Stakeholder Engagement

Conclusion on the Public Verification of the Report

Introduction

The management of JSC "TECHSNABEXPORT" (hereafter – the Company) suggested that we carry out verification of the Company's 2011 Report (hereafter – the Report) from the point of view of completeness and substantiality of disclosed information, and assess the management's actions with regard to addressing comments and requests from the stakeholders. In order to be able to do this we were given an opportunity to take part in discussions and public consultations of the Report draft (hereafter – the Consultations), which took place in March – April 2012, and freely express our opinion on the questions discussed.

The Procedure for Assessing the Report

Our summary is based on studying two versions of the 2011 Report (Report draft for the Consultations and the final copy of the Report) and analysing information obtained during discussions and Consultations (presentations, minutes, spreadsheets of suggestions considered).

Verification of accuracy of the facts presented in the Report is not subject to public verification and we were not going to check the Company's financial and economic indicators, which are monitored by a shareholder, independent auditor, the Company's audit commission, tax bodies and other authorised organisations.

The results of our work are represented in the Statement of public verification, which contains judgments we agreed upon. We did not obtain any compensation for the time and effort spent from the Company.

Assessments, Comments and Recommendations

We unanimously give the Report a positive evaluation. The Company has prepared an informative and properly structured document that meets our expectations. A distinct advantage of this Report is a detailed explanation of the Company's performance and future plans in the wake of the Fukushima disaster and a shift in the world nuclear industry that followed, with a particular focus on the client-oriented approach and reliability of supply. In our opinion, the topic that was given the highest priority by the Company's management and stakeholders, "New challenges – new solutions", has been described in full.

We would like to highlight constructive stakeholder engagement, demonstrated by the Company's management both in the course of working on the Report and the discussions and Consultations, as well as remarkable progress in the quality of organisation of these events.

We would also like to mention the Company's efforts in engaging stakeholders in the Report preparation, including the largest foreign companies acting as the Company's contractors. Based on this criterion we would like to single out the Company among other companies of the nuclear industry that held similar events where we were present.

In our opinion, the Company fulfilled its obligations, publically undertaken during the previous reporting campaign, to organise regular discussions with stakeholders. Thus, the Company proved the importance of stakeholders for its activities and its adherence to the international management standards.

Based on the analysis we made the following conclusions.

Materiality of Information

The Report discloses the Company's performance in 2011 through the key theme "New challenges – new solutions" with a particular emphasis on the JSC "TECHSNABEXPORT" business strategy in the new situation and improvement of the management mechanisms that ensure security of the supply chain. These issues are important for stakeholders, which we have mentioned on several occasions in our presentations. The Report also provides substantial information on the environmental and social aspects of the Company's operations.

We would like to emphasise the quality and completeness of the information provided in the Risk management section of the Report.

Completeness of Information

From our point of view the information provided in the Report sufficiently illustrates the Company's activities and conforms to the world best practice with regard to the completeness of the disclosed information. The volume of the information provided in the Report is sufficient for comprehensive understanding of the current situation and future prospects of the Company by the stakeholders.

Addressing Stakeholders' Comments and Suggestions by the Company

The Company's attitude to the suggestions made by stakeholders consisted in their rigorous recording, careful analysis and consideration during preparation of the final version of the Report.

The Company revised the final version of the Report having taken into consideration the recommendations formulated by the stakeholders, revised the sections "Strategy" and 'The Company's position in the world market', amended the wording with regard to the limitations of information disclosure associated with the current legislation in the area of state and trade secret protection.

Thus, the Company demonstrated a responsible approach to implementing the requirements of the State Atomic Energy Corporation ROSATOM policy on public reporting and soundly addressed stakeholders' comments and suggestions.

We would like to note a considerable progress in the Company's developing stakeholder engagement and we hope that the experience gained through discussions and public consultations will be taken into account and used to further enhance management instruments, corporate culture and information policy according to the current international standards and the best business practice from across the world.

Main specialist at Department for international cooperation, the State Atomic Energy Corporation ROSATOM
V.S. Bordyugovsky

Advisor to vice-president at JSC "TVEL"
A.Y. Grigoriev

Commercial director at JSC "IUEC"
G.V. Efremov

Deputy manager at the Administration of the Federal Service for Technology and Export Control
S.A. Zakharov

Head of department for security of nuclear fuel cycle facilities, nuclear energy units at ships and radiation hazardous sites, monitoring of nuclear and radioactive materials and physical protection of Federal Service for Ecological, Technological and Atomic Supervision
A.I. Kislov

Marketing and sales director at JSC "Atomredmetzoloto"
M.S. Kushnarev

Deputy director at Directorate for nuclear energy complex coordination and development at ROSATOM State Corporation
O.I. Linyaev

Executive director at All-Russian Non-Governmental Organisation Russian geographical society
G.D. Oleynik

Managing director at JSC TENEX-Japan
S.N. Pluzhnik

Executive director at Green Light
O.V. Plyamina

Dean of faculty of management and economics of high technologies at MEPhI
A.V. Putilov

Director at NAC International representative office
А.N. Sinev

Head of Department for risk management at the State Atomic Energy Corporation ROSATOM
T.A. Fokina

Director at JSC "SPb "IZOTOP"
A.P. Shishkin