Introduction

JSC Fuel Company (hereinafter "the Company") management contacted us with an offer to assure the 2017 Annual Report of the Company (hereinafter "the Report") in terms of completeness and materiality of information disclosed therein, and to assess the performance of Company’s management in response to recommendations and remarks of stakeholders. We were provided with the possibility to take part in off-site dialogue concerning the Report’s concept (December 2017), dialogue on the priority topic (February 2018) and public consultations on the draft of the Report (May 2018). We also tool part in the process of actualization of priority topics to be disclosed in the Report.

Draft Report Evaluation Procedure

We hereby confirm that we are acting independently and undertake to be objective in our evaluation, thereby expressing our personal expert opinion rather than the opinion of organizations we represent.

Our conclusion is based on the study of the final version of the Report and the analysis of information obtained in the course of dialogues and public consultations, in which we and our representatives participated and were allowed to freely express our opinion on the matters under discussion.

We are not aware of any facts that compromise reliability of data set forth in this Report. However, checking of the data collection system and verification of reliability and completeness of information is not the subject matter of public assurance.

No remuneration has been received from TVEL FC for our efforts and time invested in this project.

The results of our work are formalized in this Statement on Public Assurance wherein the opinions we all agreed upon are presented.

Completeness and materiality of information

The Report contains relevant information that is sufficiently complete for proper understanding of the current state and prospects of the Company.

The Report covers topics that are material for stakeholders. Materiality assessment procedure used by the Company, based on GRI Standards requirements, made it possible to take into account opinions of all stakeholder groups.

According to our reckoning there are no reasons for doubt concerning the reliability and relevance of topics prioritization results.

Company’s response to comments and recommendations of stakeholders

The Company consistently proceeds with serious work on providing wide audience for the dialogues and in the course of preparation of this Report traditionally demonstrated its willingness to conduct open communication with stakeholders on various aspects of its activities.

The Company has duly noted recommendations of the stakeholders received during dialogues and public consultations, conducted their analysis and used most of them in the final version of the Report. Moreover, the Company carried out several obligation that were taken in the previous reporting campaigns, thus the Reports transparency and information value were increased.

Assessment, Comments and Recommendations

We all share positive opinion about the Report – its form and the information disclosed. The Company has prepared an informative and well-structured document that meets our expectations.

We note that the Company is focused on following advanced Russian and international standards on corporate reporting. In the first place these are GRI Standards on sustainability reporting (an outstanding feature of the Company is the application of the comprehensive option).

In our opinion, the Company has pursued a successive approach to increasing transparency and accountability of its activities. By defining the priority topic of the Report as "TVEL strategic initiatives – efficiency improvement and sustainable development" the Company demonstrated high level of aspiration to maintenance of social and ecological acceptability on the territories of presence of its enterprises, as well as actual results achieved on the way to compacting production areas and cost optimization aimed at efficiency improvement.

We believe that the Report discloses information on all key aspects of Company’s activities, including new businesses. Strategy is described in detail, as well as reporting year’s input in its achievement, SWOT-analysis, factors of Company’s long-term sustainability.

We are confident that the Company will consistently pursue commitments and plans, disclosed in this Report, and will preserve the high quality of stakeholder engagement.