In the midst of our twentieth anniversary year, Rusneftegaz convened our annual general meeting on 5 April following the publication of our 2018 consolidated financial statements, which were prepared in accordance with International Financial Reporting Standards and have been audited to the relevant standard. At the conference itself in Moscow, all proposed resolutions were successful as per the request of our leadership. As a result, we can confirm that Roman Odintsov has been appointed to the newly created position of Vice Chairman and will commence his role with immediate effect. Similar motions to re-elect all the existing members of our board were also unanimously carried, with each now starting another one-year term. Moreover, more routine votes to both reappoint our independent auditor and approve our director’s report passed without issue, in conjunction with a proposal to form two committees to create an investment strategy and R&D plans for the next cycle. Additionally, it was also agreed to maintain the current composition of our audit committee and to pay no dividends for the year, despite our excellent fiscal performance over the past twelve months. This is primarily to ensure that all our funds earned can be reinvested in approved projects, ultimately providing strong prospects for the future growth of our organization. At the culmination of this showpiece event, our Deputy Chief Executive Officer, Aleksandr Filyurin, delivered these remarks accordingly:    

“Firstly, I would like to congratulate Roman on his appointment as Vice Chairman. When I interviewed him a few months ago, I thought he was the best candidate for the job by some distance, so I am genuinely delighted that he is here now. There is no doubt in my mind that he will offer a lot to this organization over the next few years, and I look forward to working with him. I would also like to place on record the thanks that the board and I have to all our staff for another great year here. Their contribution to our success continues to be immeasurable, and we will always be grateful for how much they do to help us grow. Once again, this has been another great year for Rusneftegaz. We have continued to make progress on our international expansion plans, and the investments that we have made over the last four years are paying off. To be honest with you, there is going to be a lot of big news from us over the next few months. There are a lot of people that have been working very hard to bring these plans together. Obviously, I cannot reveal much to you right now, but it is genuinely exciting. I hope that when we look back on 2019 in the future, it will be remembered as the year that we started transforming Rusneftegaz from being a national energy company into a worldwide titan of the industry. Now, it is going to be difficult, and you know that there are going to be challenges ahead, but I am incredibly optimistic about it. I really think that we have an opportunity to build something big here, and for a personal perspective, I am really looking forward to those challenges.”  

Throughout the yearly conference, there was broad consensus between our leaders and all associated stakeholders in regard to our long-term aims and objectives. For instance, we have retained our existing policy of favoring domestic trading within the Russian Federation instead of international sales, although decisions are routinely made on a case-by-case basis to ship our products overseas, with the potential onus of customs and regulations factored into each decision. As previously discussed, Rusneftegaz does not plan to pay a dividend for our performance in 2018, with our shareholders fully endorsing a plan from our management to maintain spending on infrastructure at current levels. Alongside forecasting strong economic growth in 2019, the board of directors is currently implementing a long-term strategic plan to expand our production program operation beyond Russia into developing markets, which should sustainably ascend revenues and profits in the near future. This particular scheme evidently requires significant capital expenditure, and thus needs additional scrutiny and approval from those possessing a tangible stake in our corporation. The aforementioned proposal will involve us purchasing competitively priced power stations in foreign jurisdictions, renovating the plant to a high standard and producing electricity profitably. The overhaul of each site will cut emissions to appease local interests while switching generation assets to low-cost alternative fuels. The plan is expected to elevate our organization into the upper echelons of the global energy market, ensuring our status both domestically and internationally. Any questions regarding these plans or pertaining to our annual general meeting may be submitted via the conventional channels, including by telephone and email, in due course. We necessitate your cooperation and understanding with this ongoing matter. 

Rusneftegaz can announce that we have appointed Igor Migunov in the newly-created position of Director of International Operations, and will commence his new role with immediate effect. This post will ultimately bear responsibility for the execution of our wider global expansion plans, the results of which are expected to be disclosed in the weeks and months ahead. In response to his appointment, Igor Migunov stated: 

“I am very proud to have been promoted to this prestigious position. I have been delighted with my time working with Rusneftegaz so far, and I hope that it continues long into the future. I would like to thank the directors personally for putting their faith in me; their contributions to this work so far have been invaluable. I hope that I am able to continue this good work, and I am excited to put together a team capable of delivering the results expected of me.” 

Migunov has worked as Deputy Chief Operations Officer for Rusneftegaz since his appointment in 2016, where he acted as the understudy to board member, Vitaliy Kalyuzhniy. During this time, he has taken on a broad range of portfolios, including overseeing petroleum extraction at our sites in the Komi Republic and the Khanty-Mansi Autonomous Okrug, in addition to arranging considerable and complex oil sales. Migunov has extensive experience in this industry, both in Russia and abroad, having previously taken leadership roles at Gazprom Neft and at trading companies across Europe. Following his promotion, Deputy Chief Executive Officer, Aleksandr Filyurin remarked: 

“Since Igor joined us three years ago, he has done some outstanding work, and it was inevitable that we would go far within our organization. I think it is fair to say that we have worked hard to establish this new business plan, but there is no doubt in my mind that Igor is the right man to take it forward. It is also worth mentioning that this is the first time a senior leadership position has been created at Rusneftegaz for over six years, and Igor is more than befitting that position. I would also like to take this opportunity to thank the other members of the board, and all the other members of staff, that have helped make this plan a success so far.” 

This new directorate will be tasked with furthering our extensive relationships with foreign governments, particularly in the Middle East and North Africa, where we shall continue to collaborate with our local partners. Migunov will not only be charged with continuing this work, but also advancing it further, both in the jurisdictions where we presently to do business and beyond. Commencing operations in new countries and regions is a fundamental tenet of our current commercial strategy, which has been in effect since its revision in 2015. Thus, the Director of International Operations will also be charged with establishing an international trading hub, the creation of which is now in the final stages. This new office, which is projected to begin business early next year, is expected to drive significant increases in revenues from the sale of crude oil and refined products in both domestic and global markets. 

Both this project, in addition to a simultaneous international expansion of our electricity generation operations, has been under research for the past three years, with material investments committed to ensure its long-term success. The enlargement of our energy business is set to begin with the acquisition of power plants in developing countries, the purchase of which Migunov is expected to manage accordingly, in conjunction with an overhaul of these assets to meet contemporary economic and environmental standards. To fulfill this, the director will be appointing a team to assist him with these vital tasks, and will be spending his time working between our office in Moscow and our new international trading hub accordingly. Any vacancies that subsequently arise will be advertised on this website and via our partners in due course.

After a comprehensive review of our internal corporate structure, Rusneftegaz can today report that our leadership has collectively endorsed a proposition from one of our independent directors, Sergei Kolesnikov, to expand our management board. This has been enabled with a late motion being filed at our upcoming annual general meeting, which is set to be held in less than six weeks. Prior to this announcement, all propositions at the yearly conference were expected to be routine submissions, including to reappoint our auditor and authorize our remuneration policy. However, if it is passed, this new proposal will result in the creation of the role of Vice Chairman, who would bear similar responsibilities to that of his immediate superior and assume control in an official capacity if the head of the body were to be incapacitated. Whilst this may be the second enlargement of the committee within the past twenty-four months, having previously added two non-executives back in 2017, there is an erstwhile belief that such a course of action is critical to facilitate our expansion in the years ahead. Therefore, this should not be construed as an attempt to increase oversight or scrutiny of the current administration, but instead as a means of reducing both the burden and strain on those who presently serve in these challenging positions. In response to this news, our Deputy Chief Executive Officer, Aleksandr Filyurin, gave the following remarks:  

“I am very pleased that I can endorse this proposal. Since I joined Rusneftegaz in 2015, the board and I have been looking for as many ways as possible to ensure that this company does not go through hard times as it did in the few years before I joined. To be honest, the only reason I was appointed here was to fix the mess that had been made, and now it is vital that we ensure that it never happens again. I would like to place on record my thanks to Sergei for the massive contribution he has made since he joined us a couple of years ago, including coming up with the idea to add another member to the board. His work looking at our governance standards has been superb, suggesting ideas to make sure that we don’t make the same mistakes that this company did before. I would also like to thank our shareholders, who have been very supportive of this idea since it was first conceived. I think that by adding someone new, we can help ensure that this company isn’t led by a small cabal of managers who have absolute control over everything that is done here. We can make sure that Rusneftegaz remains free of corruption and does things properly. Fortunately, the candidate we have chosen for Vice Chairman is amazing, and I look forward to working with him long into the future.” 

Consequently, we can confirm that Roman Odintsov has been nominated for the position of Vice Chairman, with his potential appointment subject to the approval of shareholders in Moscow at the beginning of April. To date, he has led a highly distinguished career, with our executive leadership viewing him as an exceptionally qualified candidate for the role following a long and exhaustive recruitment process. Since graduating from university in Saint Petersburg with qualifications in English and French, Odintsov has held various roles in both the public and private sector, including in the Ministry of Energy, where he specialized in oil production. We can also disclose that preceding this announcement, he met with a selection of our key stakeholders to discuss his nomination. Thus, as a result, the outcome of the vote is now internally considered a formality. If his candidacy be approved as expected, Odintsov would start in his new post immediately, and it should be noted that any further expansion to the current composition of our board of directors is anticipated in the imminent future. Any queries regarding this matter, or otherwise pertaining to our impending annual general meeting, must be submitted via the conventional channels in due course. We require your cooperation and understanding with regard to this topic. 

Rusnefegaz has published a preliminary calendar for the upcoming fiscal year, with the disclosure of our consolidated financial statements on 2 April 2019 acting as the central highlight of an eventful year ahead. Subsequently, our annual general meeting will be convened later in the same week, providing a valuable opportunity for us to engage with our key stakeholders and deliberate our immediate and long-term plans. Presently, the conference is due to be held on 5 April 2019, although it should be noted that this date is subject to change prior to any further announcements. As a component of our ongoing operational procedures, we have also outlined our commitment to providing comprehensive quarterly production reports within a period of four weeks following the conclusion of each reporting cycle. It is important to acknowledge, however, that there may be disparities between the time such information is distributed to concerned parties, and the subsequent uploading of such material onto our website. 

​Additionally, it should be duly noted that in the coming weeks our ability to address nonessential inquiries, including those received via email and telephone, will be limited owing to the Christmas season, during which our staff will be taking vacations. This imminent disruption, which is anticipated to span from 24 December 2018 and 9 January 2019, will impact our administrative functions exclusively, and will not have any repercussions on our other operations. Consequently, it is imperative that all correspondences be sent to us as soon as possible to ensure a timely response. We would like to assure those affected by this that all messages received during this period will be diligently monitored and addressed if deemed necessary. Upon the conclusion of this timeframe, our utmost priority will be to promptly attend to all pending communications within one working day. This commitment is shared by our affiliates and subsidiaries, all of whom are also affected by this disruption. The provisional calendar can be accessed in its entirety on our official website, and although the aforementioned dates are subject to change at the discretion of the board, our management currently perceives any such amendments as unlikely. Should there be any inquiries pertaining to this announcement, we kindly request that these are directed via the usual channels at the earliest convenience, principally to guarantee a response before our capacity to do so becomes constrained. We greatly appreciate your cooperation and understanding in relation to this matter.