PRESIDENTIAL DECREE OF THE RUSSIAN FEDERATION

of June 30, 2022 No. 416

About application of special economic measures in the fuel and energy sphere in connection with unfriendly actions of some foreign states and the international organizations

Due to the unfriendly and contradicting international law actions of the United States of America and the foreign states and the international organizations which adjoined them directed to introduction of rationing arrangements concerning citizens of the Russian Federation and the Russian legal entities for the purpose of protection of national interests of the Russian Federation and according to the Federal Laws of December 30, 2006 No. 281-FZ "About special economic measures and enforcement powers", of December 28, 2010 No. 390-FZ "About safety" and of June 4, 2018 No. 127-FZ "About corrective actions (counteraction) on unfriendly actions of the United States of America and other foreign states" I decide:

1. Determine that in connection with threat of emergence of emergency situation of natural and technogenic nature, threats of life and safety of people, threat to national interests and economic safety of the Russian Federation which resulted from violation by some foreign legal entities and physical persons of obligations which is connected with execution of the Agreement on development of Piltun-Astokhsky and Lunsky oil and gas deposits on the terms of the Section of products concluded on June 22, 1994 (further - the Agreement), to these foreign persons and persons which are under their control apply the following special economic measures:

a) The government of the Russian Federation creates the Russian limited liability company to which based on this Decree pass all rights and obligations "With Sakhalin Energy the investment cop of the company, Ltd." (further - the Company). The specified limited liability company (further - society) is created according to the procedure, established by the Government of the Russian Federation. Society performs the activities according to the Agreement. The government of the Russian Federation is not founder (participant) of society;

b) the corporate property created within the Agreement is subject to immediate transfer into the ownership of the Russian Federation (in connection with proper execution of obligations by the Russian Federation on financing of its creation) with its simultaneous transfer to free use for the term determined by the Agreement, to society;

c) other, than provided by the subitem "b" of this Item, the corporate property is subject to immediate transfer into the ownership of society;

d) shares in the authorized capital of society belong:

to Gazprom Sakhalin Holding limited liability company it is pro rata to the number of the stocks owned by it in the authorized capital of the Company;

to society it is pro rata to the number of the shares in the authorized capital of the Company belonging to other shareholders. The provision of Item 2 of article 24 of the Federal Law of February 8, 1998 No. 14-FZ "About limited liability companies" is not applied to the specified shares. These shares are subject to transfer to persons determined according to this Decree. Before date of transmission to these persons of the shares belonging to society control of them is exercised based on this Decree of the Government of the Russian Federation or the federal executive body authorized by it;

e) in a month from the moment of creation of society the shareholders of the Company specified in paragraph three of the subitem "g" of this Item shall provide to the Government of the Russian Federation notifications on consent to accept in property of share in the authorized capital of society in proportion to the number of the stocks owned by each of them in the authorized capital of the Company. The documents confirming the rights of these shareholders of the Company to the corresponding number of shares of the Company shall be attached to the notification;

e) in case of receipt of the notification from among the notifications specified in the subitem "d" of this Item, the Government of the Russian Federation in 3-day time:

performs verification of the documents submitted according to the subitem "d" of this Item;

makes the decision on transfer of share in the authorized capital of society to the corresponding shareholder of the Company in proportion to the number of the stocks owned by it in the authorized capital of the Company or on refusal in transfer of such share;

g) the share, the decision on which transfer is made by the Government of the Russian Federation, is without delay transferred to person on whom according to the paragraph third the subitem "e" of this Item makes the decision on such transfer, and management of it of the Government of the Russian Federation stops;

h) the share in the authorized capital of society which transfer according to subitems "e" and "zh" of this Item was not performed to the shareholder of the Company is subject to assessment and sale by the Government of the Russian Federation. Sale of the specified share is performed in the procedure established by the Government of the Russian Federation to the Russian legal entity corresponding to the criteria determined by this procedure. Such sale is performed without collection of taxes, charges and other obligatory payments;

i) the money obtained from sale of share in the authorized capital of society which transfer according to subitems "e" and "zh" of this Item was not performed to the shareholder of the Company is enlisted by the buyer of such share for the account of type "C" opened by society addressed to this shareholder of the Company according to the Presidential decree of the Russian Federation of March 5, 2022 for No. 95 "About temporary procedure for obligation fulfillment before some foreign creditors". The shareholder of the Company has no right to dispose of the specified money before completion of the procedures, provided by subitems "k" - "m" of this Item;

j) The government of the Russian Federation carries out financial, environmental, technological and other audit of the activities of foreign legal entities (their branches) and (or) physical persons connected with execution of the Agreement and also audit of debt (unexecuted obligations of the shareholder of the Company and (or) the related foreign legal entities (their branches) before the Russian suppliers determined in the subitem "an" of Item 1 of the Presidential decree of the Russian Federation of March 31, 2022 No. 172 "About special procedure for execution by foreign buyers of obligations to the Russian suppliers of natural gas" (further - the Russian suppliers). Lists of persons concerning which audit of the activities connected with execution of the Agreement and audit of debt to the Russian suppliers are carried out affirm the Government of the Russian Federation. The status of the shareholder of the Company for the purposes of application of this Decree is determined as of date of creation of society;

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