Memorandum of the controlling shareholder (Rosseti PJSC) on controlled power grid companies

Public Joint Stock Company Federal Grid Company — Rosseti (Rosseti PJSC) is a public joint stock company with a state share of 76.9936% in the issued sharesIncluding the outstanding shares of the additional issue of securities (state issue number 1‑01‑65018‑D‑109D dated 21 August 2023)..

Rosseti PJSC controls 19 power grid companies: Rosseti Kuban PJSCAbbreviated corporate name until 24 January 2025 – Rosseti Kuban PJSC., Rosseti Lenenergo PJSC, Rosseti Moscow Region PJSC, Rosseti Volga PJSC, Rosseti North‑West PJSC, Rosseti Northern Caucasus PJSC, Rosseti Siberia PJSC, Rosseti Urals PJSC, Rosseti Centre PJSC, Rosseti Centre and Volga Region PJSC, Rosseti South PJSC, Rosseti Tomsk PJSC, Rosseti Tyumen JSC, Rosseti Yantar JSC, Rosseti Siberia Tyvaenergo JSC, Chechenenergo JSC, RES JSC, Energetik JSC, Electromagistral JSC.

Rosseti PJSC considers these controlled shareholdings to be strategic assets and does not plan to dispose of them.

Key assets‑related objectives

Rosseti PJSC’s key objective in managing these subsidiaries is to develop the power grid sector based on cutting‑edge innovative technologies to meet customer demand and the socio‑economic growth goals of the Russian Federation.

Corporate governance principles

Rosseti PJSC manages the companies of the Group in accordance with unified corporate standards meant to ensure the efficiency of business processes and their quality control and to mitigate corporate risks as well.

As a controlling shareholder, Rosseti is fully aware of the importance of improving corporate governance in Group companies and is committed to ensuring openness and transparency of their activities and to implementing the recommendations of the Corporate Governance Code in their business practices.

While following best corporate governance practices, Rosseti PJSC makes sure that every year the number of independent directors on Rosseti Group’s Boards of Directors whose shares are traded on exchanges is sufficient to comply with listing rules and corporate governance principles. To ensure the independence and objectivity of Rosseti Group’s Boards of Directors of Group’s companies, Rosseti plans to maintain the number of independent directors on the boards at least at the current level.

Rosseti’s representatives also participate in the annual General Meetings of Shareholders of Group’s companies in order to build a dialogue with minority shareholders on the Company’s development prospects.

Rosseti PJSC guarantees compliance with market principles in the conduct of financial and business activities of the Group’s companies.

Rosseti, as a controlling shareholder, supports the initiatives of Group companies to protect the rights and interests of minority shareholders.

The dividend policy of Rosseti Group is founded on the strict observance of shareholder rights as prescribed by Russian law and is targeted at enhancing the investment appeal of Group companies whose securities are admitted to organised trading.