Half-year Report

Tatneft published its IFRS consolidated interim condensed financial statements for the three and six months ended 30 June 2018

28 August 2018

PJSC Tatneft (the "Company") announces today that it published on its web-site (http://www.tatneft.ru/?lang=en) the unaudited consolidated interim condensed financial statements (the "Financial Statements") for the three and six months ended 30 June 2018 prepared in accordance with International Financial Reporting Standards ("IFRS") and the related Management Discussion and Analysis of Results of Operations (the "MD&A").

Selected financial highlights below are based on the respective IFRS financial statements of the Company. These highlights do not replace the Financial Statements or the MD&A and all interested persons are encouraged to read these documents for full understanding of the IFRS results for the three and six months ended 30 June 2018. Russian Ruble amounts below have been translated into U.S. Dollars, for sales and other operating revenues and net profit at the average exchange rate during the respective reporting period and for items of Statements of Financial Position at the exchange rate on the last date of the respective reporting period.

In the six months of 2018 Tatneft Group produced 14.3 million tonnes (101.7 MMbbl) of crude oil and 447.6 million cubic meters of gas. TANECO refinery output in the six months of 2018 was 4.4 million tonnes of refined products.

The Company's consolidated sales and other operating revenues net of export duties and excise tax in the second quarter of 2018 were 233,988 million Rubles (US$ 3,786 million) as compared to 150,534 million Rubles (US$ 2,634 million) in the corresponding period of 2017. In the six months of 2018 our consolidated sales and other operating revenues net of export duties and excise tax were 422,333 million Rubles (US$ 7,116 million) as compared to 316,979 million Rubles (US$ 5,466 million) in the six months of 2017.

The consolidated profit attributable to Group shareholders in the second quarter of 2018 was 63,164 million Rubles (US$ 1,022 million) as compared to 26,150 million Rubles (US$ 458 million) in the second quarter of 2017. The consolidated profit attributable to Group shareholders in the six months of 2018 was 105,174 million Rubles (US$ 1,772 million) as compared to 61,740 million Rubles (US$ 1,065 million) in the corresponding period of 2017.

Total consolidated assets of the Company increased from 1,107,454 million Rubles (US$ 19,227 million) as of 31 December 2017 to 1,184,294 million Rubles (decreased in US dollar terms to US$ 18,871 million) as of 30 June 2018.

Total consolidated liabilities of the Company increased from 388,725 million Rubles (US$ 6,749 million) as of 31 December 2017 to 396,797 million Rubles (decreased in US dollar terms to US$ 6,323 million) as of 30 June 2018.

Total consolidated shareholders' equity increased from 718,729 million Rubles (US$ 12,478 million) as of 31 December 2017 to 787,497 million Rubles (US$ 12,548 million) as of 30 June 2018.

The Company's representatives will discuss the IFRS financial highlights for the three and six months ended 30 June 2018 on a conference call on 31 August 2018 at 15:00 Moscow time, 13:00 London time, 08:00am New York time.

To participate in the conference call, please dial any of the following numbers*:

Russia: +7 495 249 1682;

United Kingdom: 0333 300 1418;

USA and Canada: +1 508 924 4326;

Standard international dial-in: +27 11 535 3600

Password to gain access to the conference call is "Tatneft 1H18 IFRS Results call".

The conference call replay will be available within 7 days after completion of the call by dialing* +27 10 500 4108 (international dial-in), +1 412 317 0088 (USA) or 0203 608 8021 (UK), using Playback ID 16568.

* PJSC Tatneft shall not be liable for inability to use any of the free numbers.

This press release contains inside information.

Forward-looking statements and waiver of liability: This press release contains statements about future events and expectations that are forward-looking in nature. Any statement in this press release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The amounts and percentages mentioned or referred to in this press release could be presented after rounding and, therefore, they might differ from the actual sums and results contained in the Company's reporting documents. PJSC Tatneft shall bear no responsibility to correct or reimburse any sums which might constitute the difference between the amounts mentioned in this press release and those in respective reporting documents, and all payments are made by PJSC Tatneft exclusively on the basis of decisions made by its authorised corporate bodies in the amounts and within the corporate proceedings set out in such decisions.