Consolidated Financial Statements prepared in accordance with IFRS® Accounting Standards with Independent Auditor’s Report

31 December 2024

Moscow | 2025

Contents

Independent Auditor's Report 3

Consolidated Balance Sheet 8

Consolidated Statement of Comprehensive Income 9

Consolidated Statement of Cash Flows 10

Consolidated Statement of Changes in Equity 11

Notes to the Consolidated Financial Statements:

1. General Information 12

2. Economic Environment in the Russian Federation 12

3. Basis of Presentation 12

4. Scope of Consolidation 13

5. Material Accounting Policy Information 13

6. Critical Judgements and Estimates in Applying Accounting Policies 21

7. Segment Information 23

8. Cash and Cash Equivalents 25

9. Financial Assets 26

10. Accounts Receivable and Prepayments 26

11. Inventories 28

12. Other Current and Non-Current Assets 28

13. Property, Plant and Equipment 29

14. Right-of-Use Assets 31

15. Goodwill 31

16. Investments in Associates and Joint Ventures 32

17. Long-Term Accounts Receivable and Prepayments 34

18. Accounts Payable, Provisions and Other Liabilities 35

19. Taxes Other than on Profit and Fees Payable 35

20. Short-Term Borrowings, Promissory Notes and Current Portion of Long-Term Borrowings 35

21. Long-Term Borrowings, Promissory Notes 36

22. Profit Tax 37

23. Provisions 38

24. Equity 40

25. Perpetual Notes 41

26. Revenue From Sales 43

27. Operating Expenses 43

28. Finance Income and Expenses 44

29. Basic and Diluted Earnings (Loss) per Share Attributable to the Owners of PJSC Gazprom 44

30. Net Cash from Operating Activities 45

31. Subsidiaries 45

32. Acquisition of a Subsidiary 46

33. Related Parties 47

34. Commitments and Contingencies 50

35. Operating Risks 50

36. Financial Risk Factors 54

37. Fair Value of Financial Instruments 60

38. Events after the Reporting Period 61

2

‌Independent Auditor's Report

Opinion

To the Shareholders of Public Joint Stock Company Gazprom

We have audited the accompanying consolidated financial statements of Public Joint Stock Company Gazprom ("PJSC Gazprom") and its subsidiaries ("the Group"), which comprise the consolidated balance sheet as at 31 December 2024, and the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2024, and its consolidated financial performance and consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Rules of Independence of Auditors and Audit Organisations and the Code of Professional Ethics for Auditors, as well as the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards), and we have fulfilled our other ethical responsibilities in accordance with these ethics requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

During the audit we specially focused on revenue recognition as the revenue amount was material and revenue streams were formed in different geographic regions with significantly different terms of revenue recognition including price determination and change, transfer of risks and rewards. In 2024, export revenue continued to be significantly affected by the sanctions imposed since February 2022 by the US, the European Union and a number of other countries.

Sanctions pressure continues to affect the development of relationships with foreign counterparties. In addition, on 10 January 2025, a number of the Group's companies were included in a new package of the US sanctions. The imposed restrictions may create a risk of a decrease in the volume of hydrocarbon

sales for export, as well as affect payments for the supply of hydrocarbons, including the risk of an increase in the timing of payments from foreign counterparties under existing contracts.

Our audit procedures in respect of the risk of material misstatement of revenue included, in particular:

• assessment of the consistency in the application of the revenue recognition accounting policy applicable to various types of revenue and geographic regions;

• evaluation of the design of controls;

• assessment of the risk of material misstatement due to fraud or error;

• performance of substantive procedures in respect of the sales transactions.

  Information about the approaches to revenue recognition is disclosed in Note 5 "Material Accounting Policy Information" to the consolidated financial statements, information about sales, including information by geographic segments, is disclosed in Note 26 "Revenue from Sales" to the consolidated financial statements.

  Impairment of property, plant and equipment

  Due to the material carrying amount of property, plant and equipment, continued volatility of macroeconomic parameters, including the key rate of the Bank of Russia and inflation, aggravated by the fluctuating prices for energy resources, political instability, an increase in the income tax rate to 25 % from 1 January 2025 in the Russian Federation, we consider this area to be one of the most significant audit areas. Revenue forecasts were also significantly affected by the sanctions and restrictive measures imposed, including those infringing on the interests of PJSC Gazprom and its major subsidiaries. Additionally, we note that impairment models are highly sensitive to the assumptions applied by the Group's management and require a significant level of subjectivity of the applied judgements and estimates of the Group's management.

  As at 31 December 2024 the Group's management identified impairment indicators of property, plant and equipment related to certain cash-generating units and tested such property, plant and equipment for impairment in accordance with the requirements of IAS 36 Impairment of Assets.

  Our audit procedures in respect of this area included:

• analysis of the methodology used by the Group to test property, plant and equipment for impairment;

• testing of the principles used to forecast future cash flows;

• analysis of significant assumptions underlying the impairment test procedures in respect of various cash-generating units. The significant assumptions, in particular, included determining discount rates, forecasting prices for energy resources and exchange rates, as well as estimating volumes of production and sales;

• a sensitivity analysis to determine whether the models used for testing were sensitive to changes in the significant assumptions;

• analysis and evaluation of the disclosure of information about the assets impairment testing for compliance with the requirements of IAS 36 Impairment of Assets.

  Information about the measurement methods and significant assumptions applied to test property, plant and equipment for impairment is disclosed in Note 5 "Material Accounting Policy Information" and in Note 6 "Critical Judgements and Estimates in Applying Accounting Policies" to the consolidated financial statements, information about property, plant and equipment and their impairment testing is disclosed in Note 13 "Property, Plant and Equipment" to the consolidated financial statements.

  Measurement of expected credit losses on trade receivables

  Estimating the allowance for expected credit losses on trade receivables was one of most significance in our audit because of the material balances of trade receivables and the material amount of the accumulated provision, and because the existing political and economic situation, which was caused, among other things, by the impact of the sanctions imposed in 2022 - 2024, affected the measurement of expected credit losses of both Russian and foreign customers. We also believe that the evaluation of the sufficiency of the allowance for expected credit losses on trade receivables is a higher risk area as it is based on management's judgments on the possibility to recover that debt.

  Our audit procedures with respect to the measurement of expected credit losses on trade receivables by management included:

• checking of the methodology used to measure expected credit losses on trade receivables by the Group's management;

• analysis of the assumptions and professional judgments applied by the Group's management, including critical assessment of the information used to forecast the ability of its customers to repay their debts;

• sample checking of the models and calculations used to measure expected credit losses on trade receivables;

• analysis of external information, including legislative requirements and restrictive measures affecting the payment procedure of debts by foreign counterparties;

• sufficiency of the information disclosed as required by IFRS 7 Financial Instruments: Disclosures and IAS 1 Presentation of Financial Statements.

Information about the measurement procedure and the key assumptions applied to estimate expected credit losses is disclosed in Note 5 "Material Accounting Policy Information" and Note 6 "Critical Judgements and Estimates in Applying Accounting Policies" to the consolidated financial statements, information about accounts receivable and allowance for expected credit losses on trade receivables is disclosed in Notes 10 "Accounts Receivable and Prepayments", 17 "Long-Term Accounts Receivable and Prepayments" and 36 "Financial Risk Factors" to the consolidated financial statements.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Annual Report of PJSC Gazprom for 2024 and the Issuer's Report of PJSC Gazprom for the 12 months of 2024 but does not include the consolidated financial statements and our auditor's report thereon. The Annual Report of PJSC Gazprom for 2024 and the Issuer's Report of PJSC Gazprom for the 12 months of 2024 are expected to be made available to us after the date of this auditor's report.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Annual Report of PJSC Gazprom for 2024 and the Issuer's Report of PJSC Gazprom for the 12 months of 2024, if we conclude that there are material misstatements therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

1. identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

2. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control;

3. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Group's management;

4. conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosure in the consolidated financial statements or, if such disclosure is inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern;

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5. evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation;

6. plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming our opinion on the Group's consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the Group audit. We remain fully responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on the auditor's independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such

communication.

Engagement partner on the audit resulting

in this independent auditor's report, on behalf of the audit company,

power of attorney No. 48/25 dated 9 January 2025

Date of Independent Auditor's Report 28 April 2025

Audledenty

Name:

Public Joint Stock Company Gazprom

(PJSC Gazprom).

Addres s of the ie gal en tity withi n its Ioc ation:

2/3 Lakhlinsk y Avenue. Bldg. 1, St. Petersburg, 197229, Russian Federation.

The registration entry was made in lhe Unified State Register of Legal Entities on 2 Augusl 2002 under primary state registration number 1027700070518.

O

Yuriy Stanislavovich (registration number 216

Audilor

Na me:

FBK, LLC

Address of the Iegal entity wilhin its Ioc ation:

44 Myasnilskaya St, Bldg 2, Moscow, 101000, Russian Federation.

The registration entry was made in the Unified State Register of Legal Entities on 24 July 2002 under primary staie registration number 1027700058286.

Primary number of registration entry in the register of auditors and audit organizations of the self-regulatory organization of auditors 11506030481.

PJSC Gazprom Consolidated Balance Sheet as of 31 December 2024

(in millions of Russian Rubles)

‌A.B. iller

Chai an

M.N.

ev

the Management Committee

ref Accountant

The accompanying notes on pages 12 to 61 are an integral part of these consolidated financial statements.

Notes

PJSC Gazprom

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2024

(in millions of Russian Rubles)

Year ended 31 December

2024 2023

‌airman of ie Management Committee ' 2025

M.N. R

Accountant

e accompanying notes on pages 12 to 61 are an integral part of these consolidated financial statements.

PJSC Gazprom

Consolidated Statement of Cash Flows for the Year Ended 31 December 2024

(in millions of Russian Rubles}

Year ended 31 December

‌A.B. Mille Chairma

M.N. v

f tbe Management Committee Actountant

. z 2025 J z 2025

The accompanying notes on pages 12 to 61 are an integral part of these consolidated financial statements.

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024

(in millions of Russian Rubles)

‌The accompanying notes on pages 12 to 61 are an integral part of these consolidated financial statements.

Equity attributable to the owners of PJSC Gazprom

Notes to the Consolidated Financial Statements 31 December 2024

(in millions of Russian Rubles)

1. ‌General Information‌

   Public Joint Stock Company Gazprom (PJSC Gazprom) and its subsidiaries (the "Group" or "Gazprom Group") operate one of the largest gas pipeline systems in the world, and provide for the major part of natural gas production and its transportation by high-pressure pipelines in the Russian Federation. The Group is engaged in oil production, oil refining, electric and heat energy generation, media business. The Russian Federation is the ultimate controlling party and has a controlling interest (including both direct and indirect ownership) of over 50 % in PJSC Gazprom.

   The Group is involved in the following activities:

   • exploration and production of gas;

   • transportation of gas;

   • sales of gas within the Russian Federation and abroad;

   • gas storage;

   • production and sales of crude oil and gas condensate;

   • processing of oil, gas condensate and other hydrocarbons and sales of refined products;

   • electric and heat energy generation and sales;

   • media business.

2. ‌Economic Environment in the Russian Federation

   The economy of the Russian Federation displays certain characteristics of an emerging market. Tax, currency and customs legislation of the Russian Federation is subject to varying interpretations and causes additional challenges for companies operating in the Russian Federation.

   The political and economic instability, the situation in Ukraine, the current situation with sanctions, uncertainty and volatility of financial and trade markets and other risks have had and may continue to have effects on the Russian economy.

   The official Russian Ruble ("RUB") to US Dollar ("USD") exchange rate as determined by the Central Bank of the Russian Federation was as follows:

   • as of 31 December 2024 - 101.6797;

   • as of 31 December 2023 - 89.6883 (as of 31 December 2022 - 70.3375).

     The official RUB to Euro ("EUR") exchange rate as determined by the Central Bank of the Russian Federation was as follows:

   • as of 31 December 2024 - 106.1028;

   • as of 31 December 2023 - 99.1919 (as of 31 December 2022 - 75.6553).

   The future economic development of the Russian Federation is dependent upon external factors and internal measures undertaken by the Government of the Russian Federation to sustain growth and to change the tax, legal and regulatory frameworks. The management believes it is taking all necessary measures to support the sustainability and development of the Group's business in the current business and economic environment. The future economic situation and the regulatory environment and their impact on the Group's operations may differ from management's current expectations.

   In 2022-2024, the United States of America, the European Union (the "EU") and some other countries imposed additional sanctions against the Russian Federation (see Notes 35, 38). These circumstances have led to the volatility of financial markets, as well as significantly increased the level of economic uncertainty in the conditions of activity in the Russian Federation. The Group's management is analyzing the current economic conditions and their possible impact on the Group's activities. At the time of signing these consolidated financial statements, according to the estimates of the Group's management, the described circumstances do not call into question the continuity of the Group's activities.

3. ‌Basis of Presentation

   These consolidated financial statements are prepared in accordance with, and comply with, IFRS® Accounting Standards, including all IFRS Accounting Standards and Interpretations of the International Accounting Standards Committee approved and effective in the reporting period.

   The consolidated financial statements of the Group are prepared under the historical cost convention except for certain financial assets and liabilities presented at the fair value (see Note 37).

   The material accounting policy information applied in the preparation of the consolidated financial statements is set out below. The accounting policy has been consistently applied to all the periods presented in these consolidated financial statements, unless otherwise stated.

4. ‌Scope of Consolidation

   As described in Note 5, the consolidated financial statements include consolidated subsidiaries, associates, joint ventures and operations of the Group.

   Significant change in the Group's structure in 2024 is described in the Note 32. During 2023 the Group acquired several subsidiaries and there were other changes.

5. ‌Material Accounting Policy Information

   1. Subsidiaries, Associates and Joint Ventures

      Subsidiaries

      Subsidiaries are all entities, including structured entities, that the Group controls. Subsidiaries are consolidated from the date on which control is gained by the Group and are deconsolidated from the date on which control ceases.

      Acquisition of Entities under Common Control

      Acquisitions of entities under common control are accounted for in accordance with the requirements of IFRS 3 Business Combinations.

      Associates and Joint Ventures

      Investments in associates and joint ventures are accounted for using the equity method.

      The carrying amount of investments in associates and joint ventures is increased or decreased by recognising the Group's share in profit or loss and other comprehensive income of the investee after the acquisition date. Furthermore, in case of a change that is recognised directly in equity of an associate or a joint venture, the Group records its share in such change within profit or loss or, when applicable, in equity.

      The accrual (reversal) of impairment loss on investments in associates and joint ventures is recognised within "Impairment Loss on Non-Financial Assets" as part of operating expenses in the consolidated statement of comprehensive income.

   2. Financial Instruments

      1. Classification and Measurement of Financial Assets

         The Group classifies financial assets into three measurement categories: those measured subsequently at amortised cost, those measured subsequently at fair value with changes recognised through other comprehensive income, and those measured subsequently at fair value with changes recognised through profit or loss.

         Financial Assets Measured Subsequently at Amortised Cost

         Such category of financial assets includes assets held to obtain contractual cash flows and it is expected that they will result in cash flows being solely payments of principal and interest.

         This category of financial assets of the Group mainly includes cash and cash equivalents, restricted cash, deposits, accounts receivable, including loans receivable.

         Cash and Cash Equivalents and Restricted Cash

         Cash comprises cash on hand and bank balances. Cash equivalents comprise short-term financial assets which are readily convertible to cash and have an original maturity of less than three months from the acquisition date. Restricted cash includes cash and cash equivalents which are not to be used for any purposes other than those specified in the terms of the financing and other agreements or under banking regulations. Restricted cash are excluded from cash and cash equivalents in the consolidated statement of cash flows.

         Financial Assets Measured Subsequently at Fair Value with Changes Recognised Through Other Comprehensive Income

         Such category of financial assets includes assets held within business models whose objective is achieved by both collecting contractual cash flows and selling financial assets and it is expected that they will result in cash flows being solely payments of principal and interest.

         Gain or loss associated with this category of financial assets are recognised in other comprehensive income, except for impairment gain or loss, interest income and foreign exchange gain and loss, which are recognised in profit or loss. When a financial asset is disposed of, cumulative gains or losses that have been previously recognised in other comprehensive income are reclassified from equity to profit or loss in the consolidated statement of comprehensive income. Interest income from these financial assets is calculated using the effective interest method and included in financial income. This category of financial assets of the Group mainly includes debt instruments held both for collecting contractual cash flows and for selling.

         The Group's management can make an irrevocable decision to recognise changes in the fair value of equity instruments in other comprehensive income if the instrument is not held for trading. The Group's management has made a decision to recognise changes in the fair value of the majority of equity instruments in other comprehensive income as such instruments are considered to be long-term strategic investments which are not expected to be sold in the short and medium term. Other comprehensive income or loss from changes in the fair value of such instruments shall not be subsequently reclassified to profit or loss in the consolidated statement of comprehensive income.

         Financial Assets Measured Subsequently at Fair Value with Changes Recognised Through Profit or Loss

         Financial assets that do not meet the criteria of recognition as financial assets measured at amortised cost or measured at fair value through other comprehensive income are measured at fair value through profit or loss.

         This category of financial assets of the Group mainly includes derivative financial instruments and financial instruments held for trading, as well as some equity instruments for which the Group has not made a decision to recognise changes in their fair value in other comprehensive income.

         Impairment of Financial Assets

         For trade accounts receivable, lease receivables, whether they contain a significant financing component or not, the Group applies measurement based on lifetime expected credit losses.

         The accrual (reversal) of the allowance for expected credit losses for financial assets is recognised within impairment loss (reversal of impairment loss) on financial assets in the consolidated statement of comprehensive income.

      2. Classification and Measurement of Financial Liabilities

         The Group classifies all financial liabilities as measured subsequently at amortised cost, except for:

         • financial liabilities measured at fair value through profit or loss;

         • financial guarantee contracts;

         • contingent consideration recognised in a business combination for which IFRS 3 Business Combinations is applied. Such contingent consideration is measured subsequently at fair value with changes recognised in profit or loss.

           Financial liabilities of the Group measured at amortised cost mainly include borrowings and accounts payable.

           Financial liabilities of the Group measured at fair value through profit or loss mainly include derivative financial instruments not recognised as hedging instruments. The Group does not choose to classify any financial liabilities as measured at fair value through profit or loss.

           Borrowings

           Borrowings received by the Group are recognised initially at fair value of the proceeds which is determined using the prevailing market rate of interest for a similar instrument in case of significant difference from the interest rate of the borrowing, net of transaction costs incurred. In subsequent periods, borrowings are recognised at amortised cost, using the effective interest method; the difference between the fair value of the proceeds (net of transaction costs) and the redemption amount is recognised as interest expense over the period of the borrowings.

           Financial Guarantee Contracts

           Financial guarantee contracts are initially recognised at fair value. After initial recognition financial guarantee contracts are measured at the higher of the allowance for expected credit losses and the amount initially recognised less, if applicable, total income recognised in accordance with IFRS 15 Revenue from Contracts with Customers.

           Financial guarantee contracts of the Group mainly include guarantees issued and independent guarantees provided.

           Liabilities under Supplier Finance Arrangements

           The Group's liabilities under supplier finance arrangements are recognised as trade accounts payable if the liabilities initial maturity is within one year or in other non-current liabilities if the liabilities settlement period does not exceed the commissioning timeline of the field for which the materials and works were procured, and other terms of the liabilities remain unchanged as a result of the supplier finance arrangements, including the absence of any collateral for liabilities.

           Cash flows from the settlement of liabilities under supply financing agreements are recognised in the consolidated statement of cash flows within operating, investing or financing activities (depending on the nature of the liability).

      3. Derivative Financial Instruments

         The Group uses a variety of derivative financial instruments, including forward and foreign currency, commodities and securities option contracts. The derivative financial instruments are measured at fair value, a gain or a loss occurred from a change in the fair value of the derivative financial instruments is recognised in profit or loss of the consolidated statement of comprehensive income in the period in which it occurred. The fair value of the derivative financial instruments is determined using market information and valuation techniques based on prevailing market interest rates for similar financial instruments.

   3. Fair Value

      The fair value of accounts receivable in the consolidated financial statements is measured by discounting future cash flows at the current market rate of interest used for similar instruments at the reporting date.

      The fair value of financial liabilities and other financial instruments (except for publicly quoted) in the consolidated financial statements is measured by discounting the future contractual cash flows at the current market interest rate available to the Group to make borrowings using similar financial instruments.

      The fair value of publicly quoted financial instruments in the consolidated financial statements is measured based on quoted market prices at the date nearest to the reporting date.

   4. Taxes

      1. Introduction of a Single Tax Account

         In accordance with the requirements of the Tax Code of the Russian Federation the Group applies a single tax account and pays taxes, including profit tax, in a single tax payment. The Group recognises the taxes payable and receivable on a gross basis unless it has a right (according to the provisions of the Russian Tax Code) to offset recognised amounts and an intention to settle tax payables on a net basis.

      2. Value Added Tax

         In the Russian Federation the value added tax ("VAT") is payable on the difference between output VAT on sales of goods (works, services) and recoverable input VAT charged by suppliers of goods (works, services). The VAT rate is 20 %.

         Export of goods and rendering certain services related to exported goods is subject to a 0 % VAT rate upon the submission of confirmation documents required by the current tax legislation to the tax authorities. Input VAT related to operations that are subject to a 0 % VAT rate is recoverable. Sales of a limited list of goods (works, services) are exempted from VAT. Input VAT related to purchases of goods (works, services), which are non-taxable by VAT, is not recoverable and is included in the value of acquired goods (works, services).

         Deductible VAT related to purchases of goods (works, services) and also VAT overpayments (recoverable VAT) are recognised in the consolidated balance sheet within other current assets, while VAT payable to the state budget is disclosed as a current liability. VAT presented within other non-current assets relates to assets under construction and is expected to be recovered more than 12 months after the balance sheet date.

      3. Mineral Extraction Tax and Hydrocarbon Extraction Excess Profits Tax

         Mineral extraction tax ("MET") applied to the extraction of hydrocarbons, including natural fuel gas, gas condensate and oil, is accrued in proportion to the volume of extracted minerals.

         MET is recognised within "Taxes Other Than On Profit" as part of operating expenses in the consolidated statement of comprehensive income.

         Hydrocarbon extraction excess profits tax is classified in a similar manner as MET and is recognised within "Taxes Other Than On Profit" as part of operating expenses in the consolidated statement of comprehensive income.

      4. Customs Duties

         Export of hydrocarbons, including natural gas and oil, outside the Customs Union countries is subject to export customs duties. Export of natural gas outside of the Customs Union is subject to a fixed 30 % export customs duty rate levied on the customs value of the exported natural gas.

         Pertaining to the sales of oil and oil products outside the Customs Union, the Government of the Russian Federation established the export customs duty calculation methodology for crude oil and certain categories of oil products based on which the Ministry of Economic Development of the Russian Federation determines export customs duty rates for the following calendar month.

         Revenue from sales is recognised net of the amount of customs duties in the consolidated statement of comprehensive income.

      5. Excise Tax

         Excisable products include gasoline, motor oil, diesel fuel and natural gas. Unless otherwise provided for by international treaties of the Russian Federation, the tax rate on natural gas is 30 %. Excise taxes payable on the basis of the volume of products sold are deducted from revenue from sales.

         Within the Group's activities, excise tax is imposed on the transfers of excisable refined oil products produced at the Group's refineries from customer-supplied raw materials to the Group companies owning the raw materials. The Group recognises the excise tax on refined oil products produced from customer-supplied raw materials within "Taxes Other Than On Profit" as part of operating expenses in the consolidated statement of comprehensive income. Excise taxes deductions that provide economic benefits to the Group are recognised within other operating expenses in the consolidated statement of comprehensive income.

      6. Profit Tax

         The corporate profit tax rate for Russian companies is 20 %. In some cases, the profit tax rate may be reduced in accordance with local legislation. Subsidiaries operating outside the Russian Federation are subject to the profit tax rates established by the legislation of the respective country.

         In July 2024, amendments were made to the Tax Code of the Russian Federation, which include an increase of the profit tax rate from 20% to 25% effective from 1 January 2025. The effect of revaluation of the carrying amount of deferred tax assets and liabilities expected to be realised and settled after 1 January 2025 at 25% rate is recorded within "Deferred profit tax income (expenses)" in the consolidated statement of comprehensive income.

   5. Inventories

      The cost of inventories is determined based on the weighted average cost method.

      Write-downs of inventories to net realisable value and reversals of such write-downs due to subsequent increases in net realisable value are recognised as increases or decreases in materials and other inventories within operating expenses in the consolidated statement of comprehensive income.

   6. Property, Plant and Equipment

      Property, plant and equipment are carried at historical cost of acquisition or construction after deduction of accumulated depreciation and impairment amounts. Gas and oil exploration and production activities are accounted for in accordance with the successful efforts method ("successful exploratory wells"). Under the successful efforts method, costs of successful development and exploratory wells are capitalised. Costs of unsuccessful exploratory wells are expensed as they are recognised unproductive. Other exploration costs are expensed as incurred. Exploration costs are recognised within other operating expenses in the consolidated statement of comprehensive income.

      Borrowing costs are capitalised as part of the cost of assets under construction during the period of time that is required to construct and prepare the asset for its intended use. To the extent that funds are borrowed for general purposes and used for obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation is determined by the Group by applying a capitalisation rate to the expenditures on that asset. The capitalisation rate is the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. Foreign exchange losses on foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs eligible for capitalisation. Adjustment of interest costs is determined individually for each quarter.

      Depreciation of acquired production licenses is calculated using the units-of-production method for each field based upon volumes of proved reserves.

      Depreciation of property, plant and equipment is calculated using the straight-line method over their remaining useful lives (other than production licenses and certain oil and gas assets where the units-of-production method is economically more justified). The useful lives applied by the Group for major property, plant and equipment categories are as follows:

      	Years
      Pipelines	14-40
      Wells	15-54
      Machinery and equipment	1-40
      Buildings and roads	4-100
      Social assets	10-40

   7. Intangible Assets

      Intangible assets are recognised at historical cost after deduction of accumulated amortisation and impairment amounts. Intangible assets include software and software media rights, licences (other than exploration and production licences), trademarks and other intellectual property rights.

      Intangible assets, other than goodwill, generally have finite useful lives. Intangible assets are amortised on a straight-line basis over their useful lives, except for software media rights, which are amortised based on the expected inflows of economic benefits.

      Goodwill is measured at the business combination as the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previously held interest over the fair value of the assets acquired less any liabilities assumed at the acquisition date. A negative amount (bargain purchase gain) is recognised in profit or loss, after the Group's management assesses whether all acquired assets and regular and contingent liabilities assumed are identified and verifies whether their measurement is correct.

   8. Lease Contracts

      The Group does not recognise a right-of-use asset and a lease liability for short-term lease contracts that have a lease term of 12 months or less taking into account the probability of exercising the option to extend the lease contract (if any), and for low-value leased assets.

      The Group does not apply the requirements of IFRS 16 Leases to land leases pertaining to the exploration or use of natural gas, oil and similar non-renewable resources.

      For other land leases, the Group recognises a right-of-use asset and a lease liability.

      The Group applies the practical expedient for fixed payment contracts that also include a service component, and accounts for each lease component and any associated non-lease components as a single lease component for all types of underlying assets other than vessels. For vessel leases, the Group recognises the service component within expenses for the period when the share of such payments can be reliably measured.

      A right-of-use asset is amortised on a straight-line basis as of the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. A right-of-use asset is reduced by impairment losses, if applicable, and adjusted for certain remeasurements of the lease liability.

   9. Impairment of Non-Financial Assets

      At the end of each reporting period, if there is any indication that assets may be impaired, the Group's management assesses the recoverable value of the assets.

      For the impairment test the Group's assets are grouped into cash-generating units ("CGU") and their recoverable amount is based on their value in use. Value in use of assets in each unit is calculated as the present value of forecasted cash flows discounted using the rate derived from the weighted average cost of capital of the Group, as adjusted, where applicable, for any specific risks of business operations associated with the respective assets.

      The accrual (release) of impairment loss is recognised within "Impairment Loss on Non-Financial Assets" as part of operating expenses in the consolidated statement of comprehensive income.

   10. Foreign Currency Transactions

       Items included in the financial statements of each of the Group's subsidiary are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in the Russian Rubles, which are the presentation currency of the Group's consolidated financial statements.

       The results and financial position of a foreign operation are translated into the presentation currency of the consolidated financial statements using the following procedures:

       • assets and liabilities are translated at foreign exchange rates at the reporting date;

       • income and expenses are translated at average foreign exchange rates for quarter;

       • foreign exchange rate differences arising on the translation are recognised within other comprehensive income in the consolidated statement of comprehensive income and within retained earnings and other reserves in the consolidated balance sheet.

   11. Equity

       Treasury Shares

       Ordinary shares of PJSC Gazprom owned by the Group at the reporting date are carried at cost, including transaction costs, and are recognised within "Treasury Shares" in the consolidated statement of changes in equity. Subsequent sales of shares are recorded at weighted average cost. Gain or loss arising from treasury shares transactions are recorded, net of profit tax, within retained earnings and other reserves in the consolidated statement of changes in equity.

       Dividends

       Dividends are recognised as liabilities and deducted from equity in the period when they are recommended by the Board of Directors and approved at the General Shareholders Meeting of PJSC Gazprom.

       Perpetual Notes

       Russian Ruble perpetual callable notes and foreign currency perpetual callable loan participation notes issued by the Group are reported as an equity instrument within equity provided that the notes have no stated maturity and the Group, acting in its sole discretion, may, at any time and on any number of occasions, decide to postpone interest payments or decide to refuse to pay interest. The par value of foreign currency perpetual notes is recognised in the consolidated statement of changes in equity at the official exchange rate as at the date of initial recognition.

       The Group's issuing entity (the "Issuer") may decide to postpone interest payments on the foreign currency perpetual callable loan participation notes.

       To reflect the best estimate of the rights of perpetual callable loan participation notes holders and a potential cash outflow, the Group accrues interest in the consolidated statement of changes in equity by decreasing the retained earnings and other reserves item and increasing the perpetual notes item at the interest rate effective for the current interest period until an interest payment liability arises. Interest on foreign currency perpetual callable loan participation notes is accrued in the consolidated statement of changes in equity at the official exchange rate as at the date of initial recognition. A liability to pay interest on foreign currency perpetual callable loan participation notes is recognised in the consolidated balance sheet at the official exchange rate as at the date when an interest payment obligation arises.

       To reflect the best estimate of the rights of foreign currency perpetual callable loan participation notes holders and a potential cash outflow, the par value of foreign currency perpetual notes and interest recognised in equity are translated into Russian Rubles as at the reporting date and as at the date of their transfer to liabilities at the official exchange rate. Gain or loss from translating the par value of foreign currency perpetual notes and interest into Russian Rubles is reported within perpetual notes and retained earnings and other reserves in the consolidated statement of changes in equity.

       The Issuer may decide to refuse to pay interest on the Russian Ruble perpetual callable notes. The Group accrues interest in the consolidated statement of changes in equity by decreasing the retained earnings and other reserves item as at the date when an interest payment obligation arises.

       Costs associated with the issuance of perpetual notes and the tax effect of transactions related to perpetual notes and recognised in equity (except for the tax effect of transactions related to interest) are reported within retained earnings and other reserves in the consolidated statement of changes in equity. The tax effect of interest accrual is reported within profit or loss in the consolidated statement of comprehensive income, as defined by IAS 12 Income Taxes.

   12. Revenue Recognition

       Revenue from sales of gas, refined products, crude oil and gas condensate, electric and heat energy is recognised when products are delivered to customers and the title passes and is stated in the consolidated financial statements net of VAT and, where applicable, customs duties, excise tax, as well as payments due to the Russian Federation in accordance with the production sharing agreement ("PSA") and other similar mandatory payments. Payments under the PSA are classified as revenue from contracts with customers received on behalf of third parties. PSA payments include a subsoil use fee (royalty), an allocation of available hydrocarbon production and additional revenue, as well as a compensation payment to the Russian Federation. The subsoil use fee (royalty) is 6% of the cost of hydrocarbons produced under the PSA. The allocation of available hydrocarbon production and additional revenue and compensation payment depend on the performance of the Group's subsidiary conducting production under the PSA, with the aim of providing that the Russian Federation's share of revenue from hydrocarbon sales under the PSA aligns with the PSA's target indicators.

       Revenue from sales of gas transportation services is recognised when gas transportation services are provided, as evidenced by delivery of gas in accordance with the contract.

       Prices for natural gas and tariffs for gas transportation to final consumers in the Russian Federation are regulated by the Federal Antimonopoly Service ("the FAS Russia"). Prices for gas sold to foreign countries are mainly calculated by formulas based on oil product prices, in accordance with the terms of long-term contracts.

   13. Research and Development

       Research expenditures are recognised as other operating expenses in the consolidated statement of comprehensive income as incurred. Development expenditures are recognised as intangible assets if only future economic benefits are expected to flow from such expenditures. Other development expenditures are recognised as other operating expenses in the consolidated statement of comprehensive income as incurred. Development expenditures initially recognised as expenses are not capitalised in subsequent periods, even if the asset recognition criteria are subsequently met.

   14. Employee Benefits

       Pension and Other Post-Employment Benefits

       The Group applies pension and other post-employment benefits system, which is recorded as defined benefit plan in the consolidated financial statements under IAS 19 Employee Benefits. Pension benefits are provided to the majority of the Group's employees.

       The costs of providing pension benefits are recognised using the projected unit credit method. The costs of providing pension benefits are accrued and recognised within staff costs as part of operating expenses in the consolidated statement of comprehensive income.

       The provision for post-employment benefits of the Group's employees is measured at the present value of the projected cash outflows using interest rates applied to government securities, which have the term to maturity approximately corresponding to the term of maturity of the related provision.

       Actuarial gains and losses on pension plan assets and liabilities arising from experience adjustments and changes in actuarial assumptions are recognised in other comprehensive income in the period in which they occur (see Note 23).

       Interest income or expense on the net liability (asset) of the pension plan and liability for other post-employment benefits is recognised on a net basis as finance income or expenses in profit or loss of the consolidated statement of comprehensive income.

       Pension plan assets are measured at fair value and subject to certain limitations (see Note 23). Fair value of pension plan assets is based on market quotes. When no pension plan assets' market price is available, the fair value of assets is estimated by different valuation techniques, including the use of discounted expected cash flows calculated using a discount rate that reflects both the risk associated with the pension plan assets and expected maturity or disposal date of these assets.

       In the normal course of business the Group pays contributions to the Pension and Social Insurance Fund of the Russian Federation on behalf of its employees. Mandatory pension insurance contributions to this fund, which are recorded as a pension defined contribution plan, are recognised within staff costs as part of operating expenses in the consolidated statement of comprehensive income as incurred.

       Social Expenses

       The Group incurs expenses for the social needs of employees, in particular, related to the provision of medical services and maintenance of social infrastructure facilities. These amounts represent inherent costs associated with the employment of staff and, accordingly, are recognised within staff costs as part of operating expenses in the consolidated statement of comprehensive income.

   15. New Standards and Amendments to Standards

       Application of Amendments to Standards

       The following amendments to current standards became effective beginning on or after 1 January 2024:

       • the amendments to IAS 1 Presentation of Financial Statements (issued in January 2020 and effective for annual reporting periods beginning on or after 1 January 2024). The amendments clarify the criteria for classifying liabilities as current or non-current;

       • the amendments to IAS 1 Presentation of Financial Statements (issued in October 2022 and effective for annual reporting periods beginning on or after 1 January 2024). The amendments clarify the criteria for classifying liabilities with covenants as current or non-current and contain requirements for related financial statements disclosures. Related disclosures were included in the consolidated financial statements (see Note 36);

       • the amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures (issued in May 2023 and effective for annual reporting periods beginning on or after 1 January 2024). The amendments contain additional requirements for disclosures about supplier finance arrangements. Related disclosures were included in the consolidated financial statements (see Note 36);

       • the amendments to IFRS 16 Leases (issued in September 2022 and effective for annual reporting periods beginning on or after 1 January 2024). The amendments clarify the procedure for the subsequent valuation of assets and liabilities for sale and leaseback transactions.

         The Group reviewed these amendments to standards while preparing the consolidated financial statements. The amendments to standards have had no significant impact on the Group's consolidated financial statements, except for the inclusion of the relevant disclosures mentioned above.

         The Standard and Amendments to Existing Standards That Are Not Yet Effective and Have Not Been Early Adopted by the Group

         The new standard and amendments to standards are mandatory for the annual periods beginning on or after 1 January 2025. In particular, the Group has not early adopted the following standard and amendments to standards:

       • the amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates (issued in August 2023 and effective for annual reporting periods beginning on or after 1 January 2025). The amendments introduce the concept of an exchangeable currency and establish the procedure for determining the exchange rate to use if the currency cannot be exchanged into another currency, and also contain requirements for related financial statements disclosures;

       • the amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures (issued in May 2024 and effective for annual reporting periods beginning on or after 1 January 2026). The amendments clarify the procedure for classifying financial assets and derecognising financial liabilities settled using an electronic payment system, and also contain disclosure requirements relating to investments in equity instruments measured at fair value through other comprehensive income and financial instruments with contingent features;

       • IFRS 18 Presentation and Disclosure in Financial Statements (issued in April 2024 and effective for annual reporting periods beginning on or after 1 January 2027) replaces IAS 1 Presentation of Financial Statements and establishes general requirements for the presentation and disclosures in financial statements.

       The Group is currently assessing the impact of the new standard and amendments to standards on its financial position and performance.

6. ‌Critical Judgements and Estimates in Applying Accounting Policies

   The preparation of consolidated financial statements requires management to make different estimates and assumptions that may affect the valuation amount of assets and liabilities as well as information in notes to the consolidated financial statements. Management also makes certain judgements in the process of applying the accounting policies. These estimates and judgements are continually analysed based on historical experience and other information, including forecasts and expectations of future events that are believed to be reasonable under the current circumstances. Actual results may differ from specified estimates, and management's estimates can be revised in the future, either positively or negatively, depending on their effect based on the facts associated with each estimate.

   Judgements that may have the most significant effect on the amounts recognised in the consolidated financial statements and estimates that can cause significant adjustments to the carrying amount of assets and liabilities within the next financial year are reported below.

   1. Consolidation of Subsidiaries

      Management's estimates are involved in the assessment of control and the method of accounting of investments in subsidiaries in the Group's consolidated financial statements taking into account voting rights and contractual arrangements with other owners.

   2. Tax Legislation

      Tax, currency and customs legislation of the Russian Federation is subject to varying interpretations (see Note 35).

      Profit tax liabilities are determined by management in accordance with the current legislation. Liabilities for penalties, fines and taxes other than profit tax are recognised based on management's best estimate of the expenditure required to settle tax obligations at the balance sheet date.

   3. Assumptions to Determine Amount of Allowances

      Allowance for Expected Credit Losses of Accounts Receivable

      An allowance for expected credit losses of accounts receivable is based on the Group's management assessment of expected credit losses for the accounts receivable lifetime. Credit losses are the difference between all contractual cash flows that are due to the Group in accordance with the contract and all cash flows that the Group expects to receive, i.e. all cash shortfalls, discounted at the original effective interest rate. If there is deterioration in any major customer's creditworthiness or actual losses as a result of defaults by debtors are

      higher or lower than the Group's estimates, the actual results could differ from these estimates. The change in allowance for expected credit losses of accounts receivable is disclosed in Notes 10, 17.

      Allowance for Impairment of Non-Financial Assets

      The estimation of forecasted cash flows for the purposes of impairment testing of property, plant and equipment, including assets under construction, intangible assets, including goodwill, right-of-use assets, advances for these assets involves the application of a number of significant judgements and estimates in relation to certain variables such as volumes of production and extraction, prices on natural gas, oil and refined products, electrical power, operating costs, capital expenditures, hydrocarbon reserves, and also macroeconomic factors such as inflation and discount rates.

      In addition, assumptions are applied in determining the cash-generating units assessed for impairment.

      The value in use of assets or cash-generating units related to gas and oil production is determined based on their expected production volumes, which include both proved and explored reserves as well as certain volumes of those that are expected to constitute proved and probable reserves in the future.

      Information regarding impairment allowance of property, plant and equipment, right-of-use assets and goodwill is disclosed in Notes 13, 14 and 15.

   4. Decommissioning and Site Restoration Costs

      The Group recognises provisions for decommissioning and site restoration costs. Decommissioning and site restoration costs that may occur at the end of the operating life of certain Group's production facilities are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Expected costs for decommissioning and site restoration are capitalised as part of the Group's property, plant and equipment, with the simultaneous recognition of the corresponding provision. These costs are depreciated using the same method applied to the depreciation of the related property, plant and equipment through profit or loss of the consolidated statement of comprehensive income over the assets' productive lives.

      Estimating the amounts and timing of those provisions requires significant judgement. Such estimation is based on an analysis of costs and technical solutions based on existing technologies and is made in accordance with current environmental legislation. Changes in the estimation of decommissioning and site restoration provision that result from changes in the estimated timing or amount of cash outflows, or from changes in the discount rate adjust the cost of the related asset in the current period. Provisions for decommissioning and site restoration costs are subject to change because of change in laws and regulations, and their interpretation.

   5. Useful Lives of Property, Plant and Equipment

      The estimation of the useful life of an item of property, plant and equipment is a matter of the Group's management judgement based upon experience in using of similar property, plant and equipment assets. In determining the useful life of an asset, management considers such factors as production volume, reserves, technical obsolescence rates, physical wear and tear and operating conditions. Changes in any of these factors may result in adjustments to future depreciation rates and have a significant effect on the carrying amount of property, plant and equipment and the amount of depreciation for the period.

      Based on the terms included in the licenses and past experience, management believes that hydrocarbon production licenses, which are expected to be productive after their expiration dates, will be extended at insignificant additional costs. Because of the anticipated license extensions, the operating assets are depreciated over their useful lives beyond the end of the current license term.

   6. Estimation of the Fair Value of Financial Instruments

      Determination of the fair value of contracts for the purchase (sale) of energy carriers, commodity futures and swaps is based on market data received on measurement date (Level 1 in accordance with the fair value hierarchy). Customary valuation models are used to value financial instruments which are not traded in active market. The fair value is calculated based on inputs that are observable either directly or indirectly (Level 2 in accordance with the fair value hierarchy).

      Contracts not based on market or observable data belong to Level 3 in accordance with the fair value hierarchy. Management's best estimates based on models internally developed by the Group are used for the valuation of these instruments fair value. Where the valuation technique employed incorporates significant volume of input data for which market information is not available, such as long-term price assumptions, contracts have been

      categorised as Level 3 in accordance with the fair value hierarchy (see Note 37).

   7. Measurement of Assets and Liabilities in a Business Combination

      In accounting for business combinations, the purchase price paid is allocated to assets acquired and liabilities received based on their estimated fair value as of the date of acquisition. A significant amount of judgement is involved in estimating the individual fair value of property, plant and equipment and identifiable intangible assets acquired.

      The estimates used in determining fair value are based on assumptions believed to be reasonable but which are inherently uncertain. Accordingly, actual results may differ from the projected results used to determine fair value.

   8. Accounting for Pension Plan Assets and Liabilities

      Pension plan liabilities are estimated using actuarial techniques and assumptions (see Note 23). Actual results may differ from the estimates, and the Group's estimates may be adjusted in the future based on changes in economic and financial conditions. In addition, certain pension plan assets related to JSC NPF GAZFOND are recorded at fair value, determined using estimation techniques. Management makes judgements with respect to the selected models, the amount of cash flows and their distribution over time, as well as other indicators including discount rate. The recognition of pension plan assets is limited to the estimated present value of future benefits available to the Group in relation to this plan.

      The value of future benefits is determined using actuarial techniques and assumptions. The impact of the limitation of the net pension plan asset in accordance with IAS 19 Employee Benefits is disclosed in Note 23. The value of pension plan assets and the limitations may be adjusted in the future.

   9. Joint Arrangements

      In applying IFRS 11 Joint Arrangements the Group applies judgement whether its joint arrangements represent a joint operation or a joint venture. The Group determines the type of joint arrangement based on its rights and obligations arising from the arrangement including the assessment of the structure and legal form of the arrangement, the decision making terms agreed by the parties in the contractual arrangement and, when relevant, other factors and circumstances.

   10. Accounting for Right-of-use Assets and Lease Liabilities

       When measuring the present value of lease payments, the Group applies professional judgement to determine the incremental borrowing rate if the discount rate is not implicit in the lease. When determining the incremental borrowing rate, the Group management analyses borrowings made over a similar term in a similar economic conditions. If there are no borrowings with similar characteristics, the discount rate is determined on the basis of the risk-free rate, adjusted for the credit risk of the Group's entity or segment.

       Assessment of the non-cancellable lease period is subject to management judgement, which takes into account all relevant facts and circumstances that create an economic incentive for the Group to exercise or not to exercise an option to extend the lease. These facts and circumstances include the need to extend the lease to perform operations, the period of construction and exploitation of assets on leased lands, useful lives of leased assets, potential assets dismantling and relocation costs.

7. ‌Segment Information

The Board of Directors, the Chairman of the Management Committee and the Management Committee of PJSC Gazprom (the "Governing bodies") make key decisions managing the Group's activity, assess operating results and allocate resources using different internal financial information.

Due to the acquisition of the control over JSC Gazprom-Media Holding in December 2023, the management of the Group decided to allocate the results of JSC Gazprom-Media Holding and its subsidiaries into a separate reportable segment - «Media business». Consequently, the following reportable segments were identified in the Group:

• Gas business - a type of the Group's business mainly related to the exploration, production, processing, storage, transportation, distribution and sale of gas, gas and gas condensate processing products in the Russian Federation and abroad, and activities that enable these business processes;

• Oil business - a type of the Group's business mainly related to the exploration, production, refining, storage, transportation and sale of oil and refined oil products in the Russian Federation and abroad;

  (in millions of Russian Rubles)

  7 Segment Information (сontinued)

• Electric power business - a type of the Group's business mainly related to electricity and heat generation and sale in the Russian Federation and abroad;

• Media business - a type of the Group's business mainly related to television and radio broadcasting, advertising, publishing, film production and content distribution primarily in the Russian Federation.

The Governing bodies of the Group assess the performance, assets and liabilities of the reportable segments on the basis of the data generated following measurement principles that correspond to the principles used to measure items in the consolidated financial statements. Revenue from inter-segment sales are calculated based on market prices.

Revenue from sales and profit (loss) of the reportable segments, as well as depreciation and share in profit of associates and joint ventures are presented below. Finance income and expenses, profit tax expenses are considered by the Governing bodies of the Group for the Group as a whole without distribution by reportable segments.

The revenue from external sales of segments by type of revenue is provided below.

Year ended 31 December 2024

Gas business

Oil business

Electric power business

Media

business Total

The reconciliation of segments profit (loss) to profit (loss) before profit tax in the consolidated statement of comprehensive income is provided below.

1. Segment Information (continued)

   Year

   ended 31 December

   Notes 2024 2023

   	Profit (loss) of segments	1,456,390	(363,689)
   28	Finance income	1,002,183	659,464
   28	Finance expenses	(1,037,645)	(1,309,209)
   16	Share of profit of associates and joint ventures	242,008	354,364
   	Total profit (loss) before profit tax in the consolidated statement of comprehensive income	1,662,936	(659,070)

   The Group's assets are primarily located in the Russian Federation. Information on non-current assets by geographic regions is not disclosed due to the fact that the carrying value of non-current assets located outside the Russian Federation is insignificant.

   Gas

   Oil

   Electric power

   Media

   business business business business Total

   As of 31 December 2024
   Assets of segments	23,285,929	6,475,380	1,009,334	249,792	31,020,435
   Investments in associates and joint ventures	671,072	529,993	649	13,811	1,215,525
   Capital expenditures1	2,390,485	913,887	111,069	12,029	3,427,470
   Liabilities of segments 9,785,216 As of 31 December 2023		3,169,282	275,279	129,696	13,359,473
   Assets of segments 21,767,890		6,415,261	980,508	230,850	29,394,509
   Investments in associates and joint ventures	1,027,779	492,635	544	15,893	1,536,851
   Capital expenditures2	2,245,495	747,844	125,304	-	3,118,643
   Liabilities of segments	9,250,742	3,247,585	299,763	143,705	12,941,795

   1Capital expenditures for the year ended 31 December 2024.

   2Capital expenditures for the year ended 31 December 2023.

   The reconciliation of reportable segments assets to total assets in the consolidated balance sheet is provided below.

   31 December

   2024 2023

   Assets of reportable segments	31,020,435	29,394,509
   Inter-segment assets	(322,180)	(680,761)
   Total assets in the consolidated balance sheet	30,698,255	28,713,748

   The reconciliation of reportable segments liabilities to total liabilities in the consolidated balance sheet is provided below.

   31 December

   2024 2023

   Liabilities of reportable segments	13,359,473	12,941,795
   Inter-segment liabilities	(322,180)	(680,761)
   Total liabilities in the consolidated balance sheet	13,037,293	12,261,034

2. ‌Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, balances with banks, term deposits with the original maturity of three months or less and other cash equivalents.

31 December

2024 2023

1. Cash and Cash Equivalents (continued)

   The fair value of cash and cash equivalents approximates their carrying value.

   As of 31 December 2024 and as of 31 December 2023 cash and cash equivalents are mainly held in accounts with Russian banks whose credit rating according to the national scale of JSC Expert RA is ruAA+ or higher.

2. ‌Financial Assets

   Short-term financial assets are provided in the table below.

   Debt securities measured at fair value with changes recognised through other

   31 December

   2024 2023

   comprehensive income	60	4,703
   Equity securities measured at fair value with changes recognised through profit or loss	24	1,288
   Debt securities measured at fair value with changes recognised through profit or loss	-	11,951
   Debt securities measured at amortised cost	-	159
   Total short-term financial assets	84	18,101

   Long-term financial assets are provided in the table below.

   Equity securities measured at fair value with changes recognised through other

   31 December

   2024 2023

   comprehensive income1 308,496 512,130

   Debt securities measured at fair value with changes recognised through other

   comprehensive income	159,102	156,607
   Equity securities measured at fair value with changes recognised through profit or loss	972	931
   Debt securities measured at amortised cost	1	323
   Total long-term financial assets	468,571	669,991

   1Equity securities measured at fair value with changes recognised through other comprehensive income include PJSC NOVATEK shares (see Note 37).

   As of 31 December 2024 and 31 December 2023 debt securities measured at fair value primarily relate to issuers whose сredit rating according to the national scale of JSC Expert RA is ruAA+.

3. ‌Accounts Receivable and Prepayments

31 December

2024 2023

The estimated fair value of short-term accounts receivable approximates their carrying value.

Trade accounts receivable are presented net of allowance for expected credit losses in the amount of RUB 2,374,731 million and RUB 2,015,061 million as of 31 December 2024 and 31 December 2023, respectively.

Loans receivable are presented net of allowance for expected credit losses in the amount of RUB 4,381 million and RUB 9,955 million as of 31 December 2024 and 31 December 2023, respectively.

Other accounts receivable are presented net of allowance for expected credit losses in the amount of RUB 75,680 million and RUB 64,080 million as of 31 December 2024 and 31 December 2023, respectively.

Advances paid and prepayments are presented net of impairment allowance in the amount of RUB 8,657 million and RUB 9,599 million as of 31 December 2024 and 31 December 2023, respectively.

1. Accounts Receivable and Prepayments (continued)

   Other accounts receivable are mainly represented by accounts receivable from Russian customers for various types of goods, works and services.

   Trade accounts receivable

   Other accounts receivable and loans receivable

   31 December 31 December

   	2024	2023	2024	2023
   Short-term accounts receivable neither past due nor credit-impaired	1,057,318	819,074	128,541	139,659
   Short-term accounts receivable past due or credit-impaired	2,478,974	2,129,383	124,324	112,034
   Amount of allowance for expected credit losses of accounts receivable	(2,374,731)	(2,015,061)	(80,061)	(74,035)
   Total short-term accounts receivable	1,161,561	933,396	172,804	177,658

   Management's experience indicates customer payment histories in respect of trade accounts receivable neither past due nor credit-impaired vary by geography. Analysis of credit quality of trade and other receivable, loans receivable is provided below.

   31 December

   2024 2023

   Outside the Russian Federation countries gas, crude oil, gas condensate and refined

   products trade accounts receivable 588,625 358,900

   The Russian Federation gas, crude oil, gas condensate and refined products trade

   accounts receivable	349,639	322,787
   Electricity and heat trade accounts receivable	42,216	42,108
   Other trade accounts receivable	76,838	95,279
   Other accounts receivable	77,187	79,399
   Loans receivable	51,354	60,260
   Total accounts receivable neither past due nor credit-impaired	1,185,859	958,733

   As of 31 December 2024 and 31 December 2023 credit-impaired receivables mainly relate to trade receivables. In management's view the accounts receivable will be settled. The ageing analysis of overdue or credit-impaired receivables is presented below:

   Ageing from the due date

   Gross book value Allowance for expected credit losses Net book value 31 December 31 December 31 December

   	2024	2023	2024	2023	2024	2023
   up to 6 months	251,897	195,618	(206,156)	(150,303)	45,741	45,315
   from 6 to 12 months	47,620	176,304	(28,470)	(148,230)	19,150	28,074
   from 1 to 3 years	1,076,411	857,455	(1,033,475)	(782,543)	42,936	74,912
   more than 3 years	1,227,370	1,012,040	(1,186,691)	(1,008,020)	40,679	4,020
   	2,603,298	2,241,417	(2,454,792)	(2,089,096)	148,506	152,321

   Change in the Group's allowance for expected credit losses of trade and other accounts receivable is provided in the table below.

   Trade receivables

   Other receivables and loans receivable

   Year ended 31 December Year ended 31 December

   	2024	2023	2024	2023
   Allowance for expected credit losses of
   accounts receivable at the beginning of the year	2,015,061	1,457,501	74,035	59,381
   Changing the perimeter of the Group	(387)	1,329	8,015	488
   Accrual of allowance for expected credit losses of accounts receivable1	208,546	306,248	8,144	6,257
   Write-off of accounts receivable during the year2	(4,343)	(6,695)	(2,010)	(1,744)
   Reversal of previously accrued allowance for expected credit losses of accounts receivable1	(12,805)	(11,714)	(7,650)	(3,049)
   Reclassification to other lines	(5,305)	(10,647)	(4,916)	6,609
   Foreign exchange rate differences	173,964	279,039	4,443	6,093
   Allowance for expected credit losses of
   accounts receivable at the end of the year	2,374,731	2,015,061	80,061	74,035

   1The accrual and release of allowance for expected credit losses of accounts receivable have been included in the line "Impairmеnt loss on finаnсial assеts" in the consolidated statement of comprehensive income.

   2If there is no probability of cash receipt for the credit-impaired accounts receivable which were previously provided for, the amount of respective accounts receivable is written-off by means of that allowance.

2. ‌Inventories

   31 December

   2024 2023

   Gas in pipelines and storages	581,966	556,050
   Materials and supplies	374,959	292,846
   Crude oil and refined products	314,989	331,637
   Goods for resale	33,645	21,377
   Total inventories	1,305,559	1,201,910

   The amount of inventories write-down to the net realisable value was RUB 50,126 million and RUB 9,488 million for the years ended 31 December 2024 and 31 December 2023, respectively.

3. ‌Other Current and Non-Current Assets

   Other current assets are provided in the table below.

   31 December

   2024 2023

   Financial assets
   Short-term deposits	3,122	171,277
   	3,122	171,277
   Non-financial assets Prepaid VAT	248,519	188,164
   VAT recoverable	112,763	63,655
   Prepaid other taxes	109,683	108,827
   Assets held for sale	60,053	271,258
   Prepaid profit tax	36,584	54,081
   Other	12,015	15,123
   	579,617	701,108
   Total other current assets	582,739	872,385

   Other non-current assets are provided in the table below.

   	31 December
   Notes	2024 2023
   	Financial assets
   	Long-term deposits	38,979	41,909
   		38,979	41,909
   	Non-financial assets Intangible assets	270,994	247,135
   23	Net pension plan assets	61,010	57,091
   	VAT related to assets under construction	9,382	17,133
   	Other	371,541	328,344
   		712,927	649,703
   	Total other non-current assets	751,906	691,612

   The estimated fair value of short-term and long-term deposits approximates their carrying value.

4. ‌Property, Plant and Equipment

Cost

Accumulated depreciation Impairment allowance Net book value as of

31 December 2022

Cost Additions1 Transfers Disposals2

Translation differences

Accumulated depreciation and impairment allowance

1Including a result of the acquisition of subsidiaries.

2Including a result of the disposal of subsidiaries and joint operations.

3Including a result of the disposal of subsidiaries.

At each reporting date management assesses whether there is any indication that the recoverable amount of assets has declined below their carrying value. Based on the results of this assessment, the Group tested assets for impairment as at 31 December 2024 and 31 December 2023.

13 Property, Plant and Equipment (continued)

The Group applied discount rates ranging from 9.10 % to 21.96 % and from 9.98 % to 19.20 % as of 31 December 2024 and 31 December 2023, respectively. Cash flows were forecasted based on actual operating results, budgets and other corporate documents containing forward-looking data.

The cash flow forecast covered the period commensurate with the expected useful life of the respective assets. To extrapolate cash flows beyond the periods which are not included in the corporate documents containing forecast data, estimated growth rates were used.

The most significant CGU is the group of assets that constitute the Unified Gas Supply System and assets for production, transportation and refining of gas in the Eastern Siberia and the Far East (gas business segment). As of 31 December 2024 and 31 December 2023 the test did not reveal impairment of assets in this CGU.

Based on the result of the test for impairment of other CGUs and testing of certain assets for impairment on an individual basis, the Group recognised an asset impairment loss, associated with the following reportable segments:

• Gas business;

• Oil business;

• Electric power business.

For the year ended 31 December 2024 the impairment loss on property, plant and equipment and assets under construction relates primarily to a certain oil assets.

For the year ended 31 December 2023 the impairment loss on assets under construction relates primarily to a certain gas processing assets.

Included in additions above are capitalised borrowing costs of RUB 673,888 million and RUB 435,573 million for the years ended 31 December 2024 and 31 December 2023, respectively. Capitalisation rates of 9.35 % and

7.78 % were used representing the weighted average borrowing cost including exchange differences on foreign currency borrowings for the years ended 31 December 2024 and 31 December 2023, respectively. Capitalisation rate excluding exchange losses on foreign currency borrowings were 8.39 % and 5.62 % for the years ended 31 December 2024 and 31 December 2023, respectively.

Separate items of property, plant and equipment (including assets under construction) have been pledged as security for liabilities (see Note 21).

The information regarding the Group's exploration and evaluation assets (included within production licenses and assets under construction) is presented below:

Year ended 31 December

2024 2023

1Including impairment loss in the amount of RUB 23,527 million.

2Including impairment loss in the amount of RUB 555 million.