The Gazprom Board of Directors examined the information about the efficiency of R&D investments and approved the 2018 Progress Report on the Company's Innovative Development Program until 2025.

It was noted that innovative activities, which are being performed consistently under the Innovative Development Program until 2025, allow Gazprom to improve the efficiency of its operations and business processes.

Priority is given to the development of cutting-edge technical solutions to be applied primarily in major investment projects and at production facilities of subsidiaries. In order to incorporate the common principles of innovation management and to disseminate best practices across the Company, Gazprom adopted the Unified Innovation Management System for Subsidiaries.

Every year, the Company makes substantial investments in research, development and installation of high-tech domestic equipment and process systems. In 2018 alone, RUB 8.99 billion was allocated to R&D activities and 279 R&D solutions were put into practice, while the total effect from their utilization is expected to exceed RUB 204 billion.

Along with intense development and implementation of R&D solutions, Gazprom continues to streamline its corporate system for intellectual property management. In 2018, the Company obtained over 300 Russian and foreign patents and applied for more than 260 new ones. The use of patents in the Company's operations helped Gazprom generate upward of RUB 10 billion last year.

Gazprom is deepening its sci-tech cooperation with foreign partners and companies in the related industries, as well as expanding its joint efforts with domestic higher education institutions. The status of a core university of Gazprom has been assigned to 13 Russian institutes and universities. In 2018, they performed R&D services for the Company under six programs.

As part of the state-run policy for supporting small- and medium-sized businesses, Gazprom is enhancing its cooperation with small and medium-sized innovative companies. The website of the Single Window System (www.oknogazprom.ru) was launched in 2018. It allows users to monitor in real time the entire process of submitting innovative proposals for implementation at Gazprom, from the filing of an application to the issuance of the resulting decision.