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

1. General information

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:

10 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: FOR - 10, AGAINST - 0, ABSTAINED - 0.

Issue No. 2: FOR - 8, AGAINST - 0, ABSTAINED - 2.

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

Issue No. 4.1: FOR - 9, AGAINST - 0, ABSTAINED - 1.

Issue No. 4.2: FOR - 9, AGAINST - 0, ABSTAINED - 1.

Issue No. 4.3: FOR - 9, AGAINST - 0, ABSTAINED - 1.

Issue No. 4.4: FOR - 9, AGAINST - 0, ABSTAINED - 1.

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

ISSUE No. 1: Approval of Schedule Plan of IDGC of North-West, PJSC for reduction of the amount of overdue receivables for electric energy transfer services and settlement of disputes existing as of 01.07.2016.

Decision:

1. Approve IDGC of the North-West, PJSC schedule plan of measures for reduction of the amount of overdue receivables for electric energy transmission services and settlement of disputes having arisen as of 01.07.2016 in accordance with Appendix No. 1 to this decision of the Board of Directors of the Company.

2. Take under advisement the information on execution of the schedule plan of measures for reduction of the amount of overdue receivables for electric energy transmission services and settlement of disputes, generated with regard to the indebtedness having arisen as of the beginning of the previous quarter and previously approved by the Board of Directors of the Company in accordance with Appendix No. 2 to the decision of the Board of Directors of the Company.

3. Take under advisement the information regarding:

- Implementation of instruction of the Board of Directors dated 27.05.2016 (Minutes No. 207/22) on the issue "Approval of the schedule plan of measures for reduction of the amount of overdue receivables for electric energy transfer services and settlement of disputes" in terms of repayment of the overdue debts included in the debts existing as of 01.01.2016 in Q2 2016;

- Actions performed on new overdue debts, and turnover of receivables for electric energy transfer services in Q2 2016;

- Work performed with regard to the newly arisen overdue receivables of debtors who have made more than 10% of the newly arisen overdue indebtedness;

- Interaction with major debtors with assessment of non-payment risk, status and assessment of prospectives of debt collection by enforcement proceedings;

- Implementation of the work plan of IDGC of the North-West, PJSC for exercise of the right to claim indebtedness from enterprises and organizations undergoing a bankruptcy procedure.

Decision taken.

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 Q2 2016 and 6 months of 2016.

Decision:

1. Approve the report on implementation of the Business Plan of IDGC of the North-West, PJSC including the Investment Program and information on key operational risks for Q2 2016 and H1 2016 in accordance with Appendix No. 3 to this decision of the Board of Directors of the Company.

2. By the results of H1 2016, take note of:

2.1 Failure to meet parameters of investment program of IDGC of the North-West, PJSC, approved by the Ministry of Energy of Russia, in terms of launch of transformer capacities of 101.51 MVA, or by -72% (planned 140.67 MVA, actual 39.16 MVA);

2.2 Failure to meet parameters of investment program of IDGC of the North-West, PJSC, approved by the Ministry of Energy of Russia, in terms of fixed asset facility commissioning by 486 mln. RUB, or by -49% (planned 995 mln. RUB, actual 509 mln. RUB);

2.3 Failure to reach 12 checkpoints of aggregate operation schedules in 5 priority facilities of the investment program of IDGC of the North-West, PJSC, out of 24 checkpoints planned for the reporting period.

3. Instruct General Director of IDGC of the North-West, PJSC to:

3.1 Take actions to eliminate backlog of approved aggregate operation schedules of priority investment targets of the Company, ensure unconditional implementation within defined time.

3.2 Ensure positive conclusion of the state expert examination of design and estimate documentations for investment program target "Construction of 110 kV overhead line between 110 kV substation No. 283 Zavelichye and 330 kV substation Velikoretskaya".

Date: 10.10.2016.

3.3 Ensure execution of the documents of title (servitude, rent, buyout) for all 12 land sites required for timely positioning of 110 kV overhead line between 110 kV substation No. 283 Zavelichye and 330 kV substation Velikoretskaya, and take actions required to approve the area planning documentation as soon as possible.

Date: 12.09.2016.

3.4 Confidential information;

3.5 Take actions required to make contractor of the Company perform its obligations under technological connection agreement with North-West subsidiary of Oboronenergo, OJSC No. 76-04478/14 dated 25.03.2015, or to terminate the agreement Report the results at the Board of Directors of IDGC of the North-West, PJSC.

Date: 30.09.2016.

Decision taken.

ISSUE No. 3: Approval of the report on execution of business plan aggregated on the RAS principles and consolidated by the IFRS principles of IDGC of the North-West, PJSC Group, for Q2 2016 and 6 months of 2016.

Decision:

Approve the report on implementation of the business plan (aggregated based on RAS principles and consolidated based on IFRS principles) of IDGC of the North-West, PJSC Group for H1 2016 in accordance with Appendices No. 4 and No. 5 to this decision of the Board of Directors of the Company.

Decision taken.

ISSUE No. 4: Determination of the attitude of the Company's representatives to issues on agendas of general meetings of shareholders and sessions of Boards of Directors of subsidiary companies of IDGC of the North-West, PJSC.

Decision:

1. Instruct representatives of IDGC of the North-West, PJSC to vote FOR the following decisions to be taken at the session of the Board of Directors of Pskovenergosbyt, OJSC on agenda issue "Approval of the Report on Performance of the Business Plan of the Company in Q2 and 6 months of 2016":

"Approve the report on execution of the Business-Plan of the Company in Q2 and 6 months of 2016, the core indicators being as follows (thousand RUB):

Decision taken.

2. Instruct representatives of IDGC of the North-West, PJSC to vote FOR the following decisions to be taken at the session of the Board of Directors of Pskovenergoagent, OJSC on agenda issue "Approval of the Report on Performance of the Business Plan of the Company in Q2 and 6 months of 2016":

"Approve the report on execution of the Business-Plan of the Company in Q2 and 6 months of 2016, the core indicators being as follows (thousand RUB):

Decision taken.

3. Instruct representatives of IDGC of the North-West, PJSC to vote FOR the following decisions to be taken at the session of the Board of Directors of Lesnaya Skazka, OJSC on agenda issue "Approval of the Report on Performance of the Business Plan of the Company in Q2 and 6 months of 2016":

"1. Approve the report on execution of the Business-Plan of the Company in Q2 and 6 months of 2016, the core indicators being as follows (thousand RUB):

2. Take notice of underperformance of the "Net profit" indicator following the outcome of operation of the Company in H1 2016 by -541 thousand RUB or by 55% (planned 985 thousand RUB, actual 444 thousand RUB).

3. Instruct the General Director of the Company to ensure achievement of the parameters of the approved Business Plan of the Company for 2016 following the outcome of 2016."

Decision taken.

4. Instruct representatives of IDGC of the North-West, PJSC to vote FOR the following decision to be taken at the session of the Board of Directors of Pskovenergosbyt, OJSC "Re-election of General Director of Pskovenergosbyt, OJSC":

"Re-elect Olga Veniaminovna Smirnova General Director of Pskovenergosbyt, OJSC, for the term in office up to 07.09.2017."

Decision taken.

2.3. Date of the session of the Board of Directors of the Issuer whereat the relevant decisions were made: 07.09.2016.

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. 218/9 dated 12.09.2016.

3. Signature

3.1. Deputy General Director

for Corporate Governance

IDGC of the North-West, PJSC

D.A. Orlov

(under the Power of Attorney No. 119 dated 27.07.2015)

3.2. Date: September 12, 2016

(signature)

Seal here