MRSK Severo Zapada : Details of Certain Decisions Taken by the Board of Directors of the Issuer

1. General details

1.1. Issuer's full business name

Public Joint-Stock Company
"Interregional Distribution
Grid Company of the North-West"

1.2. Issuer's abbreviated business name

IDGC of the North-West, PJSC

1.3. Issuer's location

Russia, Leningrad Region, Gatchina

Address of the Company: Russia, 188300, Leningrad Region, Gatchina, 31 Sobornaya str.

1.4. Issuer's PSRN

1047855175785

1.5. Issuer's TIN

7802312751

1.6. Issuer's unique code assigned by the registration body

03347-D

1.7. Internet-page address used by the Issuer for information disclosure

www.mrsksevzap.ru, www.disclosure.ru/issuer/7802312751/

2. Contents of notice

2.1. Quorum of the session of the Board of Directors of the Issuer and the results of decision-making voting:

Quorum of the session of the Board of Directors:

11 out of the 11 members of the Board of Directors participating in the session, the required quorum was present.

Results of voting on the issues:

Issue No. 1:

Issue No. 1.1.1: FOR - 9, AGAINST - 0, ABSTAINED - 2.

Issue No. 1.1.2: FOR - 9, AGAINST - 0, ABSTAINED - 2.

Issue No. 1.2.1: FOR - 9, AGAINST - 0, ABSTAINED - 2.

Issue No. 1.2.2: FOR - 9, AGAINST - 0, ABSTAINED - 2.

Issue No. 2:

Issue No. 2.1: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 2.2: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 2.3: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 3: FOR - 10, AGAINST - 0, ABSTAINED - 1.

Issue No. 4: FOR - 10, AGAINST - 0, ABSTAINED - 1.

Issue No. 5: FOR - 9, AGAINST - 0, ABSTAINED - 2.

Issue No. 6: FOR - 9, AGAINST - 0, ABSTAINED - 2.

Issue No. 7: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 8: FOR - 10, AGAINST - 1, ABSTAINED - 0.

Issue No. 9: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 10: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 11: FOR - 11, AGAINST - 0, ABSTAINED - 0.

Issue No. 12: FOR - 5, AGAINST - 2, ABSTAINED - 2. Failed to participate in voting - 2 (Cl. 3 Art. 83 of the Federal Law "Joint-Stock Companies").

2.2. Contents of decisions made by the Board of Directors of the Issuer:

ISSUE No. 1: Termination of powers and election of members of the Management Board of the Company.

Decision:

1.1. Terminate the powers of the following members of the Management Board of IDGC of the North-West, PJSC:

1.1.1. Dmitry Ivanovich Nikonov;

1.1.2. Ivan Vladimirovich Medvedev.

1.2. Elect members of the Management Board of IDGC of the North-West, PJSC as follows:

1.2.1. Igor Anatolyevich Kuzmin, First Deputy General Director, Chief Engineer of IDGC of the North-West, PJSC;

1.2.2. Vadim Alexeyevich Pavlov, First Deputy General Director of IDGC of the North-West, PJSC.

Decision taken.

ISSUE No. 2: Coordination of members of the Management Board of the Company simultaneously holding offices with management bodies of other organizations.

Decision:

1. Agree on simultaneous holding of the following offices by the member of the Management Board of IDGC of the North-West, PJSC Vadim Nikolayevich Fedorov:

- Member of the Board of Directors of Pskovenergoagent, OJSC;

- Member of the Board of Directors of Energoservice of the North-West, OJSC.

2. Agree on simultaneous participation of the member of the Management Board of IDGC of the North-West, PJSC Denis Alexandrovich Orlov in the Board of Directors of Lesnaya Skazka, OJSC.

3. Agree on simultaneous participation of the member of the Management Board of IDGC of the North-West, PJSC Vladimir Valeryevich Nesterenko in the Board of Directors of Energoservice of the North-West, OJSC.

Decision taken.

ISSUE No. 3: Coordination of candidacies for certain positions within the Company, specified by the Board of Directors of the Company.

Decision:

Agree on the candidacy of Mikhail Yuryevich Deyankov to occupy the position of Deputy General Director - Director of Novgorodenergo branch of IDGC of the North-West, PJSC.

Decision taken.

ISSUE No. 4: Report on execution of the Plan of measures for enhancement of activities efficiency and improvement of the financial and economic standing of the Company in H1 2016.

Decision:

1. Approve the report on execution of the Plan of measures for enhancement of activities efficiency and improvement of the financial and economic standing of the Company in Q1 2016 in accordance with Appendix No. 1 to the decision of the Board of Directors of the Company.

2. Due to approval of the corrected Plan of measures for enhancement of activities efficiency and improvement of the financial and economic standing of IDGC of the North-West, PJSC for 2016-2020 by the Board of Directors of the Company on 31.05.2016 (Minutes No. 208/23) deem invalid Cl. 3.2 of the decision of the Board of Directors dated 13.08.2015 (Minutes No. 188/3) on the agenda Issue No. 1: "Report on execution of the Plan of measures for enhancement of activities efficiency and improvement of the financial and economic standing of the Company in H1 2015".

Decision taken.

ISSUE No. 5: List of investment projects stipulated by the approved investment program for the period of 2016-2020

and planned to be included in the finalized draft of the investment program of the Company for the period from 2016 stipulating construction, reconstruction and technical re-equipment of capital construction facilities with estimated cost per project equal to or in excess of 1.5 billion RUB (VAT included) at all stages of such projects implementation.

Decision:

Take under advisement the information about unavailability in the approved investment program of the Company for the period of 2016-2020 as well as in the finalized draft investment program of the Company for the period from 2016 of investment projects stipulating construction, reconstruction and technical re-equipment of capital construction facilities with estimated cost per project equal to or in excess of 1.5 billion RUB (VAT included) at all stages of such projects implementation, stipulating mandatory arrangement of public technological and price audit of investment projects.

Decision taken.

ISSUE No. 6: Approval of the candidacies of insurers of IDGC of the North-West, PJSC.

Decision:

Approve the following insurance companies as Insurers of the Company:

Decision taken.

ISSUE No. 7: Report of General Director on provision for insurance protection of the Company in Q2 2016.

Decision:

Take under advisement the report of General Director of the Company on provision for insurance protection of the Company in Q2 2016 in accordance with Appendix No. 2 to this decision of the Board of Directors of the Company.

Decision taken.

ISSUE No. 8: Report of General Director on the Company's credit policy in Q2 2016.

Decision:

1. Approve the report on the credit policy of the Company in Q2 2016 in accordance with Appendix No. 3 to this decision of the Board of Directors of the Company.

2. Take notice of exceedance of the debt coverage target limit as of 30.06.2016.

3. Agree temporary exceedance of the debt coverage target limit as of 30.06.2016.

4. Instruct General Director of the Company to ensure fulfilment of the requirements of the Regulations on the Company's credit policy approved by the Board of Directors of the Company.

5. Take under advisement the report on the performed work on opening of additional credit lines by the Company in accordance with Appendix No. 4 to this decision of the Board of Directors of the Company.

Decision taken.

ISSUE No. 9: Consideration of the report of General Director on progress in divestiture of the Company non-core assets in H1 2016.

Decision:

1. Take under advisement the Report of General Director on progress in divestiture of the Company non-core assets in H1 2016 in accordance with Appendix No. 5 to this decision of the Board of Directors of the Company.

2. Exclude from the Company non-core asset register the facilities specified in Clauses 1.1.3., 1.1.6., 1.2.73., due to their divestiture.

3. Establish a new term for divestiture of the facilities specified in Clauses 1.1.1., 1.1.4., 1.2.30., 1.2.49., 1.2.50., 1.2.51., 1.7.20-1.7.34. - Q4 2016, for the facilities specified in Clauses 1.2.63., 1.7.1., 3.2.1., 3.4.1. - Q1 2017.

4. Introduce amendments to the Register (program for divestiture) of non-core assets of IDGC of the North-West, PJSC in accordance with Appendix No. 6 to this decision of the Board of Directors of the Company.

5. Instruct General Director of the Company to submit for consideration to the Board of Directors the issue "Consideration of the report of General Director on progress in divestiture of the Company non-core assets in 2016" in Q1 2017.

Decision taken.

ISSUE No. 10: Report on execution of the decision of the Board of Directors of the Company dated 18.11.2015 (Minutes No. 192/7) on the agenda Issue No. 7: "Report on execution of the decision of the Board of Directors of the Company dated 31.07.2015 (Minutes No. 187/2) on the agenda Issue No. 4: "Provisions by the Company for the established level of reliability and quality of services provided in accordance with the regulatory legal instruments in 2014" to the extent of execution of the instruction on Cl. 2 of the decision of the Board of Directors of the Company.

Decision:

Take under advisement Report on the results of analysis of the indicators indicative of the reliability level "Average duration of consumer electric power supply failure" and "Average frequency of consumer power supply interruptions" changes dynamics for 2014, 2015 in accordance with Appendix No. 7 to this decision of the Board of Directors of the Company.

Decision taken.

ISSUE No. 11: Report on execution of the decision of the Board of Directors of the Company dated 27.05.2016 (Minutes No. 207/22) on the agenda Issue No. 2: "Report of General Director on execution of the Business Plan of the Company including the Investment Program and information on the key operational risks of the Company for Q1 2016" to the extent of execution of Cl. 3.1 of the decision of the Board of Directors of the Company.

Decision:

Take under advisement the Report on execution of the decision of the Board of Directors of the Company dated 27.05.2016 (Minutes No. 207/22) on the agenda Issue No. 2: "Report of General Director on execution of the Business Plan of the Company including the Investment Program and information on the key operational risks of the Company for Q1 2016" to the extent of execution of Cl. 3.1 of the decision of the Board of Directors of the Company in accordance with Appendix No. 8 to this decision of the Board of Directors of the Company.

Decision taken.

ISSUE No. 12: Endorsement of the contract for paid provision of services for support of the "Energo" Corporate Information System for Statutory and Fiscal Accounting based on 1C: Enterprise 8.2 with account for the IFRS ACS subsystems and the "Contracts" subsystem between IDGC of the North-West, PJSC and Directorate for Fiber Optic Communication Lines on Overhead Transmission Lines, JSC representing an interested party transaction.

Decision:

1. Defined the price of the contract for paid provision of services for support of the "Energo" Corporate Information System for Statutory and Fiscal Accounting based on 1C: Enterprise 8.2 with account for the IFRS ACS subsystems and the "Contracts" subsystem between IDGC of the North-West, PJSC and Directorate for Fiber Optic Communication Lines on Overhead Transmission Lines, JSC (hereinafter the Contract) to comprise 11,084,448 (eleven million eighty four thousand four hundred forty eight) RUB 00 kopecks including VAT 18% of 1,690,848 (one million six hundred ninety thousand eight hundred forty eight) RUB 00 kopecks.

2. Endorse the Contract representing an interested party transaction on essential conditions as follows:

Parties to the Contract:

IDGC of the North-West, PJSC as the Customer;

Directorate for Fiber Optic Communication Lines on Overhead Transmission Lines, JSC as the Performer.

Subject of the Contract:

The Performer undertakes to provide the following services: support of "Energo" Corporate Information System for Statutory and Fiscal Accounting based on 1C: Enterprise 8.2 with account for the IFRS ACS subsystems and the subsystem "Contracts" (hereinafter the System).

Price of the contract:

The cost of the services under this Contract shall be equal to 11,084,448 (eleven million eighty four thousand four hundred forty eight) RUB 00 kopecks including VAT 18% of 1,690,848 (one million six hundred ninety thousand eight hundred forty eight) RUB 00 kopecks.

Services provision term:

Commencement: from the moment of the Contract signature.

Completion: after a year from the moment of the Contract signature.

Effective period of the Contract:

The Contract is considered executed from the date when the Customer that has submitted an offer (by e-mail or fax as well) receives (by e-mail or fax) a scanned/paper copy of the Contract signed by the Performer without disagreements and without a date on the first page of the Contract, and is effective until the Parties fulfil their obligations thereunder.

Decision taken.

2.3. Date of the session of the Board of Directors of the Issuer whereat the relevant decisions were made: 22.08.2016.

2.4. Date and number of the minutes of the session of the Board of Directors of the Issuer whereat the relevant decisions were made: Minutes No. 217/8 dated 25.08.2016.

3. Signature

3.1. First Deputy General Director, Chief Engineer

IDGC of the North-West, PJSC

I.A. Kuzmin

(pursuant to the Power of Attorney dated 21.06.2016)

3.2. Date August 25, 2016

(signature)

Seal here