Internal Audit Committee

The Internal Audit Committee of JSC INK-Capital (hereinafter referred to as the Company) being a permanent elective body shall carry out control over the Company’s financial and business operations, activity of its management bodies and officers (including its separate units, departments, branches and representative offices) by arranging from time to time documentary and physical audits.

In its work the Internal Audit Committee of the Company is governed by the laws of the Russian Federation, Company Charter, the Regulations on the Internal Audit Committee of JSC INK-Capital, and other internal documents of the Company relating to the Internal Audit Committee’s activity.

The Company’s Internal Audit Committee competence is set forth by the Federal Law On Joint Stock Companies and the Company Charter.

Audit

Since 2007, the INK Group has been preparing its financial statements in accordance with IFRS. From 2007 to 2009 the Company’s auditor was Deloitte. PricewaterhouseCoopers has been the Company’s auditor since 2010 and up to present.

Since 2009, the INK Group's reserves assessment report has been prepared by the independent auditor DeGolyer and MacNaughton in accordance with the international PRMS (Petroleum Resources Management System) classification based on direct participation interest ratio.