Tatneft' imeni V D Shashina : Regular Meeting of the JSC TATNEFT’s Board of Directors Was Held

A regular meeting of the Board of Directors of JSC TATNEFT chaired by R.N. Minnikhanov, Acting President of the Republic of Tatarstan, was held in Kazan on March 26, 2015.

The Board of Directors considered the budget execution of JSC TATNEFT for two months of 2015 and approved the budget for April and the second quarter of this year.

The information about the performance, efficiency and strategy of further development of the "Tatneft-Neftekhim" Management Company's enterprises was presented to the Board of Directors. An action plan to optimize costs at the Petrochemical Complex enterprises had been developed in order to reach the preset technical and economic targets with implementation of lean production techniques. Compensatory measures in the following areas had been developed for 2015 to reduce the impact of the exchange rate fluctuations: import substitution of raw materials, product sales cost reduction, increasing the sales volumes, cost optimization, reducing power consumption and loss of raw materials in production. The plans also provide for releasing production capacities in the next two years to start yielding more advanced Viatti brand products. In accordance with the strategy of the product portfolio and sales and taking into account the market situation the projected volume of tire production will increase to 14 million tires per year by 2017.

The Board of Directors discussed at the meeting the implementation of measures for import substitution. It was pointed out that the main areas of the Company's operations in this regard included geological exploration, construction and repair of wells, crude oil production, information technologies, crude oil/gas refining and production of petrochemicals, as well as tire manufacturing. Execution of the activities included in the special program will minimize the risks of TATNEFT associated with dependence on imports and will reduce the costs.

The Board of Directors also considered a number of other issues of the JSC TATNEFT's activities.