NOVATEK Signed Memorandum with USC

FOR IMMEDIATE RELEASE

NOVATEK Signed Memorandum on Strategic Partnership with United Shipbuilding Corporation

Arkhangelsk, 29 March 2017. As part of today's International Arctic Forum "Arctic: Territory of Dialogue", PAO NOVATEK ("NOVATEK") signed a Memorandum on Strategic Partnership and Cooperation ("Memorandum") with JSC United Shipbuilding Corporation (USC).

According to the Memorandum, the parties intend to pursue strategic partnership and cooperation in the area of producing LNG train modules in Russia as part of the prospective Arctic LNG 2 project.

The Chairman of NOVATEK's Management Board Leonid Mikhelson noted: "We see good prospects in uniting our efforts with USC in implementing NOVATEK's future LNG projects. Our company has gained significant experience during the construction of the Yamal LNG project, and we are going to use this experience along with the expertise and infrastructure capabilities of Russian enterprises to reduce construction costs and enhance competitiveness of our future LNG projects".

Note

United Shipbuilding Corporation is the largest shipbuilding company in Russia consolidating the biggest part of the local shipbuilding industry. It includes about 40 domestic shipyards, design offices and ship repair yards.

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For further information, please visit www.novatek.ru or contact:

Press Service Investor Relations

+7 (495) 721 2207 +7 (495) 730 6013

[email protected] [email protected]

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PAO NOVATEK is one of the largest independent natural gas producers in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 80% of Russia's natural gas production and approximately 16% of the world's gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».