Rusneftegaz can today announce that following a comprehensive internal review of our management structure, our leadership has filed motions at our upcoming annual general meeting on 7 April to appoint two independent directors to our board. Likewise, each member of our current hierarchy has simultaneously acted as a signatory to a joint declaration addressed to all our stakeholders recommending their approval of this change, which would be implemented immediately after the vote has been passed. Therefore, propositions to elect both Sergei Kolesnikov and Eduard Rudakov have been tabled and will be voted upon in due course, each of whom will bring vast acumen and be capable of demanding accountability from our enterprise. It is the erstwhile belief of our present administration that the addition of these two personnel would add significant knowledge and expertise to the body, while also imparting wisdom and experience. Although we do not conceive that there is a shortage of skills or competence in its existing composition, our leaders broadly acknowledge that, as an organization seeking to rapidly expand, it is critical to find specialists who work in areas that we may be otherwise unfamiliar with. Whilst such potential issues are not anticipated to arise from any matter pertaining to production or trading, it is foreseen that we may require professionals that are proficient in expanding a corporation internationally. In response to this news, our Deputy Chief Executive Officer, Aleksandr Filyurin, issued this statement:
“Firstly, I would like to thank the ownership group for their assistance and encouragement with this idea; they have always provided us with useful advice about the direction that they want Rusneftegaz to take. When we first had the idea of appointing some independent directors, it would have been too easy for them to reject the idea completely and tell us to move on from it, but they listened to what we had to say and then agreed on a good compromise with us. Since I joined this company in 2015, I have always been conscious of the fact that the board of directors and the day-to-day management board are identical. We have always wanted to maintain the highest standards here, whether that is in terms of the business we do or in terms of things like corporate governance. To be honest, trying to maintain these standards has major consequences. By being as open and as transparent as possible, we can work with more companies, whether that is to increase our trade finance lines or do deals with customers who want to do business with a good, credible company. Overall, I am optimistic that we will be able to make a couple of high-quality additions to our board soon. We have chosen two outstanding candidates after an extensive recruitment process, and I am confident that their approval will be a formality.”
Both the proposed nominees are highly qualified individuals who have led exemplary and distinguished careers in their respective fields. In his role as an accountant, Rudakov was a senior auditor at Deloitte for over two decades prior to his retirement from this role this summer, whereas Kolesnikov originally graduated from Saint Petersburg State University with a degree in economics. He has spent his entire professional life in posts across various banks, including Sberbank and the predecessors to what is now VTB. After a long and exhaustive process, our board of directors mutually concluded that these were the two most suitable candidates for each position, with both expected to be confirmed in their roles during a confirmatory vote. However, it is to be emphasized that our executive leadership consulted with our stakeholders before the decision to commence this action had started, with our shareholders fully endorsing such plans, thus making their approval a formality. Whilst the recommendation to appoint these men has formed a key element of a broader plan to raise the standards of governance within Rusneftegaz that was first conceived two years ago, it should be noted that this proposal is the final component of that scheme, and now our management is wholly satisfied with the corporate ethics prevailing throughout our organization. Any inquiries regarding the prospective changes to the composition of this body or otherwise pertaining to our administrative policies must be directed via the conventional channels of telephone and email for a prompt reply. We necessitate your cooperation and understanding with this crucial matter.