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 2020 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, as well as joint operations 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).
 

2        Basis of Preparation (continued)

For the purposes of the Report, payments to governments do not include the following:

h) turnover taxes (value added tax, sales tax and other similar taxes) or taxes withholding by
an entity acting as a tax agent (personal income tax and other similar taxes);

i) dividends paid to shareholders that are governments, on the same terms as to other
shareholders;

j) export duties and other payments related to export and transportation of mineral resources.

There were no payments of royalties (c), dividends (d) or bonuses (e) to governments in 2020.

The Report presents payments broken down by the following categories:

·    countries in which the Gazprom Group's entities are engaged in extractive activities and projects implemented as part of extractive activities;

·    countries in which the Gazprom Group's entities are engaged in extractive activities and governments (budgets) for the benefit of which payments were made.

For the purposes of the Report, the term "project" means a legal entity engaged in the extractive activity. This definition is based on the existing tax regulations in the Russian Federation where the Gazprom Group performs most of its extractive activities. In accordance with the effective tax legislation in the Russian Federation, only mineral extraction tax can be determined for each particular field. All other taxes are calculated and collected at the level of a legal entity as a whole and cannot be allocated to particular fields.

If a Gazprom Group's entity is involved in several types of business activities (including extractive activities) and a portion of its tax liabilities directly related to extractive activities cannot be determined, the whole tax payment is included in the Report.

Note 34 "Net Cash from Operating Activities" in the consolidated financial statements of
the Gazprom Group prepared in accordance with IFRS for the year 2020 discloses information on taxes paid and other similar payments made in cash by all subsidiaries of the Gazprom Group (regardless of their types of business activities) in 2020.

3        Payments to Governments

The table below sets forth information on payments to governments,
broken down by countries and projects:

¹ Subsidiaries of PJSC Gazprom neft.

The table below sets forth information on payments, broken down by countries and governments (budgets):