Role of Independent Directors

All members of the Board of Directors of the Company while performing their duties shall proceed from the requirement to make professional, reasonable and balanced decisions that contribute to the development and better performance of the Company. At the same time, in order to objectively analyse the issues under consideration and take into account various factors in the interests of the Company. The Board of Directors shall involve at least three independent directors who meet the independence criteria set out in the recommendations of the Corporate Governance Code of the Bank of Russia and the Listing Rules of PJSC Moscow Exchange. The role of independent directors is of particular importance in a number of critical processes and procedures that can directly affect the effectiveness of the Company’s governance system, as follows:

• Expression and protection of the rights and legitimate interests of all groups of shareholders in an equal manner
• Organisation of the activity of the Committees of the Board of Directors responsible for the proper control of financial reporting, the risk management? internal control and audit system, the selection of auditors, anti‑corruption, as well as the motivation and control of the Company’s management (the Audit Committee and the Personnel and Remuneration Committee)
• Discussion of transactions and projects with items of a conflict of interest
• Interaction and involvement in issues arising from stakeholders and the professional community (counterparties, clients, minority shareholders, investors, creditors, employees, authorities, media and other stakeholders)
• Management of the development and implementation of the Company’s management motivation and remuneration policies
• Provision of information openness of the Company
• Unbiased consideration of all aspects of substantial corporate activities (restructuring, M&A projects)

It is stipulated that the Company may appoint a Senior Independent Director from among the elected independent members of the Board of Directors. The Senior Independent Director shall be nominated by independent directors.

Due to the heavy workloads of all current independent directors and the challenges associated with charging them with new duties, the Company has not yet elected a Senior Independent Director.

At present, no additional risks for the Company and stakeholders arise from the absence of a Senior Independent Director. Independent directors express their opinion independently and equally and can interact directly with both the Chairman of the Board of Directors and the Company’s management where required.