join the Program to handle non-core assets of joint-stock companies joining State Corporation ROSCOSMOS. the Program to handle non- As to ZAO ZEM RSC Energia, the common shareholder’s core assets of State resolution R-23/863 of 28.12.2018 was about approval of the Corporation ROSCOSMOS” Register of the non-core assets. With respect to AO Teplo RSC Energia, the common shareholder’s resolution R-23/754 of 26.11.2019 was passed approving the Register of the non-core assets. The Board of Directors (Minutes No. 9 of 04.10.2019) approved addenda to the Register of the non-core assets of RSC Energia. The Board of Directors (Minutes No. 14 of 30.01.2020 considered

187 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS the issue of making supplements to the register of the non-core assets of RSC Energia and resolved as follows: - approve Addendum to the Register of the non-core of RSC Energia - approve the Action Plan to make sure to implement the Addendum to the Register of the non-core assets of RSC Energia. 2. PROCUREMENT OF GOODS, WORKS AND SERVICES 2.1. Approval of Regulations on Procurement, improving procurement transparency Federal Law 223-FZ “On Approve Regulations on Regulations on procurement: When conducting its procurement activity the Company follows procurement of goods, works Procurement - contains procedures for preparing and conducting fundamental principles of Federal Law No. 223-FZ “On and services by particular procurement processes and conditions for their Procurement of Goods, Work, Services by Particular Legal legal entities” application; Entities” and focuses on execution of the orders indicated in the - procedure for concluding and executing contracts. FR Government instructions No. 6362p-P13 of 24.10.2013. Order of the RF Government Review at the BOD Consider the feasibility of switching to electronic Since Federal Law No. 223-FZ of 18.07.2011 is not applicable to No. ISh-P13-8685 dated meetings the issue of procurement RSC Energia, considering that the Company does not meet the 17.12.2012 making decisions aimed at requirements, specified in Paragraph 2 of the law, it is not required assuring procurement to post procurement information in the common information transparency, including systems and on the official web site (www.zakupki.gov.ru). approval of the Regulations In accordance with the Russian Federation Government on procurement instructions “On Ensuring Transparency of AO Procurement Activity”: – posted on the Company official site is information about placement of orders in electronic form (procurement activity), RSC Energia’s Plan for procurement of goods (work, services) for 2019”, also posted were “Provision on RSC Energia Procurement Activity” (Company President Order No. 35 dated February 04, 2013) and “RSC Energia Procurement Policy” (Company President Order No. 514 dated December 23, 2011). Screening procedures are performed electronically using electronic trading platforms. The Board of Directors (Minutes No 3 of 18.10.2018) considered the issue on RSC Energia’s Joining the Regulations on Procurement of State Corporation ROSCOSMOS. The Board of Directors Chairman proposed to place this issue for consideration of RSC Energia’s Board of Directors by the interested members of the Board of Directors in case of need. The Board of Directors (Minutes No 8 of 18.01.2019) considered and took note of the Report on the performance during the 9 months of 2018, including the report on the procurement results. The Board of Directors (Minutes No 20 of 28.05.2019) considered

188 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS and took note of the Report on the 2018 performance, including the report on the procurement results. Issued was Director General’s order No. 42 of 04.02.2020 “On implementing the Action plan to join the Provision on procurement of goods, works, services at State Corporation ROSCOSMOS”. 3. STRATEGY DEVELOPMENT AND UPDATING, EFFICIENCY, LONG-TERM PLANNING 3.1. Development and approval of the Innovative Development Programs Develop and approve Innovative Development Programs: On 14.07.2011 the Company Board of Directors reviewed and Innovative Development • review at the BOD the issue of advisability of approved the Innovative Development Program (IDP) of RSC Programs developing innovative development program; Energia for the 2011-2020 period (Minutes No. 1). • if advisable, charge the Strategy Committee to At the 29.04.2013 meeting of the Board of Directors (Minutes create a concept of innovative development No 11) the proposals to update RSC Energia’s IDP for the 2013- programs; 2020 period were approved. • approve the Innovative Development Program at The Committee on Strategic Planning, Modernization and the BOD; Innovative Development of the Company Board of Directors • review the issue of the program execution tied to (Minutes No 1 of 25.03.2016) while considering draft Strategy of the Company KPIs; the Company took decision to tie in the draft Strategy to RSC • review the issue of raising special-purpose Energia’s Innovative Development Program being updated. science and technology funds; The Company Management Board (Minutes No2/2017 of • the program can be extended to SAC. 02.02.2017) considered and got preliminary agreement on the Subparagraph “b”, paragraph In addition: Program shall be in agreement with the updated draft Innovative Development Program of the Company 1 of the List of the RF RF Government Directive provisions for the 2016-2025 period. President’s Orders No. Pr-307 Board of Directors (Minutes No. 8 of 21.12.2017) considered and dated 07.02.2011 approved the Innovative Development Program of RSC Energia Directive of the Russian for the 2016-2025. Federation Government No. Board of Directors (Minutes No. 26 of 28.06.2019) considered and 1221p-P13 of 24.03.2011 approved the Report on the Innovative development Program Address to the RF Federal In addition: Innovative Development Program shall execution at RSC Energia in 2018, taking note of failure to Assembly of 12.11.2010 be integrated into mid- and long-term strategy of the achieve 2 of the seven key indicators of IDP efficiency: increase in Company. proceeds per employee over the accounting period relative to that Minutes of the meeting of the in 2011: with target value of 104%; actual value of 65%; R&D Government Commission for volume expenses to total receipts ratio: with target value of 85% high technologies and and actual value of 77%. innovations No. 1 dated 30.01.2012 The list of the RF President’s Develop and approve The schedule for submitting the Programs to the RF orders No. Pr-3086 dated Investment Program, Long- Government: 27.12.2013 Information on the Term development Program • Investment Program during the first 6 months of materials of the RF 2014;

189 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS Government meeting of • Long-Term Development Programs - till 30.01.2014, Minutes No. 3 01.10.2014.

FPMA Letter dated 19.08.2014 No. 11/35746 “On Approval of the Long-Term Development Program” 3.2. Development and approval of the AO strategy “Recommendations on the Approve the Strategy of Prior to approval, review the activities of RSC Management Board on 04.03.2015 (Minutes No3/2015) development of Innovation Company activities, Energia in comparison with similar companies (by considered the issue concerning the Company strategy and passed Development Programs” including the following the provided List of key indicators) the resolution to update RSC Energia’s development strategy approved by the decision of documents: Identify strategic objectives of the company guided by the decisions taken on the Concept for the RF manned the Government Commission -the list of KPIs and their development (taking into account the provided List) cosmonautics development; clarified RF Federal Space Program for high technologies and target values; Develop the List of specific measures: for the 2016-2025 period; worked out development strategies for innovations dated 03.08.2010, -Provision on remuneration  manufacturing; AO URSC and State Corporation ROSCOSMOS. Minutes of the Meeting No. 4 of the executive body, BOD;  investment and financial; On 23.03.2016 the Committee on Strategic Planning, -the Company investment  managerial; Modernization and Innovative Development at the Board of and financial policy;  personnel; Directors (Minutes No 1 of 25.03.2016) considered the issue on -interactive financial model;  for organizing corporate structure progress in development of the Company strategy draft and took -regulations for scientific decision of further development of the Company strategy (with and technical funds; due regard for the strategy of State Corporation ROSCOSMOS) in -prediction of scientific and the following way: technological development, - provide linkage of draft strategy to the Company Innovative modernization and Development Program being updated; optimization of the - add to draft strategy a more complete information on volumes of technologies in use; financing required to implement the strategy, as well as describe -Energy Saving and potential development scenarios. Efficiency Program Management Board of State Corporation ROSCOSMOS Para 2, Item 2 of the Minutes Approve the Strategies by considered and took note of the Report on RSC Energia FRP of the meeting held at the First the end of 2014 implementation results (Minutes No PK-57-pr of 23.11.2017). Deputy Chairman of the The Company Management Board (Minutes No2/2017 of Russian Federation 02.02.2017) considered the submitted materials covering the main Government I.I. Shuvalov No. sections of RSC Energia Draft Strategy and took decision to direct ISh-P13-98pr dated the Draft Strategy for further elaboration in accordance with the 03.10.2013 comments made; after the elaboration the Draft Strategy is Order of the RF President No. Ensure approval of the long- Company Boards of Directors: supposed to be repeatedly submitted to the Company Management Pr-3086 of 27.12.2013; Order term development program;  are to make sure that the Company develops and Board. Heads of core divisions were tasked to prepare proposals of the RF Government No. procedure for conducting its approves long-term development program; for pro-active policy aimed at efficient development of the DM-P13-9589 of 30.12.2013; audit.  are to make sure that LDP implementation is Company and include them in the draft strategy. Directives of the RF audited and a standard for conducting this audit is The Company Management Board (Minutes No18/2017 of

190 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS Government No. 4955p-P13 approved; 13.12.2017) considered and approved the Provision on the of 17.07.2014  are to make sure that changes are introduced into Company Investment Committee which sets forth the procedure provision on the remuneration of the Company for consideration of investment activity at RSC Energia. As a single-member executive body. result, it will contribute to making weighted and justified decisions by the Company managerial bodies. Board of Directors (Minutes No 27 of 18.06.2018) approved the Financial Recovery Program of RSC Energia. Management Board (Minutes No 10/2019 of 24.04.2019) considered and took note of draft financial Recovery and Development Program updated for the 2019-2025 period and its forecast till 2030 at RSC Energia It was resolved to submit the materials for agreement to state corporation ROSCOSMOS and place it for consideration of RSC Energia Board of Directors in accordance with the established procedure. The Board of Directors (Minutes No. 20 of 28.05.2019) heard the report delivered by the Director General on the basic provisions of the updated financial Recovery Program at RSC Energia. Board of Directors (Minutes No. 3 of 16.08.2019) approved RSC Energia’s Financial Recovery Program entirely. It was resolved to update RSC Energia Financial Recovery Program with due regard for the comments made, as well as to give instructions on putting forward additional proposals. Letter from State Corporation Consider at the Board of Directors meeting the Board of Directors (Minutes No. 22 of 14.06.2019) considered the ROSCOSMOS No. 69-11383 issues on analyzing the reasons for the reduced issue “On reasons for the reduced receipts of the organizations and of 23.05.2019 “On receipts and working out measures to prevent working out measures to prevent disruption of government implementing the directions disruption of government contracts due dates. contract due dates” and resolved the following: from State Corporation 1. Take note of RSC Energia Director General’s report on reasons ROSCOSMOS” for the reduced receipts received by the company in 2018 under the contract commitments. Directive issued by Sate 2. RSC Energia Director General shall submit to the Board of Corporation ROSCOSMOS directors in due time till 28.06.2019 the following: No. 142-d of 16.05.2019 “On - comprehensive action plans to make sure to implement the reasons for the reduced contract commitments based upon the report stated in item 1 of receipts of the organizations this resolution; and working out measures to - package of measures to prevent disruption in due dates of prevent disruption of current government contracts. government contract due Issued was the Director General’s Order No. 244 of 04.07.2019 on dates”. working out and presentation to the Board of directors of comprehensive action plans to make sure to implement the

191 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS contract commitments and prevent disruption in due dates of current government contracts with due regard for the Schedule of the actions to eliminate disruptions and faults revealed by State Corporation ROSCOSMOS during the audit it undertook. Letter from State Corporation Initiate Board of Directors meeting putting on the Board of Directors (Minutes No. 19 of 17.05.2019) passed ROSCOSMOS No. 69-9197 agenda the item “On target indicators of reduced resolution: Director General shall: of 23.04.2019 “On target unproductive expenditures at RSC Energia in 2019 1. Ensure reduced unproductive expenditures of the company in indicators of reduced and increased labor productivity of RSC Energia 2019 in due date till 31.12.2019. unproductive expenditures”. during the 2019-2021” 2. Place for the Board of Directors consideration in due time till 30.05.2019 comprehensive action plan to reduce unproductive Directive issued by State Approve at the Board of Directors action plans to expenditures during the 2020-2021 period, with due regard for Corporation ROSCOSMOS reduce overhead expenses. reduction in unproductive expenditures at RSC Energia in 2019, in No. 113-d of 21.04.2019 order to carry out the order to reduce unproductive expenditures by15% (on the whole) during the 2019-2021 period. 3. Ensure achievement of the labor productivity indicators during Letter from State Corporation the 2019-2021 period. ROSCOSMOS No 66-12544 4. Ensure in due dates established in items 1-3 taking decisions by of 05.06.2019 № “On reduced the subsidiary companies on reduced unproductive expenditures overhead expenses”. and achieved labor productivity indicators. Issued was Director General’s Order No. 189 of 30.05.2019 on setting up the Committee to resolve the issue on reduction in unproductive expenditures. 4. ACTIVITIES OF MANAGEMENT AND SUPERVISION BODIES 4.1. Assuring transparency of financial-business activities of organizations RF Government Orders No. Provide certificates of In pursuance of Article 8, Federal Law No. 273-FZ of 25.12.2008 VP-P13-9308 of 28.12.2011, income, property declaration “On Anticorrupt Practices Law”, the RF Government Decree No. No. IS-P13-80 of 12.01.2012, and property liabilities of 613 of 22.07.2013, Federal Space Agency Orders No. 160 of No. IS-P13-127 of the Company executives 06.08.2013 and No. 167 of 23.08.2013, the Company President – 13.01.2012, No. VP-P24-1269 issued orders No. 19 of 17.01.2014 and No. 192 of 08.04.2015, of 05.03.2012 No 42 of 06.02.2017. These orders approved the List of the Posts appointing to which and replacement of which required that respective employees were to submit information about their income, expenditures, property and property liabilities. In pursuit of the order execution, additional agreements to the labor contracts were concluded with the employees included in the approved List of the Posts. Art. 92 of Federal Law No. Ensure better transparency Disclose information to the extent and per Company discloses information to the extent and per regulations 208-FZ dated 26.12.1995 “On of the Company operation regulations established by the federal executive established by the federal executive body for the securities market Joint-Stock Companies” body for the securities market. for open joint-stock companies.

192 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS Chapter VIII of the FSFR of Disclose information by AO included in the The Company is not included in the privatization forecast plan. Russia No. 11-46/pz-n of privatization forecast plan. October 04, 2011 “On the Approval of the Regulations for Information Disclosure by Equity Securities Issuers”, Order of the Russian Federation Ministry of Economic Development No. 208 of May 11, 2011 “On Approval of the Procedure for Information Disclosure by Open Joint-Stock Companies whose stocks are in state or municipal ownership, and by state (municipal) unitary enterprises”. Paragraph 7, Item 2, Minutes Publish the BOD decisions that do not constitute The Company discloses information as messages about material of the Meeting at the First commercial secret. facts. Deputy Chairman of the The Company issues the BOD decisions in its Annual Report Russian Federation which do not constitute commercial secret. Government I.I. Shuvalov No. Corporate documents were posted in the personal cabinet of the ISh-P13-98ps dated Company on the FPMA ID Portal (copies of the minutes of 03.10.2013 general shareholders’ meetings; meetings of the Board of Directors, ad hoc committees and commissions). Order of the Russian Disclose information about income of single- The Company discloses information stipulated in current Federations President No. Pr- member executive body, final beneficiaries of legislation for open joint-stock companies. 113 dated 17.01.2012 particular counterparts, possible conflicts of The Company discloses information as messages about material Orders of the Russian interest, interested party transactions. facts. Federation Government No. In order to pursue the policy to combat corruption and take VP-P13-459 of 27.01.2012, effective measures to prevent and settle conflict of interests, as and No. ISh-P13-7501 of well as with the aim to ensure common corporate standards with 07.12.2012 respect to the Company and its SAC, amendments were made to the labor contracts of RSC Energia single-member executive body (SEB) and SAC directors general (in pursuance of the RF President Order No. Pr-113 of 17.01.2012 on the subject of prevention of conflict of interests during conclusion of contracts). Information about Chief Executive Officer (CEO) and Collective Executive Body members income is disclosed in the issuer’s quarterly report.

193 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS 4.2. Remuneration to management and employees of organizations, development of KPI system RF President Order No. Pr- Set up ad hoc Committees at It is recommended that 4 indicators should be Information about size of remuneration to be paid to the Board of 825 of 06.04.2009 the Board of Directors. included in the KPI List: Directors members, executive managerial bodies members, as well RF Government Order No. Review at the BOD the - cost effectiveness in terms of net profit; as the members of supervisory bodies carrying out control over the VP-P13-1823 of 06.04.2009, issue of developing KPI - liabilities/profit on sales; issuer’s financial-economic activity is disclosed in the issuer’s No. VP-P13-2099 of system for AO. - quarterly earnings history; Quarterly reports. 20.04.2009, No. V3-P13-4252 Develop the Provision on - quarterly net profit history. Ad hoc Committees attached to RSC Energia Board of Directors of 28.07.2009 remuneration to Company Recommendations are provided on tying are set up and have been operating since December 2009. The RF Government Order No. management, BOD remuneration of managers with the KPI Corporate Board of Directors also approved the Provisions ISh-P13-2232 of 08.04.2010. members; make achievement. governing the activities of these Committees: the Provision on the remuneration tied up with Disclose information about size of remunerations on Strategic Planning Committee; Provision on the Personnel and KPI system. the Company web-page Remuneration Committee; Provision on the Audit Committee. Russian Federation Consider a possibility to Recommendations in the FPMA letter detail the best RSC Energia’s Provision on the Committee on Audit sets forth the Government Order No KA- bring remuneration system practices for developing the system of incentives for concepts recommended by FPMA (Letter No. 11/53825 of P13-8297 dated 04.12.2010 for RSC Energia employees employees and BOD members 19.11.2013) and defines the List of the Committee’s powers, and BOD members in line including auditing financial-business activities of the organization, with the recommendations management and financial statements (including reports on the management progress in achievement of the established KPIs. Paragraph 3, Item 2 of the Expand the functions of the In accordance with the FPMA Directive No. GN-15/9084 of minutes of the Meeting at the Committee on audit, in 27.03.2012, the 21.11.2012 meeting of the Company Board of First Deputy Chairman of the particular, those concerning Directors (Minutes No. 3) considered the issue of setting up the Russian Federation achievement by the Committee on Modernization and Innovative Development. It was Government I.I. Shuvalov management of the KPI set. resolved that it should be inexpedient to set it up. By its resolution No. ISh-P13-98pr dated the Board of Directors broadened the objectives and functions of 03.10.2013 the Committee on Strategic Planning, adding innovative Order of the RF President No. Make sure that the KPI of Initiate RSC Energia’s Board of Directors meeting development objectives to the List of the existing ones and Pr-1474 of 05.07.2013 the Company are approved putting the following items on the agenda: changing the name of the Committee appropriately. The Board of Directors approved the Provision on the Committee on Strategic Order of the FR President No. and that RSC Energia’s  Approve the Provision on KPI in the Company Planning, Modernization and Innovative Development. ISh-P13-2043 of 27.03.2014 management remuneration activity. Personal cabinet of the Company at FPMA’s ID-Portal presents FPMA letter No. OD- is linked to achievement of  Approve KPI for management performance 11/22160 of 26.05.2014 KPI, taking into account the information about available ad hoc Committees at RSC Energia which shall be taken into account when deciding Board of Directors, copies of the Provisions on ad hoc Committees attached guidelines. on labor compensation and personnel matters. approved, as well as information about the Committees meetings  Make sure that the KPI are approved and that (agenda, voting results, Minutes of the Committees meetings). RSC Energia’s management remuneration depends Company Board of Directors (Minutes No 18 of 29.04.2016) upon achievement of KPI, taking into account the resolved that calculation of integrated percentage of completion of attached guidelines. KPI by single-member executive body shall be performed only

upon approval of the KPI List for respective period.

Remuneration concepts for executive body members and other key

personnel are based upon KPIs.

194 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS Letter from State Corporation Make sure to consider at the company board of KPI charts were developed and in use for the executive body ROSCOSMOS No AV-1574 directors meeting the item concerning members. of 15.02.2018 “On Procedural implementation of the Procedural Guidelines for Board of Directors (Minutes No. 19 of 02.04.2018) took decision Guidelines for using the key using the KPIs in the company. on introduction of the Procedural Guidelines for using the key performance indicators in performance indicators in State Corporation ROSCOSMOS and its State Corporation related organizations, including RSC Energia. The Board of ROSCOSMOS (in pursuance Directors (Minutes No. 8 of 18.01.2019) considered and took note of the decisions taken by the of the Report on the performance over the 9 months of 2018, management board of State including service information about the key performance Corporation ROSCOSMOS) indicators achieved. Board of Directors (Minutes No. 16 of 01.04.2019) approved the KPI list and target figures for the Chief internal auditor of RSC Energia for 2018. The Board of Directors (Minutes No. 12 of 12.12.2019) in consideration of the issue on approval of RSC Energia’s KPIs for 2019 passed the following resolution: note that the target values of RSC Energia’s KPI for 2019 developed on the basis RSC Energia financial recovery program for the 2019-2015 period approved in its entirety by RSC Energia Board of Directors (Minutes No. 3 of 16.08.2019) adopted by State Corporation ROSCOSMOS Management Board (Minutes No. PK-183-pr of 03.10.2019) and accepted as a basis by the Supervisory Board of State Corporation ROSCOSMOS on 22.10.2019 (Minutes No. 30- NS) are different from the target values of KPIs approved by the Supervisory Board of State Corporation ROSCOSMOS on 28.02.2019. Consider the said discrepancies during assessment of actual KPI achievement by the 2019 performance at the Management Board of State Corporation ROSCOSMOS Board of Directors (Minutes No. 15 of 26.02.2020) resolved to introduce into RSC Energia the Procedural Guidelines for using key performance indicators at State Corporation ROSCOSMOS and its related organizations approved by the resolution passed at the Management Board of State Corporation ROSCOSMOS (Minutes No.-PK-199-pr of 19.12.2019). Board of Directors (Minutes No. 17 of 15.04.2019) considered the issue on KPI system and executives motivation, as well as took the following decision: 1. In order to provide follow-up control of the Board of Directors decision on RSC Energia’s joining the Procedural Guideline for using key performance indicators at State Corporation

195 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS State Corporation ROSCOSMOS and its related organizations, as well as to ensure ROSCOSMOS’ Letter No. 69- Initiate holding Board of Directors meeting with unconditional achievement of RSC Energia – set key performance 6365 of 22.03.2019 “On item “On KPI system and executives motivation” indicators, RSC Energia Director General shall ensure correct implementing directions put on the Agenda. decomposition of RSC Energia’s KPIs embodying executives issued by State corporation down to 3rd level of management (tree of objectives) according to ROSCOSMOS” the Procedural Guidelines for using KPIs at State Corporation ROSCOSMOS and its related organizations; provide quarterly monitoring of KPI achievement and personal responsibility of the managers for their achievement, as well as make changes to RSC Energia’s personnel wage system (for the executives down to the 3rd level of management) which provide for that all the accruals of stimulating and motivating character (bonuses and other Letter from State Corporation incentives, rewards for production and other results or periods of ROSCOSMOS No. 69-18615 activity; extra charges/incentive allowances to base wage rates and of 07.08.2019 “On Initiate holding the Board of Directors meeting on base salaries, etc.) shall be tied to KPI achieved. decomposition of the decomposition of RSC Energia KPIs down to the Besides, the Board of Directors considered the issue on Company’s KPIs down to the 3rd-level management executives (tree of objectives) decomposition of RSC Energia KPIs among subsidiary companies 3rd –class management level under the Procedural Guidelines for using key and passed the resolution: in order to provide follow-up control of executives” performance indicators in State Corporation the Board of Directors resolution, RSC Energia shall join the ROSCOSMOS Procedural Guidelines for using KPIs in State Corporation ROSCOSMOS and its related organizations, as well as achieve unconditionally KPIs established by RSC Energia; Board of Directors (Minutes No. 20 of 28.05.2019) while considering the Report on their performance during 2018 took note of information about KPI achievement results for 2018. Due to the failure to achieve “Failure rate” and “State order execution” indicators, calculated level of integral key performance indicators achievement (percentage of completion) was 0%. 4.3. About complaints with respect to products Rosimuschestvo (FPMA) Initiate a meeting of the Company Board of Since 2018, information about the claims lodged by the Letter dates 21.04.2014 No. Directors putting this item on the agenda. government customers concerning the complexes (systems), VB-09/16976 “About articles is to be included in the quarterly Reports on progress in reviewing the issue of implementation of the Consolidated Work Program for RSC complaints with respect to Energia and ZAO ZEM RSC Energia which are submitted to the products”. Board of Directors for consideration 4.4. On quality management system operation Item 2, Section II of the On quality management Make sure (as agreed upon with State Corporation Company Board of Directors (Minutes No 6 of 11.11.2016) meeting minutes at Deputy system operation, ROSCOSMOS) to appoint deputy heads of considered and took note information about quality Chairman of the RF maintenance of rocket- quality control organizations in accordance with management system operation in the Company. The decision Government D.O. Rogozin’s space technology quality, standard requirements for post of deputy head of taken is to entrust single-member executive body with assuring

196 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS Office No RD-P7-30pr of reliability and safety quality organization in rocket-space industry and agreement with executive director in charge of quality and 23.05.2016 standard provision on quality control department reliability of State Corporation ROSCOSMOS on the issues of State Corporation in rocket-space industry organization. appointment to a post/discharging from a post deputy director ROSCOSMOS Direction general in charge of quality at RSC Energia. NoKI-133-rsp of 19.08.2016 The Company Board of Directors (Minutes No 10 of “On the procedure for a 30.12.2016) reviewed and approved the Job Description of nominee appointment to the deputy director general in charge of quality; Regulations on post of deputy Head of Center for quality assurance 10Ts prepared in accordance with rocket-space industry in the Standard requirements for a post of deputy head of quality charge of quality. control organization in rocket-space industry (RSI) and standard provision on quality control department in RSI organization. Quality Policy was developed and approved by RSC Energia Director General. Reports on progress in implementing the Consolidated Work Program for RSC Energia and ZAO ZEM RSC Energia reviewed on a quarterly basis by the Board of Directors address information about quality management system operating at RSC Energia The Board of Directors (Minutes No. 8 of 18.01.2019) as part of the Report on their performance over the 9 months of 2018 reviewed and took note of the report on QMS operation, quality maintenance, reliability and safety of rocket-space technology. 5. CONTROL Within the framework of the On compliance with the requirements stated in Company Board of Directors (Minutes No. 12 of 29.01.2018) took decision taken by Director Anticorrupt Practices legislation and prevention of decision on advisability to consider the issues related to General of State Corporation corruption and other infringements of law in day-to compliance with the requirements of anticorrupt practice ROSCOSMOS (Minutes day activity legislation at the meetings of RSC Energia Board of Directors at No KI-973-pr of 30.11.2017) regular intervals. During the accounting period, the Board of Directors (Minutes No. 15 of 04.03.2019, Minutes No. 21 of 29.05.2019) considered and took note of information about RSC Energia’s compliance with the requirements of anticorrupt practice legislation and prevention of corruption and other infringements of law in day-to-day activity. Board of Directors (Minutes No. 11 of 18.11.2019) approved the Provision on corruption risks assessment at RSC Energia. 5.1. Arrangement of common information space (personal cabinet of the Company at Rosimuschestvo’s ID Portal) Rosimuschestvo’s Letter About the need to enter information in the personal Section of ID-portal has been completed in online mode dated 04.10.2013 No. cabinet of RSC Energia at Rosimuschestvo’s ID- “Background Information about organization”. 11/46314 “On entering Portal Section “Equity Capital Structure” covers information every

197 ORDER DOCUMENT/ACTION COMMENTS, ADDITIONAL CONDITIONS INFORMATION ABOUT EXECUTION OF THE ORDERS information in the personal month about the shareholders whose share in the Charter cabinet at the ID Portal” (contributed) capital exceeds 2%. Section “Control and Managerial Bodies” addresses information about the membership of the Company managerial bodies (single- member executive body (Director General), Collegiate Executive Body (Management Board), Board of Directors, Auditing Committee, Committees at the Board of Directors), as well as their competence. Section “Corporate Events” presented current information about RSC Energia’s corporate events (general shareholders’ meetings, Board of Directors’ meetings, meetings of ad hoc committees at the Board of Directors). In so doing, the Company via ID-portal reported topical information about participation of the members of RSC Energia’s managerial bodies in its meetings as well as placed its corporate documents (copies of the Minutes drawn up at the general shareholders’ meetings held, Board of Directors’ meetings, ad hoc committees’ and commissions’ meetings held). ID-Portal section “Documents” placed organization-order documents approved by the Company in the accounting period in addition to the earlier posted By Laws of the Company regulating its operation. Rosimuschestvo’s Letter No. Post financial statements with auditor’s report on ID-Portal Section “Reporting” placed annual Financial Statements OD-05/13840 of 03.04.2014 , the ID-Portal with auditor’s reports, as well as scanned copies of interim No. 50-10/5583 of 11.09.2019 (quarterly) reporting in PDF.

198 APPENDIX 12 / Information about continuing court proceedings in which RSC Energia acts as a plaintiff (defendant on debt claim with indicated total amount of claims made/lodged that may have an impact on RSC Energia operation Amount of recovery, rubles Item Plaintiff Defendant Subject of dispute Note No. Principal, Penalty (fine)/ rubles national duty, rubles Arbitral proceedings by Arbitration Court of Saint-Petersburg AO NII for Command 1. RSC Energia Debt recovery 1 015 567,00 /23 156 and Leningrad Region. Resolution is put forward: partial Instruments satisfaction of the claim. The award was not made. Moscow Arbitration Court award satisfied the claims in full 71 187,67/ volume. Arbitration court of court of appeal set aside the award, 2. RSC Energia N.E. Bauman MGTU Recovery of unjust enrichment 2 511 089,15 35 911 the claims were refused to be satisfied. RSC Energia filed cassational appeal. Cancellation of the contract, 27 649 054,78/ Moscow Region Arbitration court award satisfied partially the recovery of unjust enrichment 86 973 000,00 200 000 claims. Recovered is the amount of the advance not earned to 3. RSC Energia AO Merkuriy and penalty the extent of 59226000,00 rubles; penalty totaling 23188745,28 Counterclaims recovery of 112 878 491,70 124 081 141,50 rubles. Counterclaim is refused to be made. damages Cancellation of the contract, 43 878 256,90/ Moscow Region Arbitration court award satisfied partially the recovery of unjust enrichment 63 810 440,00 200 000 claims Contract is cancelled, recovered are 63810400 rubles of 4. RSC Energia AO Merkuriy and penalty unjust enrichment; penalty totaling, 42878904 rubles, national Counterclaims recovery of - 52 930 727,00 duty of 200 000 rubles. The counterclaim is refused to be made. damages Moscow Region Arbitration Court award satisfied the claims in 46 905 812,57/ full volume. 5. RSC Energia OOO OGE Recovery of damages - 200 000 Ruling of the Arbitration Court of court of appeal left the award unchanged. Moscow Region Arbitration Court award satisfied the claims in Recovery of indebtedness and 26 471 909,09/ full volume. 6. RSC Energia OAO Teploset 296 211 079,14 contractual sanctions 200 000 Ruling of the Arbitration Court of court of appeal left the award unchanged. Recovery of indebtedness and 216 442,35/ The case is under consideration of Moscow Region Arbitration 7. RSC Energia OAO Vodokanal 1 816 580,88 contractual sanctions 33 165 Court. Recovery of indebtedness and 182 790,88/ Moscow Region Arbitration Court satisfied partially the claims. 8. RSC Energia OAO Vodokanal 1 535 129,85 contractual sanctions 30 179 The award has not come into force yet. Declaration as invalid the award 9. RSC Energia FNS of Russia No. 84 of 17.09.2018 and No. 54 - /3 000 The case is under consideration in Moscow Arbitration Court. of 17.09.2018 Declaration as invalid the award Moscow arbitration Court award refused to recognize non- 10. RSC Energia FNS of Russia - /3 000 No. 12-13/34 of 04.12.2017 regulatory act as partially invalid. RSC Energia lodged an

199 Amount of recovery, rubles Item Plaintiff Defendant Subject of dispute Note No. Principal, Penalty (fine)/ rubles national duty, rubles appeal. By ruling issued by Moscow Region Arbitration Court of State Corporation 11. RSC Energia Recovery of damages 2 943 612 740,0 - 04.05.2017, Consideration of the matter was suspended ROSCOSMOS pending making the decision on criminal case. Moscow Arbitration Court award refused to satisfy the claims. State Corporation Recovery of contractual 12. RSC Energia - 23 307 607,61 By ruling of Arbitration Court of court of appeal and court of ROSCOSMOS sanctions cassation the award was left unchanged Moscow Arbitration Court award refused to satisfy the claims. State Corporation Recovery of contractual By ruling of Arbitration Court of court of appeal the award was 13. RSC Energia - 1 027 639 262,78 ROSCOSMOS sanctions left unchanged. State Corporation ROSCOSMOS filed causational appeal. Moscow Arbitration Court award refused to satisfy the claims. State Corporation Recovery of contractual By ruling of Arbitration Court of court of appeal the award was 14. RSC Energia - 55 441 973,41 ROSCOSMOS sanctions left unchanged. State Corporation ROSCOSMOS filed causational appeal. Moscow Region Arbitration Court award partially satisfied the claims in the amount of 3 608 500 rubles, national duty is 29 15. AO AVEKS RSC Energia Recovery of indebtedness 7 508 500,00 /60 543 026 rubles. Ruling of the Arbitration Court of court of appeal left the award unchanged. Moscow Region Arbitration Court award refused to satisfy the Recovery of unjust enrichment 512 612,55/ 16. OOO S7 KTS RSC Energia 10 808 988,00 Claims. Ruling of the Arbitration Court of court of appeal and and interest on another’s funds 79 908 cassational appeal left the award unchanged. Cancellation of the contract, AO Russian Space 1 397 891,91/ 17. RSC Energia recovery of actual expenses and 4 874 950,00 The case is under consideration in Moscow Arbitration Court. Systems 60 364 contractual sanctions Moscow Region Arbitration Court award refused to satisfy the State Corporation Recovery of contractual 18. RSC Energia - 6 427 696,55 Claims. Ruling of the Arbitration Court of court of appeal left ROSCOSMOS sanctions the award unchanged. State Corporation Recovery of contractual 19. RSC Energia - 231 580 064,41 The case is under consideration of Moscow Arbitration Court. ROSCOSMOS sanctions Moscow Region Arbitration Court award refused to satisfy the State Corporation Recovery of contractual 20. RSC Energia - 4 640 755,03 Claims. Ruling of the Arbitration Court of court of appeal left ROSCOSMOS sanctions the award unchanged. Recovery of contractual 21. RF Ministry of Defense RSC Energia - 5 038 555 146,06 The case is under consideration of Moscow Arbitration Court. sanctions 22. State Corporation RSC Energia Recovery of contractual - 139 422 024,16 The case is under consideration of Moscow Arbitration Court.

200 Amount of recovery, rubles Item Plaintiff Defendant Subject of dispute Note No. Principal, Penalty (fine)/ rubles national duty, rubles ROSCOSMOS sanctions OOO Stroitelny Recovery of indebtedness and 624 998,40/ The case is under consideration of Kursk Region Arbitration 23. RSC Energia 7 488 000,00 Holding Tezis contractual sanctions 63 565 Court. State Corporation Recovery of contractual Moscow Arbitration Court award refused to satisfy the claims. 24. RSC Energia - 2 261 419,38 ROSCOSMOS sanctions State Corporation ROSCOSMOS filed petition for appeal Recovery of damages and compensation for moral damage 25. G.F. Grigoriev RSC Energia due to delay in transfer of - 1 052 229,00 The case is under consideration of Korolev’s municipal court. property (apartment) under the shared participation contract

201