1           GENERAL INFORMATION

This  consolidated  Report  on  Payments  to  Governments  (the  "Report")  has   been   prepared under the requirements of the UK Financial Conduct Authority's Disclosure Rules and Transparency Rules 4.3А.

The Report contains information on payments made to governments in 2018 by PJSC Gazprom and its subsidiaries (the "Gazprom Group") engaged in exploration, prospection and extraction of  mineral  resources  ("extractive  activities").  The  Report  excludes  payments  made  by   the Gazprom Group entities not engaged in extractive activities.

2           BASIS OF PREPARATION

For the purposes of the Report, the Gazprom Group subsidiaries are defined as entities controlled by PJSC Gazprom.

Associates and joint ventures  accounted  for  using  the  equity  method  are  excluded  from  the Report.

The Russian Ruble is the presentation currency of the Report and the consolidated financial statements of the Gazprom Group prepared in accordance with International Financial  Reporting Standards ("IFRS"). All amounts disclosed in the Report are presented in millions of Russian Rubles.

Payments made in foreign currencies have been translated into Russian Rubles at the average annual exchange rates of respective currencies set by the Central Bank of the Russian Federation.

For the purposes of the Report, the term "governments" means any national, federal or local authorities, ministries and agencies authorised to collect of tax, budgetary and other payments in accordance with the applicable legislation effective as of the date when the payment obligation occurs. In the context of the Report, governments also include legal entities authorised to collect of taxes, fees and other payments imposed by governments.

The Report includes all direct and indirect payments made to governments.

For the purposes of the Report, payments to governments include the following: а) Production entitlements;

b) Taxes levied on income, production or profit of companies (mineral extraction tax, profit tax (including profit tax paid by PJSC Gazprom consolidated group of taxpayers), land tax and other similar taxes), except for those specified in paragraph (h) below;

c) Royalties;

d) Dividends (except for those specified in paragraph (i) below);

e) Signature, commercial discovery and production bonuses;

f) Licence fees, rental fees, other considerations for obtaining and using licences or concessions;

g) Payments for infrastructure improvements (except for social expenses).