Board of Directors’ report

In 2018, the Board of Directors held 18 meetings, including seven meetings in person, and considered 169 matters.In 2018, the attendance at meetings of the Board of Directors stood at 90% of all meetings held during the year.

Attendance in 2018 by director
Full name Meetings attended/total Attendance, %
Artem Avetisyan 13/18 72
Maxim Bystrov 17/18 94
Pavel Grachev 18/18 100
Sergey Ivanov 17/18 94
Vyacheslav Kravchenko 15/18 83
Vyacheslav Pivovarov 15/18 83
Mikhail Rasstrigin (starting June 27, 2018) 7/8 88
Nikolay Rogalev 18/18 100
Yury Trutnev 17/18 94
Pavel Livinsky (starting June 27, 2018) 8/8 100
Sergey Shishin 17/18 94
Andrey Shishkin 16/18 89
Nikolay Shulginov 18/18 100
Alexei Chekunkov (member until June 27, 2018) 10/10 100
Nikolay Podguzov (member until June 27, 2018) 5/10 50
Number of Board of Directors meetings
Breakdown of items considered by the Board of Directors, %

In 2018, in addition resolutions on the convocation of the Annual General Meeting of Shareholders, approval of transactions, including related-party translations, development of a transparent procurement management framework, enhancement of the control and audit system and subsidiary management matters, the Board of Directors made a number of other important decisions related to the Company’s development (see the key matters reviewed by the Board in 2018 in the table below).

Key agenda items reviewed by the Board of Directors in the reporting year
Item Decision
Growth of the Company’s value for the state, shareholders, communities and its employees
Approval of the changes to the Group’s Long-term Development Program for 2018–2022 Adjustments to the Long-term Development Program provide for additional measures to upgrade the thermal power infrastructure in the Far Eastern Federal District, improve the environmental management system, roll out intelligent systems and digital technology, and enhance the staffing system
Approval of the updated import substitution roadmap for the period up to 2025 Developed a set of measures aimed at scheduled step-by-step substitution of imported products with those of Russian origin having similar specifications and usability
Approval of RusHydro’s Policy on Rotation of Auditors The Policy on Rotation of Auditors governs the auditor selection procedure and the rules for altering the composition of the audit team
Approval of the termination of RusHydro and its subsidiaries’ participation in the authorized capital of PJSC Inter RAO UES Approved the sale of 5,131,669,622 shares of PJSC Inter RAO UES (4.915% of the authorized capital) to JSC Inter RAO Capital at the price of RUB 3.3463 per share
Dividends for 2017 The Board recommends paying out dividends in the amount of RUB 0.0263335 per share, or 50% of the IFRS net profit for 2017
Stable development of the Company
Approval of RusHydro’s Business Plan for 2019 and RusHydro Group’s Consolidated Business Plan for 2019–2023, including the consolidated investment program The Group’s investment program for 2019–2023 provides for an estimated RUB 382.9 bn to be spent on commissioning around 1.4 GW of new power capacity, 565 Gcal/h of heat capacity, as well as on building and refurbishing more than 130 km of heat and 7,600 km of electric power supply networks
Approval of RusHydro Group’s New Environmental Policy through 2025 Set new KPIs, including those seeking to increase the installed capacity of low-carbon generation, reduce direct and per unit greenhouse gas emissions, and prevent species elimination
Development of the Far Eastern energy sector
Review of the Long-term Program for Replacement of Retired Capacities and Power System Development in the Far East Key projects under the Program include the construction of Artyomovskaya TPP-2, Khabarovskaya TPP-4, the second stage of Yakutskaya GRES-2, a TPP in Pevek, the upgrade of Vladivostokskaya TPP-2 and Komsomolskaya TPP-2, and commissioning of the fourth hydropower unit of Ust-Srednekanskaya HPP
Approval of the contributions to JSC Chukotenergo’s authorized capital for the implementation of the initial construction stage of two 110 kV high-voltage power lines Pevek – Bilibino The construction of high-voltage power lines in Chukotka due to the decommissioning of the power units at Bilibino NPP, which has reached the end of its service life. Financing is expected to be provided in the amount of RUB 13 bn from the federal budget and RUB 6.3 bn from the Company’s funds