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13.8 On implementation of measures for provision of the information transparency of the procurement activity and transition to electronic procurement, including regulations governing procurement of goods, work and services. It is necessary to provide results of the meeting of the Company’s Board of Directors that considered the above Issues (Order No. ISh-P13-8685 of the Government of the Russian Federation of December 17, 2010, Letter No. GN-13/1416 of Rosimushchestvo dated January 25, 2011) (Order No. 10)

In pursuance with Guidelines of the Government of the Russian Federation No. 6464p-P13 dated December 16, 2010 and for the purpose of organizing electronic procurement, including by way of electronic auctions, on March 31, 2011 (Minutes No. 6) the Board of Directors of JSC “Transneft” ordered the executive bodies of JSC “Transneft” to organize and hold electronic procurement at JSC “Transneft”, including by way of electronic auctions.

According to the above resolution, the Board of Directors of JSC “Transneft” performed works to increase the amount of electronic procurement at the company. JSC “Transneft” delivers quarterly reports to the Board of Directors on the procurement activity of the Company which contain indicators characterizing, among other things, the number of the electronic auctions held (out of the total number of the auctions), the total sum of the electronic auctions held (from the total amount), the percentage of savings achieved (following results of the electronic auctions held), percentage of the savings achieved (from other procurements), and the percentage of failed electronic auctions.

Electronic procurement carried out during 2012 amounted to 6.3% in Q1, 3.1% in Q2, 71.2% in Q3 and 10.6% in Q4 of the total initial cost of procurement through competitive procedures.

JSC “Transneft” will continue carrying out electronic procurement in 2013.