Gazprom-AR2014

Additional information
155
Implementation of Presidential and Governmental Directives
and Instructions
Implementation of the Investment Programme
(Instruction No. ISh-P13-5361 of 18 September 2009 by I. I. Shuvalov, First Deputy Prime Minister
of the Russian Government)
As part of the 2014 Investment Programme approved by the Board of Directors of OAO Gazprom,
the actual investment spending in 2014 totalled RUB 1,426.5 bn including capital investment
of RUB 707.2 bn, long-term financial investment of RUB 174.3 bn, and acquisition of non-current
assets for RUB 545.0 bn.
In terms of capital construction, the Investment Programme focused on:
— constructing facilities at the Bovanenkovskoye field and implementing the Comprehensive
Programme for Upgrading and Technical Re-equipment of Gas Production Facilities for 2011–
2015;
— implementing gas transportation projects, including construction of the Bovanenkovo — Ukhta
trunk pipelines; UGSS expansion to supply gas to the South Stream project, and implementing
the Comprehensive Programme for Upgrading and Technical Re-equipment of Gas
Transportation Facilities;
— expanding the underground gas storage system in Russia.
Long-term financial investment priorities in 2014 were mainly associated with OAO Gazprom’s
involvement in the South Stream project, development of gas reserves outside Russia and power
generation projects.
The actual amount allocated for OAO Gazprom’s Investment Programme in 2014 came
at RUB 805.4bn (including RUB 631.1bn of capital investment financing).
Adoption of key management performance indicators
(Instruction No. Pr-1474 of 5 July 2013 by V. V. Putin, President of the Russian Federation)
By its resolution of 21 October 2014, OAO Gazprom’s Board of Directors approved a Regulation
on Key Performance Indicators for OAO Gazprom.
The document was drafted with due consideration of the Methodological Guidelines issued
by the Russian Ministry of Economic Development and Federal Agency for State Property Management.
Total Shareholder Return (TSR) and Return on Equity (ROE) were included in the KPIs to be
used to assess the performance of OAO Gazprom’s management, providing incentives to members
of the Board of Directors and making personnel-related decisions. Methodical guidelines
were drafted to measure such KPIs.
The KPI list meets the requirements set by government agencies to the number, structure and
weight of KPIs.
OAO Gazprom’s Board of Directors also resolved to approve management performance KPIs
to be considered when making remuneration and personnel-related decisions (Resolution
No. 2436 of 23 October 2014) and amending the Regulation on the Annual Bonus System for the
Management of OAO Gazprom (Resolution No. 2437 of 23 October 2014).
OAO Gazprom Annual Report 2014