ruspetro plc
annual report and accounts 2014 ii ruspetro plc annual report and accounts 2014
contents
strategic report
01 highlights
02 group overview
04 business model
06  chairman’s statement
08 chief executive’s statement  
11 key performance indicators 
12 operational review
17 financial review
20 sustainability report
24 principal risks and uncertainties
directors’ report
28 board of directors
30 letter from the chairman
31   directors’ report
34 corporate governance report
38  audit committee report
42  nomination committee report
44  remuneration committee report
46 directors’ remuneration report 
61 directors’ responsibility statements
financial statements
62 independent auditor’s report
66	 consolidated	statement	of	profit	or	loss	 
and other comprehensive income
67 consolidated statement of financial position
68  consolidated statement of changes in equity
69 consolidated statement of cash flows
70  notes to the consolidated financial statements
94 parent company financial statements
94  independent auditor’s report
96  statement of financial position
97  statement of changes in equity
98  statement of cash flows
99  notes to the financial statements
103 shareholder information
ruspetro plc
ruspetro is an independent  
oil and gas development and 
production company with assets 
in the western siberia region  
of the russian federation
our mission is to unlock the 
tight oil reservoirs in our asset 
base while building a leading 
regional independent ep 
company in a safe and 
environmentally responsible 
manner for the longterm  
b e n e fi t 	 o f 	 o u r 	 s h ar e h o l d e r s 
current pad 23b development strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 01   
operational highlights 
oil production in 2014 averaged 3523 barrels per day bpd a 14 decrease 
compared with 2013 in january 2014 suspended production of gas and condensate 
in the palyanovo field primarily to conserve gas while we engage in discussions to 
commercialise these gas reserves
the production performance of the group’s first two horizontal wells was 
encouraging 10day flow tests averaged 1350 and 900 bpd for wells 214 and 251 
respectively 
• spudded our first multiple fractured horizontal well 214 mfhw in april 2014 
• in our second well 251 introduced for the first time in russia innovative 
completion technology customised to our geological environment
successful focus on safety in our operations including implementation of the emex 
system to manage hse performance one minor losttime injury in 2014
extended the subsoil licence for the vostochnoinginsky “vi” block until 2034
 
financial highlights 
successful completion of financial restructuring in december 2014 “the 
restructuring” as a result us523 million of new equity was raised us3581 
million of existing debt and put option obligations were refinanced through a 
us150 million loan with bank otkritie financial corporation “otkritie” with the 
remaining us2081 million converted into a 25 equity position held by mastin 
holdings limited “mastin”
revenues of us551 million down 31 yoy due primarily to a 26 decline in 
liquids production and a 9 decline in the realized oil price yoy
full year earnings before interest tax depreciation and amortisation “ebitda”  
of us95 million vs us130 million in 2013 driven mostly by the decline in 
production and oil price partially offset by mineral extraction tax “met”  
relief from september 2013 ebitda per barrel of liquids was us74 in both 2013 
and 2014
strengthened our partnership with glencore by extending our export prepayment 
facility in march 2014 and entering into two domestic facilities in may 2014 and 
october 2014
net debt decreased by us1523 million from us3874 million at the beginning of 
the year to us2351 million at the end of 2014
net loss of us2629 million vs net loss of us742 million in 2013 driven mostly by 
the foreign exchange loss on us dollar denominated loans to the group’s russian 
subsidiaries us2024 million
strategic report
highlights 02 ruspetro plc annual report and accounts 2014
strategic report
group overview
group structure
our licence for the palyanovsky block is due to expire in 
december 2015 and our pi licence block expires in june 
2017 while the vi licence was due to expire in june 2014 
we have successfully extended this licence for 20 years 
until june 2034
the russian federation’s subsoil law as currently in 
effect allows for the extension of a subsoil licence at the 
request of the licence holder if such extension is necessary 
t o 	 finis h 	 ex p l o ra t i o n 	 o r 	 p rod u c t i o n 	 in 	 t h e 	 fi e l d  s  	 co ve red 	 
by the licence provided that the licence holder has not 
v i o la ted 	 t h e 	 te r ms 	 o f 	 t h e 	 li ce n ce 	 a n d 	 f u lfi l l ed 	 i t s 	 co n d i t i o ns 
as a result to the extent that we meet our obligations under 
the applicable minimum work programme required by the 
licences and are not in breach of any licence obligations  
or conditions each of our licences issued prior to this 
legislation can be extended upon expiration for the 
eco n o mi c 	 life 	 o f 	 th e 	 fi e l d
r us pet ro 	 p l c 	  u k
ruspetro holding limited  
 cy prus 
ojsc transoil 
russia
ojsc inga 
russia
ruspetro llc  
russia
palyanovsky 
licence
vostochno 
inginsky  
licence
pottymsko
inginsky  
licence
54
100
946
100 100
214
 of employees
ruspetro has three oil  
and gas exploration and 
production licences the 
p o t t y m s k o i n gi ns k y 	  ‘ p i ’ 	
licence the vostochno
inginsky licence and the 
palyanovsky licence strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 03   
15km
substation 
500kv
110kv
110kv
35kv
6kv
6kv
500kv
pad27
oil processing facility
pad for early 
processing facility
pad31
oil pipeline ‘gazpromneft’
oil pipeline ‘gazpromneft’
oil pipeline ‘nazim expedition’
oil pipeline ‘lukoil’
tnkpump 
station 32
yendyr
ingapekh
shyshyegan
malaya rechka
bolotniy
lake verhovoye
pottym
maliy pottym
lake vagator
lake dolgoye
yem’yegan
y’endyr
lake mal’nskoye
lake yamnoye 
lake mokhovoye
lake bolshoye 
yemyekhovskoye
malaya rechka
siga
talinka
sales 
point
‘transneft’ oil pipeline
krasnoleninskaya – ubinka
pad38
pad4
pad25
waste pad
work camp
356kv
ruspetro sales pipeline
p454p
pad3
palyanovo
pad20
vostochno
inginsky block
palyanovsky
block
pottymsko
inginsky block
pad21
pad23
pad19
pad22
pad24
pad2
73х6
1750m
73х6
2500m
168х7
15000m
159х8
250m
219х8
3118m
west siberian basin
moscow
st petersburg
khanty
mansiysk
region
krasnoleninsky arch 04 ruspetro plc annual report and accounts 2014
shareholder 
value 
p r o d u c t i o n  s a l e s
a p p r a i s a l
technology
governance
d e v e l o p m e n t
sustainability
the seeds of ruspetro’s failure in 201213 lay in the false 
perception that the key to unlocking the potential of the 
“hard to recover” oil in the company’s licence areas was 
“simply” a production technology issue that could be 
solved by a combination of denser well spacing and  
larger hydraulic fractures in verticallydrilled wells
while the introduction in 2014 of horizontal wells as a 
development concept has been important for the future 
prospects of ruspetro that in itself would have achieved 
little without a much more fundamental shift in thinking 
within the company
w e 	 ha ve 	 si m p ly 	 n ot 	 be e n 	 p re pa re d 	 t o 	 a c c e pt 	 a 	 ‘ t h i s 	 i s 	 h ow	
we have always done things in western siberia’ paradigm 
we recognise that there are proven and applicable 
industry technologies that have not been deployed in 
russia perhaps for good reason technology does not 
always jump continents easily however given the 
underperformance of the vertical wells to date we do not 
ha ve 	 a 	 ch o i c e 	 a n d 	 t ha t 	 ha s 	 l e d 	 u s 	 t o 	 d efi n e 	 a n 	 o pe ra t i n g 	
philosophy that manages the risks of bringing in such 
technology
business model
we have simply not  
been prepared to accept  
a “this is how we have 
always done things in 
western siberia” paradigm 
strategic report
what makes us different
our core philosophy
shareholder value
we aim to create value for shareholders  
through the accelerated lowcost  
development of our oil and gas reserves
we aim to achieve this through operational  
a n d 	 c a p i t a l 	 ef fi c i e n c y 	 a s 	 w e 	 d e  r i s k 	 o u r 	 a s set 	 
through development and appraisal drilling  
while adhering to high standards of corporate 
governance and operating responsibly strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 0 5   
the key principles are
• we can make decisions rapidly 
• we are valuefocused naturally we wish to have the 
lowest cost solutions but initially there may be 
additional costs to test an idea that will lead to 
longerterm value
• we insist on fully integrated technical and commercial 
thinking and evaluation
• we rigorously challenge the concept of “this is how we 
do it in western siberia”
• w e 	 fo c u s 	 o n 	 t h e 	 a do pt i o n 	 o f 	 fi e l d  p ro ve n 	 i d e a s 	 ma i n ly	
from the us in terms of fracturing concepts but 
internationally in numerous key areas
• we have built a core international team of experienced 
technical staff to oversee and mitigate the risk of 
transferring new ideas into our business
• we collaborate with smaller service companies for our 
m u t ua l 	 be n efi t 	 t o 	 b r i n g 	 t h e i r 	 i d e a s 	 a n d 	 te ch n o l og y 	 i n t o 	
our operations
the team
clearly as a small company in the sector we cannot  
cover the complete range of exploration and production 
te ch n i c a l 	 s k i l l s 	 w e 	 ha ve 	 i d e n t i fi e d 	 t h e 	 fo l l ow i n g 	 k e y 	
capabilities to have inhouse and supplement them with  
a network of internationally experienced experts
• topclass reservoir geology
• seismic modelling
• well design
• fracturing design and execution
• reservoir management
 – w a te r fl ood i n g 	 o f 	 l ow  pe r m e a b i l i t y 	 re se r v o i r s
 – horizontal well evaluation and numerical modelling
• production well and system optimisation  
 oil gas water 
• production chemistry
• l e a n  fl ex ib l e 	 faci l it ie s
subsurfacesurface data integration
ruspetro is using the latest available software technology in order 
to 	 sup p o r t 	 a l l 	 fiel d 	 de vel o p m en t 	 e f fo r t s 	 i n te g r a te d 	 d a t a 	 s to r e s 	 a n d	
modelling systems ensure that all data is properly quality controlled 
a n d 	 t h en 	 u s e d 	 qu a n t it a t ively 	 to 	 de fi n e 	 a n d 	 sup p o r t 	 de vel o p m en t 	
activities such as appraisaldevelopment drilling well interventions 
and enhanced recovery projects 06 ruspetro plc annual report and accounts 2014
strategic report
chairman’s statement
in the middle of the year ambiguity about the impact of 
sanctions on the business forced ruspetro into both 
cla r i fi c a t i o n s 	 a n d 	 c o n t i n g e n c y 	 a r ra n g e m e n t s 	 t o 	 e n su re 	
that operations were not hampered in due course that 
u n c e r t a i n t y 	 wa s 	 cla r i fi e d 	 a n d 	 o u r 	 te ch n o l og y 	 ha s 	 be e n 	
cleared for use
thereafter what started as a modest decline in the oil 
price to below us100 per barrel in the third quarter 
became a headlong plunge coupled with a slump in the 
value of the ruble while some stability has emerged in 
recent months in both the oil price and rubledollar 
exchange rate the credibility of forecasters has gone and 
we expect to live with both volatility and uncertainty for 
the medium term
this macroeconomic business context makes the 
transformational restructuring transaction that we 
completed in december all the more remarkable our 
l ia b i l i t i e s 	  i n cl u d i n g 	 d ebt 	 a n d 	 p u t 	 o pt i o n 	 o b l i g a t i o n s  	 w e re	
reduced by us2188 million while we raised us523 
million of new equity and arranged loan facilities of up to 
us1447 million in aggregate for development and 
working capital 
more important perhaps than the numbers is the 
relationship now established between ruspetro and 
otkritie currently the largest private bank in russia by 
assets otkritie and sergey gordeev are now our main 
lender and largest shareholder respectively and we are 
delighted that sergey has joined our board
successfully raising substantial development funds is a 
major milestone for the company and while the fall in oil 
prices impacted our revenues the weakening of the ruble 
has driven down our dollar cost base such that we can drill 
economically attractive production wells at current oil 
prices nevertheless given the extended period of low and 
volatile oil prices the board has decided that a cautious 
capital expenditure programme and a cautious use of loan 
facilities in 2015 is in the best interests of the company 
and that the capital invested should focus on maturing 
development opportunities for the medium term this 
philosophy is outlined in the ceo’s review 
it remains unclear how the oil and gas industry in russia 
will respond in the medium term a material reduction in 
activity seems unlikely given the dollarequivalent cost 
reduction that all operators will experience however we 
can expect some opportunities to drive costs down further 
a s 	 se r v i c e 	 p ro v i d e r s 	 ma nag e 	 c a s h 	 fl ow  	
in 2014 for a small 
exploration and 
production company 
operating with a 
technicallychallenging 
portfolio the business 
environment in russia 
could hardly have been 
more difficult strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 0 7   
40
50
60
80
70
90
100
110
120
45
50
55
30
35
40
60
65
70
75 brent usrur
jan 14
feb 14
oil price usbbl
usrur
mar 14
apr 14
may 14
jun 14
jul 14
aug 14
sep 14
oct 14
nov 14
dec 14
jan 15
apr 15
feb 15
mar 15
our focus is on positioning ruspetro for the medium 
term understanding our reservoirs managing risk 
applying the right mix of technologies enhancing our 
reputation as an innovative company and creating value 
from every well that we drill in the medium term this is 
expected to build substantial shareholder value 
when 2014 started there was a strong sense of optimism 
in russia particularly given the winter olympics in 
february the dramatic events since including ruble 
devaluation and unexpected crash in oil prices have 
caused anxiety and their consequences remain to be seen 
however within ruspetro we have made substantial 
progress in the way that we operate and think we have 
rebuilt our technical core and our technical credibility on 
behalf of the board i would like to thank all our staff for 
t h e i r 	 ef fo r t s 	 u n d e r 	 d i f fi c u l t 	 c i rc u m st a n c e s 	 a n d 	 i n 	
particular welcome to the team those who have come on 
board in the last 12 months 
i would also like to thank our new partners for the 
c o n fi d e n c e 	 t h e y 	 ha ve 	 s h ow n 	 i n 	 j o i n i n g 	 t h e 	 ru spet ro 	
project we welcome them as shareholders and in 
particular welcome sergey gordeev to the board we have 
a highly experienced team of nonexecutive directors on 
the board and i would like to thank them for their 
invaluable input and challenge lastly i thank our 
shareholders for their support as we have navigated our 
wa y 	 t h ro ug h 	 d i f fi c u l t 	 ma cro e c o n o m i c 	 c o n d i t i o n s 	 a f fe c t i n g 	
the oil industry the course we have set should position 
ru spet ro 	 t o 	 ma k e 	 si g n i fi c a n t 	 p rog re s s 	 i n 	 2 0 1 5 
alexander chistyakov
executive chairman
“ i would like on behalf of the board 
to thank all our staff for their efforts 
under difficult circumstances and in 
particular welcome to the team those 
who have come on board in the last  
12 months”
oil price and us rur rate 08 ruspetro plc annual report and accounts 2014
strategic report
chief executive’s statement
since joining ruspetro it has been one of my top priorities 
to build upon and enhance our health safety and 
e n v i ro n m e n t a l 	  ‘ h s e’  	 a wa re n e s s 	 a n d 	 pe r fo r ma n c e
in 2014 we appointed a hse director to oversee our hse 
practices improve policies and ensure that we approach 
hse issues in the most direct and effective manner in 
addition we successfully implemented the emex platform 
as a tool to log monitor and action hse improvements 
across all operational areas i am pleased to report only 
one minor losttime incident in 2014 relating to a slip and 
fall our aim is to continue our positive hse momentum in 
the coming year
achievements in 2014
in april 2014 we introduced multiplefractured 
horizontal wells into our operations initially this was 
rather simplistically conceived as a way of connecting the 
discontinuous sands that with hindsight had contributed 
to the poor outcome of the vertical well development 
programme in 201213
however by the second well we had introduced a radical 
change in fraccing and completion thinking abandoning 
the standard western siberian approach of a small number 
of large fracs and moving to a concept based on a larger 
number of smaller fracs tuned to the sand distribution seen 
in the well this required us to source technology proven in 
north america but hitherto unused in russia
similarly we have introduced a number of other 
internationally established technologies to ensure that we 
maximise the insight from these early wells these include 
geosteering in the horizontal sections to assess sand 
continuity and the use of tracers to assess the 
effectiveness of the fracs in each well this knowledge  
has been embodied in the design of the wells that are to  
be drilled and completed by the second quarter of 2015 
while i am impressed by the progress that we have made 
w i t h 	 o ur 	 first 	 t w o 	 h o r izo n ta l 	 w e lls 	 an d 	 t h e 	 fo ll ow  u p 	 in 	
early 2015 the reality is that we are still developing our 
understanding of the geology and in particular the possible 
play types in our acreage our efforts at geological 
characterisation in the last year have been hampered by a 
chronic geological data shortage resulting from missed data 
co ll ecti o n 	 o p po r t uni ti es 	 in 	 t h e 	 first 	 f ran ti c 	 d eve l o p m e n t 	
campaign in 201213 furthermore we are only just 
beginning to capitalise on the seismic contribution to 
unlocking our reserves the bottom line is that that we have 
an immature resource base outside the core area
given this blunt assessment the board has endorsed a 
strategy starting in the second half of 2015 of an appraisal 
campaign designed to mature between 25 and 75 
development wells this programme which includes both 
vertical and horizontal wells will underpin a resumption 
of our development well campaign in 2016 when we 
believe oil prices may have partly rebounded 
the working environment 
in which ruspetro staff 
and our contractors 
operate is particularly 
challenging strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 0 9   
geosteering of  
horizontal wells
• geosteering technology helps 
to safely maximise horizontal 
s e c t i o n 	 l eng t h 	  wel l s 	 do 	 n ot	
en ter 	 h a z a r do u s 	 fo r m a t i o n s  
• structure and reservoir 
distribution are better 
understood and tracking 
reservoirs improves the 
likelihood of successful  
frac initiation
“ the board has endorsed a strategy 
starting in the second half of 2015  
of an appraisal campaign designed 
to mature between 25 and  
75 development wells”
th i s 	 st ra teg y 	 w i l l 	 ha ve 	 t w o 	 k e y 	 a d d i t i o na l 	 be n efi t s 
• with an inventory of derisked development wells we 
will be able to plan and deliver a sustainable 
improvement in drilling and completion performance by 
driving learning leveraging the market for services and 
improving our operating practices
• it will provide a sound basis for the generation of a 
coherent facilities plan based on a more realistic view of 
our future production levels and precisely where in our 
acreage they are being generated
palyanovo
in january 2014 we suspended production of gas and 
co n d e nsa te 	 in 	 t h e 	 p a l yan o v o 	 fi e l d 	 p r imar il y 	 t o 	 co nse r ve	
gas while we evaluated further options to commercialise 
the gas reserves discussions are progressing with an 
international counterparty in this regard in the meantime 
we are taking the opportunity of the suspension of 
production to collect key subsurface data with a view to 
u pda tin g 	 t h e 	 g as 	 fi e l d 	 d eve l o p m e n t 	 p lan 	 in 	 2 0 15  	 dur in g 	
2015 we will also update our russian reserves for the 
palyanovo licence ahead of its planned renewal by the 
yearend
drilling horizontal wells 
with multistage fracs
• drilling long horizontal wells  
is critical to increase the odds 
o f 	 en c o u n ter i ng 	 p r o l i fic 	 d i s c r e te 	
reservoir bodies
• conducting multistage 
fracture stimulation will then 
ensure the reservoir volumes 
are effectively drained 10 ruspetro plc annual report and accounts 2014
microseismic monitoring  
of frac stimulation
• microseismic monitoring 
helps to understand fracture 
dimension and orientation so 
frac parameters and design can 
be tuned 
• it is critical to understand 
whether frac grow in unwanted 
formation or fault zones
• as a consequence horizontal 
wells can be placed in optimal 
l o c a t i o n s 	  spac i ng 	 a n d	
or i en t a t i on  
strategic report
chief executive’s statement  
continued
aims for 2015
our objectives for 2015 are to
• increase oil production by squeezing our existing stock 
o f 	 o i l 	 p rod u c t i o n 	 w e l l s 	 a n d 	 i m p ro v i n g 	 wa te r  fl ood 	
effectiveness in the core pi area
• complete our horizontal development well rollout in 
the area of pad 23b
• initiate an appraisal campaign to build an inventory of 
mature development locations four areas are currently 
targeted in this campaign
• m a t u re 	 o u r 	 d e ve l o p m e n t 	 t oo l k i t 	  te ch n o l og y  	 d e si g n	
c ost 	 ex e c u t i o n   	 f o r 	 ex a m p l e  	 t h e 	 a p p l i c a t i o n 	 o f	
geosteering seismic visualisation novel well designs 
optimised completion technology rig strategies etc
• im p l e m e n t 	 fi t  fo r  p u r pose 	 i n f ra st r u c t u re 	
enhancements to support the programme
• radically improve our understanding of the gas 
reserves and production potential of palyanovo
costs and cash management
the restructuring transaction while transformational for 
the longer term was highly complex and inevitably 
timeconsuming nevertheless we were able to make a 
start with our horizontal well programme using oil 
prepayment facilities and an additional loan from 
l i m o l i n e s 	 t ra n spo r t 	 l i m i te d 	  ‘ l i m o l i n e s ’   	 o n e 	 o f	 
our main shareholders
these early wells represent the evolution of our 
development thinking and technology application 
perhaps as importantly they have driven a fundamental 
rebuild in our drilling services contracting strategy and 
allowed us to deliver a highly competitive benchmark well 
cost for the future 
despite the availability of new funds a lower oil price is 
our reality we will continue with a highly disciplined 
approach to managing our cash as we have successfully 
done with our drilling costs we will continue our drive to 
reduce to the greatest extent possible dollardenominated 
services and perhaps capitalise on the assumed  
slowdown in russia to look for keen bids for any  
new capital expenditure
john conlin
ch i ef 	 e x e c u t ive 	 o f fi c e r strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 1 1   
strategic report
key performance indicators
kpis goals 2014 results
health safety and  
the environment
• no fatalities or incidents in  
our operations
• full compliance with hse obligations
• a rigorous hse culture 
• only one minor losttime injury
• emex system successfully 
implemented
• ga s 	 fla r i n g 	 re d u c e d 	 si g n i fi c a n t ly 	 a f te r 	
suspension of production at palyanovo
annual production
• delivery of our annual  
production forecasts
• a 	 l e ve l 	 o f 	 p rofi t a b l e 	 p rod u c t i o n 	 
that funds capital investments  
and allows the company to repay  
its debt obligations
• oil production of 3523 bpd compared 
with a target of 4233
• two horizontal wells drilled in 2014 
instead of the planned four due to 
funding limitations
• natural decline of current production 
wells mitigated by optimisation of 
w a t e r fl ood
capex per barrel 
• well construction and facility costs 
that allow us to create value and thus 
economically develop our resources 
across the entire acreage
• increased well ultimate recovery 
through creative geological 
characterisation innovative use  
of technology and excellence in  
well construction
• horizontal well programme 
successfully initiated
• strong core technical team with 
international experience in place
• innovative completion technology 
introduced
• major refocus on seismicgeological 
modelling and risk assessment
• new commercial framework for 
breakthrough in well costs in 2015
operating costs per barrel
• lowest achievable operating costs that 
maintain longterm system integrity 
and compliant production operations
• production operating costs of us161 
per boe compared with a target of 
us161
• major reassessment of infrastructure 
integrity and maintenance programme
• all main contracts are denominated  
i n 	 r u b l e s 	 a n d 	 w i l l 	 be n efi t 	 f ro m 	
currency depreciation
funding the business
• access to the lowestcost sources  
of capital
• fl ex ib i l i t y 	 i n 	 ma nag i n g 	 c a s h 	 fl ow s 	
• a ruthlessly commercial and value
based approach to securing services 
across the entire business
• restructuring transaction completed 
in december
• development funding in place for 
201516
• export and domestic prepayment 
facilities funded 2014 development 
activities
• ruthless cash management to cope 
with delay in restructuring transaction
business integrity
• all licences in good standing
• excellent relationships with various 
regulatory bodies 
• effective partnerships with suppliers 
and counterparties
• vi licence renewed until 2034
• rebuilt reputation with suppliers  
and contractors
• met environmental and licensing 
obligations 12 ruspetro plc annual report and accounts 2014
strategic report
operational review
production
the group’s total liquid production in 2014 averaged 3541 
b a r re l s 	 o f 	 o i l 	 e q u iva l e n t 	 pe r 	 d a y 	  bo e pd   	 dow n 	 2 6  	 f ro m	
the 4797 boepd in 2013 average oil production was 3523 
b pd 	 1 4  	 l ow e r 	 t ha n 	 t h e 	 4  08 2 	 b pd 	 i n 	 2 0 1 3  	 a ve rag e	
condensate production from the group’s palyanovsky 
l i c e n c e 	 a re a 	 d e cl i n e d 	 f ro m 	 1 352 	 bo e pd 	 i n 	 t h e 	 fi r st 	 q ua r te r 	
o f 	 2 0 1 3 	 t o 	 33 0 	 bo e pd 	 i n 	 t h e 	 fo u r t h 	 q ua r te r  	 dow n 	 75 	
leading to the decision to suspend production in january 
2014 to conserve gas for future commercialisation  
the group’s oil production in the fourth quarter of 2014 
a ve rag e d 	 3 5 80 	 b pd 	 dow n 	 7  	 f ro m 	 3 8 5 4 	 b pd 	 i n 	 t h e	 
third quarter
in 2014 the group initiated a horizontal drilling 
campaign based on multistage fractured horizontal 
production wells three horizontal wells were spudded in 
2 0 1 4 	 a s 	 pa r t 	 o f 	 t h i s 	 c a m pa i g n 	  w e l l s 	 2 1 4  	 25 1 	 a n d 	 2 12   	 t w o	
o f 	 wh i ch 	 w e re 	 su c c e s sf u l ly 	 c o m p l ete d 	 w i t h i n 	 2 0 1 4 	  w e l l s	
2 1 4 	 a n d 	 25 1  	
th e 	 g ro u p 	 beg a n 	 d r i l l i n g 	 i t s 	 fi r st 	 h o r i z o n t a l 	 w e l l 	 n u m be r	
214 in april the pilot well encountered 19 metres of 
oilbearing sands three large fractures were placed in the 
well’s 600metre horizontal section and the well came 
online at the beginning of july as planned the 10day 
fl ow 	 te st 	 y i e l d e d 	 1 350 	 b pd 	 u si n g 	 a n 	 e l e c t r i c a l 	 su b m e r sib l e 	
pump by the end of 2014 the well was producing at 615 
bpd as expected
the group’s second horizontal well number 251 was 
spudded in june and a pilot well was drilled as planned 
this well encountered eight metres of net oil sand which 
was at the low end of expectations two sidetracks were 
thereafter required to overcome challenging hole 
conditions prior to entering the horizontal section in this 
w e l l 	 t h e 	 g ro u p 	 e m p l o y e d 	 fo r 	 t h e 	 fi r st 	 t i m e 	 i n 	 ru s sia 	 a	
completion system designed and implemented by ncs 
energy services an independent technology and services 
c o m pa n y 	 spe c ia l i si n g 	 i n 	 m u l t i st ag e 	 c o m p l et i o n s 	  n c s	
m o n g oose 	 c o m p l et i o n 	 s y ste m   	 th e 	 s y ste m 	 a l l ow s 	 fo r 	 a	
larger number of customised fractures to be placed along 
the horizontal wellbore than the completion technology 
previously available in the country and used for 
completion of well 214 it also allows for greater fracturing 
spe e d 	 a n d 	 fl ex ib i l i t y 	 t ha n 	 t h e 	 c o m p l et i o n 	 s y ste m 	
previously used by the group as the process eliminates 
the need for perforation and the plugging of each section 
and enables multiple sequential fracture operations eight 
fractures were successfully placed along the 890metre 
horizontal section of the wellbore precisely targeting the 
reservoir intervals of interest the planned installation of 
an electrical submersible pump was completed in october 
a 	 1 0  d a y 	 fl ow 	 te st 	 fo r 	 t h i s 	 w e l l 	 a ve rag e d 	 9 00 	 b pd 	 a t 	
a p p ro x i ma te ly 	 25  	 wa te rc u t
the production 
performance of the 
group’s first horizontal 
wells is encouraging  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 1 3   
the group’s third horizontal well number 212 was 
designed to have a 1000metre horizontal section with 12 
fractures it was spudded on 17 december and is expected 
to be completed in the second quarter of 2015 
th e 	 p rod u c t i o n 	 pe r fo r ma n ce 	 o f 	 t h e 	 g ro u p ’ s 	 first 	 h o r i zo n ta l 	
wells is encouraging equally exciting is the introduction of 
innovative yet proven completion technologies into the 
group’s operations which we believe will make a positive 
contribution to value creation for our shareholders
reservoir management and waterflood
as at the end of 2014 the group had a stock of 34 
producing wells and seven injector wells during the year 
a 	 c o m p re h e n sive 	 re v i ew 	 o f 	 t h e 	 re spo n se 	 t o 	 t h e 	 wa te r fl ood 	
programme was carried out as part of the ongoing 
re se r v o i r 	 ma nag e m e n t 	 p la n 	 i n 	 t h e 	 p rod u c i n g 	 fi e l d 	 on e	
producing well was converted to a water injection well in 
t h e 	 fi r st 	 ha l f 	 o f 	 2 0 1 4  	 g iv i n g 	 a 	 t ot a l 	 o f 	 se ve n 	 a c t ive 	 i n j e c t o r	
w e l l s 	 i n 	 t h e 	 ma i n 	 p rod u c t i o n 	 a re a 	 o f 	 t h e 	 fi e l d
257 mmbbl
proved reserves
3541 boepd
year average production
o u t 	 o f 	 2 4 	 p rod u c i n g 	 w e l l s 	 su b j e c t 	 t o 	 wa te r fl ood i n g 	 
nine producing wells show consistently increasing oil 
production rates in response to pressure support  
a comprehensive tracer campaign has been initiated  
t o 	 a s si st 	 i n 	 f u r t h e r 	 o pt i m i sa t i o n 	 o f 	 t h e 	 wa te r fl ood
the group’s subsurface team set about expanding and 
refi n i n g 	 t h e 	 wa te r fl ood 	 p rog ra m m e 	 su ch 	 t ha t 	 cr u d e 	 o i l 	
production towards the end of the year stabilised the 
wa te r fl ood 	 wa s 	 m o re 	 c o m pa r t m e n t a l i se d 	 t ha n 	 ha d 	 be e n 	
o r i g i na l ly 	 e n v i sag e d 	 i n 	 l i n e 	 w i t h 	 t h e 	 fi n d i n g s 	 f ro m 	 o u r 	
3dseismic reprocessing
simulation modelling of 
horizontal wells with fracs
reservoir simulation is routinely 
u s e d 	 i n 	 ru sp e t r o ’ s 	 wo r k flow s 	
in order to calibrate geological 
m o del s 	 de fi n e 	 a n d 	 te s t 	 fiel d 	
development scenarios and 
fi n a l ly 	 to 	 m a n a g e 	 a n d 	 o pt i m i s e 	
fiel d 	 p r o d u c t i o n 	 t h i s 	 l e vel 	 o f	
integration promotes team  
work and ensures sound  
data consistency 14 ruspetro plc annual report and accounts 2014
strategic report
operational review 
continued strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 1 5   
in 2014 the group continued to interpret the 3d seismic 
d a t a 	 t ha t 	 c o ve r s 	 42  	 o f 	 t h e 	 fi e l d 	 th e 	 re su l t s 	 s h ow e d 	
structural and stratigraphic compartmentalisation in our 
main area of production this poses challenges for an 
ef fe c t ive 	 wa te r fl ood 	 p rog ra m m e 	 a n d 	 d e m o n st ra te s 	 wh y 	
production results from vertical wells can vary drastically 
o ve r 	 q u i te 	 s ma l l 	 d i st a n c e s 	 th e se 	 fi n d i n g s 	 a d d 	 t o 	 o u r 	
k n owl e dg e 	 o f 	 t h e 	 fi e l d 	 a n d 	 e na b l e 	 u s 	 t o 	 be 	 m o re 	 c o n fi d e n t 	
about selecting drilling locations and appropriate well 
technologies going forward
reserves potential
de g o ly e r 	 a n d 	 m a cn a ug h t o n 	  “ d m ”  	 c o n d u c te d 	 a 	 re se r ve	
audit for the group as at 30 june 2014 based on the 
h o r i z o n t a l 	 w e l l 	 d e ve l o p m e n t 	 p rog ra m m e 	 fo r 	 t h e 	 fi r st 	 
time the reserves estimates as at 31 december 2014  
were made by the company by adjusting reserves numbers 
as at 30 june 2014 for actual oil production in the second 
half of 2014 as of 31 december 2014 total proved 
re se r ve s 	 w e re 	 25 7 	 m i l l i o n 	 ba r re l s 	 o f 	 o i l 	 e q u iva l e n t 	  bo e  	
u p 	 1 5  	 f ro m 	 t h e 	 p re v i o u s 	 e st i ma te 	 o f 	 2 25 	 m i l l i o n 	 bo e	
yearend 2014 proved plus probable reserves were 20 
b i l l i o n 	 bo e 	 u p 	 6  	 f ro m 	 t h e 	 2 0 1 3 	 y e a r  e n d 	 e st i ma te 	 o f 	 1  9	
billion boe of these reserves gas comprises 51 million 
boe of proved reserves and 252 million boe of proved and 
probable reserves
the group has 59 million barrels of proved developed oil 
and condensate reserves this compares to 127 million 
barrels as at 31 december 2013 the decrease is primarily 
a t t r ib u t a b l e 	 t o 	 t h e 	 re cla s si fi c a t i o n 	 o f 	 c o n d e n sa te 	 re se r ve s 	
from proved developed to proved undeveloped in the 
palyanovo licence area proved developed sales gas 
re se r ve s 	 w e re 	 re cla s si fi e d 	 t o 	 p ro ve d 	 u n d e ve l o pe d 	 i n 	 l i n e 	
w i t h 	 re cla s si fi c a t i o n 	 o f 	 c o n d e n sa te 	 re se r ve s
in line with industry best practices the group has decided 
to change the independent reserves auditor from dm  
t o 	 a n ot h e r 	 i n te r na t i o na l 	 a u d i t i n g 	 fi r m 	 th e 	 se l e c t i o n 	 i s 	
ex pe c te d 	 t o 	 be 	 ma d e 	 i n 	 t h e 	 fi r st 	 ha l f 	 o f 	 2 0 1 5  	 fo l l ow e d 	 b y 	 
a fullyear report by the end of 2015
macroenvironment in 2014
from a macroenvironment perspective 2014 proved a 
challenge in several respects first russia experienced a 
turbulent year due to the geopolitical crisis in ukraine as 
the economic sanctions targeted against russia have been 
i m pose d 	 o n 	 c e r t a i n 	 i n d iv i d ua l s 	 fi na n c ia l 	 i n st i t u t i o n s 	
statecontrolled companies technologies and equipment 
i n 	 t h e 	 fi na n c ia l 	 d efe n c e 	 a n d 	 e n e r g y 	 se c t o r s 	 s e c o n d 	 t h e	
crude oil price though averaging almost us100 per 
barrel in 2014 compared with us109 in 2013 dropped 
dramatically in the fourth quarter of 2014 having peaked 
in june 2014 at us115 the brent crude oil price had 
dropped to us57 by the yearend due to slower growth 
in major oilconsuming countries soaring production of 
hardtoextract crude oil in the us and canada and 
opec’s decision to maintain production levels
oil  condensate sales gas total
31 december 
2014 mn bbl
 vs 
31 december 
2013 mn bbl
31 december 
2014 mn boe
 vs 
31 december 
2013 mn boe
31 december 
2014 mn boe
 vs 
31 december 
2013 mn boe
proved developed 59 69 00 161 59 230
total proved 2060 152 513 175 2572 327
proved  probable 17454 917 2520 195 19974 1112 16 ruspetro plc annual report and accounts 2014
advanced seismic 
interpretation 
• advanced seismic 
interpretation techniques 
can help unravel attractive 
reservoir features
strategic report
operational review 
continued
at 	 t h e 	 sa m e 	 t i m e 	 t h e 	 d i f fi c u l t 	 ma cro  e n v i ro n m e n t 	
b ro ug h t 	 so m e 	 si g n i fi c a n t 	 o pe ra t i o na l 	 be n efi t s 	 t h ro ug h 	 
the devaluation of the russian ruble functional currency 
of the group’s operating companies with oil and gas 
production generating the majority of hardcurrency 
revenues of russian companies and the government the 
decline in the oil price weakened the ruble exchange rate 
from 32 to the us dollar on 1 january 2014 to a low of 67 
on 16 december 2014 while the rubledollar exchange 
rate averaged 354 during the nine months ending 
30 september 2014 it plummeted in the fourth quarter 
paralleling the slump in the brent price the ruble’s 
dramatic fall has cushioned the group’s exposure to  
t h e 	 o i l 	 p r i c e 	 d e cl i n e 	 a s 	 i t 	 i s 	 e st i ma te d 	 t ha t 	 9 0  	 o f 	 i t s	
o pe ra t i n g 	 ex pe n se s 	 80  	 o f 	 c a p i t a l 	 ex pe n d i t u re s 	 a n d 	 4 0 	
of sga in 2015 are denominated in rubles the effect of 
t h i s 	 d e va l ua t i o n 	 i s 	 ex pe c te d 	 t o 	 b r i n g 	 si g n i fi c a n t 	 sa v i n g s 	 i n 	
2015 in terms of operating costs capex and to a lesser 
extent sga
sales and marketing
the group’s total production in 2014 was some 13 million 
boe or an average of 3541 boepd in 2014 the group 
exported 448 thousand boe and sold 854 thousand boe  
of crude oil and 7 thousand boe of condensate on the 
domestic market compared with 261 thousand boe 12 
million boe and 258 thousand boe in 2013 respectively 
all export volumes were delivered under the glencore 
ex po r t 	 p re pa y m e n t 	 fa c i l i t y 	 a n d 	 4 9  	 o f 	 do m e st i c 	 v o l u m e s	
were delivered to energoresurs a company related to 
glencore under both domestic prepayment facilities 
signed in 2014
in 2014 export sales revenue was us408 million 
u s  1 8 8 	 m i l l i o n 	 a f te r 	 ex po r t 	 d u t y   	 do m e st i c 	 cr u d e 	 o i l	
revenue was us350 million and condensate revenue 
was us03 million in 2013 export sales revenue was 
u s  2 7  4 	 m i l l i o n 	 u s  1 3  3 	 m i l l i o n 	 a f te r 	 ex po r t 	 d u t y  	
domestic crude oil revenue was us540 million and 
condensate revenue was us113 million
export deliveries were contracted to glencore via the 
transneft pipeline system and freight terminal in 
p r i m o r s k 	 80  	 o f 	 do m e st i c 	 sa l e s 	 v o l u m e s 	 w e re 	 d e l ive re d	
v ia 	 p i pe l i n e 	  c o m pa re d 	 w i t h 	 60  	 i n 	 2 0 1 3  	 a n d 	 2 0  	 b y 	 ra i l	
a n d 	 t r u ck 	  c o m pa re d 	 w i t h 	 4 0  	 i n 	 2 0 1 3   strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 1 7   
strategic report
financial review
financial summary
revenues were us551 million in 2014 compared with 
us798 million in 2013 while ebitda was us95 
million compared with us130 million the drop in 
re ve n u e s 	 wa s 	 p r i ma r i ly 	 d r ive n 	 b y 	 a 	 1 4  	 re d u c t i o n 	 i n	
a ve rag e 	 o i l 	 p rod u c t i o n 	 a 	 9  	 fa l l 	 i n 	 t h e 	 a ve rag e 	 o i l 	 p r i c e	
and the termination of condensate sales
th e 	 d ro p 	 i n 	 eb i t d a 	 wa s 	 p r i ma r i ly 	 d r ive n 	 b y 	 t h e 	 1 4 	
decline in crude oil production a loss of gross margin 
f ro m 	 t h e 	 c e s sa t i o n 	 o f 	 c o n d e n sa te 	 sa l e s 	 a n d 	 a 	 9  	 fa l l 	 i n	 
the average oil price the effect was offset by a substantial 
saving from reduced met following changes in tax 
legislation in relation to tight oil reservoirs available to  
the group since september 2013
cost of sales
the cost of sales including depreciation and production
related taxes was us517 million in 2014 compared  
with us659 million in 2013 the decrease was primarily 
driven by a us20 million reduction in met due to a full 
y ea r’ s 	 80  	 met 	 re li ef 	 be n efi t 	 co nfe r red 	 t o 	 t h e 	 g ro u p 	
sta r t in g 	 se pte m be r 	 2 0 13  	 a l o n g 	 w i t h 	 a 	 ma rg ina l 	 be n efi t 	
from the ruble depreciation towards the end of 2014  
and savings of us1 million in production services these 
savings however were offset by a us62 million increase 
in depletion expenses in 2014 due to temporary suspension 
of operations at palyanovo along with a us11 million 
increase in repair and maintenance expenses and 
e m p l o y ee 	 be n efi t 	 ex pe nses 
selling and administrative expenses sa
sa expenses include oil transportation costs payroll 
expenses rent professional services property and land 
taxes depreciation it and telephony and other expenses 
sa expenses in 2014 amounted to us208 million 
dow n 	 7  	 f ro m 	 u s  2 2 5 	 m i l l i o n 	 i n 	 2 0 1 3  	 th e 	 d e cre a se	
resulted from savings mostly in professional services it 
and telephony travel and depreciation offset by increases 
i n 	 pa y ro l l 	 ex pe n se s 	  i n cl u d i n g 	 se ve ra n c e  	 a n d 	 o i l	
transportation expenses as a result of higher export 
volumes yearonyear in 2014
comprehensive loss for the year and  
foreign exchange
the group recorded a loss of us2629 million for 2014 
compared with us742 million in 2013 the 2014 result 
includes a foreignexchange loss of us2024 million 
compared with us256 million in the previous year the 
group’s operating companies whose functional currency 
is the russian ruble have borrowings in us dollars as a 
result of the ruble devaluation those borrowings in ruble 
terms have substantially increased resulting in the 
accounting recognition of us2024 million in foreign
exchange losses after deducting the foreignexchange 
losses from both years the group’s loss would have been 
us605 million in 2014 compared with us486 million 
in 2013
0
50
100
150
200
250
300
350
400
450
500
70
5
25
30
25
14
14
455
14
147
128
2015 2016 2017 2018 2019 2020
▪
before   
▪
after
f i n a n c i n g 	 c a s h 	 o u t fl o w 	 b e f o r e 	 a n d 	 a ft e r 	 t h e 	 r e s t r u c t u r i n g 	 
us million
 ex cl u d i n g 	 d ebt 	 fa c i l i t i e s 	 n ot 	 y et 	 d ra w n 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 
us 551m
revenues
us 7 8m
o p e r a t i n g	c a sh	fl o w	b e f o r e	w o r k i n g	c a p i t a l	a d j u s t m e n t s
the group’s balance sheet has been 
transformed due to the completion  
of the restructuring in december 2014 18 ruspetro plc annual report and accounts 2014
balance sheet 
the group’s balance sheet has been transformed due to 
the completion of the restructuring in december 2014 
along with the effects of the ruble depreciation
the group’s restructuring comprised the following  
key components
• a restructuring of the existing us3379 million ojsc 
s be r b a n k 	 o f 	 ru s sia 	  “s be r b a n k ”  	 cre d i t 	 fa c i l i t y 	 a l o n g	
w i t h 	 a 	 l l c 	 sbe r b a n k 	 c a p i t a l 	  “s be r ba n k 	 c a p i t a l ”  	 p u t	
option valued at around us202 million these were 
t og et h e r 	 ex cha n g e d 	 fo r 	 a 	 n ew 	 u s  1 50 	 m i l l i o n 	 five  y e a r 	
loan from otkritie with the conversion of the 
remaining us2081 million by mastin a company 
be n efi c ia l ly 	 ow n e d 	 b y 	 s e r g e y 	 g o rd e e v  	 i n t o 	 25  	 o f 	 t h e	
company’s enlarged issued equity share capital
• a 	 five  y e a r 	 d e ve l o p m e n t 	 fa c i l i t y 	 o f 	 u p 	 t o 	 u s  1 00 	
million was entered into with otkritie for the purposes 
o f 	 fi na n c i n g 	 t h e 	 g ro u p ’ s 	 fi e l d 	 d e ve l o p m e n t
• a 	 five  y e a r 	 cre d i t 	 fa c i l i t y 	 o f 	 u p 	 t o 	 u s  4 4  7 	 m i l l i o n 	 wa s 	
entered into with otkritie for general working capital 
purposes with drawdown available until the end of 
june 2016
• the extension of shareholder loans from makayla 
in ve st m e n t s 	 l i m i te d 	  “ m a k a yla ”  	 f ro m 	 2 0 1 5 	 t o 	 2 0 1 6	
and limolines from 2018 to 2020 us50 million is 
due to be repaid to makayla in may 2015
• a 	 ra i si n g 	 o f 	 g ros s 	 p ro c e e d s 	 o f 	 £3 2 9 	 m i l l i o n 	  a ro u n d	
u s  52 3 	 m i l l i o n  	 i n 	 n ew 	 e q u i t y 	 c a p i t a l 	 f ro m 	 a 	 p la c i n g	
and open offer this included the offset of a us107 
million shortterm limolines loan against limolines’ 
subscription for the new shares in the placing and  
open offer
as a result of the restructuring alone the group’s total 
debt decreased by us1986 million current liabilities 
decreased by us202 million total equity increased  
by us2562 million and total cash on hand increased  
by us416 million before transactionrelated fees 
transaction fees totalled us 57 million and the  
group’s net debt decreased by us2402 million 
the completion of the restructuring helped to reduce net 
d ebt 	 si g n i fi c a n t ly 	 i n 	 2 0 1 4  	 spe c i fi c a l ly  	 n et 	 d ebt 	 d e cre a se d	
by us1523 million from us3874 million at the 
beginning of 2014 to us2351 million at the end 
strategic report
financial review 
continued strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 19   
other current and noncurrent liabilities decreased by 
us744 million to us811 million by the yearend from 
us1555 million at the end of 2013 among other things 
t h i s 	 refl e c te d 	 t h e 	 c o n ve r si o n 	 o f 	 t h e 	 s be r b a n k 	 c a p i t a l 	 p u t 	
option a decrease in deferred tax liabilities and a 
decrease in trade and other payables despite an increase 
of total equity by us2562 million as part of the 
restructuring the group’s total equity decreased by 
us196 million in 2014 from us953 million to us757 
million mainly due to the magnitude of foreignexchange 
losses associated with the ruble depreciation
cash flow
in 	 2 0 1 4  	 t h e 	 g ro u p 	 g e n e ra te d 	 a 	 n et 	 c a s h 	 i n fl ow 	 f ro m 	
operating activities of us33 million resulting from 
posi t ive 	 o pe ra t i n g 	 c a s h 	 fl ow 	 o f 	 u s  7 8 	 m i l l i o n 	 a n d 	 a 	
negative cash impact from changes in working capital  
of us45 million the latter resulted from the increase  
of vat refundable related to capital construction as well 
a s 	 f ro m 	 t h e 	 si g n i fi c a n t 	 r u b l e 	 d e p re c ia t i o n 	 d u r i n g 	 2 0 1 4  	
l e a d i n g 	 t o 	 a 	 ma j o r 	 d e cl i n e 	  wh e n 	 ex p re s se d 	 i n 	 u s 	 do l la r s 	
in rubledenominated accounts payable balances
during the year the group spent us496 million on 
investment activities this consisted of us239 million 
on the construction of new wells us19 million on rig 
mobilisation and demobilisation us108 million on 
infrastructurerelated capital expenditures us13 
million on development studies us26 million on the 
purchase of intangible and other assets and us92 
million for capital expenditures related to activities before 
the initiation of the group’s horizontal well development 
programme in 2014 
th e 	 g ro u p 	 re c e ive d 	 u s  3 7  4 	 m i l l i o n 	  n et 	 o f 	 c ost s 	 a n d	
set t l e m e n t 	 o f 	 l i m o l i n e s 	 l oa n  	 f ro m 	 t h e 	 i s su e 	 o f 	 n ew 	 s ha re s	
in december 2014 through the company’s open offer and 
placing it also received loan proceeds of us10 million 
from limolines in august 2014 in addition loan proceeds 
f ro m 	 o t k r i t i e 	 t ot a l l i n g 	 u s  1 48  5 	 m i l l i o n 	  n et 	 o f	
a r ra n g e m e n t 	 fe e s 	 o f 	 u s  1  5 	 m i l l i o n  	 w e re 	 re c e ive d 	 i n	
december 2014 the group utilised these immediately as 
part of the restructuring to repay the us150 million 
outstanding under the sberbank credit facility then owned 
by mastin
financing of ruspetro’s current operations  
and future development
following the restructuring and the extension of 
shareholder loans together with the additional us100 
m i l l i o n 	 d e ve l o p m e n t 	 fa c i l i t y 	 a va i la b l e 	  su b j e c t 	 t o	
c o n t i n u i n g 	 t o 	 m e et 	 t h e 	 d ra w dow n 	 c o n d i t i o n s   	 t h e 	 g ro u p	
is able to continue the implementation of its horizontal 
well programme in the near future the group’s focus on 
production is critical to its success as the terms for its 
re st r u c t u re d 	 d ebt 	 fi na n c e 	 re q u i re 	 t h e 	 g ro u p 	 t o 	 a ch i e ve 	
certain annualised ebitda and production covenants 
that will be tested quarterly from january 2016 the 
group is required to monitor closely its ability to meet 
such covenants throughout the year and this will depend 
largely on the drilling of additional horizontal wells and 
on foreignexchange and oil price movements taking into 
account all considerations relevant to the group’s current 
fi na n c ia l 	 posi t i o n 	 ma nag e m e n t 	 c o n si d e r s 	 i t 	 a p p ro p r ia te	
t ha t 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 s h o u l d 	 be 	 p re pa re d 	 o n 	 a 	
going concern basis
outstanding debt obligations
 
debt principal
accrued 
interest 
total as at 
31 dec 
2014 maturity
annual 
interest 
rate
otkritie us1478 us us1478 nov19 8 	 pa
makayla us150 us83 us233 oct16 1m libor 
 1 0  	 pa
limolines us487 us271 us758 feb20 3m libor
 1 0  	 pa
crossmead 
holding 
limited
us03 us us03 past due 0  20 ruspetro plc annual report and accounts 2014
strategic report
sustainability report
introduction
the company holds licences for three blocks on the 
krasnoleninsky arch near khantymansiysk in western 
siberia there are two communities based within these 
blocks talinka with a population of around 4000 and 
palyanovo with a population approaching 200 the 
company recognises that it has a duty to safeguard the 
environment in its area of operations and preserve the 
way of life of those who live there
to meet our sustainability obligations we seek to
• in crea se 	 o pe ra t i o na l 	 a n d 	 cost 	 ef fi ci e n ci es 	 in 	 p rod u c t i o n
• recycle waste and minimise environmental harm
• have open and positive communication with the 
communities in which we operate
• work closely with local governmental agencies in 
meeting our obligations
• ensure the safety of our assets and employees
• create a high quality working environment for  
our employees
the year 2014 was one of reorganisation and continued 
consolidation for the company drilling operations have 
improved greatly and new technologies were introduced 
such as horizontal drilling and multiple fracturing the 
c o m pa n y 	 ha s 	 c o n t i n u e d 	 t o 	 i m p ro ve 	 t h e 	 ef fi c i e n c y 	 o f 	 i t s 	
production system and reduce the environmental impact 
of its operations in line with its sustainability goals 
through better operational reporting and subsequently 
more effective intervention we continued to improve the 
safety and security of our operations and build 
relationships with the local communities in which we 
w o r k  	 th e 	 c o m pa n y 	 ma nag e s 	 d a y  t o  d a y 	 fi e l d 	 o pe ra t i o n s 	
from its operational base in talinka at the centre of the 
fi e l d 	 th ro ug h 	 i n cre a se d 	 i n ve st m e n t 	 i n 	 o u r 	 o pe ra t i o n s 	 i n 	
talinka we are increasing our activities and employment 
opportunities for the local population
in addition we successfully implemented the emex 
platform as a tool to log monitor and action hse 
improvements across all operational areas the new 
system is a step change in the way we manage our hse 
management system within the company enabling more 
comprehensive incident reporting closedloop incident 
investigation and followup
2014 has been a year  
of reorganisation and 
continued consolidation 
for the company strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 21   
health safety and the environment
in all our operations be they drilling production or 
construction health and safety is an absolute priority  
as is the environment not forgetting ethical standards 
employee and community satisfaction are also a priority 
for the company and are carefully considered throughout 
our daily operations when tendering a contract we try to 
encourage local contractors to behave similarly and we 
have clear and transparent tendering procedures all of 
our employees and contractors are held accountable for 
adhering to local health safety and environmental 
standards and our ethical expectations as a company  
we pride ourselves on developing local resources in a 
responsible and ethical manner while continually 
respecting all key stakeholders 
safety performance
operating safely in all areas of our operations is a strict 
priority for the ruspetro team we believe that all 
accidents leading to any injuries environmental impact or 
damage to our or contractors’ assets are preventable this 
is 	 esse n t ia l 	 fo r 	 t h e 	 c a re 	 o f 	 o ur 	 e m p l o y ees 	 a n d 	 fo r 	 t h e 	 be n efi t 	
of our stakeholders and the communities and environment 
in which we operate 
ruspetro bases its internal management of safety on the 
following four key performance indicators for safety
losttime injury ‘lti’
a losttime injury is calculated as the sum of fatalities  
and losttime accidents an lti is one that results in an 
employee or contractor being absent from work for three 
days or work shifts during 2014 ruspetro incurred one 
minor lti 
accident frequency rate ‘afr’
the accident frequency rate measures the number  
of losttime accidents per 200000 work hours 
total recordable incident frequency ‘trif’
total recordable incident frequency is a broad metric 
d efi n e d 	 a s 	 t h e 	 t ot a l 	 n u m be r 	 o f 	 re c o rd a b l e 	 i n c i d e n t s 	 pe r 	
million working hours it aims to capture all incidents 
during the year that required treatment by a medical 
professional including fatalities losttime injuries and 
a n y 	 i n c i d e n t s 	 t re a te d 	 a s 	 a 	 fi r st 	 a i d 	 c a se 	
motor vehicle incident frequency ‘mvif’
mvif refers to the total number of vehicle incidents per 
million kilometres 
internal safety standards
in 2012 ruspetro introduced internal safety standards 
and procedures to improve its approach to safety they  
are based on international guidelines recognised within 
the industry as best practice and have been developed to 
address the main risks faced by the industry in 2013  
they were implemented by supervisors and employees 
who have continued training to ensure employees can 
identify risks correctly and act to mitigate them at the 
end of 2014 procedures and processes used by our 
employees and contractors included
• an occupational health and safety and industrial safety 
management system
• occupational health and safety initial orientation 
programmes and initial toolbox talks
• explicit hse instructions and hse requirements
• m a i n te na n c e 	 o f 	 spe c i fi c 	 j o b 	 d e scr i pt i o n s 	 fo r 	 a l l 	
re spon sib l e 	 of fi c er s
• regulation of inprocess control and maintenance  
of an action plan to ensure industrial safety
• instruction on standard operating procedures for 
workers involved in crane operation 22 ruspetro plc annual report and accounts 2014
strategic report
sustainability report 
continued
security
in 2014 ruspetro’s main security goals continued to  
be the protection of employees assets and technology  
in 2013 the company strengthened processes and 
p ro c e d u re s 	 fo r 	 i t s 	 o pe ra t i o n s 	 fi na n c e s 	 a n d 	 p ro c u re m e n t 	 
of goods and services in 2014 ruspetro improved their 
security further by employing a security adviser 
environmental performance
the company’s duty of care to the environment is of key 
importance during 2012 the company adopted an 
environmental protection programme via its main 
production subsidiaries inga and transoil and  
this programme continued through 2013 and 2014  
the production of oil causes four possible routes  
of contamination
• at m osp h e r i c 	 e m i s si o n s 	 – 	 p r i n c i pa l ly 	 t h ro ug h 	 fla r i n g 	 o r 	
venting of associated gas
• water emissions – mainly from associated produced 
water that is reinjected into the reservoir to maintain 
reservoir pressure other water emissions are treated 
before being released into the environment
• solid waste – mainly drilling cuttings which are 
treated in the waste cuttings pit to neutralise and the 
pits are then recultivated household waste is gathered 
a n d 	 t a k e n 	 t o 	 t re a t m e n t  la n d fi l l 	 fa c i l i t i e s 	 c o n t ra c te d 	
through third parties 
• oil spillages and leaks – these are dealt with 
immediately the source isolated the area cleaned up 
and any contaminated soils are treated at offsite 
treatment facilities contracted through third parties  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 2 3   
the programme aims to 
• reduce waste at source through design and operation
• reinject produced water
• protect the natural water bodies and soil from 
contamination or damage from operations
• optimise the use of existing land for pipeline and 
transportation routes and operational sites while 
minimising land use in sensitive natural community 
or historical areas
• monitor the impact of operations on the environment
• clean up any waste materials or oil spills using 
recognised reclamation procedures to allow the 
environment to recover
to improve the utilisation of associated gas by the oil 
industry the russian federal government adopted a 
d e cre e 	 o n 	 1 	 j a n ua r y 	 2 0 1 3 	 t ha t 	 si g n i fi c a n t ly 	 i n cre a se s 	
pe na l t i e s 	 fo r 	 a s so c ia te d 	 pet ro l e u m 	 g a s 	 fla r i n g 	 ex c e e d i n g 	
5  	 o f 	 o ve ra l l 	 c u m u la t ive 	 g a s 	 p rod u c t i o n  	 th e 	 c o m pa n y	
installed gas meters in early 2013 to continually provide 
the required data its continued low level of current 
reservoir depletion in 2014 means that within the 
framework of the new decree no penalties were paid in 
2 0 1 4 	 fo r 	 g a s 	 fla r i n g 	 o r 	 a re 	 ex pe c te d 	 t o 	 be 	 pa i d 	 i n 	 2 0 1 5  	 
in 2014 there were no oil spills recorded 
human rights
our performance as a corporate entity is dependent on  
the performance of our employees as individuals we 
therefore aim to achieve maximum employee satisfaction 
and ultimate standards of performance to that end we 
commit to
• respect and promote employees’ human rights 
including freedom of association and the right to 
collective bargaining
• provide a safe and healthy working environment
• realise each employee’s individual potential through 
training and job promotion
• respect the cultural diversity of our employees  
and support employment of local professionals from  
small communities
• ensure equal opportunity without discrimination  
on the basis of age culture disability gender race  
and religion
human resources policy
key objectives
th e 	 c o m pa n y ’ s 	 h u ma n 	 re so u rc e s 	  “ hr ”  	 st ra teg y 	 c e n t re s	
on the following set of key principles and priorities
• f a i r 	 a n d 	 c o m pet i t ive 	 re m u n e ra t i o n 	 a n d 	 be n efi t s 	 fo r 	 a l l 	
employees
• appropriate incentive schemes to reward excellent 
performance
• thoughtful and constructive development of all staff
• a safe working environment
• equal opportunities for all employees for professional 
and career development
the need to enhance capabilities for a new development 
p rog ra m m e 	 wa s 	 a 	 ma i n 	 fa c t o r 	 i n 	 3 4  	 o f 	 st a f f 	 t u r n o ve r 	 i n	
2014 having successfully recruited a well construction 
director development director head of geology and 
geophysics and drilling operations manager the 
company now has a strengthened senior technical 
management team management has brought in 
professionals with strong international experience from 
global oil and gas operators 
the recruitment and retention of top performers is one  
of the main goals for ruspetro’s hr team during 2014 
the company upgraded processes to employ and retain 
staff and enable them to grow and develop within the 
organisation ruspetro has put in place a longterm 
incentive plan for high performers to supplement existing 
be n efi t s 	 o f 	 l i fe 	 d i sa b i l i t y 	 a n d 	 m e d i c a l 	 i n su ra n c e 	 fo r 	 a l l 	
employees the group’s remuneration policy has been 
refi n e d 	 a n d 	 i s 	 p re se n te d 	 i n 	 t h i s 	 re po r t 	 ru spet ro 	 ha s	
focused on employees with experience in horizontal 
drilling and multistage fracturing in siberia over the 
year the headcount increased by eight people
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  	 66  	 o f 	 t h e 	 c o m pa n y ’ s 	 t ot a l 	 2 1 4	
e m p l o y e e s 	 w e re 	 b a se d 	 i n 	 w e ste r n 	 sibe r ia 	 a n d 	 25  	 o f	
employees were female no females are currently on the 
board or in the executive management team
w e 	 ha ve 	 refi n e d 	 a 	 se m i a n n ua l 	 pe r fo r ma n c e 	 re v i ew 	
system for all staff to clearly identify impressive 
performing employees and improve the transparent link 
between company performance individual contribution 
and subsequent reward
last year marked the successful establishment of key 
pe r fo r ma n c e 	 i n d i c a t o r s 	 refl e c t i n g 	 t h e 	 f u n d a m e n t a l 	
principles of our business and serving a basis for 
distributing corporate awards 24 ruspetro plc annual report and accounts 2014
key risks risk description risk mitigation
health safety and environment
health and safety 
the group conducts its business in a regulated 
industry and may be subject to claims and liabilities 
under environmental health safety and other laws 
and regulations which could be material
ensuring that best hse practices are in place is a 
focal point in all our activities the company adopted 
a set of hse policies appointed a hse director and 
implemented a system to collect process and  
report hse information a renewed and updated 
programme of hse training for our staff is currently 
being developed
operations production and sales
reserves and 
production 
forecasts
reserves estimates and production forecasts are 
inherently uncertain the group’s total reserves  
may decline in the future and the group may not 
achieve estimated production levels
internationally proven appraisal and development 
techniques are utilised to maximise the economically 
recoverable hydrocarbons for our reservoirs and 
rigorous probabilistic methodologies are in place 
for reserves assessment in addition appropriately 
risked production forecasting methodology is in 
place for forecasting and modelling purposes 
competent persons reports are prepared and released 
periodically with the next one planned for the end  
of 2015
operational 
execution
well and facility construction and production 
operations involve numerous operational 
risks these may result in losses or additional 
expenditures and lead to the group not achieving  
i t s	p l a n n e d	p r o d u c t i o n	a n d	fi n a n c i a l	t a r g e t s 
the company is focused on putting in place a 
fi r s t  c l a s s	o p e r a t i o n a l 	e n g i n e e r i n g 	d r i l l i n g	a n d	
completion team and applying best global practices 
in operational execution in addition ruspetro has 
a rigorous procedure of selecting contractors and 
prefers to use services of well known international 
companies importantly insurance of drilling and 
operational risks is also in place
licence rights
the group has the right to explore and extract 
o i l	a n d	g a s	w i t h i n	p a r t	o f	t h e	k r a s n o l e n i n s k	fi e l d	
in western siberia if the group’s appraisal and 
production licences are suspended restricted 
terminated or not extended prior to expiry this 
would have a material adverse effect on the group
renewal of mineral right licences is regulated by 
russian legislation a plan for the renewal of licences 
is in place and a dedicated team for managing licence 
obligations has been established matters related to 
licence obligations are routinely reviewed at audit 
committee meetings
transportation 
route
the group relies on the transneft pipeline for 
transportation of its crude oil and does not  
have control over its functionality or the cost  
of its service
r u s p e t r o ’ s	fi e l d s	a r e	s t r a te g i c a l l y	l o c a te d 	w i t h	a c c e s s	
to various transportation routes delivery through 
the transneft pipeline system is the most widely used 
option for ruspetro while rail and truck deliveries are 
available as an alternative to pipeline sales the cost 
of transneft services is regulated by the government 
and is predictable the relative attractiveness of 
alternative sales routes is evaluated on a monthly 
basis and appropriate decisions to use a certain route 
are made accordingly
strategic report
principal risks 
and uncertainties
the principal risks and uncertainties highlighted below 
a re 	 c o n si d e re d 	 t o 	 ha ve 	 t h e 	 m ost 	 si g n i fi c a n t 	 re l e va n t 	
pote n t ia l 	 ef fe c t 	 o n 	 ru spet ro ’ s 	 b u si n e s s 	 i n teg r i t y  	 fi na n c ia l 	
results and future prospects at its current stage of 
development not all these risk factors are within our 
direct control and those listed below are not exhaustive 
there may be risks and uncertainties that are unknown  
to us and the list is expected to change many broad risks 
however are outside ruspetro’s full control for example 
changes in general economic conditions including 
c u r re n c y 	 a n d 	 i n te re st 	 ra te 	 fl u c t ua t i o n s 	 cha n g e s 	 i n	
government regulation and macroeconomic issues strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 2 5   
key risks risk description risk mitigation
operations production and sales
insurance 
coverage
the group does not have the types of insurance 
coverage customary in more developed countries for 
a	b u s i n e s s	o f	i t s	s i z e	a n d	n a t u r e 	a n d	a	s i g n i fi c a n t	
event could materially impact its business
ruspetro has put in place insurance arrangements 
in accordance with the regulations in the markets in 
which it operates and given current business needs 
decisions to increase insurance coverage  
are evaluated on an ad hoc basis
reliance on third
party contractors
the group relies on the services of third parties the 
availability and quality of which cannot be assured 
the oil industry is intensely competitive and the 
group may not be able to compete effectively with 
much larger competitors
the company has implemented rigorous procedures 
for selecting contractors engineering subsurface 
and drilling and completion teams ensure that the 
performance of contractors is properly monitored  
and managed
procurement 
established in  
the field and 
moscow offices
lack of effectiveness in negotiating and managing 
purchases and contracts could increase costs for 
ruspetro andor cause delays to project completions 
and operations the vetting of counterparties in 
particular for business ethics and integrity as well  
a s	fi n a n c i a l	a n d	o p e r a t i n g	c a p a b i l i t y 	r e p r e s e n t s	 
an associated risk area
ruspetro operates effective policies procedures and 
controls in relation to prior approval of counterparties 
and competitive procurement within strict levels of 
delegated authority with the objective of achieving 
a r m ’ s l e n g t h 	t r a n s p a r e n t	p u r c h a s i n g 	s p e c i fi c a l l y 	
contracts committees consisting of key company 
e x e c u t i ve s	a r e	e s t a b l i s h e d	i n	t h e	fi e l d	a n d	i n	m o s c ow	
o f fi c e s 	t h e y 	o u r	b o a r d	a n d	t h e	a u d i t	c o m m i t te e	
monitor carefully and undertake close regular 
scrutiny of the effectiveness of the company’s 
counterparty policies
protection  
of company 
property
damage theft or interference to ruspetro’s assets 
i n	t h e	fi e l d	c a n	s t o p	o r	l i m i t	p r o d u c t i o n	r e s u l t i n g	i n	
r e d u c e d	c a s h	fl ow	a n d	i n c r e a s e d	c o s t s 
a security strategy that includes improved training 
processes and procedures for security personnel and 
improved surveillance technology has been developed 
a n d	i m p l e m e n te d 	i n	a d d i t i o n 	t h e	s y s te m	o f	i n fi e l d	 
oil pipelines and infrastructure is designed to prevent 
oil theft
business integrity
the company is subject to the united kingdom 
bribery act 2010 its failure to comply with the laws 
and regulations thereunder could result in penalties 
that harm its reputation and have a material adverse 
effect on the group’s business
internal policies based on the united kingdom 
bribery act 2010 are in place and the company is 
focused on ensuring their implementation
our approach is to actively understand and monitor the 
risks we are exposed to and then to manage those risks  
b y 	 u si n g 	 a 	 p ra c t i c a l 	 a n d 	 flex ib l e 	 f ra m ew o rk 	 wh i ch 	 p ro v i d e s	
a consistent and sustained approach to risk assessment  
so that their potential adverse effects are mitigated  
where possible 26 ruspetro plc annual report and accounts 2014
key risks risk description risk mitigation
financial
oil prices
the group may be adversely affected by a 
substantial or extended decline in prices  
for crude oil
thanks to its relatively small size the company 
can quickly evaluate changes in macroeconomic 
environment and adjust its operations if necessary 
although ruspetro does not currently hedge its 
oil price exposure hedging options are evaluated 
quarterly based on production forecast pricing and 
other business needs in addition the company’s oil is 
of comparatively better quality than the urals blend 
which allows ruspetro to receive a premium for sales 
via rail or truck when we make investment decisions 
we strive to do so after careful consideration of 
various oil price scenarios
currency 
fluctuations
fluctuations in currency exchange rates 
 p a r t i c u l a r l y	r u b  u s  	m a y	m a te r i a l l y	a n d	
a d ve r s e l y	a f fe c t	t h e	g r o u p ’ s	fi n a n c i a l	p o s i t i o n 
the majority of company’s revenues are denominated 
in us or linked to international usbased oil prices 
on the other hand all material service contracts 
are denominated in rur or have caps on the rur
us exchange rate therefore the company’s 
costs expressed in us dollars decrease as the ruble 
depreciates and vice versa the company currently 
manages its foreign exchange exposure without 
engaging in longterm currency hedging contracts 
and this practice is reconsidered periodically as 
circumstances change
debt facility 
covenants
if the group’s development plan does not succeed 
the group will be unable to comply with its 
current debt facility covenants or with their other 
requirements
the group’s mediumterm planning is being done 
with careful consideration of debt facility covenants 
and performance against covenants is evaluated on a 
monthly basis with the necessary adjustments made 
in a timely manner in addition covenants are based 
on cumulative four quarterly periods which may 
s m o ot h	t h e	i m p a c t	o f	s h o r t  te r m	fl u c t u a t i o n s 
longterm 
funding
th e 	 g ro u p 	 m ust 	 ma k e 	 s i g nifi c a n t 	 c a p i ta l 	 ex pe n d i t ures 	
t o 	 in crea se 	 i t s 	 reve n u es  	 c a s h 	 fl ows 	 a n d 	 p rod u c t i o n	
l eve ls  	 th e 	 ina b i li t y 	 t o 	 fina n ce 	 t h ese 	 a n d 	 ot h e r 	
expenditures in the longer term could have a  
material adverse effect on the group’s business
ruspetro’s status as a uk publicly traded company 
with strong local russian shareholders is of advantage 
in accessing domestic and international sources  
o f	fi n a n c e 
human resources
key technical and 
management 
skills
the group is dependent on senior management 
p e r s o n n e l	a n d	o n	m a i n t a i n i n g	a	h i g h l y	q u a l i fi e d	 
and skilled core workforce
longterm incentive programmes are in place for key 
personnel to attract and retain key management and 
staff all new employees are interviewed by executives 
to ensure that interests are aligned and the right 
candidates are selected evaluations of management 
and staff are performed twice a year with relevant 
actions taken thereafter
strategic report
principal risks 
and uncertainties continued  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 27   
key risks risk description risk mitigation
s h a r e h o l d e r s	a n d	f r e e	fl o a t
freefloat 
obligation
the company’s ordinary shares may be delisted from 
t h e 	 o f fi cia l 	 l ist 	 if 	 t h e 	 c o m p a n y 	 does 	 n ot 	 esta b lis h 	 o r 	
ma in ta in 	 a 	 suf fi ci e n t 	 f ree 	 fl o a t 	 in 	 i t s 	 s ha res 
further to ukla guidance several options are 
c u r r e n t l y	u n d e r	c o n s i d e r a t i o n	t o	e n s u r e	s u f fi c i e n t	
f r e e	fl o a t	i n	t h e	c o m p a n y ’ s	s h a r e s 	i n c l u d i n g	t h e	s a l e	
o f	s h a r e s	b y	s i g n i fi c a n t	s h a r e h o l d e r s	a n d	t h e	i s s u e	
of new shares a broker has been retained to advise 
on the most effective ways to meet the requirements 
fo r	f r e e  fl o a t	i n	t h e	c o m p a n y ’ s	s h a r e s	a n d	h e l p	i n	
executing any necessary transactions
dominant 
shareholders
c e r t a i n	s h a r e h o l d e r s	h a ve	s i g n i fi c a n t	i n fl u e n c e	o ve r	
the company their interests may not be aligned 
with those of the other shareholders and such 
concentrated ownership of the company could affect 
the market price and liquidity of its shares
the company treats its shareholders equally 
and carefully manages its relationships with key 
shareholders relationship agreements are in place 
with limolines makayla mastin and nervent to limit 
t h e i r 	 i n fl u e n c e 	 o n 	 o pe ra t i o n s 	 ad d i t i o na l ly  	 fo u r 	 o f	
the eight directors are independent and management 
engages directly with investors to increase 
transparency and liquidity
political and regional 
sanctions 
compliance
noncompliance with eu or us sanctions or  
export restrictions an expansion of eu and
o r	o f a c	s a n c t i o n s	p r o g r a m m e s	o r	a	s i g n i fi c a n t	
expansion of the group’s dealings with any parties 
subject to sanctions could adversely impact the 
group’s business
most of the materials machinery and equipment 
used in the company’s operations or provided by 
key contractors are sourced locally or from non
s a n c t i o n e d	j u r i s d i c t i o n s	 s u c h	a s	c h i n a  	i n	a d d i t i o n 	
existing and new contractors are evaluated taking into 
consideration existing sanctions and advice from an 
external legal counsel
regional political 
instability
political and governmental instability in russia and 
the region could adversely affect the value of the 
group’s investments in russia
the company’s assets are located in western siberia 
which limits the risks of operational distractions due 
to political instability in addition export sales are 
carried out without the use of export pipelines
regional 
economic 
instability
economic instability in russia and the region  
could adversely affect the value of the group’s 
investments in russia
our domestic sales netback is linked to the prevailing 
international oil price and is not impacted by regional 
economic stability in addition ruspetro carefully 
monitors the prevailing economic environment  
to ensure that necessary operational adjustments  
are implemented
russian legal 
framework
the russian legal system and russian legislation 
continue to develope and this may create an  
uncertain environment for investment and  
for business activity
the legal framework in russia was actively developed 
throughout the 1990s and 2000s and recently became 
more stable licences and key contracts with 
g o ve rnm e n tal 	 o rg anis a ti o ns 	  e  g  	 l an d 	 l eas es  	 ar e	
generally longterm and renewed in advance to the  
extent possible in addition our main contractors are 
internationally recognised companies capable of 
adapting if the legal environment changes some contacts 
are signed subject to english law to avoid ambiguity
russian taxation
the russian taxation system is still in the process  
of developing and is subject to frequent changes  
that could have an adverse effect on the group
ruspetro engages in ongoing dialogue on the current 
and future tax regime with the relevant ministries of 
the russian government in addition ruspetro enjoys 
c e r t a i n	t a x	b r e a k s	m a n d a te d	fo r	fi x e d	p e r i o d s	o f	1 0  1 5	
years these are committed and less likely to change 28 ruspetro plc annual report and accounts 2014
directors’ report
board of directors
alexander chistyakov 
executive chairman – 42 
nomination committee chairman 
appointment december 2011
skills and experience  
prior to joining ruspetro  
mr chistyakov was a member of  
t h e 	 e xe c u t iv e 	 b oa rd 	 o f 	 r a o 	 u n i fie d 	
energy systems of russia and then 
t h e 	 ch i ef 	 o p er a t i ng 	 o f fic er 	 o f 	 t h e 	
federal grid company from 2001 – 
2011 having joined in 1999 in 1998 
he was head of the economic analysis 
department and deputy director of 
t h e 	 fi na n c ia l 	 d epa r t m en t 	 a t 	 ru s si a ’ s 	
federal agency on industry prior  
to that he was deputy director of 
investment management at menatep 
bank and deputy general director  
of alliancemenatep mr chistyakov  
has a master’s degree in marketing 
a n d 	 fi na n c e 	 a n d 	 a 	 p h d 	 i n 	 e c o n om i c s 	
from the leningrad finance and 
economics institute named after  
n a voznesensky
external appointments
mr chistyakov is president  
of hermitage construction  
and management llc a  
russian construction and 
development company
john conlin
ch i ef 	 e xe c u t iv e 	 o f fic er 	 – 	 6 2
appointment august 2013
skills and experience  
mr conlin joined ruspetro’s board of 
directors on 1 august 2013 and was 
ap p oi n t e d 	 ch i ef 	 e xe c u t iv e 	 o f fic er 	 o n 	
17 december 2013 he spent 28 years 
with shell international in various 
senior management and operational 
positions including secondments  
with maersk oil and gas woodside 
petroleum sakhalin energy and 
exxonmobil since leaving shell in 
2004 and prior to joining ruspetro 
mr conlin was nonexecutive 
chairman of aurelian oil and gas 
nautical petroleum and fuelture as 
well as a nonexecutive director of 
hardman resources and delphian 
technology mr conlin graduated 
from the university of edinburgh  
in 1974 with a bsc in chemical 
engineering and mathematics
external appointments 
none
kirill androsov
nonexecutive director – 42
remuneration committee member
appointment august 2013
skills and experience  
mr androsov previously served as 
deputy chief of staff to the prime 
minister of russia as well as head  
of the state tariffs regulation and 
infrastructural reform department 
in the economic development and 
trade ministry in russia prior to 
joining the government mr androsov 
gained industry experience at 
lenenergo st petersburg’s property 
management committee and hansa 
investments mr androsov has  
an mba from the chicago booth 
business school a master’s degree 
from the st petersburg marine 
technical university and a phd in 
economics from the st petersburg 
university of economics and finance
external appointments  
mr androsov is a managing partner 
and board member of altera if a 
board member of channel one mc 
rusnano and russian machines and 
c h a i r m a n 	 o f 	 b o t h 	 a er ofl o t 	 ru s sia n 	
airlines and russian railways 
robert jenkins
senior independent director – 61
audit committee chairman 
nomination committee member 
appointment december 2011
skills and experience  
mr jenkins has served as  
chairman of the audit committee 
since appointment and as senior 
independent director since  
30 january 2014 mr jenkins  
is a chartered accountant having 
qu a l i fie d 	 w i t h 	 k p m g 	 i n 	 t h e 	 u k  	 a n d	
has over 20 years’ russiarelated 
investment experience including in 
t h e 	 oi l 	 a n d 	 ga s 	 se c t o r 	 a n d 	 i s 	 a 	 flu en t 	
ru s sia n 	 sp e a ker  	 h e 	 w a s 	 fi na n c e 	
director of eurasia mining a russia 
focused mining exploration company 
admitted to the aim market of the 
london stock exchange and chief 
fi na n c ia l 	 o f fic er 	 o f 	 u r a l s 	 e n er g y  	 
a russiabased oil exploration  
and production company prior to 
that company’s admission to aim  
mr jenkins has an ma in modern 
history and modern languages  
from oxford university
external appointments  
mr jenkins is a partner in northstar 
corporate finance a russia focused 
investment banking business active 
in oil and gas investment transactions 
in russia strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 2 9   
frank monstrey
independent nonexecutive  
director – 49
nomination committee member 
remuneration committee member 
appointment august 2013
skills and experience  
mr monstrey has been the ceo  
of probel capital management a 
private equity and asset management 
fi r m 	 ba sed 	 i n 	 bel g i u m 	 si n c e 	 1 99 1 	 
as a regular visitor to kazakhstan and 
moscow for many years mr monstrey 
understands the region and the 
challenges of doing business in the 
cis mr monstrey graduated from  
the university of louvain with a 
degree in business economics
external appointments
mr monstrey is the executive 
chairman of nostrum oil  gas plc  
a uk premium listed company and 
has held that position within nostrum 
oil  gas since september 2004 
nostrum oil  gas is an oil and gas 
business in northwest kazakhstan 
with production of nearly  
50000 boepd 
sergey gordeev 
nonexecutive director – 42
appointment 3 february 2015
skills and experience  
in 2005 mr gordeev founded  
horus capital which remodelled 
industrial buildings for commercial 
real estate prior to its sale in 2010 
from 20052010 mr gordeev was a 
member of the federation council in 
the federal assembly of the russian 
federation mr gordeev is the 
founder and president of the cultural 
heritage support and preservation 
f o u n d a t i o n 	 ‘ru s sia n 	 a v a n t  g a rd e ’	
which carries out conservation of 
cultural heritage objects
external appointments  
mr gordeev is president and ceo of 
pik group ojsc a leading russian 
realestate developer where he is also 
a major shareholder
maurice dijols
independent nonexecutive  
director – 63
remuneration committee chairman
audit committee member 
appointment november 2013
skills and experience  
mr dijols is an engineer with over  
37 years’ experience in the oil and  
gas industry 34 of which were spent 
w i t h 	 s c h l u m b er g er  	 t h e 	 oi l field 	
services group mr dijols held a 
variety of executive positions during 
his career with schlumberger and 
from 20032011 was president of 
schlumberger in russia mr dijols 
has engineering diplomas from ecole 
superieure d’electricite de paris and 
ecole d’ingenieur de marseille
external appointments  
mr dijols is currently a nonexecutive 
director of igss and eurasia drilling 
company 
mark pearson
independent nonexecutive  
director –58
audit committee member 
remuneration committee member
appointment april 2014
skills and experience  
dr pearson has over 30 years of oil 
industry experience during which 
time he has been president and ceo 
of carbo ceramics inc president 
and ceo of golden energy llc  
and led the production enhancement 
t e c h n ol og y 	 t e a m 	 a t 	 a t la n t i c 	 r i c h field 	
company dr pearson has a phd in 
mining from the camborne school of 
mines in the uk and graduated from 
the advanced management program 
at harvard business school in 2000
external appointments  
dr pearson is a founding shareholder 
and president of liberty resources ii 
llc a us based ep company with 
53000 net acres in north dakota’s 
williston basin producing over  
4000 boepd from the bakken and 
three forks formations 
directors who have 
resigned since year end
thomas reed
ch i ef 	 f i na n c ia l 	 o f fic er
appointment october 2011
resigned 2 february 2015
skills and experience  
mr reed is an entrepreneur  
and cofounder of ruspetro and  
was appointed as acting chief 
e xe c u t iv e 	 o f fic er 	 f r om 	 j u ly 	 – 	
december 2013 when he returned 
to his role as chief financial 
o f fic er  	 p r i o r 	 t o 	 joi n i ng 	 ru sp e t r o 	 
mr reed was a private equity  
and ma adviser and investor 
based in moscow 30 ruspetro plc annual report and accounts 2014
directors’ report
letter from the chairman
dear shareholder
a s 	 i 	 s ta te 	 in 	 m y 	 c h airm an ’ s 	 s ta te m e n t 	 o n 	 p ag e 	 6  	 th e 	 b us in ess 	 e n v ir o nm e n t 	 in 	 r uss i a 	 d urin g 	 2 0 14 	 co ul d 	 h ar dl y 	 h a ve 	 bee n 	 m o r e 	 dif fi cul t 	 w i th	
macroeconomic pressures the devaluation of the russian ruble and a dramatic fall in the price of oil throughout all this the board has 
continued to enhance its corporate governance policies and ensure that the group is being run for the best interest of its shareholders
we further strengthened the board during the year with the appointment of dr mark pearson an experienced upstream oil and gas entrepreneur 
with outstanding success in the application of multiple fractured horizontal wells in the usa and with oil and gas experience in russia since his 
a p po in tm e n t 	 a t 	 th e 	 e n d 	 o f 	 ap ril 	 2 0 14 	 m ar k 	 h as 	 p r o v i d ed 	 th e 	 b o ar d 	 an d 	 o ur 	 m an ag e m e n t 	 team  	 w i th 	 s i gnifi can t 	 s u p po r t 	 an d 	 his 	 ins i gh t 	 in t o	
horizontal drilling and the economic environment outside russia has been invaluable
durin g 	 2 0 14 	 th e 	 b o ar d ’ s 	 m ain 	 focus 	 h as 	 bee n 	 t o 	 ex ecu te 	 th e 	 trans fo rm a ti o n al 	 fin an ci al 	 r estru cturin g 	 w hi c h 	 r es ul ted 	 in 	 m as tin 	 a cq uirin g 	 2 5  	 o f	
the company’s issued capital under the terms of the relationship agreement entered into between the company and mastin for so long as mastin 
h o l ds 	 a t 	 l eas t 	 1 0  	 o f 	 th e 	 ca p i tal 	 o f 	 th e 	 co m p an y  	 th ey 	 ar e 	 e n ti tl ed 	 t o 	 n o min a te 	 o n e 	 pe rs o n 	 t o 	 th e 	 b o ar d 	  th e 	 ‘ m astin 	 dir ect o r’  	 in 	 ear l y 	 2 0 15	
sergey gordeev was nominated as the mastin director and sergey’s appointment was completed on 3 february 2015
we are delighted to welcome sergey to the board and for his ongoing support as principal of our largest shareholder
in order to maintain the balance of independent and nonindependent directors on our board we sadly accepted tom reed’s resignation in 
february 2015 i would like to thank tom for his support and commitment to the group since its foundation and especially for his willingness to 
a ct 	 as 	 in te rim 	 c hi e f 	 ex ecu ti ve 	 of fi ce r 	 d urin g 	 2 0 13	
we have also taken the opportunity to strengthen our management team during 2014 together with the board they will enable the company to 
co n tin u e 	 t o 	 im p r o ve 	 o ur 	 g o ve rn an ce 	 s tru ctur e 	 d urin g 	 2 0 15 	 fo r 	 th e 	 co n tin u ed 	 be n efi t 	 o f 	 o ur 	 e m p l o y ees  	 s h ar e h o l d e rs 	 an d 	 th e 	 co mm uni ti es 	 in	
which we operate 
alexander chistyakov
executive chairman strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 31   
directors’ report
directors’ report 
results and dividend 
th e 	 c o m pa n y ’ s 	 re su l t s 	 fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	 a re 	 set 	 o u t 	 i n 	 t h e 	 c o m pa n y ’ s 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 p ro fi t 	 o r 	 l os s 	 a n d 	 ot h e r 	
comprehensive income on page 66 the directors do not recommend the payment of a dividend for the year
future developments
information on the group’s development plan is set out in the strategic report on pages 1 to 27
corporate governance statement
th e 	 c o m pa n y ’ s 	 re po r t 	 o n 	 c o r po ra te 	 g o ve r na n c e 	 i s 	 set 	 o u t 	 o n 	 pag e s 	 3 4 	 t o 	 4 5 	 a n d 	 t og et h e r 	 w i t h 	 t h i s 	 re po r t 	 o f 	 wh i ch 	 i t 	 fo r m s 	 pa r t 	 f u l fi l s 	 t h e 	
r e q u i r e m e n ts 	 o f 	 th e 	 c o rp o r a te 	 g o ve rn an ce 	 s ta te m e n t 	 fo r 	 th e 	 p u rp o s e 	 o f 	 th e 	 fi n an c i al 	 co n d u ct 	 a u th o ri ty’ s 	 d i s c l o s u r e 	 an d 	 t r an s p ar e n cy 	 r ul es 	  ‘ d tr ’  
going concern
the board regularly reviews operating cash forecasts and scenario sensitivities including but not limited to changes in production rates 
c o m m od i t y 	 p r i c e s 	 a n d 	 t h e 	 ex p l o ra t i o n 	 a c t iv i t y 	 p la n  	 th e 	 g ro u p 	 ha s 	 u n d e r t a k e n 	 a 	 fi na n c ia l 	 re st r u c t u r i n g 	 d u r i n g 	 t h e 	 y e a r 	 a n d 	 ha s 	 a l so 	 t a k e n 	
appropriate action to reduce its cost base 
as a result of the substantial decline in the price of oil the company is negotiating with otkritie to revise its debt covenants the outcome  
of such negotiations cannot be certain and therefore the directors recognise that this represents a material uncertainty which may cast 
si g n i fi c a n t 	 do u bt 	 a bo u t 	 t h e 	 g ro u p ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 a 	 g o i n g 	 c o n c e r n  	 h ow e ve r  	 o n 	 t h e 	 b a si s 	 o f 	 t h e 	 a s su m pt i o n s 	 a n d 	 c a s h 	 fl ow 	 fo re c a st s 	
prepared management has assumed that the group will continue to operate within both available and prospective facilities accordingly the 
g ro u p 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re pa re d 	 o n 	 t h e 	 g o i n g 	 c o n c e r n 	 b a si s 	 a n d 	 do 	 n ot 	 i n cl u d e 	 a n y 	 a d j u st m e n t s 	 t ha t 	 w o u l d 	 be 	 re q u i re d 	 i n 	 t h e 	 e ve n t 	
that the group were no longer able to meet its liabilities as they fall due
directors
th e 	 na m e s 	 a n d 	 b i og ra p h i e s 	 o f 	 t h e 	 d i re c t o r s 	 wh o 	 h e l d 	 o f fi c e 	 a s 	 a t 	 t h e 	 d a te 	 o f 	 t h i s 	 a n n ua l 	 re po r t 	 a re 	 set 	 o u t 	 o n 	 pag e s 	 2 8 	 a n d 	 2 9 	 cha n g e s 	 t o	
the board during the year ended 31 december 2014 and to the date of this annual report are set out below
name date position
mark pearson appointed on 29 april 2014 independent nonexecutive director
james mcburney resigned on 2 june 2014 independent nonexecutive director
thomas reed resigned on 2 february 2015 executive director
sergey gordeev appointed on 3 february 2015 nonexecutive director
details of the service contracts of the executive directors letters of appointment of the nonexecutive directors and the interests of all 
directors in the ordinary shares of the company and in any long term incentive and other share schemes are set out in the directors 
remuneration report on pages 46 to 60
n o 	 d i re c t o r 	 ha d 	 a 	 ma te r ia l 	 i n te re st 	 i n 	 a n y 	 si g n i fi c a n t 	 c o n t ra c t 	 ot h e r 	 t ha n 	 a 	 se r v i c e 	 c o n t ra c t 	 o r 	 c o n t ra c t 	 fo r 	 se r v i c e s 	 w i t h 	 t h e 	 c o m pa n y	 
or any of its subsidiary companies at any time during the year
directors’ appointment and retirement
directors may be appointed by the board or by an ordinary resolution of shareholders in addition both limolines and mastin each have the 
r i g h t 	 t o 	 a p po in t 	 a 	 d irec t o r 	 t o 	 t h e 	 bo a rd 	 fo r 	 so 	 l o n g 	 a s 	 t h ey 	 ea ch 	 t o g et h e r 	 w i t h 	 a n y 	 a ssocia tes 	 o r 	 pe rso ns 	 a c t in g 	 in 	 co n ce r t 	 h o l d 	 a t 	 l ea st 	 1 0  	 o f	
the issued share capital of the company further information is provided in the corporate governance report on pages 34 to 45
directors’ indemnities
th e 	 c o m pa n y 	 ha s 	 p u rcha se d 	 a n d 	 ma i n t a i n s 	 a p p ro p r ia te 	 i n su ra n c e 	 c o ve r 	 i n 	 re spe c t 	 o f 	 d i re c t o r s ’ 	 a n d 	 o f fi c e r s ’ 	 l ia b i l i t i e s 	 in 	 a d d i t i o n 	 t h e	
c o m pa n y 	 ha s 	 e n te re d 	 i n t o 	 d e e d s 	 o f 	 i n d e m n i t y 	  wh i ch 	 a re 	 q ua l i f y i n g 	 t h i rd  pa r t y 	 i n d e m n i t y 	 p ro v i si o n s 	 u n d e r 	 t h e 	 c o m pa n i e s 	 ac t 	 2 00 6 	  t h e 	
‘ ac t ’   	 w i t h 	 e a ch 	 d i re c t o r 	 o f 	 t h e 	 c o m pa n y 	 a n d 	 t h e 	 fo r m e r 	 d i re c t o r s 	 wh o 	 h e l d 	 o f fi c e 	 d u r i n g 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4  	 t o 	 t h e 	 ex te n t	
pe r m i t te d 	 b y 	 la w 	 a n d 	 b y 	 t h e 	 c o m pa n y ’ s 	 a r t i cl e s 	 o f 	 a s so c ia t i o n 	  ‘ a r t i cl e s ’   	 i n 	 re spe c t 	 o f 	 a l l 	 l ia b i l i t i e s 	 i n c u r re d 	 i n 	 c o n n e c t i o n 	 w i t h 	 t h e 	
performance of their duties as a director of the company or its subsidiaries the indemnities are available for inspection at the company’s 
reg i ste re d 	 o f fi c e
share capital
the company’s issued share capital as at 31 december 2014 was 870112016 ordinary shares of 10 pence each the company does not hold any 
s hares 	 in 	 treas ur y  	 details 	 o f 	 th e 	 chan g es 	 t o 	 th e 	 co m p an y ’ s 	 iss u ed 	 s hare 	 ca p i tal 	 d ur in g 	 th e 	 y ear 	 are 	 set 	 o u t 	 in 	 n ote 	 1 9 	 t o 	 th e 	 finan cial 	 sta te m e n ts 
no securities exist which carry special rights as to their transfer or control of the company
at 	 t h e 	 2 0 1 4 	 a n n ua l 	 g e n e ra l 	 m e et i n g 	  ‘ a g m ’   	 t h e 	 c o m pa n y 	 wa s 	 a u t h o r i se d 	 b y 	 s ha re h o l d e r s 	 t o 	 re p u rcha se 	 u p 	 t o 	 33 33 8 1 48 	 o f 	 i t s 	 ow n 	
o rd i na r y 	 s ha re s 	 re p re se n t i n g 	 1 0  	 o f 	 i t s 	 i s su e d 	 s ha re 	 c a p i t a l 	 a s 	 a t 	 t h e 	 d a te 	 o f 	 t ha t 	 m e et i n g 	 n o 	 b uyb a ck 	 p rog ra m m e 	 ha s 	 t a k e n 	 p la c e 	 t o 	 d a te	
while the board does not currently intend to exercise the repurchase authority it will seek a further renewal at the 2015 agm and will keep 
the use of the authority under review taking into account other investment opportunities 32 ruspetro plc annual report and accounts 2014
directors’ report
directors’ report continued
substantial interests
as at 31 december 2014 and 29 april 2015 being the latest practicable date prior to the publication of this annual report the company had 
be e n 	 n ot i fi e d 	 o f 	 t h e 	 fo l l ow i n g 	 su bst a n t ia l 	 i n te re st s 	 i n 	 i t s 	 sha re s 
name
number of shares 
as at 31122014
 	 o f 	 s hares	 
as at 31122014
number of shares 
as at 290415
 	 o f 	 s hares	 
as at 290415
mastin holdings limited 207060311 2380 217422943 24 99 
limolines transport limited 217299368 24 97 217299368 24 97
alexander chistyakov 137439903 15 80 137439903 15 80
sobny group corporation 76694849 881  76694849 881 
makayla investments limited 76337295 8 77 76630306 881 
 indirect holding
shareholders’ rights
the company’s articles set out the rights and obligations of shareholders the articles can be found in full on the company’s website and  
a summary of the rights and obligations attaching to the ordinary shares are set out in shareholder information on page 103 
a n y 	 a m e n d m e n t 	 t o 	 t h e 	 a r t i cl e s 	 ma y 	 be 	 ma d e 	 b y 	 spe c ia l 	 re so l u t i o n 	 o f 	 t h e 	 s ha re h o l d e r s 	 be i n g 	 a 	 re so l u t i o n 	 a p p ro ve d 	 b y 	 n ot 	 l e s s 	 t ha n 	 75  	
majority of those voting on the resolution
significant agreements – change of control 
there are no arrangements the operation of which may at a later date result in a change of control of the company
employees
the group employed an average of 205 staff during 2014 most employees are based in the russian federation with only 11 employees at year 
end including the directors employed in the uk since the group has fewer than 250 employees in the uk the company is not required to 
disclose its policies in connection with employee involvement or the employment of disabled persons however full and fair consideration is 
always given to applications for employment from disabled persons having regard to their particular skills and abilities or to the continuing 
employment of colleagues who become disabled during their career 
diversity
the board continues to be supportive of providing equal opportunities in recruitment and succession planning at all levels of the business 
the company seeks to identify applicants from a wide experience and backgrounds and operates equal opportunity policies in all areas of its 
activities with the aim of creating a diverse pool of talent from which to recruit future senior positions
greenhouse gas emissions
as for the prior year the company commissioned trucost to assess the group’s environmental data for 2014 including energy use 
g re e n h o u se 	 ga s 	  ‘ g h g ’  	 e m i s si o n s 	 wa ste 	 g e n e ra te d 	 wa te r 	 u se 	 a n d 	 wa te r 	 d i scha r g e 	 th e 	 i n fo r ma t i o n 	 p ro v i d e d 	 b y 	 t r u c ost 	 wa s 	 p re pa re d	 
in line with ghg protocol methodology
emissions are reported using the following parameters
• s c o pe 	 1  	 d i re c t 	 e n e r g y 	 e m i s si o n s 	 i n cl u d e 	 o pe ra t i o na l 	 f u e l 	 u se 	 ve h i cl e 	 f u e l 	 u se 	 a n d 	 m et ha n e 	 e m i s si o n s 	 f ro m 	 o i l 	 a n d 	 g a s 	 fi e l d 	 o pe ra t i o n s
• scope 2 indirect emissions include electricity used across the company 
• scope 3 other indirect supply chain emissions include air and rail travel for all employees across the company
the table below sets out the group’s ghg emissions for 2014 and 2013 as split by source and scope
scope emission source unit 2014 2013
1
a
operational fossil fuel tonnes co
2
e 40409 123
vehicle fuel tonnes co
2
e 137 298
m et ha n e 	 f ro m 	 o i l 	 a n d 	 g a s 	 fi e l d 	 o pe ra t i o n s tonnes co
2
e 18479 378722
2
b
electricity tonnes co
2
e 8211 25206
3 air travel tonnes co
2
e 161 143
rail travel tonnes co
2
e 0 019
total tonnes co
2
e 67397 404492
a	 f or 	 c a lc u l a t i ng 	 s c op e 	 1 	  d i r e c t  	 g h g 	 em i s sion s 	 we 	 u s e 	 u k 	 d epa r t men t 	 for 	 e nv i r on men t  	 f o o d 	 a nd 	 ru r a l 	 a f f a i r s 	  ‘ d e f r a ’  	 20 1 4 	 c onver sion 	 f ac tor s
b	 f or 	 c a lc u l a t i ng 	 s c op e 	 2 	 pu r c h a s e d 	 ele c t r ic it y  	 g h g 	 em i s sion s 	 we 	 u s e 	 d e f r a 	 20 1 4 	 g h g 	 c onver sion 	 f ac tor s 	 for 	 u k 	 a nd 	 t he 	 i n ter n a t ion a l 	 e ner g y 	 a g enc y 	 f uel 	 c o mbu s t ion 	
h ig h l ig h t s 	 20 11 	 e d it ion  	 a nd 	 e i a 	 f or eig n 	 e le c t r ic it y 	 e m i s sion 	 f ac tor s strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 3 3   
th e 	 g ro u p ’ s 	 t ot a l 	 g h g 	 foot p r i n t 	 ha s 	 d e cre a se d 	 b y 	 8 3  	 i n 	 2 0 1 4 	 f ro m 	 t h e 	 p re v i o u s 	 y e a r  	 th e 	 d e cre a se 	 i s 	 m ost ly 	 d u e 	 t o 	 a 	 9 5  	 d e cre a se 	 i n	
methane emissions as a result of a decrease in oil and gas production by the group during the year in addition there has been a decrease  
o f 	 5 4  	 i n 	 ve h i cl e 	 f u e l 	 c o n su m pt i o n 	 c o m pa re d 	 t o 	 2 0 1 3 	 wh i l e 	 e n e r g y 	 c o n su m pt i o n 	 ha s 	 d e cre a se d 	 b y 	 6 7 
th e 	 ma j o r i t y 	 o f 	 g h g 	 e m i s si o n s 	 p rod u c e d 	 i n 	 2 0 1 4 	 w e re 	 s c o pe 	 1  	 a c c o u n t i n g 	 fo r 	 8 7  6  	 o f 	 t ot a l 	 e m i s si o n s 	  2 0 1 3  	 94    	 w i t h i n 	 s c o pe 	 1  	 68 	 
o f 	 e m i s si o n s 	  2 0 1 3  	 9 0   	 w e re 	 t h e 	 re su l t 	 o f 	 o pe ra t i o na l 	 fos si l 	 f u e l 	 c o n su m pt i o n 	 spe c i fi c a l ly 	 na t u ra l 	 g a s
the ghg intensity measurement used by the company is total tonnes of carbon dioxide equivalent divided by total barrels produced in a 
g ive n 	 y e a r  	 f o r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4  	 d u r i n g 	 wh i ch 	 t h e 	 g ro u p 	 p rod u c e d 	 c i rc a 	 1  2 6 	 m i l l i o n 	 b a r re l s 	  2 0 1 3  	 1  75 	 m i l l i o n 	 b a r re l s  	 
the intensity measured 005t co
2
e  ba r re l 	  2 0 1 3  	 0  23t 	 c o
2
e  ba r rel
financial instruments
th e 	 g ro u p ’ s 	 u se 	 o f 	 fi na n c ia l 	 i n st r u m e n t s 	 t og et h e r 	 w i t h 	 o b j e c t ive s 	 a n d 	 po l i c i e s 	 o n 	 fi na n c ia l 	 r i s k 	 a n d 	 ex posu re 	 t o 	 fo re i g n 	 c u r re n c y  	 cre d i t	
c o m m od i t y  	 l i q u i d i t y 	 a n d 	 i n te re st 	 ra te 	 r i s k 	 c a n 	 be 	 fo u n d 	 i n 	 n ote 	 25 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s
transactions with related parties
det a i l s 	 o f 	 t h e 	 g ro u p ’ s 	 t ra n sa c t i o n s 	 w i t h 	 re la te d 	 pa r t i e s 	 a re 	 set 	 o u t 	 i n 	 n ote 	 2 4 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s
post balance sheet events
a l l 	 si g n i fi c a n t 	 e ve n t s 	 a f te r 	 t h e 	 ba la n c e 	 s h e et 	 d a te 	 o f 	 3 1 	 de c e m be r 	 2 0 1 4 	 a re 	 set 	 o u t 	 i n 	 n ote 	 2 7 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s
disclosure of information to the external auditors
th e 	 d i re c t o r s 	 wh o 	 h e l d 	 o f fi c e 	 a t 	 t h e 	 d a te 	 o f 	 t h i s 	 d i re c t o r s ’ 	 re po r t 	 c o n fi r m 	 t ha t 	 so 	 fa r 	 a s 	 t h e y 	 a re 	 e a ch 	 a wa re 	 t h e re 	 i s 	 n o 	 re l e va n t 	 a u d i t	
i n fo r ma t i o n 	  a s 	 d efi n e d 	 i n 	 s e c t i o n 	 4 1 8 2  	 o f 	 t h e 	 ac t  	 o f 	 wh i ch 	 p r i c ewa te r h o u se c oo pe r s 	 l l p 	  ‘ p w c ’   	 t h e 	 c o m pa n y ’ s 	 a u d i t o r  	 i s 	 u na wa re  	 a n d	
each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information 
and to establish that the company’s auditor is aware of that information
p w c 	 ha s 	 i n d i c a te d 	 i t s 	 w i l l i n g n e s s 	 t o 	 c o n t i n u e 	 i n 	 o f fi c e 	 re so l u t i o n s 	 t o 	 re a p po i n t 	 p w c 	 a s 	 t h e 	 c o m pa n y ’ s 	 a u d i t o r 	 a n d 	 t o 	 a u t h o r i se 	 t h e	
directors to determine the auditor’s remuneration will be proposed at the 2015 agm
annual general meeting
the 2015 agm will be held at 1100am on tuesday 9 june 2015 at white  case llp 5 old broad street london ec2n 1dw 
the notice of agm together with an explanation of the resolutions to be put to the meeting will be forwarded to shareholders at least  
21 clear days’ prior to the date of the agm a poll will be held on each resolution the board fully supports all the resolutions to be  
proposed at the agm and encourages shareholders to vote in favour of each of them
by order of the board
john conlin
ch i ef 	 e x e c u t ive 	 o f fi c e r
30 april 2015  34 ruspetro plc annual report and accounts 2014
1 chairman
2 executive directors
3 independent nonexecutive directors
4 nonexecutive directors
 
1
2
3
4
1 chairman
2 executive directors
3 independent nonexecutive directors
4 nonexecutive directors
 
1
2
3
4
directors’ report
corporate governance report
compliance with the uk corporate governance code
throughout the year ended 31 december 2014 the company complied with the main principles and provisions of the uk corporate 
g o ve r na n c e 	 c od e 	  s e pte m be r 	 2 0 12  	  t h e 	 ‘ c od e ’  	 w i t h 	 t h e 	 ex c e pt i o n 	 o f 	 c od e 	 p ro v i si o n 	 d  2 1 	 re m u n e ra t i o n 	 c o m m i t te e 	 i n d e pe n d e n c e   	
further information on this is set out on page 44
th e 	 c od e 	 i s 	 a va i la b l e 	 o n 	 t h e 	 w ebsi te 	 o f 	 t h e 	 f i na n c ia l 	 re po r t i n g 	 c o u n c i l 	  w w w f rc  o r g  u k  
role of the board
the board’s primary responsibility is to promote the longterm success of the company and to ensure that a framework of prudent and 
effective controls are established and maintained allowing business risks to be assessed managed and mitigated the board provides 
e n t re p re n e u r ia l 	 l e a d e r s h i p 	 fo r 	 t h e 	 b u si n e s s 	 a s 	 a 	 wh o l e 	  	 set t i n g 	 o u t 	 t h e 	 c o m pa n y ’ s 	 st ra teg i c 	 a i m s 	 e n su r i n g 	 t ha t 	 fi na n c ia l 	 a n d 	 h u ma n 	
resources are in place in order to meeting those objectives and reviewing management performance led by the chairman and chief 
executive the board sets the tone from the top as to the company’s values and standards enabling its obligations to shareholders and  
other stakeholders to be understood and met
the board has adopted a schedule of matters reserved to its approval and has delegated other matters to the board committees or 
ma nag e m e n t 	 a s 	 a p p ro p r ia te 	 th e 	 boa rd 	 i s 	 spe c i fi c a l ly 	 re spo n sib l e 	 fo r 
• developing the group’s strategic aims and longterm objectives and approving the necessary business plans and annual operating  
budgets to achieve those aims
• ap p ro va l 	 o f 	 a l l 	 si g n i fi c a n t 	 a c q u i si t i o n s 	 m e r g e r s 	 d i sposa l s 	 ma j o r 	 c a p i t a l 	 t ra n sa c t i o n s 	 c o n t ra c t s 	 a n d 	 i n ve st m e n t s 
• ap p ro va l 	 o f 	 t h e 	 f u l l 	 a n d 	 ha l f  y e a r 	 fi na n c ia l 	 re su l t s 	 a n n ua l 	 re po r t 	 t ra d i n g 	 u pd a te s 	 a c c o u n t i n g 	 po l i c i e s 	 a n d 	 su b j e c t 	 t o 	 s ha re h o l d e r	
approval the appointment and remuneration of the external auditor
• changes to the group’s capital structure issue of securities and adequacy of funding
• forming and maintaining the group’s risk appetite and reviewing the effectiveness of the group’s system of internal controls and  
risk management 
• changes to the structure size and composition of the board ensuring that adequate and appropriate succession plans are in place  
for the board and senior management and determining the independence of the directors
• determining the remuneration policy for the directors and other senior executives and
• developing approving and maintaining key governance policies
board composition
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  	 t h e 	 boa rd 	 c o n si st 	 o f 	 e i g h t 	 d i re c t o r s  	 t h e 	 e x e c u t ive 	 cha i r ma n 	 t h e 	 ch i ef 	 e x e c u t ive 	 t h e 	 ch i ef 	 f i na n c ia l 	 o f fi c e r 	 a n d 	
five 	 n o n  ex e c u t ive 	 d i re c t o r s 	 fo u r 	 o f 	 wh o m 	 w e re 	 c o n si d e re d 	 t o 	 be 	 i n d e pe n d e n t 	
su bse q u e n t 	 t o 	 t h e 	 y e a r 	 e n d 	 fo l l ow i n g 	 t h e 	 re si g na t i o n 	 o f 	 t h e 	 ch i ef 	 f i na n c ia l 	 o f fi c e r 	 a n d 	 t h e 	 a p po i n t m e n t 	 o f 	 t h e 	 m a st i n 	 d i re c t o r  	 t h e 	 boa rd	
continued to consist of eight directors comprising two executive directors being the executive chairman and the chief executive and six 
nonexecutive directors four of whom are considered to be independent
biographies of the continuing directors are set out on pages 28 and 29
board composition as at 31 december 2014 board composition as at 29 april 2015 strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 3 5   
election and reelection
a l l 	 d i re c t o r s 	 a re 	 re q u i re d 	 t o 	 st a n d 	 fo r 	 e l e c t i o n 	 b y 	 s ha re h o l d e r s 	 a t 	 t h e 	 fi r st 	 a g m 	 fo l l ow i n g 	 t h e i r 	 a p po i n t m e n t 	 in 	 a d d i t i o n 	 c o n t i n u i n g	
directors stand for reelection at each subsequent agm in accordance with article 113 of the company’s articles and the provisions  
of the code
a s 	 a 	 “ c o n t ro l l i n g 	 s ha re h o l d e r ” 	  fo r 	 t h e 	 p u r pose s 	 o f 	 t h e 	 f i na n c ia l 	 c o n d u c t 	 au t h o r i t y ’ s 	 l i st i n g 	 ru l e s   	 l i m o l i n e s 	 a n d 	 i t s 	 c o n c e r t 	 pa r t i e s 	 w i l l 	 be	
entitled to vote on the ordinary resolutions at the agm for the election or reelection of the independent nonexecutive directors however 
each resolution relating to the election or reelection of the independent nonexecutive directors will also require approval by a majority of 
t h e 	 v ote s 	 c a st 	 b y 	 t h e 	 c o m pa n y ’ s 	 i n d e pe n d e n t 	 s ha re h o l d e r s 	  be i n g 	 t h e 	 s ha re h o l d e r s 	 ex cl u d i n g 	 l i m o l i n e s 	 a n d 	 i t s 	 c o n c e r t 	 pa r t i e s  	 i n 	 o rd e r 	 t o 	 be 	
valid the outcome of both of these votes will be announced following the conclusion of the 2015 agm
framework
board of directors
audit committee remuneration committee nomination committee chief executive
delegated authorities 
monitors the integrity of  
o u r 	 fi na n c ia l 	 re po r t i n g 	 re v i ew s	
the effectiveness of the group’s 
systems of the internal control  
and the performance of the 
external auditor
delegated authorities 
 
sets the remuneration and 
incentives for the executive 
directors approves and monitors 
remuneration and incentive  
plans for the group and assesses 
and makes recommendations  
to the board on the policy on 
executive remuneration
delegated authorities 
 
ensures that the board and its 
committees have the optimum 
balance of skills knowledge and 
experience by nominating suitable 
candidates for approval by the 
boa rd 	 t o 	 fi l l 	 e x e c u t ive 	 a n d 	
nonexecutive positions
senior management team
board committees
the board has delegated certain of its responsibilities to three standing committees the audit committee the nomination committee and 
the remuneration committee each committee has adopted formal terms of reference which have been approved by the board and the 
composition of each committee is reviewed annually the committee chairmen report to the board following each committee meeting  
and where appropriate make recommendations to the board within their terms of reference 
the reports of the standing committees can be found on pages 38 to 45
balance and independence of board members 
the board comprises a balance of expertise experience independence and depth of knowledge of the company its business and its 
environment which enables its members to discharge their respective duties and responsibilities effectively the mix of executive and 
nonexecutive directors including independent nonexecutives ensure that the board encompasses a range of perspectives thereby 
ensuring that no individual director or group of directors dominates the decision making process
board roles
chairman 
alexander chistyakov was chairman throughout 2014 the chairman is responsible for the leadership of the board and for ensuring that the 
board and its committees operate in a way that conforms to expected high standards of corporate governance he sets the style and tone of 
boa rd 	 d i sc u s si o n s 	 p ro m ot i n g 	 c o n st r u c t ive 	 cha l l e n g e 	 a n d 	 d eb a te 	 a n d 	 e n su re s 	 t ha t 	 t h e re 	 i s 	 a 	 t i m e ly 	 fl ow 	 o f 	 a c c u ra te 	 a n d 	 cl e a r 	 i n fo r ma t i o n 	 t o	
directors the chairman is responsible for fostering effective relationships between the executive and nonexecutive members and for the 
dissemination of the views of the company’s stakeholders
chief executive 
john conlin was chief executive throughout the year under review supported by the senior management team the chief executive is 
responsible for the daytoday management of the group within the authorities delegated by the board he proposes develops and 
supervises the group’s strategy and overall commercial objectives and ensures that board decisions are implemented the chief executive is 
also responsible for promoting the group’s values culture and standards of conduct and behaviour throughout the business which underpin 
the company’s reputation and support the delivery of the business plan 36 ruspetro plc annual report and accounts 2014
directors’ report
corporate governance report continued
board roles continued
senior independent director 
robert jenkins was appointed as the senior independent director on 30 january 2014 following the retirement of rolf stomberg from the 
board at the end of 2013 the senior independent director is available to shareholders who wish to raise concerns which cannot be resolved 
through the usual channels of the chairman or executive directors the senior independent director is also responsible for leading the 
annual review of the chairman’s performance
nonexecutive directors 
the nonexecutive directors bring independent and objective judgement on issues of strategy performance and compliance with governance 
standards throughout the organisation 
the company considers all of its nonexecutive directors to be of independent judgement nevertheless two of the nonexecutive directors 
w e re 	 a p po i n te d 	 t o 	 t h e 	 boa rd 	 u n d e r 	 t h e 	 te r m s 	 o f 	 t h e 	 re la t i o n s h i p 	 a g re e m e n t s 	 bet w e e n 	 t h e 	 c o m pa n y 	 a n d 	 l i m o l i n e s 	  i n 	 re la t i o n 	 t o 	 mr 	 k i r i l l 	
a n d roso v  	 a n d 	 m a st i n 	  i n 	 re la t i o n 	 t o 	 mr 	 s e r g e y 	 g o rd e e v  	 a n d 	 t h e y 	 a re 	 t h e refo re 	 n ot 	 c o n si d e re d 	 t o 	 be 	 i n d e pe n d e n t 	 u n d e r 	 t h e 	 c od e	 m e s s r s	
maurice dijols robert jenkins and frank monstrey and dr mark pearson are considered to be independent under the code
th e 	 c o m pa n y 	 c o n fi r m s 	 t ha t 	 a l l 	 n o n  ex e c u t iv e 	 d i re c to r s 	 hav e 	 su f fi cie n t 	 t i m e 	 ava i la b l e 	 to 	 f u l fi l 	 t h e i r 	 ob l i g a t i o n s 	 to 	 t h e 	 c o m pa n y  	 det a i l s 	 o f 	 t h e	
terms of appointment of the nonexecutive directors are set out on page 60 of the directors’ remuneration report
meetings
th e 	 boa rd 	 h o l d s 	 five 	 sch e d u l e d 	 m e et i n g s 	 e a ch 	 y e a r  	 ad d i t i o na l 	 m e et i n g s 	 a re 	 h e l d 	 wh e re 	 n e c e s sa r y 	 t o 	 c o n si d e r 	 ma t te r s 	 o f 	 i m po r t a n c e 	 wh i ch 	
c a n n ot 	 be 	 h e l d 	 o ve r 	 u n t i l 	 t h e 	 n ex t 	 sch e d u l e d 	 m e et i n g  	 d u r i n g 	 2 0 1 4  	 t h e 	 boa rd 	 h e l d 	 five 	 sch e d u l e d 	 m e et i n g s 	 a n d 	 a l so 	 m et 	 a 	 f u r t h e r 	 e i g h t 	
times at short notice details of the attendance of the directors at those meetings together with meetings of the audit committee 
nomination committee and remuneration committee are set out below
director
board 
 s c h e d u l e d 
board 
 ad d i t iona l 
nominations 
committee
audit  
committee
remuneration 
committee
alexander chistyakov 55 88 11 – –
john conlin 55 88 11 – –
tom reed 55 88 – – –
kirill androsov
1
55 58 – – 55
maurice dijols
2
55 78 – 34 55
robert jenkins 55 88 11 55 –
frank monstrey 55 88 11 – 55
mark pearson
3
33 55 – 33 –
james mcburney
4
33 33 11 33 –
1 kirill androsov was unable to attend three meetings called at short notice due to prior commitments he did however communicate his views on the matters to be considered to 
the chairman prior to each meeting
2  maurice dijols was unable to attend one meeting held at short notice due to a prior commitment however he appointed the senior independent director as his alternate for the 
meeting and communicated his thoughts on the matters to be discussed to the senior independent director and the chief executive prior to the meeting
3 mark pearson was appointed to the board and to the audit committee on 29 april 2014
4 james mcburney resigned from the board and all its committees on 2 june 2014
board activity
the chairman with the assistance of the chief executive and the company secretary is responsible for preparing the agenda for each board 
meeting at which the chief executive presents an update on business performance health and safety and production the directors also receive 
re po r ts 	 o n 	 th e 	 co m p an y ’ s 	 finan cial 	 pe r fo r man ce 	 an d 	 a 	 ve r b al 	 u pda te 	 f ro m 	 th e 	 c hair m e n 	 o f 	 th e 	 stan din g 	 co mmi t tees 	 as 	 t o 	 th e 	 discuss i o ns 	
decisions or recommendations made at their respective meetings during 2014 the majority of board meetings were held in moscow with one 
m eetin g 	 h e l d 	 a t 	 th e 	 co m p an y ’ s 	 registe red 	 o f fi ce 	 in 	 l o n do n 
other matters which were considered during the year include
• board and committee composition on the recommendation of the nomination committee including a change in the company secretary
• board effectiveness review
• related party transactions
• review and approval of corporate governance policies and procedures
• full year and halfyear results and the interim management statements
• the group’s 2014 budget including proposed capital expenditure 
• st ra teg i c 	 t ra n sa c t i o n s 	 i n cl u d i n g 	 t h e 	 fi na n c ia l 	 re st r u c t u r i n g  	 a n d
• the group’s development plan including the horizontal drilling programme
formal minutes recording decisions of all board and committee meetings are prepared and circulated to each director as appropriate if a 
director objects to a particular proposal this is recorded in the minutes of the relevant meeting during the year under review there were no 
such objections strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 37   
board induction and professional development
on appointment directors receive a tailored induction programme led by the chairman which includes visits to the group’s operations and 
meetings with senior management as appropriate they are also provided with copies of the company’s governance policies including the 
share dealing code and disclosure policy together with guidance on the legal duties and responsibilities of directors of listed companies 
board members receive ongoing training and assistance with professional development which is appropriate to their needs and addresses 
current business or emerging issues during 2014 the company’s legal advisers provided advice to the directors on their responsibilities to 
s ha re h o l d e r s 	 i n cl u d i n g 	 t h ose 	 i n 	 re la t i o n 	 t o 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 re st r u c t u r i n g  	 in 	 a d d i t i o n 	 so m e 	 o f 	 t h e 	 n o n  ex e c u t ive 	 d i re c t o r s 	 v i si te d 	 t h e	
company’s operations in siberia
the board all have access to the advice and services of the company secretary and are able to take independent professional advice at the 
company’s expense in support of the proper discharge and execution of their duties
conflicts of interest
th e 	 boa rd 	 ha s 	 a do pte d 	 a 	 po l i c y 	 wh i ch 	 i d e n t i fi e s 	 a n d 	 wh e re 	 a p p ro p r ia te 	 a p p ro ve s 	 a n d 	 ma nag e s 	 a n y 	 c o n fl i c t 	 o r 	 pote n t ia l 	 c o n fl i c t 	 o f 	 i n te re st 	
d i re c t o r s 	 a re 	 re q u i re d 	 t o 	 g ive 	 n ot i c e 	 o f 	 a n y 	 pote n t ia l 	 si t ua t i o na l 	 o r 	 t ra n sa c t i o na l 	 c o n fl i c t s 	 t o 	 t h e 	 cha i r ma n 	 a n d 	 c o m pa n y 	 s e cret a r y  	 d i re c t o r s	
a re 	 n ot 	 pe r m i t te d 	 t o 	 pa r t i c i pa te 	 i n 	 t h e 	 a p p ro va l 	 o f 	 a n y 	 c o n fl i c t 	 i n 	 wh i ch 	 t h e y 	 a re 	 i n te re ste d
during the year alexander chistyakov kirill androsov and tom reed declared their interests in the restructuring undertaken by the 
group their interests were noted at each relevant board meeting and the separate approval of the independent directors was obtained for 
any related resolution
performance evaluation
in early 2014 the board undertook an internal selfassessment of its performance and that of its committees the main consideration was 
t h e 	 wa y 	 i n 	 wh i ch 	 t h e 	 boa rd 	 a n d 	 c o m m i t te e s 	 f u n c t i o n e d 	 bot h 	 i n d iv i d ua l ly 	 a n d 	 c o l l e c t ive ly 	 fo r 	 t h e 	 be n efi t 	 o f 	 s ha re h o l d e r s 	 re spo n se s 	 w e re	
c o l la te d 	 b y 	 t h e 	 c o m pa n y 	 s e cret a r y 	 a n d 	 t h e 	 re su l t i n g 	 re po r t 	 wa s 	 p re se n te d 	 t o 	 t h e 	 boa rd 	 fo r 	 c o n si d e ra t i o n 	 n o 	 si g n i fi c a n t 	 a re a s 	 o f 	 c o n c e r n 	
w e re 	 i d e n t i fi e d 	 d u r i n g 	 t h e 	 e va l ua t i o n 	 a l be i t 	 t ha t 	 a 	 n u m be r 	 o f 	 t h e 	 d i re c t o r s 	 ha d 	 o n ly 	 be e n 	 i n 	 p la c e 	 fo r 	 a 	 re la t ive ly 	 s h o r t 	 t i m e
following year end the board undertook a further questionnairebased effectiveness review which focused on board processes and the 
lessons learned from the restructuring the results of this review showed that in general board processes were considered to be effective 
n e ve r t h e l e s s 	 t h e 	 d i re c t o r s 	 p ro pose d 	 t ha t 	 t h e 	 st r u c t u re 	 o f 	 boa rd 	 m e et i n g s 	 be 	 re v i ew e d 	 t o 	 a l l ow 	 fo r 	 spe c i fi c 	 d i sc u s si o n 	 o f 	 t h e 	 g ro u p ’ s 	
strategic direction in addition consideration will also be given to ways in which the timeliness of board and committee paper distribution 
can be enhanced
communication with shareholders
th e 	 c o m pa n y 	 i s 	 m i n d f u l 	 o f 	 i t s 	 o b l i g a t i o n s 	 t o 	 t re a t 	 a l l 	 s ha re h o l d e r s 	 e q ua l ly 	 a n d 	 t o 	 e n su re 	 t ha t 	 t h e 	 boa rd 	 i s 	 n ot i fi e d 	 o f 	 t h e 	 v i ew s 	 o f 	 i t s 	
st a k e h o l d e r s 	 a 	 f u l l 	 a n n ua l 	 re po r t 	 i s 	 d i st r ib u te d 	 t o 	 e a ch 	 s ha re h o l d e r 	 a n d 	 a l l 	 reg u la t o r y 	 a n n o u n c e m e n t s 	 i n cl u d i n g 	 p u b l i s h e d 	 fi na n c ia l 	
re su l t s 	 a n d 	 pe r i od i c 	 o pe ra t i o na l 	 u pd a te s 	 c a n 	 be 	 fo u n d 	 o n 	 t h e 	 c o m pa n y ’ s 	 w ebsi te 	  w w w r u spet ro  c o m  	
d u r i n g 	 2 0 1 4  	 t h e 	 e x e c u t ive 	 d i re c t o r s 	 m et 	 w i t h 	 t h e 	 c o m pa n y ’ s 	 i n st i t u t i o na l 	 s ha re h o l d e r s 	 pa r t i c u la r ly 	 i n 	 re la t i o n 	 t o 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	
restructuring and to discuss business and operational performance shareholders’ views are communicated to the board by way of verbal 
b r i efi n g s 	 f ro m 	 t h e 	 e x e c u t ive 	 d i re c t o r s 38 ruspetro plc annual report and accounts 2014
directors’ report
audit committee report
independence and experience
the committee comprises three independent nonexecutive directors and is chaired by robert jenkins mr jenkins is a chartered 
a c c o u n t a n t 	 b y 	 p ro fe s si o na l 	 q ua l i fi c a t i o n 	 a n d 	 ha s 	 p re v i o u s 	 ex pe r i e n c e 	 a s 	 fi na n c e 	 d i re c t o r 	 a n d 	 ch i ef 	 fi na n c ia l 	 o f fi c e r 	 o f 	 ru s sia n 	 m i n i n g 	 a n d 	
e n e r g y 	 c o m pa n i e s 	 mr 	 j e n k i n s 	 i s 	 c o n si d e re d 	 b y 	 t h e 	 boa rd 	 t o 	 ha ve 	 re c e n t 	 a n d 	 re l e va n t 	 fi na n c ia l 	 ex pe r i e n c e 	 th e 	 ot h e r 	 m e m be r s 	 o f 	 t h e 	
committee have a wide range of relevant business experience
meetings
th e 	 c o mmi t tee 	 m eet s 	 a t 	 l ea st 	 t hree 	 t im es 	 a 	 y ea r 	 a n d 	 ot h e r w ise 	 a s 	 req uired 	 dur in g 	 t h e 	 y ea r 	 e n d ed 	 3 1 	 dece m be r 	 2 0 1 4  	 t h e 	 c o mmi t tee 	 m et 	 five 	
t im es  	 th e 	 c hi ef 	 fina n cia l 	 o f fi ce r 	 a t te n d ed 	 a l l 	 m eet in gs 	 d ur in g 	 t h e 	 y ea r  	 th e 	 c hi ef 	 e x ecu t i ve 	 a n d 	 m e m be rs 	 o f 	 t h e 	 fina n ce 	 l eg a l 	 a n d	
permitting functions attended as appropriate and on the invitation of the committee in addition representatives from pwc attended the 
majority of meetings during the year and are provided with the opportunity to meet committee members without management being present
role of the audit committee
the committee’s full terms of reference are available on the company’s website wwwruspetrocom in summary the primary 
responsibilities of the committee are
• t o 	 m o n i t o r 	 t h e 	 i n teg r i t y 	 o f 	 t h e 	 c o m pa n y ’ s 	 fi na n c ia l 	 st a te m e n t s 	 reg u la t o r y 	 a n n o u n c e m e n t s 	 a n d 	 t o 	 re v i ew 	 si g n i fi c a n t 	 fi na n c ia l 	 
reporting judgements
• t o 	 re v i ew 	 t h e 	 ef fe c t ive n e s s 	 o f 	 t h e 	 c o m pa n y ’ s 	 i n te r na l 	 c o n t ro l s 	 i n cl u d i n g 	 fi na n c ia l 	 c o n t ro l s 	 a n d 	 r i s k 	 ma nag e m e n t 	 s y ste m s 
• t o 	 p ro v i d e 	 t h e 	 boa rd 	 w i t h 	 a n 	 i n d e pe n d e n t 	 a s se s s m e n t 	 o f 	 t h e 	 g ro u p ’ s 	 a c c o u n t i n g 	 a f fa i r s 	 a n d 	 fi na n c ia l 	 posi t i o n 
• to ensure that the annual report taken as a whole is fair balanced and understandable and provides the information necessary for 
shareholders to assess the company’s performance business model and strategy
• to oversee the relationship with the external auditor including agreement of their remuneration and terms of engagement monitoring 
their independence objectivity and effectiveness and
• to ensure that the policy regarding the provision of nonaudit services by the external auditor is appropriately applied and make 
recommendation to the board on their appointment reappointment or removal
the committee will make recommendation to the board as appropriate including those matters to be put to shareholders at the agm
audit committee membership
robert jenkins – chairman of the audit committee
maurice dijols  f ro m 	 1 3 	 j a n ua r y 	 2 0 1 4 
mark pearson  f ro m 	 2 9 	 ap r i l 	 2 0 1 4 
james mcburney  t o 	 2 	 j u n e 	 2 0 1 4  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 3 9   
s ig n i fic a n t 	 i s s ue 	 c on sider e d 	 by 	 t he 	 c o m m it te e 	 i n 	 20 1 4 committee activity
re v i ew i n g 	 t h e 	 a n n ua l 	 a n d 	 ha l f  y e a r 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 
the accounting policies adopted
th e 	 c o mmi t tee 	 rev i ew ed 	 t h e 	 f u l l 	 y ea r 	 a n d 	 ha lf  y ea r 	 fina n cia l 	
statements and considered the appropriateness of the accounting 
policies and practices adopted as part of this review the committee 
rece i ved 	 re po r t s 	 f ro m 	 t h e 	 ex te r na l 	 a u d i t o r 	 a n d 	 t h e 	 g ro u p 	 fina n ce 	
f un c t i o n 	 set t in g 	 o u t 	 t h e 	 s i gnifi c a n t 	 issu es 	 in 	 re la t i o n 	 t o 	 t h e 	 
fina n cia l 	 sta te m e n t s  	
re c o m m e n d i n g 	 t h e 	 a n n ua l 	 re po r t 	 t o 	 t h e 	 boa rd 	 a n d 	 c o n fi r m i n g 	
whether taken as a whole it is fair balanced and understandable
the committee reviewed the annual report and accounts for the 
year ended 31 december 2013 and received reports from both 
management and the external auditor regarding the assurance 
processes followed 
reviewing the internal control environment and risk  
management procedures
the committee considered the controls and processes which had 
been put in place to enhance the group’s internal control 
environment further information is given on page 40
reviewing the effectiveness of the external auditor and independence 
monitoring compliance with the policy on nonaudit services and 
recommending to the board the reappointment of the external  
auditor and their remuneration
the committee considered the effectiveness and independence of 
the external auditor as set out on page 41 the approval process for 
appointing the external auditor to undertake nonaudit services was 
re v i ew e d 	 a n d 	 c o m p l ia n c e 	 c o n fi r m e d
the committee has recommended that a resolution to reappoint the 
external auditor be proposed at the forthcoming agm
re v i ew i n g 	 t h e 	 w o r k i n g 	 c a p i t a l 	 re po r t 	 fo r 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	
restructuring and the group’s ability to continue as a going concern
the committee considered in detail the working capital report 
re q u i re d 	 a s 	 pa r t 	 o f 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 re st r u c t u r i n g  	 t o 	 a s si st 	 t h e	
committee with its deliberations reports were received from the 
external auditor on the management base and downside case 
scenarios provided in relation to the development plan and the 
prudency of the underlying assumptions
compliance with the group’s exploration licences permitting  
and litigation
the committee reviewed reports from the compliance and legal 
functions regarding compliance with and renewal of the group’s 
o i l 	 a n d 	 g a s 	 ex p l o ra t i o n 	 l ic e n c e s 	 a n d 	 re v iew e d 	 a l l 	 st a t u s 	 o f 	 si g n i fi c a n t 	
litigation by or against the group
review of the committee’s terms of reference the committee reviewed its terms of reference which were 
su bse q u e n t ly 	 u pd a te d 	 t o 	 refl e c t 	 c u r re n t 	 be st 	 p ra c t i c e 	 a n d 	 t h e 	
committee’s decision to review at least annually the merit of 
establishing and internal audit function 
financial reporting
d u r i n g 	 2 0 1 4  	 t h e 	 c o m m i t te e 	 i n 	 c o n j u n c t i o n 	 w i t h 	 t h e 	 ma nag e m e n t 	 a n d 	 t h e 	 ex te r na l 	 a u d i t o r  	 c o n si d e re d 	 t h e 	 fo l l ow i n g 	 fi na n c ia l 	 i s su e s 	 a n d 	
j u dg e m e n t s 	 i n 	 re la t i o n 	 t o 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 d i scl osu re s 
s ig n i fic a n t 	 fi n a nc i a l 	 jud g emen t s 	 how the audit committee addressed these issues
going concern the committee regularly reviewed the group’s funding and liquidity 
positions in order to satisfy itself that the company and the group 
ha ve 	 a d e q ua te 	 fi na n c ia l 	 re so u rc e s 	 fo r 	 t h e 	 f u t u re 	 a n d 	 t o 	 u n d e r p i n 	 t h e 	
u se 	 o f 	 t h e 	 g o i n g 	 c o n c e r n 	 a s su m pt i o n 	 i n 	 p re pa r i n g 	 t h e 	 fi na n c ia l 	
statements as part of this review the committee considered the 
group’s ability to generate cash from trading activities and raise 
external funding the committee considered detailed reports from 
and held discussions with the external auditor regarding the 
si g n i fi c a n t 	 u n c e r t a i n t y 	 t ha t 	 ex i ste d 	 p r i o r 	 t o 	 t h e 	 g ro u p 	 fi na n c ia l 	
restructuring as to whether the company was able to continue as a 
going concern these discussions covered the 12month periods from 
the date of the 2013 full year audit report the 2014 halfyear report 
a n d 	 t h e 	 p rospe c t u s 	 fo r 	 t h e 	 g ro u p 	 fi na n c ia l 	 re st r u c t u r i n g 	 d a te d 	
17 november 2014 respectively the committee recommended to  
t h e 	 boa rd 	 t ha t 	 i t 	 wa s 	 a p p ro p r ia te 	 t o 	 p re pa re 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	
on a going concern basis and that it was also appropriate to include  
a 	 st a te m e n t 	 a s 	 t o 	 t h e 	 si g n i fi c a n t 	 r i s k s 	 i n 	 re la t i o n 	 t o 	 g o i n g 	 c o n c e r n 	 
in the annual report and halfyear results in order to provide 
shareholders and other stakeholders with clear qualitative disclosure 
of the associated material uncertainties 40 ruspetro plc annual report and accounts 2014
directors’ report
audit committee report continued
financial reporting continued
s ig n i fic a n t 	 fi n a nc i a l 	 jud g emen t s 	 how the audit committee addressed these issues
im pa i r m e n t 	 o f 	 n o n  fi na n c ia l 	 a s set s the committee has reviewed the carrying values of the company’s 
n o n  fi na n c ia l 	 a s set s 	 i n 	 pa r t i c u la r 	 o i l 	 a n d 	 g a s 	 p ro pe r t i e s 	 a n d 	 m i n e ra l	
rights the committee considered detailed reports from management 
and the external auditor and reviewed the methodology applied 
including to ensure that the discount rates used are within an 
acceptable range the external auditor explained the procedures 
undertaken to test management’s impairment assessment and on  
the basis of its audit work concurred that the carrying values of the 
n o n  fi na n c ia l 	 a s set s 	 w e re 	 a p p ro p r ia te 	 i n 	 t h e 	 c o n tex t 	 o f 	 t h e 	 fi na n c ia l 	
statements as a whole following consideration of these reports the 
c o m m i t te e 	 c o n cl u d e d 	 t ha t 	 t h e 	 n o n  fi na n c ia l 	 a s set s 	 w e re 	 n ot 	 i m pa i re d
risk management and internal controls
the committee has delegated authority from the board to review the group’s risk management and internal control systems and to at least 
annually monitor their effectiveness 
th e 	 c o m pa n y 	 c o n t i n u e s 	 t o 	 e n ha n c e 	 i t s 	 p ro c e s se s 	 fo r 	 i d e n t i f y i n g 	 e va l ua t i n g 	 a n d 	 ma nag i n g 	 si g n i fi c a n t 	 b u si n e s s 	 r i s k s 	 a n d 	 t h e 	 re v i ew 	 o f	
su bsi d ia r y 	 r i s k 	 ma nag e m e n t 	 a n d 	 i n te r na l 	 c o n t ro l 	 s y ste m s 	 th e se 	 si g n i fi c a n t 	 r i s k s 	 a re 	 set 	 o u t 	 o n 	 pag e s 	 2 4 	 t o 	 2 7 
processes 	 ha ve 	 bee n 	 a do pted 	 t o 	 p ro v i d e 	 rea so na b l e 	 co n t ro l 	 o f 	 t h e 	 g ro u p ’ s 	 o pe ra t i o na l 	 a n d 	 fina n cia l 	 a c t i v i t i es 	 in cl u d in g 	 t h e 	 k ee p in g 	 o f 	 p ro pe r 	
accounting records safeguarding assets detecting fraud and other irregularities the group has continued to develop the control environment 
across the business through hiring additional appropriate human resources enhancing existing processes and focusing on safe ethical 
behaviours and fraud risk mitigation
since year end the audit committee has undertaken its annual review of the appropriateness of the risk management processes to ensure 
t ha t 	 t h e y 	 a re 	 su f fi c i e n t ly 	 ro b u st 	 t o 	 m e et 	 t h e 	 n e e d s 	 o f 	 t h e 	 g ro u p  	 a 	 c o n t ra c t s 	 c o m m i t te e 	 ha s 	 be e n 	 e st a b l i s h e d 	 t o 	 re v i ew 	 a n d 	 a p p ro ve 	 a l l	
c o n t ra c t s 	 e n te re d 	 i n t o 	 b y 	 t h e 	 g ro u p 	 a n d 	 t h e 	 d e l eg a te d 	 a u t h o r i t y 	 ma t r i x 	 i s 	 be i n g 	 re v i ew e d 	 a n d 	 e n ha n c e d 	 t o 	 refl e c t 	 t h e 	 c u r re n t 	 o pe ra t i o na l	
structure of the business
internal control
the group’s internal control systems are designed to manage rather than to eliminate the risk of failure to achieve business objectives  
th e 	 c o m m i t te e 	 re c og n i se s 	 t ha t 	 n ot 	 a l l 	 r i s k s 	 c a n 	 be 	 e l i m i na te d 	 a n d 	 t h e 	 c ost 	 o f 	 c o n t ro l 	 p ro c e d u re s 	 s h o u l d 	 n ot 	 ex c e e d 	 t h e 	 ex pe c te d 	 be n efi t s 	
nevertheless the group’s system of internal control is designed to safeguard the assets of the company and those of its subsidiaries and to 
e n su re 	 t h e 	 re l ia b i l i t y 	 o f 	 fi na n c ia l 	 i n fo r ma t i o n 	 fo r 	 i n te r na l 	 a n d 	 ex te r na l 	 u se
any system of internal controls can only provide reasonable not absolute assurance that assets are safeguarded transactions are correctly 
authorised and recorded and that any material errors and irregularities are detected within a reasonable timeframe and mitigated under the 
direction of the audit committee the board has conducted a review of the effectiveness of the systems of internal control this exercise included 
a 	 rev i ew 	 o f 	 th e 	 syste ms 	 an d 	 co n tro ls 	 re la tin g 	 t o 	 th e 	 finan cial 	 re po r tin g 	 p rocesses 	 an d 	 th e 	 p re p ara ti o n 	 o f 	 th e 	 ann ual 	 re po r t 	 n o 	 ma te r ial 	 failin gs	
o r 	 w eak n esses 	 w e re 	 i d e n tifi ed 	 d ur in g 	 th e 	 co urse 	 o f 	 this 	 rev i ew 
budgetary process
each year an annual budget is considered and approved by the board actual results are reviewed at each board meeting and reported 
against budget with revised forecasts being prepared where necessary separate approval processes and authority limits are in place for 
expenditure items 
in 	 a d d i t i o n  	 c a p i ta l 	 in vest m e n t 	 is 	 reg u la ted 	 b y 	 t h e 	 b u dg eta r y 	 p rocess 	 a n d 	 a l l 	 ex pe n d i t ure 	 bey o n d 	 specifi ed 	 l eve ls 	 m ust 	 rece i ve 	 bo a rd 	 a p p ro va l 	
following the submission of detailed written proposals major overruns in terms of cost and time are investigated and reported to the board 
via the audit committee
personnel
high quality personnel are seen as an essential part of the control environment the ethical standards expected of employees corporate 
policies and behaviour are presented and addressed during the monthly staff meetings and by regular internal updates on the intranet
whistleblowing
the group operates a whistleblowing hotline which is operated by a specialist external thirdparty service provider and allows employees to 
re po r t 	 c o n c e r n s 	 reg a rd i n g 	 a n y 	 d i s h o n e st 	 o r 	 u n et h i c a l 	 be ha v i o u r 	 a n o n y m o u s ly 	 a n d 	 i n 	 c o n fi d e n c e strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 4 1   
internal audit
in 	 e a r ly 	 2 0 1 4  	 fo l l ow i n g 	 a 	 re v i ew 	 b y 	 t h e 	 c o m m i t te e 	 i t 	 wa s 	 d e c i d e d 	 t ha t 	 p rog re s s 	 o n 	 t h e 	 g ro u p ’ s 	 b u si n e s s 	 p la n 	 wa s 	 n ot 	 su f fi c i e n t ly 	 ma t u re 	 
to necessitate a separate internal audit function
in 	 m ar c h 	 2 0 15 	 th e 	 co mmi ttee 	 un d e r t oo k 	 a 	 f ur th e r 	 r ev i ew 	 o f 	 in te rn al 	 a u di t 	 m a tte rs 	 an d 	 co n c l u d ed 	 th a t 	 i t 	 w o ul d 	 be 	 a p p r o p ri a te 	 an d 	 be n efi ci al 	 fo r	
the company to develop and implement an internal audit function including in the context of the group’s 2015 business plan and management’s 
focus on developing the group’s internal management capability and resources to implement its business plan during 2015 therefore an internal 
audit charter will be developed outlining the internal audit function’s objectives authority scope and responsibilities and an internal audit 
manager appointed
external auditor
pwc was appointed as external auditor of the company in december 2011 the committee maintains an armslength relationship with  
pwc and meets with the lead audit partner and other members of the senior external audit team at least once a year without management 
being present
independence and the provision of nonaudit services
in order to ensure that the independence and objectivity of the external auditor is maintained the company has adopted a policy on the 
provision of nonaudit services by the external auditor the policy clearly sets out the services which may and may not be provided by the 
external auditor and the authorisation and preapproval process which must be followed
d u r i n g 	 2 0 1 4  	 t h e 	 ex te r na l 	 a u d i t o r 	 a l so 	 p ro v i d e d 	 se r v i c e s 	 i n 	 re la t i o n 	 t o 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 re st r u c t u r i n g 	 i n cl u d i n g 	 t h e 	 re po r t 	 o n 	 p ro 	 fo r ma 	
fi na n c ia l 	 i n fo r ma t i o n 	 a n d 	 c o n se n t 	 l et te r 	 c o n t a i n e d 	 i n 	 t h e 	 p rospe c t u s 	 th e 	 c o m m i t te e 	 c o n cl u d e d 	 t ha t 	 t h e 	 se r v i c e s 	 p ro v i d e d 	 w e re 	 u sua l 	 fo r 	
such a transaction and did not affect the external auditor’s independence 
the committee regularly reviews the remuneration received by pwc in relation to both audit and nonaudit related services details of the 
fe e s 	 pa ya b l e 	 t o 	 p w c 	 i n 	 re la t i o n 	 t o 	 bot h 	 a u d i t 	 a n d 	 n o n a u d i t 	 se r v i c e s 	 a re 	 set 	 o u t 	 i n 	 n ote 	 9 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s
p w c 	 ha ve 	 c o n fi r m e d 	 t h e i r 	 i n d e pe n d e n c e 	 a s 	 ex te r na l 	 a u d i t o r 	 t o 	 t h e 	 c o m pa n y 	 i n 	 a 	 l et te r 	 a d d re s se d 	 t o 	 t h e 	 boa rd 	 a n d 	 t h e 	 c o m m i t te e 	 c o n c u r s 	
that pwc continue to provide an independent audit service
audit effectiveness and tender of audit services
at its meeting in april 2015 the committee reviewed the effectiveness of the external audit process this review included an assessment of 
the quality of the external auditor’s reports to the committee the lead audit partner’s interaction with committee members and members  
of the company’s management team and the knowledge and experience of the external audit team members
the committee is aware of regulatory and legislative developments regarding the tenure of the external auditor having undertaken its 
a n n ua l 	 re v i ew 	 o f 	 a u d i t 	 ef fe c t ive n e s s 	 t h e 	 c o m m i t te e 	 re ma i n s 	 sa t i sfi e d 	 w i t h 	 t h e 	 ef fi c i e n c y 	 o f 	 t h e 	 ex te r na l 	 a u d i t o r 	 a n d 	 do e s 	 n ot 	 c o n si d e r 	 i t 	
necessary to undertake a tender of external audit services at present the committee will continue to keep this matter under regular review
in the meantime pwc has expressed its willingness to continue as the company’s external auditor and the committee has recommended 
that a resolution be put to the forthcoming agm for the reappointment of pwc as external auditor
 
robert jenkins
chairman of the audit committee
30 april 2015 42 ruspetro plc annual report and accounts 2014
directors’ report
nomination committee report
the committee is required to meet at least once a year in order to comply with its terms of reference during the year ended 31 december 
2014 the committee met once
role and responsibilities of the nomination committee
the terms of reference for the nomination committee can be found on the company’s website wwwruspetrocom 
the committee’s primary responsibilities are
• to regularly review the structure size and composition of the board and board committees to ensure that there is a balance of skills 
knowledge and experience
• to oversee board succession plans to initiate and manage the recruitment process of additional directors and
• to consider the board development programme and the induction process for new directors
activity during the year
 
responsibility committee activity
to review the structure of the board as the company continued to enhance its horizontal drilling 
strategy the committee reviewed the balance of skills and 
experience required on the board as a result the committee 
through its chairman approached dr mark pearson an experienced 
upstream oil and gas entrepreneur with outstanding success in the 
application of multiple fractured horizontal wells in the usa and  
oil and gas experience in russia with a view to his appointment  
as an independent nonexecutive director each of the remaining 
committee members together with the chief executive met with or 
spoke to dr pearson regarding his experience and his commitment 
to russia prior to the nomination committee recommending his 
appointment to the board
to review committee composition in light of mr mcburney’s resignation and dr pearson’s appointment 
to the board the committee reviewed the membership of the 
company’s three standing committees and made a recommendation 
that dr pearson be appointed to the audit committee to the board
nomination committee membership 
alexander chistyakov – chairman of the nomination committee
robert jenkins  f ro m 	 3 0 	 j a n ua r y 	 2 0 1 4 
frank monstrey  f ro m 	 3 0 	 j a n ua r y 	 2 0 1 4 
james mcburney 	  u n t i l 	 2 	 j u n e 	 2 0 1 4  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 4 3   
changes since year end
as part of the group’s restructuring the company entered into a relationship agreement with mastin which enables mastin to nominate 
o n e 	 d i re c t o r 	 t o 	 t h e 	 boa rd 	 fo r 	 so 	 l o n g 	 a s 	 t h e y 	 h o l d 	 a t 	 l e a st 	 1 0  	 o f 	 t h e 	 i s su e d 	 c a p i t a l 	 o f 	 t h e 	 c o m pa n y 	 in 	 j a n ua r y 	 2 0 1 5  	 m a st i n 	 n ot i fi e d 	 t h e 	
company that they proposed to nominate sergey gordeev as the mastin director mr gordeev is a principal of mastin and the president 
ceo and a major shareholder of pik group a leading russian real estate development group this appointment became effective from 
3 february 2015
at 	 t h e 	 sa m e 	 t i m e 	 i n 	 o rd e r 	 t o 	 ma i n t a i n 	 t h e 	 c u r re n t 	 ba la n c e 	 o f 	 i n d e pe n d e n c e 	 o n 	 t h e 	 boa rd	 t o m 	 re e d 	 re si g n e d 	 a s 	 ch i ef 	 f i na n c ia l 	 o f fi c e r 	 a n d 	
as an executive director of the company such resignation to be effective from the appointment of mr gordeev
 
alexander chistyakov
chairman of the nomination committee
30 april 2015 44 ruspetro plc annual report and accounts 2014
directors’ report
remuneration committee report
independence 
during 2014 the committee comprised three nonexecutive directors two of whom were considered to be independent kirill androsov is 
not considered to be independent since he is appointed to the board under the terms of a relationship agreement with limolines a major 
s ha re h o l d e r  	 n e ve r t h e l e s s 	 t h e 	 boa rd 	 be l i e ve s 	 t ha t 	 mr 	 a n d roso v ’ s 	 ex pe r i e n c e 	 a n d 	 k n owl e dg e 	 o f 	 t h e 	 ru s sia n 	 la bo u r 	 ma r k et 	 i s 	 o f 	 be n efi t 	 t o 	 
the company and that his appointment to the committee should be maintained
in order to enhance the committee’s independence and on the recommendation of the nomination committee the board appointed  
mark pearson an independent nonexecutive director as an additional member of the committee with effect from 3 february 2015 
meetings
th e 	 c o m m i t te e 	 m e et s 	 a t 	 l e a st 	 t w i c e 	 a 	 y e a r 	 a n d 	 ot h e r w i se 	 a s 	 re q u i re d 	 d u r i n g 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4  	 t h e 	 c o m m i t te e 	 m et 	 five 	
times the chief executive attended all meetings during the year representatives from the company’s remuneration consultants attended 
as appropriate and on the invitation of the committee
role of the remuneration committee
the committee’s full terms of reference are available on the company’s website wwwruspetrocom in summary the primary 
responsibilities of the committee are
• to determine the remuneration policy for all executive directors including pension rights and any compensation payments to monitor 
t h e 	 l e ve l 	 a n d 	 st r u c t u re 	 o f 	 re m u n e ra t i o n 	 fo r 	 se n i o r 	 ma nag e m e n t 	 so 	 a s 	 t o 	 e n su re 	 t ha t 	 l e ve l s 	 o f 	 re m u n e ra t i o n 	 a re 	 su f fi c i e n t 	 t o 	 a t t ra c t 	 ret a i n 	
and motivate executive management of the quality required to run the company successfully
• to determine targets for any performancerelated pay schemes operated by the company and approve the total annual payments made 
• to review the design of all share incentive plans for approval by the board and shareholders and determine the quantum of any award 
made and the performance targets for such awards and
• to ensure that any termination payments are fair to the individual and the company
remuneration committee membership 
maurice dijols – 	 cha i r ma n 	  m e m be r 	 si n c e 	 1 3 	 j a n ua r y 	 2 0 1 4 	 a n d 	 cha i r ma n 	 f ro m 	 3 0 	 j a n ua r y 	 2 0 1 4 
kirill androsov
frank monstrey strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 4 5   
activity during the year
 
responsibility committee activity
directors’ remuneration policy the committee considered the requirement to submit the 
company’s remuneration policy for directors to a binding vote of the 
shareholders and together with deloitte llp developed a policy 
w hi c h 	 w as 	 a p p r o p ri a te 	 fo r 	 th e 	 g r o u p  	 t h e 	 p o li cy 	  w hi c h 	 is 	 s umm aris ed	
o n 	 pag e s 	 5 4 	 t o 	 60  	 wa s 	 a p p ro ve d 	 b y 	 s ha re h o l d e r s 	 a t 	 t h e 	 2 0 1 4 	 a g m	
and will apply until 2 june 2017 unless otherwise amended
awards under the performance share plan the committee considered management’s proposals in relation to 
the quantum nominees and performance conditions of awards 
under the performance share plan a number of performance 
conditions were proposed by management and after consideration 
the committee believed that the most appropriate performance 
condition for any award granted in 2014 was absolute share price 
performance further information is provided on page 50 of the 
directors’ remuneration report
bonus payments in january 2014 the committee considered the extent to which the 
corporate kpi for 2013 had been met and any bonus payable to the 
executive directors while the committee noted that the 2013 
corporate kpi had been partially met it was agreed that the overall 
company performance did not merit payment of a corporate bonus 
nevertheless in order to retain the services of the executive 
cha i r ma n 	 a n d 	 ch i ef 	 f i na n c ia l 	 o f fi c e r 	 d u r i n g 	 a 	 k e y 	 pe r i od 	 fo r 	 t h e 	
group the committee approved discretionary bonuses for these 
two individuals which were dependent on their continued 
employment during 2014
terms and conditions for senior joiners in accordance with the terms of reference the committee considers 
and if appropriate approved employment contracts within the 
g ro u p 	 w e re 	 t ot a l 	 b a si c 	 sa la r y 	 a n d 	 g ua ra n te e d 	 be n efi t s 	 t o 	 a n y 	
employee exceeds us200000 during the year the committee 
reviewed and approved six such contracts
termination payments the committee considered and approved the settlement agreement 
with the company’s former chief executive don wolcott in 
relation to his uk salary in addition following year end the 
committee reviewed and approved the settlement agreements 
re a ch e d 	 w i t h 	 t h e 	 fo r m e r 	 ch i ef 	 f i na n c ia l 	 o f fi c e r 	 i n 	 re la t i o n 	 t o 	 h i s 	 u k 	
and russian contracts further details are set out on page 51 of the 
directors’ remuneration report
 
advisers to the committee
during the year the committee received independent advice on executive remuneration matters from deloitte llp total fees for advice 
provided during the year were £16375 of which the majority related to advice on compliance with new legislation on directors’ 
re m u n e ra t i o n  	 th e 	 c o m m i t te e 	 i s 	 sa t i sfi e d 	 t ha t 	 t h e 	 a dv i c e 	 t h e y 	 re c e ive d 	 wa s 	 o b j e c t ive 	 a n d 	 i n d e pe n d e n t 	
deloitte is a founding member of the remuneration consultants group and adheres to its code in relation to executive remuneration 
c o n su l t i n g 	 i n 	 t h e 	 u k  	 th e 	 c o m m i t te e 	 do e s 	 n ot 	 c o n si d e r 	 t h e re 	 t o 	 be 	 a n y 	 c o n fl i c t 	 o f 	 i n te re st 	 i n 	 t h i s 	 reg a rd
in addition the committee received independent advice from white  case llp in connection with settlement agreements with former 
directors and the arrangement to issue shares in lieu of pay
maurice dijols
chairman of the remuneration committee
30 april 2015 46 ruspetro plc annual report and accounts 2014
directors’ report
statement from the chairman of the remuneration committee
dear shareholder
on behalf of the remuneration committee i am pleased to introduce the directors’ remuneration report for 2014 it has been another year of 
change for the company and the committee has been called upon to review the compensation arrangements for key senior managers joining the 
business as well as for departing executives
2014 performance
details of the company’s performance in 2014 are set out in the strategic report this year the annual bonus targets set by the committee 
w e re 	 pa r t ia l ly 	 m et 	 a n d 	 a f te r 	 c a ref u l 	 c o n si d e ra t i o n 	 t h e 	 c o m m i t te e 	 re c o m m e n d e d 	 t ha t 	 t h e 	 e x e c u t ive 	 d i re c t o r s 	 re c e ive 	 a n 	 a wa rd 	 e q ua l 	 t o 	 53  	
o f 	 t h e i r 	 ba se 	 sa la r y  	 a l l 	 e m p l o y e e s 	 a re 	 e l i g ib l e 	 t o 	 pa r t i c i pa te 	 i n 	 t h e 	 c o r po ra te 	 bo n u s 	 a n d 	 t h e y 	 t oo 	 re c e ive d 	 53  	 o f 	 t h e i r 	 e n t i t l e m e n t 	 i n 	 re spe c t 	
o f 	 2 0 1 4 	 pe r fo r ma n c e 	 – 	 c o r re spo n d i n g 	 t o 	 1 3  25  	 o f 	 a n n ua l 	 sa la r y 
additionally as disclosed in the 2013 remuneration report during 2014 alexander chistyakov and tom reed received a discretionary 
bo n u s 	 o f 	 u s  2 00  000 	 a n d 	 u s  3 00  000 	 re spe c t ive ly 	 i n 	 o rd e r 	 t o 	 ‘ l o ck 	 i n ’ 	 t h e se 	 i n d iv i d ua l s 	 fo r 	 t h e 	 d u ra t i o n 	 o f 	 2 0 1 4 
committee membership 
the committee membership has been stable this year following my appointment to the committee and then as chairman in january 2014 
since year end on the recommendation of the nomination committee the board has also appointed mark pearson as an additional member 
of the committee his knowledge and experience of the oil and gas exploration industry has been greatly appreciated by the board and we 
look forward to his contributions to committee discussions in 2015
changes to the executive remuneration structure for 2015
as disclosed in last year’s annual report with effect from 1 april 2014 the chief executive’s annual salary was temporarily reduced from 
us1050000 to us970000 this temporary reduction has ended and effective from 1 december 2014 john conlin’s salary reverted to 
the sum agreed on his appointment no other changes to the salary of the executive directors have been proposed for 2015 and the 
ma x i m u m 	 bo n u s 	 o p po r t u n i t y 	 re ma i n s 	 a t 	 1 50  	 o f 	 b a si c 	 sa la r y 	
performance share plan
the award granted to the executive directors and other key members of the senior management team in 2014 did not vest and has therefore 
la pse d 	 a 	 f u r t h e r 	 a wa rd 	 wa s 	 ma d e 	 u n d e r 	 t h e 	 p e r fo r ma n c e 	 sha re 	 p la n 	 fo l l ow i n g 	 t h e 	 a n n o u n c e m e n t 	 o f 	 t h e 	 c o m pa n y ’ s 	 fi na n c ia l 	 re su l t s 	 fo r 	 t h e 	
year ended 31 december 2014 and details are set out in the implementation report which follows
alignment with shareholders
as detailed in last year’s annual report the board resolved to pay a portion of executive and nonexecutive directors’ salaries for the period 
from 1 april 2013–31 march 2014 in shares as well as providing the company with cash savings during the year this proposal strengthened 
the link between the interests of the directors as whole and those of our shareholders the relevant proportion of each director’s salary or fees 
was converted into shares at the 2012 ipo price of 134 pence per share
these shares were issued to directors on 19 december 2014 following the conclusion of the restructuring strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 47   
remuneration reporting regulations
at the agm held on 2 june 2014 our shareholders passed a resolution to adopt the directors’ remuneration policy for 2014 and future years 
for ease of reference a summary of that policy has been included on pages 54 to 60
i will be attending this year’s agm in london and will be happy to answer any question you may have on our remuneration policy and the 
committee’s activities
maurice dijols
chairman of the remuneration committee
30 april 2015 48 ruspetro plc annual report and accounts 2014
directors’ report
annual report on remuneration
this part of the remuneration report has been prepared in accordance with part 3 of schedule 8 to the large and mediumsized companies 
a n d 	 g ro u ps 	  ac c o u n t s 	 a n d 	 re po r t s  	  a m e n d m e n t  	 reg u la t i o n s 	 2 0 1 3 	 a n d 	 98  6 r 	 o f 	 t h e 	 l i st i n g 	 ru l e s 	 th e 	 a n n ua l 	 re po r t 	 o n 	 re m u n e ra t i o n	
will be put to an advisory shareholder vote at the 2015 agm the information on pages 49 to 53 has been audited 
details on membership of the remuneration committee and the advisers to the committee are set out on pages 44 to 45 of the corporate 
governance report
implementation of remuneration policy in 2015
base salary
the table below shows base salaries for 2015 
base salary from 1 january 2015
us’000 uk salary russian salary total salary
alexander chistyakov 250000 300000 550000
john conlin
1
20000 1030000 1050000
tom reed
2
200000 627000 827000
1 from 1 december 2014 the temporary reduction in john conlin’s base salary ceased and his base salary returned to its previous level of us1050000 at the same time the 
structure of john conlin’s salary was revised with the uk element reduced to us20000 and the russian element increased to us1030000
2 tom reed resigned as an executive director on 2 february 2015
benefits
th e re 	 w i l l 	 be 	 n o 	 cha n g e s 	 t o 	 t h e 	 be n efi t s 	 pa ck ag e 	 fo r 	 e x e c u t ive 	 d i re c t o r s 	 i n 	 2 0 1 5 
annual bonus
in 	 2 0 1 5  	 t h e 	 ma x i m u m 	 a n n ua l 	 bo n u s 	 o p po r t u n i t y 	 fo r 	 e x e c u t ive 	 d i re c t o r s 	 w i l l 	 be 	 1 50  	 o f 	 sa la r y  	 th e 	 2 0 1 5 	 bo n u s 	 i s 	 f u l ly 	 pe r fo r ma n c e l i n k e d 	
and the table below provides further information on the kpis and targets against which performance will be measured 
kpi target performance weighting description
average production 4089 bd avg 30 –
capexbbl us44bbl 20 drilling capex and engineering 
capex
operating costbbl us23bbl 15 production opex of us14bbl 
and sa opex of us9bbl
funding the business trade and strategic deal targets 15 funding t ra d e 	 d ebt 	 fi na n c i n g 	 
or joint ventures
cash management payables and treasury  
cash management
hse no serious incidents or spills 1 0 safety incidents and ltis
environment limited oil spills and  
co
2
 emissions
business integrity strict adherence 1 0 licences and permits in good standing 
l eg a l 	 ro b u st n e s s 	 – 	 n o 	 pe na l t i e s 	 fi n e s 	 o r 	 v i o la t i o n s
procurement – acl adherence and competitiveness
legislative relationships – in russia with fca and the 
uk corporate governance code
strong governance – ukba fcpa bribery laws
performance share plan
in 	 2 0 1 5  	 t h e 	 ma x i m u m 	 pote n t ia l 	 a wa rd 	 l e ve l 	 fo r 	 e x e c u t ive 	 d i re c t o r s 	 i s 	 1 50  	 o f 	 sa la r y  	 a wa rd s 	 t a k e 	 t h e 	 fo r m 	 o f 	 a 	 n ot i o na l 	 n u m be r 	 o f 	 s ha re	
options the notional share options will have an exercise price of 1292 pence being the average price of an ordinary share during q4 2014 
directors will only be able to realise value from the increase in share price above the exercise price  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 49   
vesting will be on a straightline basis and is dependent on the company’s performance against a share price target as set out in the table below
3x metric band 1292p  194p  258p  323p  388p 
a bso l u te 	 s ha re 	 pe r fo r ma n c e 	   50 50 1 00  1 00 150  150 200 ≥ 200
v e st i n g 	  0 25 50 7 5 1 00
the committee believes that share price growth is the most appropriate measure of performance for the year ending 31 december 2015 given 
the current market price of the company’s shares by setting this as the performance measure for the performance share plan executive 
directors will be encouraged to deliver strong share price growth as a priority the share price used to assess performance will be the 
average for the 90 days ending on 31 december 2015 however in order to fully align the interests of executive directors with those of our 
s ha re h o l d e r s 	 t h e 	 e x e c u t ive 	 d i re c t o r s 	 w i l l 	 n ot 	 be 	 a b l e 	 t o 	 ex e rc i se 	 a n y 	 re su l t i n g 	 a wa rd 	 fo r 	 a 	 f u r t h e r 	 t h re e 	 y e a r s 	  i  e	 u n t i l 	 a t 	 l e a st 	 fo u r 	 y e a r s	
a f te r 	 g ra n t   	 n ot 	 o n ly 	 w i l l 	 t h i s 	 i n c e n t iv i se 	 d i re c t o r s 	 t o 	 i n cre a se 	 s ha re 	 p r i c e 	 a s 	 a 	 p r i o r i t y 	 o ve r 	 t h e 	 c o m i n g 	 12 	 m o n t h s 	 b u t 	 w i l l 	 a l so 	 e n c o u rag e 	
them to maintain a strong share price over the longerterm on exercise the gain in the notional share options will be payable wholly in cash 
g ive n 	 t ha t 	 f u l l 	 ve st i n g 	 o f 	 t h i s 	 a wa rd 	 w i l l 	 o n ly 	 be 	 a ch i e ve d 	 wh e re 	 t h e 	 s ha re 	 p r i c e 	 ha s 	 i n cre a se d 	 si g n i fi c a n t ly 	 o ve r 	 a 	 12 	 m o n t h 	 pe r i od 	 
the committee considers the target to be extremely stretching 
nonexecutive director fees
the basic annual fee payable to the nonexecutive directors remains at us120000 with effect from february 2015 the nonexecutive 
directors appointed under the terms of the relationship agreements with limolines and mastin respectively agreed to waive their fees 
therefore with effect from february 2015 inclusive neither mr kirill androsov nor mr sergey gordeev will receive a fee in relation to their 
appointment as nonexecutive directors 
the 2015 fees for the remaining nonexecutive directors are as set out below
us
nonexecutive director 120000
additional fee for chairmanship of the audit committee 20000
additional fee for senior independent director 20000
single total figure of remuneration
the following table sets out the total remuneration for executive directors and nonexecutive directors for the year ended 31 december 
2 0 1 4  	 w i t h 	 p r i o r 	 y e a r 	 fi g u re s 	 a l so 	 s h ow n 
salaryfees
1
b ene fit s
2
annual bonus
3
lti awards
4
total
us’000 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
executive directors
john conlin 953 58 99 5 556 – – – 1608 63
tom reed 783 696 37 45 738 – – – 1558 741
alexander chistyakov 528 420 56 60 491 – – – 1075 480
nonexecutive directors
robert jenkins 160 198 – – – – – – 160 198
kirill androsov 120 54 – – – – – – 120 54
maurice dijols 120 21 – – – – – – 120 21
frank monstrey 120 59 – – – – – – 120 59
mark pearson 80 – – – – – – – 80 –
directors who resigned during the year
james mcburney 50 187 – – – – – – 50 187
1	 t he 	 s a l a r y  fe e s 	 fig u r e 	 i n 	 t he 	 t ab le 	 ab ove 	 c o mpr i s e 	 tot a l 	 s a l a r y  fe e s 	 pay ab le 	 a nd 	 i nc l ude 	 c a sh 	 pay men t s 	 a nd 	 t he 	 v a l ue 	 of 	 sh a r e s 	 i n 	 l ieu 	 of 	 s a l a r y  fe e s 	 w it h 	 t he 	 a g r e emen t 	 of 	 t he 	
d i r e c tor s  	 t he 	 c o m m it te e 	 de ter m i ne d 	 t h a t 	 f r o m 	 1 	 a pr i l 	 20 1 3 	  or 	 l a ter 	 i n 	 t he 	 c a s e 	 of 	 d i r e c tor s 	 w ho 	 jo i ne d 	 t he 	 c o mpa ny 	 a f ter 	 t h i s 	 d a te  	 to 	 31 	 d e c emb er 	 20 1 3 	  for 	 n on e x e c ut i ve 	
d i r e c tor s  	 a nd 	 31 	 ma r c h 	 20 1 4 	  for 	 e x e c ut i ve 	 d i r e c tor s  	 a 	 p or t ion 	 of 	 d i r e c tor s’ 	 s a l a r ie s 	 or 	 fe e s 	 wou ld 	 b e 	 pa id 	 i n 	 sh a r e s 	 s a l a r ie s 	 a nd 	 fe e s 	 wer e 	 c onver te d 	 i n to 	 t he 	 c o mpa ny ’ s	 
shares at the 2012 ipo price being 134 pence per share these shares are valued in this table at 1525 pence each being the closing midmarket share price on 31 march 2014 
2	 b ene fit s 	 r el a te 	 to 	 t he 	 c o s t 	 to 	 t he 	 c o mpa ny 	 of 	 me d ic a l 	 i n s u r a nc e  	 l i fe 	 i n s u r a nc e  	 p er m a nen t 	 he a lt h 	 i n s u r a nc e  	 hou si ng 	 a l low a nc e 	 a nd 	 pr i v a te 	 t r avel 	 a l low a nc e 
3 no annual bonus paid in 2013 
4 no psp awards with performance conditions vested during the years ended 31 december 2013 or 31 december 2014  50 ruspetro plc annual report and accounts 2014
directors’ report
annual report on remuneration continued
additional disclosures in respect of the single total figure of remuneration table
base salary and fees
set out below are details of the basic salaries for each executive director who served during 2014 salaries are set in us dollars for the uk 
c o n t ra c t 	 a n d 	 ru s sia n 	 r u b l e 	 fo r 	 t h e 	 ru s sia n 	 c o n t ra c t 	  a l t h o ug h 	 pa i d 	 i n 	 u s 	 do l la r s   	 a n y 	 d i f fe re n c e 	 i n 	 t h e 	 d i scl osu re s 	 i n 	 t h e 	 2 0 1 3 	 a n n ua l	
report relate to changes in the usrur exchange rate
• a l ex a n d e r 	 ch i st ya k o v ’ s 	 a n n ua l 	 sa la r y 	 d u r i n g 	 t h e 	 wh o l e 	 o f 	 2 0 1 4 	 wa s 	 u s  550  000  	 wh i ch 	 c o n si ste d 	 o f 	 a 	 u k 	 sa la r y 	 o f 	 u s  250  000 	  4 0  	 o f 	
wh i ch 	 wa s 	 pa ya b l e 	 i n 	 s ha re s 	 fo r 	 t h e 	 pe r i od 	 f ro m 	 1 	 j a n ua r y 	 t o 	 3 1 	 m a rch 	 2 0 1 4  	 a n d 	 a 	 ru s sia n 	 sa la r y 	 o f 	 u s  3 00  000 	
• j o h n 	 c o n l i n ’ s 	 a n n ua l 	 sa la r y 	 fo r 	 t h e 	 pe r i od 	 f ro m 	 1 	 j a n ua r y 	 t o 	 3 1 	 m a rch 	 2 0 1 4 	 wa s 	 u s  1  050  000 	  p ro 	 ra t a   	 c o n si st i n g 	 o f 	 a 	 u k 	 sa la r y 	 o f	
u s  2 00  000 	  i n 	 s ha re s  	 a n d 	 a 	 ru s sia n 	 sa la r y 	 o f 	 u s  8 50  000  	 w i t h 	 ef fe c t 	 f ro m 	 1 	 ap r i l 	 2 0 1 4  	 j o h n 	 c o n l i n 	 ag re e d 	 t ha t 	 h i s 	 o ve ra l l 	 b a si c	
salary be temporarily reduced to us970000 per annum consisting of a uk salary element of us120000 and a russian salary element 
of us850000 the structure of the chief executive’s annual salary was further reviewed and amended effective from 1 december 2014 
when the uk element was reduced to us20000 and the russian element increased to us1030000 
• tom reed’s salary throughout the year was us827000 which consisted of a uk salary of us200000 and a russian salary of 
us627000 
• in making decisions regarding basic salary the committee takes a number of factors into account including market data wider employee 
pay and current business conditions as a result with the exception of the reversal of the temporary reduction to john conlin’s salary no 
pay increases were recommended for the executive directors during 2014 or 2015
during the period from 1 january to 31 march 2014 with the agreement of the executive directors in place at that time an element of each 
direct o r’ s 	 uk 	 salar y 	 was 	 p ai d 	 in 	 s hares 	  w i th 	 salar i es 	 co n ve r ted 	 in t o 	 s hares 	 a t 	 th e 	 2 0 1 2 	 ipo 	 p r i ce 	 be in g 	 134 	 pe n ce 	 pe r 	 s hare   	 a s 	 a 	 res ul t 	 o f 	 this	
decision on 19 december 2014 alexander chistyakov received 12355 ordinary shares in the company john conlin received 24711 ordinary 
shares in the company and tom reed received 24711 ordinary shares in the company all of which was in relation to their 2014 salary 
benefits in kind
th e 	 s in g l e 	 t ota l 	 fi g ure 	 o f 	 re m un e ra t i o n 	 ta b l e 	 o n 	 p ag e 	 4 9 	 set s 	 o u t 	 t h e 	 t ota l 	 a m o un t 	 o f 	 be n efi t s 	 rece i ved 	 b y 	 ea ch 	 e x ecu t i ve 	 direc t o r  	 dur in g 	 t h e	
year executive directors received private medical insurance cover life insurance permanent health insurance housing allowance and the 
cost of the preparation of tax returns to the relevant tax authorities the company does not operate any pension plans for executive directors 
or any other employees
annual bonus
th e 	 ma x i m u m 	 pote n t ia l 	 bo n u s 	 o p po r t u n i t y 	 fo r 	 e x e c u t ive 	 d i re c t o r s 	 i n 	 2 0 1 4 	 wa s 	 1 50  	 o f 	 b a se 	 sa la r y  	 th e 	 a c t ua l 	 bo n u s 	 pa ya b l e 	 i n 	 re spe c t	 
of 2014 has been determined by the committee taking into account the following factors
kpi and target weighting performance outcome
production in excess of 4233 boepd 20 th e 	 fi na l 	 p rod u c t i o n 	 ra te 	 a ve rag e d 	 a 	 d a i ly 	 ra te 	 o f 	 3 5 4 1 	 bo e pd
capex costbbl 20 capex cost per barrel was inside target
operating costbbl 15 operating cost per barrel was inside target
hse no serious incidents or spills 1 0 much more safety awareness within the business no serious incidents
funding the business 25 th e 	 fi na n c ia l 	 re st r u c t u r i n g 	 wa s 	 c o m p l ete d 	 i n 	 t h e 	 fi na l 	 w e e k s 	 o f 	 t h e 	 y e a r  	
providing funding for 2015
business integrity 1 0 many important objectives achieved eg licences approvals
the committee retains overall discretion to adjust awards including a recommendation that no payment or award be granted dependent on 
i t s 	 a s se s s m e n t 	 o f 	 ex c e pt i o na l 	 i te m s 	 f o l l ow i n g 	 d i sc u s si o n 	 t h e 	 c o m m i t te e 	 d ete r m i n e d 	 t ha t 	 a 	 bo n u s 	 o f 	 53  	 o f 	 b a se 	 sa la r y 	 s h o u l d 	 be 	 a wa rd e d 	
to the executive directors under the 2014 annual bonus plan in addition as stated in the 2013 directors’ remuneration report alexander 
chistyakov and tom reed received a discretionary retention bonus of us200000 and us300000 respectively in 2014 which was 
dependent on their continued employment with the company until the end of the calendar year this discretionary element forms part of the 
maximum bonus opportunity for the executive directors
performance share plan 
on 	 3 0 	 j a n ua r y 	 2 0 1 4  	 t h e 	 c o m m i t te e 	 g ra n te d 	 a wa rd s 	 t o 	 t h e 	 e x e c u t ive 	 d i re c t o r s 	 u n d e r 	 t h e 	 p e r fo r ma n c e 	 sha re 	 p la n 	  ‘ ps p ’  	 i n 	 t h e 	 fo r m 	 o f 	
o pt i o n s 	 o ve r 	 s ha re s 	 w o r t h 	 1 50  	 o f 	 b a se 	 sa la r y  	 a wa rd s 	 w e re 	 i n 	 t h e 	 fo r m 	 o f 	 n ot i o na l 	 s ha re s 	 o pt i o n s 	 w i t h 	 a n 	 ex e rc i se 	 p r i c e 	 o f 	 33 	 pe n c e 	 pe r 	
s ha re 	 c o m pa re d 	 t o 	 t h e 	 s ha re 	 p r i c e 	 a t 	 t h e 	 d a te 	 o f 	 g ra n t 	 o f 	 2 4  75 	 pe n c e 	 pe r 	 s ha re	 t o 	 e n su re 	 t ha t 	 t h e 	 d i re c t o r s 	 c o u l d 	 o n ly 	 be n efi t 	 i f 	 ma te r ia l 	
s ha re h o l d e r 	 va l u e 	 wa s 	 cre a te d 	 th e se 	 o pt i o n s 	 w e re 	 su b j e c t 	 t o 	 a 	 ra n g e 	 o f 	 s ha re 	 p r i c e 	 t a r g et s 	  f ro m 	 4 9 5 	 pe n c e 	 t o 	 99 	 pe n c e  	 t o 	 be 	 m e a su re d 	 
over the 90 days ending on 31 december 2014 the threshold share price target of 495 pence was not met at 31 december 2014 and so these 
o pt i o n s 	  a s 	 set 	 o u t 	 be l ow  	 ha ve 	 la pse d	
  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 5 1   
number of 
options granted
face value  
of options  
at grant  
us
end of  
performance  
period
 	 receivab l e	 
for threshold 
performance
alexander chistyakov 2011667 825000 31 december 2014 25
john conlin 3840456 1575000
tom reed 3024816 1240500
  
outstanding awards – preipo options
on 	 1 7 	 j a n ua r y 	 2 0 12 	 p r i o r 	 t o 	 t h e 	 c o m p a n y ’ s 	 ini t ia l 	 p u b li c 	 o f fe r in g 	  ‘ ipo’ 	 o n 	 t h e 	 l o n do n 	 st ock 	 e x cha n g e 	 t h e 	 c o m p a n y 	 gra n ted 	 ma r k et 	 p r i ced	
options to the executive directors in position at that time at an exercise price equal to the ipo offer price these options vested onethird 
a nn ua l l y 	 o n 	 t h e 	 first 	 seco n d 	 a n d 	 t hird 	 a nni ve rsa r i es 	 o f 	 t h e 	 da te 	 o f 	 gra n t 	 b u t 	 c a n 	 o n l y 	 be 	 ex e rcised 	 bet w ee n 	 t h e 	 t hird 	 a n d 	 te n t h 	 a nni ve rsa r y 	 o f 	
the date of grant the vesting of these options was not subject to the satisfaction of any performance criteria other than continued 
employment the number of options granted to the executive directors in position at ipo is shown on page 52 of this report
directors’ external appointments
with the agreement of the chairman or in the case of the executive chairman the senior independent director executive directors may 
n o r mall y 	 be 	 pe r mi t ted 	 t o 	 tak e 	 o n e 	 n o n  ex ecu ti ve 	 direct o rs hi p 	 in 	 a 	 uk 	 listed 	 co m p an y 	 o u ts i d e 	 th e 	 g ro u p  	 s u ch 	 a p po in tm e n ts 	 m ust 	 be 	 n otifi ed 	 t o 	
the board as a whole and the time commitment required for the appointment is taken into consideration executive directors may retain fees for 
external appointments during the year ended 31 december 2014 none of the company’s executive directors held any such directorship
payments to past directors
the payments disclosed below were made to past directors during the year
payments for loss of office
don wolcott’s leaving arrangements
prior to his departure on 9 july 2013 don wolcott was employed under two separate employment contracts a russian contract and a uk 
contract settlement of mr wolcott’s russian contract and details of his outstanding share options were disclosed in last year’s directors’ 
remuneration report
during 2014 settlement was reached relating to mr wolcott’s uk contract the company paid 12 months’ base salary together with  
re la te d 	 be n efi t s 	 a n d 	 a 	 c o n t r ib u t i o n 	 t owa rd s 	 p ro fe s si o na l 	 c ost s 	 th i s 	 c o m p r i se d 	 u s  1 55 3 8 5 	 fo r 	 sa la r y  	 £ 12 1 8 2 	 fo r 	 be n efi t s 	 a n d 	 £ 2500 	 
for professional costs
tom reed’s settlement agreement
prior to his resignation on 2 february 2015 tom reed was employed under two separate employment contracts a russian contract and  
a 	 u k 	 c o n t ra c t 	 hi s 	 ru s sia n 	 c o n t ra c t 	 wa s 	 fo r 	 t h re e  y e a r 	 fi x e d 	 te r m 	 ex p i r i n g 	 o n 	 3 1 	 m a y 	 2 0 1 7  	 mr 	 re e d ’ s 	 ru s sia n 	 a n d 	 u k 	 c o n t ra c t s 	 w e re	
terminable on six months’ notice by settlement agreement
f o l l ow i n g 	 h i s 	 re si g na t i o n 	 t h e 	 c o m pa n y 	 pa i d 	 si x 	 m o n t h s ’ 	 b a se 	 sa la r y 	 t og et h e r 	 w i t h 	 re la te d 	 be n efi t s 	 a n d 	 a 	 c o n t r ib u t i o n 	 t owa rd s 	 p ro fe s si o na l 	
c ost s 	 t o 	 mr 	 re e d 	 reg a rd i n g 	 h i s 	 e n t i t l e m e n t 	 u n d e r 	 h i s 	 u k 	 c o n t ra c t 	 th i s 	 c o m p r i se d 	 u s  1 00  000 	 fo r 	 sa la r y  	 u s  56 509 	 fo r 	 be n efi t s 	 a n d 	
£5750 for professional costs in addition mr reed received us420242 for salary and accrued holiday pay and us5000 for professional 
costs regarding his entitlement under his russian contract
all of the share options granted to tom reed prior to the company’s ipo have vested and continue to be exercisable until 17 january 2022 at 
an exercise price of £134 per share 52 ruspetro plc annual report and accounts 2014
directors’ report
annual report on remuneration continued
statement of directors’ shareholdings and share interests
directors’ shareholdings 
there are currently no shareholding guidelines in place for directors the shareholdings for the directors as at 31 december 2014 are set  
out below 
shareholding  
as at 31 1214  
 o r 	 da t e 	 o f	
resignation  
if 	 ear li er  share options
1
alexander chistyakov 138058018 –
john conlin 46164 –
tom reed 23966665 4145053
robert jenkins 197974 –
kirill androsov
2
– –
maurice dijols 180322 –
frank monstrey 17689 –
mark pearson – –
1 the share options are exercisable up until 17 january 2022 being the tenth anniversary of grant
2	 k i r i l l 	 a nd r o s ov 	 i s 	 a pp o i n te d 	 to 	 t he 	 b oa r d 	 u nder 	 a 	 r el a t ion sh i p 	 a g r e emen t 	 b e t we en 	 t he 	 c o mpa ny 	 a nd 	 l i mo l i ne s 	 a nd 	 i s 	 de eme d 	 to 	 h ave 	 a 	 b ene fic i a l 	 i n ter e s t 	 i n 	 21 7  29 9  3 6 8 	
or d i n a r y 	 sh a r e s 	 w h ic h 	 a r e 	 held 	 by 	 l i mo l i ne s  	 i n 	 w h ic h 	 a lter a 	 i f 	  of 	 w h ic h 	 he 	 i s 	 a 	 b oa r d 	 memb er  	 i s 	 i n ter e s te d 	 i n 	 50  	 of 	 t he 	 i s s ue d 	 sh a r e 	 c a p it a l
sergey gordeev was appointed to the board on 3 february 2015 under a relationship agreement between the company and mastin and is 
d e e m e d 	 t o 	 ha ve 	 a 	 be n efi c ia l 	 i n te re st 	 i n 	 2 1 7  42 2 94 3 	 o rd i na r y 	 s ha re s 	 wh i ch 	 a re 	 h e l d 	 b y 	 m a st i n  	
th e re 	 w e re 	 n o 	 cha n g e s 	 t o 	 t h e 	 s ha re h o l d e r s 	 o f 	 t h e 	 c o n t i n u i n g 	 d i re c t o r s 	 bet w e e n 	 t h e 	 e n d 	 o f 	 t h e 	 fi na n c ia l 	 y e a r 	 a n d 	 t h e 	 d a te 	 o f 	 t h i s 	 
annual report
outstanding share option awards to former executive directors
director date of grant
number of 
options granted
vested options 
as at 010114
options vested 
in the year
options lapsed 
in the year
unvested 
options at 
yearend
exercise price 
p
date from 
which 
exercisable expiry date
tom reed 17 jan 2012 4145053 1381684 1381684 – 1381685 134 17 jan 2015 17 jan 2022
don wolcott 17 jan 2012 6217579 2072526 – – 134 17 jan 2015 17 jan 2022
o pt i o n s 	 ve st 	 o n e  t h i rd 	 a n n ua l ly 	 o n 	 fi r st 	 se c o n d 	 a n d 	 t h i rd 	 a n n ive r sa r i e s 	 o f 	 d a te 	 o f 	 g ra n t 	 th e 	 ex e rc i se 	 o f 	 t h e se 	 o pt i o n s 	 i s 	 n ot 	 su b j e c t 	 t o 	 t h e 	
satisfaction of any performance criteria 
the highest and lowest closing prices for the company’s shares during the year ended 31 december 2014 were 295p and 105p respectively 
the closing price of the company’s shares on 31 december 2014 was 165p 
historical company performance and chief executive pay
total shareholder return
the chart below shows the company’s total shareholder return since trading for ruspetro shares began on the london stock exchange on 
19 january 2012 against the ftse all share oil  gas exploration  production index the ftse all share oil  gas producers index was 
chosen as it is a broad based index of which the company is a constituent
total shareholder return
0
20
40
60
80
100
120
140
160
180
200
jan 12 jul 12 jan 13 jul 13 jan 14 jul 14
ruspetro plc ftse all share oil  gas producers index strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 5 3   
historical chief executive remuneration outcomes
th e 	 t a b l e 	 be l ow 	 s h ow s 	 t h e 	 si n g l e 	 t ot a l 	 fi g u re 	 o f 	 re m u n e ra t i o n 	 fo r 	 t h e 	 ch i ef 	 e x e c u t ive 	 o ve r 	 t h e 	 sa m e 	 pe r i od 	 a s 	 t h e 	 cha r t 	 a bo ve 	  i  e 	 o ve r 	 t h e	
la st 	 t h re e 	 y e a r s   	 i t 	 i s 	 b a se d 	 o n 	 re m u n e ra t i o n 	 re c e ive d 	 b y 	 do n 	 w o l c ot t 	 wh o 	 se r ve d 	 a s 	 ch i ef 	 e x e c u t ive 	 u n t i l 	 9 	 j u ly 	 2 0 1 3  	 t o m 	 re e d 	 a s 	 ac t i n g	
chief executive until 16 december 2013 and john conlin the current chief executive 
us000s
2014  
john conlin
2013  
john conlin
2013  
don wolcott
2013  
tom reed
2012  
don wolcott
chief executive single total figure of remuneration 1608 6 714 303 1469
annual bonus payout 556 – – – –
  	 o f 	 ma x i m u m 	 o p po r t u n i t y  	 35 
psp vesting
  	 o f 	 ma x i m u m 	 o p po r t u n i t y  na na na na na
percentage change in remuneration of the chief executive compared to employees elsewhere in the group
th e 	 ta b l e 	 be l ow 	 sets 	 o u t 	 th e 	 in crease 	 in 	 salar y  	 be n efi ts 	 an d 	 ann ual 	 bo n us 	 fo r 	 th e 	 c hi ef 	 e x ecu ti ve 	 co m p ared 	 t o 	 tha t 	 o f 	 th e 	 rest 	 o f 	 th e	 
company’s employees
 
 	 c h a ng e 	 i n	 
base salary
1
 	 c h a ng e	 
i n 	 b ene fit s
 	 c h a ng e 	 i n	 
annual bonus
20142013 20142013 20142013
chief executive 1 4  69 53 
all employees
2
0 0 1325
3
1	 t he 	 ba s e 	 s a l a r y 	 fig u r e 	 for 	 20 1 3 	 i s 	 a 	 c o mp o site 	 of 	 t he 	 ba s e 	 s a l a r ie s 	 pay ab le 	 to 	 m e s sr s 	 w o lc ot t  	 r e e d 	 a nd 	 c on l i n 	 i n 	 r el a t ion 	 to 	 t hei r 	 ten u r e s 	 a s 	 ch ie f 	 e x e c ut i ve 	 d u r i ng 	 t h a t 	 ye a r 
2 employees did not receive an annual salary increase during 2014 although increases were granted for any change in role or responsibilities
3	 e mp loye e s 	  e xc l ud i ng 	 t he 	 e x e c ut i ve 	 d i r e c tor s  	 a r e 	 a l s o 	 el ig i b le 	 for 	 a 	 p er s on a l 	 b on u s 	 of 	 u p 	 to 	 2 5 	 of 	 ba s e 	 s a l a r y 	 w h ic h 	 i s 	 ba s e d 	 on 	 p er s on a l 	 p er for m a nc e 	 d u r i ng 	 t he 	 p er io d  	
relative importance of spend on pay
the table below illustrates the current and prior year overall expenditure on pay and distributions made to shareholders during the year
2014 2013  	 chan g e
overall expenditure on pay 18892 17030 1 0  9
distributions to shareholders 0 0 0
statement of shareholder voting
the table below sets out the results of the vote on the remuneration report at the 2014 agm
votes for 
number 
votes against 
number 
total votes 
number 
votes withheld 
number
directors’ remuneration policy 186128604 9333 13299731 667 199428335 5154
annual remuneration report 186048517 9329 13381878 671 199430395 3094
 
maurice dijols
chairman of the remuneration committee
30 april 2015 54 ruspetro plc annual report and accounts 2014
directors’ report
remuneration policy report
for the purposes of transparency this part of the directors’ remuneration report includes a summary of the remuneration policy that was 
put to a binding vote at the company’s agm on 2 june 2014 and received overwhelming shareholder support the effective date of the policy 
is 2 june 2014 and it is expected to apply for three years from that date
refe re n c e s 	 ma d e 	 i n 	 t h e 	 2 0 1 3 	 p o l i c y 	 re po r t 	 t o 	 spe c i fi c 	 l e ve l s 	 o f 	 pa y 	 fo r 	 2 0 1 4 	 o r 	 ex p la na t i o n s 	 a s 	 t o 	 cha n g e s 	 i n 	 re m u n e ra t i o n 	 p ra c t i c e s 	 f ro m 	
prior years have been removed with the relevant information relating to 2015 included in the annual report on remuneration disclosures 
re la t i n g 	 t o 	 spe c i fi c 	 d i re c t o r s 	 ha ve 	 be e n 	 u pd a te d 	 wh e re 	 re q u i re d 	 fo r 	 ex a m p l e 	 wh e re 	 t h e re 	 ha ve 	 be e n 	 cha n g e s 	 t o 	 boa rd 	 m e m be r s h i p 	
the full policy report approved by the company’s shareholders at last year’s agm can be accessed in the 2013 annual report on the 
company’s website at wwwruspetrocom
remuneration policy
the remuneration committee’s purpose in developing an appropriate remuneration policy is to adequately attract motivate and retain 
ex e c u t ive s 	 o f 	 t h e 	 h i g h e st 	 c a l ib re 	 th e 	 re m u n e ra t i o n 	 st r u c t u re 	 fo r 	 e x e c u t ive 	 d i re c t o r s 	 i s 	 ma d e 	 u p 	 o f 	 t w o 	 e l e m e n t s  	 fi x e d 	 re m u n e ra t i o n 	
 c o n si st i n g 	 o f 	 b a se 	 sa la r y 	 a n d 	 be n efi t s  	 a n d 	 va r ia b l e 	 re m u n e ra t i o n 	  a n n ua l 	 bo n u s 	 a n d 	 l o n g 	 te r m 	 i n c e n t ive s   strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 5 5   
policy table – executive directors
the following table summarises each element of the remuneration policy for executive directors with effect from 2 june 2014
purpose and link to strategy operation maximum opportunity performance measures
salary
t o 	 pr ov ide 	 fi x e d 	 pay 	 t h a t 	 i s 	
s u f fic ien t 	 to 	 a t t r ac t 	 a nd 	 r e t a i n 	
a management team with 
sig n i fic a n t 	 e x p er t i s e 	 a nd 	
experience to deliver the 
company’s strategic objectives
– executives currently have two elements to their 
salary a uk element and a russian element
– executive director salaries may be paid in cash 
company shares or a mixture of both
– the committee takes a number of factors into 
account when setting executive directors’ 
salaries including
 •  the individual’s skills experience and  
recent performance
 •  the scope of the role
 •  business performance and affordability
 •  typical salary levels at comparable companies
 •  pay and conditions elsewhere in the company 
–   salaries are typically reviewed annually with 
any change taking effect from 1 january 
however the committee may determine  
salary changes at any other time as it  
considers appropriate
–  whilst there is no absolute maximum salary 
increases for executive directors will generally 
be in line with the average increase awarded in 
the wider employee population within the 
relevant geographic area
–  higher increases may be awarded in certain 
circumstances at the committee’s discretion 
for example this may include
  •  an increase in the scope andor responsibility 
of the individual’s role 
  •  a new executive director being moved to 
market positioning over time or
  •  where the committee considers that there is a 
genuine commercial need to do so
– none 
– however the performance of the individual in 
the role is one of the considerations taken into 
account by the committee in setting the level of 
salary and any future changes
benefits
to provide appropriate 
b ene fit s  	 i n 	 l i ne	 
with similarly sized companies 
and typical market practice
to support the recruitment  
and retention of executives  
of the necessary calibre
–	b ene fit s 	 m ay 	 i nc l ude 	 me d ic a l 	 i n s u r a nc e 	 
for the executive and his immediate family life 
insurance and permanent health insurance 
accommodation and a personal  
travel allowance 
–	o t her 	 b ene fit s 	 m ay 	 b e 	 pr ov ide d 	 ba s e d 	 on 	
individual circumstances and business 
requirements such as appropriate relocation 
and expatriate allowances 
– the committee may remove and amend any 
b ene fit 	 r e c ei ve d 	 by 	 e x e c ut i ve 	 d i r e c tor s 	 i f 	 it 	 i s 	
appropriate to do so
– the company does not currently operate  
a pension scheme
–	b ene fit s 	 a r e 	 g ener a l ly 	 s e t 	 a t 	 a n 	 a ppr opr i a te 	
market level taking into account a number of 
factors including market practice for 
comparable roles within appropriate  
pay comparators
–	t he 	 c o m m it te e 	 m ay 	 r e v ie w 	 t he 	 b ene fit 	
allowance for an existing or new executive 
director at any point given the complexity of 
s e t t i ng 	 a n 	 ab s o l ute 	 c a p 	 on 	 b ene fit s 	  t he 	 c o s t 	 of 	
which may vary from year to year as a result of 
for 	 e x a mp le  	 c h a ng e s 	 i n 	 he a lt hc a r e 	 pr em i u m s 	
the committee has not set such a maximum 
– none 
annual bonus
to incentivise and reward  
the achievement of both 
corporate and individual 
performance measures
kpis are consistent with the 
company’s shortterm and 
mediumterm objectives
– awarded annually usually based on 
performance in the annual bonus year
– the relevant bonus year runs from 1 january to 
31 december 
– targets are set annually by the committee and 
are assessed following the year end
– bonuses may be paid either in cash or in shares 
in the company at the committee’s discretion 
following the committee’s determination of 
bonus levels 
– where the committee decides to make awards 
in shares these may be deferred to such later 
date as the committee determines in such 
circumstances share awards may incorporate 
the right to receive the value of dividends 
which may assume reinvestment of those 
awards in the company’s shares 
– the committee may take such action as it 
considers appropriate to clawback any bonus 
paid or payable if events happen which may 
have an effect on bonus awards
– maximum award opportunity in respect of each 
b on u s 	 ye a r 	 i s 	 1 50  	 of 	 s a l a r y 	 for 	 t he 	 e x e c ut i ve	
directors
– the committee determines the precise 
measures at the start of each year ensuring that 
these are aligned to the company’s key strategic 
objectives for the year
– these will usually include production 
me a s u r e s  	 fi n a nc i a l 	 me a s u r e s 	 a nd 	 ke y 	 s t r a te g ic 	
and operational milestones the award based 
on overall company performance may be 
adju s te d 	 to 	 r e fle c t 	 t he 	 e x e c ut i ve’ s 	 i nd i v id u a l 	
contribution
–	p r o d uc t ion 	 a nd 	 fi n a nc i a l 	 me t r ic s 	 w i l l 	 u s u a l ly 	
ac c ou n t 	 for 	 a t 	 le a s t 	 40  	 of 	 t he 	 a w a r d 
– financial measures will be based on a sliding 
scale from threshold to maximum performance 
– all payments are subject to the committee’s 
discretion
– where the committee reasonably determines 
that any performance condition is no longer a 
fair measure of performance the committee 
m ay 	  a  	 w a i ve 	 t h a t 	 c ond it ion 	 or 	  b  	 a mend 	 it	
provided that the amended performance 
condition is in the opinion of the committee a 
fairer measure 
– the committee in its sole discretion may also 
determine that no performance condition will 
apply to all or some of the award 56 ruspetro plc annual report and accounts 2014
directors’ report
remuneration policy report continued
policy table – executive directors continued
purpose and link to strategy operation maximum opportunity performance measures
performance share plan
to link a substantial 
proportion of reward to the 
achievement of longterm 
shareholder value creation as 
ruspetro moves into the next 
stage of its development
– eligible employees may receive awards the 
vesting of which is usually based on 
performance over a reasonable period as 
determined by the committee awards may be 
s e t t le d 	 i n 	 c a sh 	 or 	 sh a r e s 	  i n 	 t he 	 for m 	 of	
conditional share awards or nilcost or market 
v a l ue 	 o pt ion s  	
– the committee sets performance targets which 
are assessed by it following the end of the 
relevant performance period
– the committee may determine that any awards 
vesting under the plan must be held by the 
company for an additional period following 
vesting before being released to directors
– share awards may be reduced or cancelled at 
any time prior to vesting at the discretion of the 
committee in certain circumstances such as a 
m a ter i a l 	 m i s s t a temen t 	 of 	 a ud ite d 	 fi n a nc i a l 	
results a failure of risk management a breach 
of health and safety regulations or serious 
reputational damage to the company or one of 
its business units 
–	a w a r d s 	 m ay 	 b e 	  a  	 adju s te d 	 i n 	 t he 	 e ven t 	 of 	 a ny	
variation of the company’s share capital 
demerger dividend in specie or any other 
exceptional event reasonably determined by the 
c o m m it te e 	 or 	  b  	 a mende d 	 i n 	 ac c or d a nc e 	 w it h	
the plan rules 
– the maximum value of shares over which an 
award may be granted in respect of any 
fi n a nc i a l 	 ye a r 	 of 	 t he 	 c o mpa ny 	 u nder 	 t he 	 p l a n 	 i s 	
1 50  	 of 	 s a l a r y 	 for 	 t he 	 e x e c ut i ve 	 d i r e c tor s	
– awards usually vest based on performance 
against a performance measure or combination 
of performance measures set by the committee 
– where the committee subsequently determines 
a ny 	 s uc h 	 me a s u r e  s  	 a r e 	 no 	 long er 	 a 	 f a i r	
me a s u r e  	 it 	 m ay 	  a  	 w a i ve 	 t he 	 t a r g e t 	 or 	  b 	
amend it provided that the amended target 
would be in its reasonable opinion a fairer 
measure in accordance with the rules of  
the plan 
– in 2015 as for 2014 the award will be based 
solely on the company’s share price 
p er for m a nc e  	 2 5 	 of 	 t he 	 a w a r d 	 w i l l 	 ve s t 	 for	
threshold performance increasing on a 
s t r a ig h t l i ne 	 ba si s 	 u p 	 to 1 0 0  	 for 	 e xc ept ion a l	
performance 
– the committee in its sole discretion may also 
determine that no performance condition will 
apply to all or some of the award
notes to the policy table
performance measures 
annual bonus plan the actual bonus measures and targets are set by the committee at the start of each year to ensure that executive 
directors are appropriately focused on the company’s shortterm and mediumterm objectives the aim is to provide an appropriate balance 
bet w e e n 	 i n c e n t iv i si n g 	 t h e 	 a ch i e ve m e n t 	 o f 	 a n n ua l 	 p rod u c t i o n 	 a n d 	 fi na n c ia l 	 t a r g et s 	 a n d 	 t o 	 d e l ive r 	 k e y 	 st ra teg i c 	 a n d 	 o pe ra t i o na l 	 m i l e st o n e s 	
this balance allows the committee to effectively reward performance against the key elements of our strategy 
in 	 ex c e pt i o na l 	 c i rc u m st a n c e s 	 t h e 	 c o m m i t te e 	 re se r ve s 	 t h e 	 fl ex ib i l i t y 	 t o 	 ma k e 	 a 	 m i n o r i t y 	 e l e m e n t 	 o f 	 t h e 	 bo n u s 	 n ot 	 su b j e c t 	 t o 	 a n y 	 pe r fo r ma n c e	
conditions such circumstances will include situations where retention of management is considered to be a key priority for the year and 
where this is considered to be in the best interests of the company’s shareholders
p e r fo r ma n c e 	 sha re 	 p la n  	 th e 	 re m u n e ra t i o n 	 c o m m i t te e 	 c o n si d e r s 	 t ha t 	 pe r fo r ma n c e 	 m e a su re s 	 b a se d 	 o n 	 e i t h e r 	 fi na n c ia l  o pe ra t i o na l 	
performance and on value delivered to shareholders would be appropriate for the psp the exact measures are chosen to be aligned with the 
longterm strategy of the company however the committee considers that strong performance under these measures should result in 
sustainable value creation for both shareholders and executive directors
provisions for the recovery of sums paid and the withholding of payments apply to payments in the manner explained in this report there 
are no other such provisions relating to directors
legacy plans
th e 	 c o m m i t te e 	 re se r ve s 	 t h e 	 r i g h t 	 t o 	 ma k e 	 a n y 	 re m u n e ra t i o n 	 pa y m e n t s 	 a n d 	 pa y m e n t s 	 fo r 	 l os s 	 o f 	 o f fi c e 	 n ot w i t h st a n d i n g 	 t ha t 	 t h e y 	 a re 	 n ot 	 i n 	
l i n e 	 w i t h 	 t h e 	 p o l i c y 	 set 	 o u t 	 a bo ve 	 wh e re 	 t h e 	 te r m s 	 o f 	 t h e 	 pa y m e n t 	 w e re 	 ag re e d 	  i  	 befo re 	 t h e 	 p o l i c y 	 c a m e 	 i n t o 	 ef fe c t 	 o r 	  i i  	 a t 	 a 	 t i m e 	 wh e n 	 t h e 	
relevant individual was not a director of the company and in the opinion of the committee the payment was not in consideration for the 
i n d iv i d ua l 	 be c o m i n g 	 a 	 d i re c t o r 	 o f 	 t h e 	 c o m pa n y  	 f o r 	 t h e se 	 p u r pose s 	 ‘ pa y m e n t s ’ 	 i n cl u d e s 	 t h e 	 c o m m i t te e 	 sa t i sf y i n g 	 a wa rd s 	 o f 	 va r ia b l e	
re m u n e ra t i o n 	 a n d 	 i n 	 re la t i o n 	 t o 	 a n 	 a wa rd 	 o ve r 	 s ha re s 	 t h e 	 te r m s 	 o f 	 t h e 	 pa y m e n t 	 a re 	 ‘ ag re e d ’ 	 a t 	 t h e 	 t i m e 	 t h e 	 a wa rd 	 i s 	 g ra n te d
recruitment policy
the committee’s policy on recruitment is to offer remuneration packages which facilitate the employment of individuals with the requisite 
knowledge expertise and experience to deliver company’s strategic objectives when appointing a new executive director the committee 
seeks to ensure that remuneration arrangements are appropriate and in the best interests of both the company and its shareholders strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 5 7   
generally pay on recruitment will be consistent with the usual policy for executive directors as set out in the policy table above however 
the committee may in its absolute discretion include remuneration components or awards which are not set out in the policy table where 
this would facilitate the recruitment of candidates of an exceptional calibre and skillset including market competitive pension 
arrangements where necessary the committee will ensure that this is only done where there is a genuine commercial need and where  
this is in the best interests of the company and its shareholders the absolute maximum level of variable pay set on recruitment will be  
in accordance with the policy table the committee does not propose to make any nonperformance related payments on recruitment 
in certain circumstances the committee may need to buyout longterm incentive arrangements relinquished on leaving a previous 
employer when doing so the committee will take a number of relevant factors into account including but not limited to performance 
conditions attached to these awards and the time and likelihood of vesting any payments or awards made under these circumstances are 
excluded from the maximum level of variable remuneration referred to above
the committee may in a recruitment scenario rely upon the listing rules exemption from shareholder approval to implement 
arrangements to facilitate the recruitment of a director
service contracts
each of the executive directors has a uk plc and a russian service contract details of which are shown below
uk plc contracts
name commencement of appointment date of service contract notice period by either party
john conlin 17 december 2013 31 january 2014 six months
tom reed 1 december 2011 16 december 2011 six months
alexander chistyakov 1 december 2011 12 january 2012 six months
russian contracts
name commencement of appointment date of service contract notice period by either party
john conlin 1 december 2013 11 december 2013 six months
tom reed 1 june 2011 1 january 2012 six months
alexander chistyakov 12 june 2012 12 june 2012 six months
both alexander chistyakov and tom reed agreed that with effect from 1 april 2014 the notice periods under their uk contract be reduced 
from twelve months’ to six months’ notice by either party as detailed earlier in this report tom reed resigned from the board on 2 february 
2015 the company may terminate employment under the uk contracts by making a payment in lieu of the individual’s notice period plus 
t h e 	 c ost 	 t o 	 t h e 	 c o m pa n y 	 o f 	 p ro v i d i n g 	 t h e 	 c o n t ra c t ua l 	 be n efi t s 	 fo r 	 t h e 	 n ot i c e 	 pe r i od 	 th e 	 e x e c u t ive 	 d i re c t o r s 	 do 	 n ot 	 ha ve 	 a n y 	 c o n t ra c t ua l 	
entitlement to any bonus amounts under the annual bonus plan or the vesting of awards under the psp upon termination  
o f 	 e m p l o y m e n t 	 in 	 re spe c t 	 o f 	 t h e 	 ru s sia n 	 c o n t ra c t s 	 t h e re 	 i s 	 n o 	 e q u iva l e n t 	 r i g h t 	 t o 	 b r i n g 	 t h e 	 fi x e d 	 te r m 	 c o n t ra c t 	 t o 	 a n 	 i m m e d ia te 	 e n d 	 
a director’s contract can be brought to an immediate end in limited circumstances provided the reasons for such termination comply  
with russian law in addition contracts may be terminated by mutual agreement of the parties on payment of six months’ base salary
 
copies of the executive directors’ service contracts are available from the company secretary
policy on payment to executive directors for loss of office
the committee takes a number of factors into account when determining leaving arrangements for executive directors
• the committee will give due consideration to the circumstances under which a director left 
• the committee must satisfy any contractual obligations agreed with the executive director this is dependent on the contractual 
o b l i g a t i o n s 	  i  	 n ot 	 be i n g 	 i n 	 c o n t ra d i c t i o n 	 w i t h 	 t h e 	 po l i c y 	 set 	 o u t 	 i n 	 t h i s 	 re po r t 	 o r 	  i i  	 i f 	 so  	 n ot 	 ha v i n g 	 be e n 	 e n te re d 	 i n t o 	 o r 	 a m e n d e d	 
o n 	 o r 	 a f te r 	 2 7 	 j u n e 	 2 0 12 	  i n 	 a c c o rd a n c e 	 w i t h 	 t h e 	 re l e va n t 	 l eg i s la t i o n  
in such circumstances the committee may use its discretion to determine that an executive director may be eligible to receive an 
appropriate bonus amount for the year in which he left which would be subject to performance up to the date of termination and prorated 
for time unless the committee determines otherwise the committee may also approve a contribution towards a departing executive’s legal 
or other professional costs where appropriate
  58 ruspetro plc annual report and accounts 2014
directors’ report
remuneration policy report continued
policy on payment to executive directors for loss of office continued
further details on the incentive plans operated by the company in which executive directors participate are set out in the table below
plan
good leaver 
reasons
treatment for 
good leavers
treatment for 
other leavers
annual bonus plan – illness injury or disability
–  employing company ceasing to be 
under the control of the company
–  transfer of employing business 
outside group
–  any other reason at the 
committee’s discretion
– death
bonuses may be paid at the  
discretion of the committee
unvested deferred awards will vest  
in full on the normal vesting date  
or earlier in full or in part at the 
committee’s discretion
if a participant dies deferred awards 
which have not yet vested vest in  
full on death
unless the committee determines 
otherwise any entitlement to a bonus 
or rights to receive deferred bonus 
shares will be forfeited for leavers 
prior to the normal payment date 
performance  
share plan
– illness injury or disability
– redundancy
–  employing company ceasing to be 
under the control of the company
–  transfer of employing business 
outside group
–  any other reason at the 
committee’s discretion
– death
awards may either vest at the  
normal vesting date or at the  
time of cessation at the  
committee’s discretion
the award shall vest to the extent to 
which the performance condition has 
be e n 	 m et 	  wh e re 	 t h e 	 c o n d i t i o n 	 i s	
assessed early in such manner as  
t h e 	 c o m m i t te e 	 c o n si d e r s 	 re a so na b l e  
where the awards vest in these 
circumstances awards will also  
ve st 	 p ro 	 ra t a 	 t o 	 refl e c t 	 t h e 	 e la pse d 	
proportion of the performance 
period unless the committee 
determines otherwise in relation  
to a particular grant
in the case of death awards vest to 
the extent performance conditions 
ha ve 	 be e n 	 m et 	  a s 	 d ete r m i n e d 	 b y 	 t h e	
c o m m i t te e  	 a n d 	 re d u c e d 	 p ro 	 ra t a 	 t o	
refl e c t 	 t h e 	 n u m be r 	 o f 	 c o m p l ete 	
months elapsed in the vesting period 
awards lapse in full
change of control
bonus
in the event of a takeover or merger the committee may make bonus awards early having made such adjustments to the size of awards and 
any relevant performance targets as it considers appropriate where bonus awards are made in shares in the event of any variation of the 
company’s share capital demerger special distribution change of control delisting or other transaction which would in the opinion of the 
committee affect the current or future value of shares the committee may allow awards to vest early or amend the terms of any  
such awards 
psp
in the event of a takeover of the company outstanding awards under the psp will vest on the date on which the change of control occurs 
t a k i n g 	 i n t o 	 a c c o u n t 	 t h e 	 ex te n t 	 t o 	 wh i ch 	 a n y 	 pe r fo r ma n c e 	 c o n d i t i o n 	 ha s 	 be e n 	 sa t i sfi e d 	 th e 	 l e ve l 	 o f 	 ve st i n g 	 o f 	 a wa rd s 	 ma y 	 a l so 	 be 	 re d u c e d 	 i n	
these circumstances at the committee’s discretion alternatively awards may be exchanged for shares in the acquiring company 
in the event of a demerger special distribution or other transaction or arrangement that in the opinion of the committee would affect the 
current future value of the awards the committee may allow awards to vest on the same basis as for a takeover
  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 59   
illustration of the remuneration policy
th e 	 cha r t s 	 be l ow 	 i l l u st ra te 	 t h e 	 va l u e s 	 o f 	 t h e 	 re m u n e ra t i o n 	 pa ck ag e 	 fo r 	 t h e 	 e x e c u t ive 	 d i re c t o r s 	  i n 	 u s   	 u n d e r 	 va r i o u s 	 pe r fo r ma n c e 	 sc e na r i os 	
in 2015
executive chairman – alexander chistyakov
in line with 
expectations minimum
▪
fixed pay – regular   
▪
annual bonus   
▪
longterm incentive
maximum
performance
100
65
28
27
10
979k
610k
37
37
2260k
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
0
4500000
chief executive officer – john conlin
in line with 
expectations minimum
▪
fixed pay – regular   
▪
annual bonus   
▪
longterm incentive
maximum
performance
100
61
37
29
10
1854k
1150k
37
26
4300k
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
0
4500000
the illustrations are based on the following assumptions
minimum in line with expectations maximum
f i x e d 	 pa y 	  reg u la r 
base salary as at 1 january 2015 
th e 	 a n n ua l 	 va l u e 	 o f 	 be n efi t s 	 ha s 	
been estimated at us100000 
for the chief executive and 
us60000 for the  
executive chairman
performancerelated  
annual bonus
none 50  	 o f 	 sa la r y 1 50  	 o f 	 sa la r y
performance share plan
none 25  	 ve st i n g 	 u n d e r 	 t h e 	 ps p	 1 00  	 ve st i n g 	 u n d e r 	 t h e 	 ps p	
the charts show share options granted under the psp in 2015 which 
ha ve 	 be e n 	 va l u e d 	 a t 	 a 	 t h i rd 	 o f 	 t h e 	 ‘ fa c e 	 va l u e ’ 	 o f 	 1 50  	 o f 	 sa la r y 	 a t	
maximum in line with the methodology set out by the financial 
reporting lab however the committee reserves the right to grant 
conditional awards of shares under the psp in the future 
no share price growth has been assumed in this illustration 
policy table – nonexecutive directors
role purpose operation
nonexecutive  
director fees 
to enable the company to attract and  
retain high calibre nonexecutive directors with  
substantial experience of leading and advising large 
international companies within the company’s sector  
and with russian and uk experience
fees may be paid in cash in shares in the company or a 
mixture of both taking account of the typical time 
commitment and the level of involvement required as well  
as the challenging sector and geography within which the 
company operates insofar as this impacts the demands 
placed on the role the company’s articles do not set a 
maximum level of fees payable
in addition to the basic nonexecutive director fee 
additional fees may be paid for the performance of special 
services including but not limited to the election of one of 
their number as chairman of the board as senior 
independent director or to the chairmanship of  
any committee 
f e e s 	 a re 	 d ete r m i n e d 	 b y 	 t h e 	 cha i r ma n 	 o f 	 t h e 	 boa rd 	  ex c e pt 	 i n	
re la t i o n 	 t o 	 h i s 	 o r 	 h e r 	 ow n 	 fe e s  	 a n d 	 t h e 	 e x e c u t ive 	 d i re c t o r s	
and are reviewed periodically 
  60 ruspetro plc annual report and accounts 2014
directors’ report
remuneration policy report continued
policy table – nonexecutive directors continued
role purpose operation
benefits to reimburse nonexecutive directors for reasonable 
expenses where relevant
nonexecutives are reimbursed for travel and 
accommodation expenses incurred in connection with their 
duties eg for attendance at board and board committee 
meetings if any such expenses are recognised as a taxable 
be n efi t 	 t h e n 	 t h e 	 n o n  ex e c u t ive 	 ma y 	 re c e ive 	 t h e 	 g ros se d  u p	
c ost s 	 o f 	 t h e 	 ex pe n se 	 a s 	 a 	 be n efi t
nonexecutive director letters of appointment
nonexecutive directors do not have service contracts and their terms are set out in a letter of appointment each appointment is for an 
initial term of three years subject to reelection at each agm and may be terminated by either party on one month’s notice nonexecutive 
directors are not entitled to any compensation beyond their notice period where appropriate on leaving the board copies of the letters of 
appointment for nonexecutive directors are available from the company secretary
 
consideration of pay and conditions elsewhere in the company
when considering the remuneration arrangements for the company’s executive directors the committee gives due regard to the pay and 
conditions of employees throughout the company the committee recognises that the roles and responsibilities of executive directors are 
such that the structure of remuneration will be different from that of the wider employee population with a greater proportion of executive 
d i re c t o r 	 re m u n e ra t i o n 	 be i n g 	 l i n k e d 	 t o 	 t h e 	 fi na n c ia l 	 pe r fo r ma n c e 	 o f 	 t h e 	 c o m pa n y  	 th e 	 c o m m i t te e 	 i s 	 a dv i se d 	 o f 	 t h e 	 sa la r y 	 i n cre a se s 	 a cros s	
the company when considering executive directors’ salaries and while due regard is given to employee views the committee does not 
directly consult with employees on executive remuneration matters
remuneration arrangements across the company
the remuneration policy for our executive directors has been designed in line with the remuneration philosophy and principles that 
underpin remuneration for the wider group while the structure may differ all reward arrangements are built around the common 
objectives and principles outlined below
• reward should be driven by performance – 	 rewa rd s 	 p ro v i d e d 	 t h ro ug h 	 t h e 	 re m u n e ra t i o n 	 po l i c y 	 a re 	 fa i r ly 	 e a r n e d 	 a n d 	 j u st i fi e d 	 b y 	
performance to that effect a proportion of remuneration should be performancerelated and linked to both individual and corporate 
performance the intention is to ensure that individuals are rewarded based on their contribution to the group and on the success of  
the group
• pay should be competitive in the relevant market – rewards are intended to be competitive in the market without paying more than is 
necessary to recruit and retain individuals within this framework reward packages may differ based on the location seniority and level 
of responsibility of each individual
consideration of the views of our shareholders
the committee is committed to ongoing dialogue with our shareholders and welcomes feedback on our remuneration policy and its 
a p p l i c a t i o n  	 w e 	 w o u l d 	 n o r ma l ly 	 se e k 	 t o 	 c o n su l t 	 w i t h 	 s ha re h o l d e r s 	 reg a rd i n g 	 a n y 	 si g n i fi c a n t 	 f u t u re 	 cha n g e s 	 t o 	 re m u n e ra t i o n 	 po l i c y 	 
or arrangements strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 6 1   
th e 	 d i re c t o r s 	 a re 	 re spo n sib l e 	 fo r 	 p re pa r i n g 	 t h e 	 a n n ua l 	 re po r t 	 a n d 	 t h e 	 g ro u p 	 a n d 	 c o m pa n y 	 fi na n c ia l 	 st a te m e n t s 	 i n 	 a c c o rd a n c e 	 w i t h 	
applicable law and regulations 
c o m pa n y 	 la w 	 re q u i re s 	 t h e 	 d i re c t o r s 	 t o 	 p re pa re 	 fi na n c ia l 	 st a te m e n t s 	 fo r 	 e a ch 	 fi na n c ia l 	 y e a r  	 u n d e r 	 t ha t 	 la w  	 t h e 	 d i re c t o r s 	 ha ve 	 p re pa re d	 
t h e 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 t h e 	 g ro u p 	 a n d 	 t h ose 	 o f 	 t h e 	 c o m pa n y 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 f i na n c ia l 	 re po r t i n g 	 st a n d a rd s 	  ‘ if r s s ’  	 
a s 	 a do pte d 	 b y 	 t h e 	 e u ro pe a n 	 u n i o n 	  ‘ e u ’  	 a n d 	 a p p l i c a b l e 	 la w 	
u n d e r 	 c o m pa n y 	 la w  	 t h e 	 d i re c t o r s 	 m u st 	 n ot 	 a p p ro ve 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 u n l e s s 	 t h e y 	 a re 	 sa t i sfi e d 	 t ha t 	 t h e y 	 g ive 	 a 	 t r u e 	 a n d 	 fa i r 	 v i ew 	 o f 	
t h e 	 st a te 	 o f 	 a f fa i r s 	 o f 	 t h e 	 g ro u p 	 a n d 	 t h e 	 c o m pa n y 	 a n d 	 o f 	 t h e i r 	 p ro fi t 	 o r 	 l os s 	 fo r 	 t ha t 	 pe r i od 	 in 	 p re pa r i n g 	 t h e se 	 fi na n c ia l 	 st a te m e n t s 	 t h e 	
directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and accounting estimates that are reasonable and prudent
• state whether ifrss as adopted by the eu have been followed subject to any material departures disclosed and explained in the group 
a n d 	 p a re n t 	 fi na n c ia l 	 st a te m e n t s 	 re spe c t ive ly 	 a n d
• pre p are 	 th e 	 finan cial 	 sta te m e n ts 	 o n 	 th e 	 g o in g 	 co n ce rn 	 b as is 	 unl ess 	 i t 	 is 	 ina p p ro p r ia te 	 t o 	 p res um e 	 tha t 	 th e 	 co m p an y 	 w ill 	 co n tin u e 	 in 	 b us in ess 
th e 	 direct o rs 	 are 	 res po ns i b l e 	 fo r 	 k ee p in g 	 a d eq ua te 	 a cco un tin g 	 reco rds 	 tha t 	 are 	 s uf fi ci e n t 	 t o 	 s h ow 	 an d 	 ex p lain 	 th e 	 g ro u p ’ s 	 an d 	 th e 	 co m p an y ’ s	
transa cti o ns 	 an d 	 discl ose 	 w i th 	 reaso na b l e 	 a ccura cy 	 a t 	 an y 	 tim e 	 th e 	 finan cial 	 pos i ti o n 	 o f 	 th e 	 g ro u p 	 an d 	 th e 	 co m p an y 	 an d 	 e na b l e 	 th e m 	 t o 	 e ns ure	
tha t 	 th e 	 finan cial 	 sta te m e n ts 	 an d 	 th e 	 direct o rs ’ 	 re m un e ra ti o n 	 r e po r t 	 co m p l y 	 w i th 	 th e 	 co m p ani es 	 act 	 2 006  	 th ey 	 are 	 also 	 res po ns i b l e 	 fo r	
safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and  
other irregularities
under applicable law and regulations the directors are also responsible for preparing a strategic report directors’ report directors’ 
remuneration report and corporate governance statement that complies with that law and those regulations
th e 	 d i re c t o r s 	 a re 	 re spo n sib l e 	 fo r 	 t h e 	 ma i n te na n c e 	 a n d 	 i n teg r i t y 	 o f 	 t h e 	 c o r po ra te 	 a n d 	 fi na n c ia l 	 i n fo r ma t i o n 	 i n cl u d e d 	 o n 	 t h e 	 c o m pa n y ’ s 	
w ebsi te 	 l eg i s la t i o n 	 i n 	 t h e 	 u k 	 g o ve r n i n g 	 t h e 	 p re pa ra t i o n 	 a n d 	 d i s se m i na t i o n 	 o f 	 fi na n c ia l 	 st a te m e n t s 	 ma y 	 d i f fe r 	 f ro m 	 l eg i s la t i o n 	 i n 	 
other jurisdictions
directors’ responsibility statement
w e 	 c o n fi r m 	 t ha t 	 t o 	 t h e 	 be st 	 o f 	 o u r 	 k n owl e dg e 
• th e 	 fi na n c ia l 	 st a te m e n t s 	 p re pa re d 	 i n 	 a c c o rd a n c e 	 w i t h 	 if r s s 	 a s 	 a do pte d 	 b y 	 t h e 	 e u  	 g ive 	 a 	 t r u e 	 a n d 	 fa i r 	 v i ew 	 o f 	 t h e 	 a s set s 	 l ia b i l i t i e s	
fi na n c ia l 	 posi t i o n 	 a n d 	 p rofi t 	 o r 	 l os s 	 o f 	 t h e 	 c o m pa n y 	 a n d 	 t h e 	 u n d e r t a k i n g s 	 i n cl u d e d 	 i n 	 t h e 	 c o n so l i d a t i o n 	 t a k e n 	 a s 	 a 	 wh o l e 
• the strategic report includes a fair review of the development and performance of the business and the position of the company and the 
undertakings included in the consolidation taken as a whole together with a description of the principal risks and uncertainties that they 
face and
• the annual report taken as a whole is fair balanced and understandable and provide the information necessary for shareholders to 
assess the company’s performance business model and strategy 
by order of the board
 
alexander chistyakov  john conlin    
e x e c u t ive 	 cha i r ma n	 	 ch i ef 	 e x e c u t ive 	 o f fi c e r
directors’ report
directors’ responsibilities statements 62 ruspetro plc annual report and accounts 2014
financial statements
independent auditors’ report  
to the members of ruspetro plc 
report on the group financial statements
our opinion
in 	 o u r 	 o p i n i o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 d efi n e d 	 be l ow
• g ive 	 a 	 t r u e 	 a n d 	 fa i r 	 v i ew 	 o f 	 t h e 	 st a te 	 o f 	 t h e 	 g ro u p ’ s 	 a f fa i r s 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 o f 	 i t s 	 l os s 	 a n d 	 c a s h 	 fl ow s 	 fo r 	 t h e 	 y e a r 	 t h e n 	 e n d e d 
• ha ve 	 be e n 	 p ro pe r ly 	 p re pa re d 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 f i na n c ia l 	 re po r t i n g 	 st a n d a rd s 	  if r s s  	 a s 	 a do pte d 	 b y 	 t h e 	 e u ro pe a n 	 u n i o n  	
and
• have been prepared in accordance with the requirements of the companies act 2006 and article 4 of the ias regulation
this opinion is to be read in the context of what we say in the remainder of this report
emphasis of matter – going concern
in 	 fo r m i n g 	 o u r 	 o p i n i o n 	 o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 wh i ch 	 i s 	 n ot 	 m od i fi e d 	 w e 	 ha ve 	 c o n si d e re d 	 t h e 	 a d e q ua c y 	 o f 	 t h e 	 d i scl osu re s 	 ma d e 	 i n 	 n ote 	 2 	
t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 c o n c e r n i n g 	 t h e 	 g ro u p ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 a 	 g o i n g 	 c o n c e r n  	 th i s 	 a b i l i t y 	 i s 	 d e pe n d e n t 	 o n 	 wh et h e r 	 t h e 	 g ro u p 	 c a n 	
re n eg ot ia te 	 i t s 	 d ebt 	 c o ve na n t s 	 su c c e s sf u l ly  	 th i s 	 c o n d i t i o n 	 i n d i c a te s 	 t h e 	 ex i ste n c e 	 o f 	 a 	 ma te r ia l 	 u n c e r t a i n t y 	 wh i ch 	 ma y 	 c a st 	 si g n i fi c a n t 	 do u bt 	
a bo u t 	 t h e 	 g ro u p ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 a 	 g o i n g 	 c o n c e r n  	 th e 	 fi na n c ia l 	 st a te m e n t s 	 do 	 n ot 	 i n cl u d e 	 t h e 	 a d ju st m e n t s 	 t ha t 	 w o u l d 	 re su l t 	 i f 	 t h e 	
group was unable to continue as a going concern
what we have audited
th e 	 g ro u p 	 fi na n c ia l 	 st a te m e n t s 	  t h e 	 “fi na n c ia l 	 st a te m e n t s ”   	 wh i ch 	 a re 	 p re pa re d 	 b y 	 ru spet ro 	 p l c  	 c o m p r i se 
• t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 fi na n c ia l 	 posi t i o n 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 
• t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 p rofi t 	 o r 	 l os s 	 a n d 	 ot h e r 	 c o m p re h e n sive 	 i n c o m e 	 fo r 	 t h e 	 y e a r 	 t h e n 	 e n d e d 
• t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 cha n g e s 	 i n 	 e q u i t y 	 a n d 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 c a s h 	 fl ow s 	 fo r 	 t h e 	 y e a r 	 t h e n 	 e n d e d  	 a n d
• t h e 	 n ote s 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 wh i ch 	 i n cl u d e 	 a 	 su m ma r y 	 o f 	 si g n i fi c a n t 	 a c c o u n t i n g 	 po l i c i e s 	 a n d 	 ot h e r 	 ex p la na t o r y 	 i n fo r ma t i o n 
th e 	 fi na n c ia l 	 re po r t i n g 	 f ra m ew o r k 	 t ha t 	 ha s 	 be e n 	 a p p l i e d 	 i n 	 t h e i r 	 p re pa ra t i o n 	 i s 	 a p p l i c a b l e 	 la w 	 a n d 	 if r s s 	 a s 	 a do pte d 	 b y 	 t h e 	 e u ro pe a n 	 u n i o n 
what an audit of financial statements involves
w e 	 c o n d u c te d 	 o u r 	 a u d i t 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 st a n d a rd s 	 o n 	 au d i t i n g 	 u k 	 a n d 	 ire la n d  	  “ isa s 	 u k 	  	 ire la n d  ”  	 a n 	 a u d i t 	 i n v o lve s	
o bt a i n i n g 	 e v i d e n c e 	 a bo u t 	 t h e 	 a m o u n t s 	 a n d 	 d i scl osu re s 	 i n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 su f fi c i e n t 	 t o 	 g ive 	 re a so na b l e 	 a s su ra n c e 	 t ha t 	 t h e 	 fi na n c ia l 	
statements are free from material misstatement whether caused by fraud or error this includes an assessment of 
• whether the accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed 
• t h e 	 re a so na b l e n e s s 	 o f 	 si g n i fi c a n t 	 a c c o u n t i n g 	 e st i ma te s 	 ma d e 	 b y 	 t h e 	 d i re c t o r s  	 a n d	
• t h e 	 o ve ra l l 	 p re se n t a t i o n 	 o f 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	
in 	 a d d i t i o n 	 w e 	 re a d 	 a l l 	 t h e 	 fi na n c ia l 	 a n d 	 n o n  fi na n c ia l 	 i n fo r ma t i o n 	 i n 	 t h e 	 a n n ua l 	 re po r t 	 a n d 	 ac c o u n t s 	  t h e 	 “ a n n ua l 	 re po r t ”  	 t o 	 i d e n t i f y 	
ma te r ia l 	 i n c o n si ste n c i e s 	 w i t h 	 t h e 	 a u d i te d 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 t o 	 i d e n t i f y 	 a n y 	 i n fo r ma t i o n 	 t ha t 	 i s 	 a p pa re n t ly 	 ma te r ia l ly 	 i n c o r re c t 	 b a se d 	
on or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we become aware of any apparent 
material misstatements or inconsistencies we consider the implications for our report
overview of our audit approach
materiality
we set certain thresholds for materiality these helped us to determine the nature timing and extent of our audit procedures and to evaluate 
t h e 	 ef fe c t 	 o f 	 m i s st a te m e n t s 	 bot h 	 i n d iv i d ua l ly 	 a n d 	 o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 a s 	 a 	 wh o l e
ba se d 	 o n 	 o u r 	 p ro fe s si o na l 	 j u dg e m e n t 	 w e 	 d ete r m i n e d 	 ma te r ia l i t y 	 fo r 	 t h e 	 g ro u p 	 fi na n c ia l 	 st a te m e n t s 	 a s 	 a 	 wh o l e 	 t o 	 be 	  2 0 	 m i l l i o n  	 th i s	
re p re se n t s 	 a p p ro x i ma te ly 	 0  5  	 o f 	 t ot a l 	 a s set s 	 w e 	 ha ve 	 a p p l i e d 	 t h i s 	 be n ch ma r k 	 be c a u se 	 re ve n u e s 	 o r 	 p rofi t 	 befo re 	 t a x 	 w e re 	 n ot 	 c o n si d e re d 	
suitable benchmarks as the company remains in the development stage 
w e 	 ag re e d 	 w i t h 	 t h e 	 au d i t 	 c o m m i t te e 	 t ha t 	 w e 	 w o u l d 	 re po r t 	 t o 	 t h e m 	 m i s st a te m e n t s 	 i d e n t i fi e d 	 d u r i n g 	 o u r 	 a u d i t 	 a bo ve 	  0  2 	 m i l l i o n 	 a s 	 w e l l 	 a s 	
misstatements below that amount that in our view warranted reporting for qualitative reasons
overview of the scope of the audit
th e 	 g ro u p 	 ha s 	 five 	 re po r t i n g 	 u n i t s 	 ru spet ro 	 p l c  	 ru spet ro 	 h o l d i n g s 	 l i m i te d 	 ru spet ro 	 l l c 	 i n g a 	 a n d 	 t ra n s  o i l  	 th e 	 g ro u p 	 fi na n c ia l 	
statements are a consolidation of these reporting units and centralised functions
in establishing the overall approach to the group audit we determined the type of work that needed to be performed at reporting units by us 
a s 	 t h e 	 g ro u p 	 e n g ag e m e n t 	 te a m 	 o r 	 c o m po n e n t 	 a u d i t o r s 	 f ro m 	 ot h e r 	 p w c 	 n et w o r k 	 fi r m s 	 o pe ra t i n g 	 u n d e r 	 o u r 	 i n st r u c t i o n  	 w h e re 	 t h e 	 w o r k 	 wa s	
performed by component auditors we determined the level of involvement we needed to have in the audit work at those reporting units to be 
a b l e 	 t o 	 c o n cl u d e 	 wh et h e r 	 su f fi c i e n t 	 a p p ro p r ia te 	 a u d i t 	 e v i d e n c e 	 ha d 	 be e n 	 o bt a i n e d 	 a s 	 a 	 b a si s 	 fo r 	 o u r 	 o p i n i o n 	 o n 	 t h e 	 g ro u p 	 fi na n c ia l 	 st a te m e n t s 	
as a whole strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 63   
w e 	 pe r fo r m e d 	 a n 	 a u d i t 	 o f 	 t h e 	 c o m p l ete 	 fi na n c ia l 	 i n fo r ma t i o n 	 fo r 	 t h e 	 fo l l ow i n g 	 re po r t i n g 	 u n i t s 
 ruspetro plc
 ruspetro llc
 inga and
 transoil
th i s 	 t og et h e r 	 w i t h 	 a d d i t i o na l 	 p ro c e d u re s 	 a t 	 t h e 	 g ro u p 	 l e ve l 	 g a ve 	 u s 	 t h e 	 e v i d e n c e 	 w e 	 n e e d e d 	 fo r 	 o u r 	 o p i n i o n 	 o n 	 t h e 	 g ro u p 	 fi na n c ia l 	
statements as a whole
areas of particular audit focus
in 	 p re pa r i n g 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 t h e 	 d i re c t o r s 	 ma d e 	 a 	 n u m be r 	 o f 	 su b j e c t ive 	 j u dg e m e n t s 	 fo r 	 ex a m p l e 	 i n 	 re spe c t 	 o f 	 si g n i fi c a n t 	 a c c o u n t i n g 	
estimates that involved making assumptions and considering future events that are inherently uncertain we primarily focused our work in 
these areas by assessing the directors’ judgements against available evidence forming our own judgements and evaluating the disclosures in 
t h e 	 fi na n c ia l 	 st a te m e n t s
in our audit we tested and examined information using sampling and other auditing techniques to the extent we considered necessary to 
provide a reasonable basis for us to draw conclusions we obtained audit evidence through testing the effectiveness of controls substantive 
procedures or a combination of both 
we considered the following areas to be those that required particular focus in the current year this is not a complete list of all risks or areas 
o f 	 fo c u s 	 i d e n t i fi e d 	 b y 	 o u r 	 a u d i t 	 w e 	 d i sc u s se d 	 t h e se 	 a re a s 	 o f 	 fo c u s 	 w i t h 	 t h e 	 au d i t 	 c o m m i t te e 	 th e i r 	 re po r t 	 o n 	 t h ose 	 ma t te r s 	 t ha t 	 t h e y	
c o n si d e re d 	 t o 	 be 	 si g n i fi c a n t 	 i s su e s 	 i n 	 re la t i o n 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 i s 	 set 	 o u t 	 o n 	 pag e 	 3 8 
 
area of focus how the scope of our audit addressed the area of focus
going concern
management and the directors have the primary responsibility for 
p re pa r i n g 	 t h e 	 fi na n c ia l 	 st a te m e n t 	 o n 	 t h e 	 g o i n g 	 c o n c e r n 	 b a si s 	 a s	
with last year we have considered the directors’ decision to adopt 
t h e 	 g o i n g 	 c o n c e r n 	 b a si s 	 i n 	 p re pa r i n g 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	
we obtained the directors’ forecast of the group’s funding 
requirements for the next 12 months from the date of approval of 
t h e se 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 d et a i l s 	 o f 	 t h e 	 a va i la b l e 	 fi na n c i n g 	
facilities we considered whether appropriate account had been taken 
o f 	 t h e 	 se a so na l 	 c a s h 	 fl ow s 	 i n h e re n t 	 i n 	 t h e 	 g ro u p ’ s 	 b u si n e s s 	 w e	
discussed and challenged the actions the directors said they could 
t a k e 	 t o 	 a l te r 	 t h e 	 t i m i n g 	 a n d o r 	 a m o u n t 	 o f 	 c a s h 	 fl ow s 	 a n d 	 t h e 	 st a t u s 	 o f	
t h e 	 d i re c t o r s ’ 	 n eg ot ia t i o n s 	 w i t h 	 t h e 	 g ro u p ’ s 	 p ro v i d e r s 	 o f 	 fi na n c e 	 w e	
have obtained at the calculation of the covenants and the company’s 
compliance over the projected period our conclusion on going 
concern is below
accounting for the debt restructure
the group completed the transfer and simultaneous restructuring 
of its existing debt and put option obligations with sberbank and 
with a debt and equity obligation with a new provider bank otkritie 
and mastin holdings limited respectively
we obtained legal and other supporting documentation completed in 
connection with the transfer of the debt and put option along with 
appropriate approvals from the board of directors the accounting of 
restructure was tested to ensure it complied with the applicable 
a c c o u n t i n g 	 st a n d a rd s 	 a n d 	 ha s 	 be e n 	 c o r re c t ly 	 refl e c te d 	 i n 	 t h e 	
d i scl osu re s 	 i n 	 t h e 	 fi na n c ia l 	 st a te m e n t s
risk of fraud in revenue recognition
auditing standards require that we consider the risk of fraud in 
revenue recognition 
we have focused on the potential manipulation of revenue by the 
manual posting of journal entries on top of the daytoday recording 
of transactions we have also tested the amount and timing of revenue 
recognition taking into account the key revenue streams contractual 
obligations and validity of manual journal entries
risk of management override of internal controls
auditing standards require that we consider the risk that 
management may override controls within the organisation 
e m p l o y e e s 	 i n 	 ma nag e m e n t 	 posi t i o n s 	 a re 	 i n c e n t iv i se d 	 b y 	 fi na n c ia l 	
performance measures and as a result fraud risk due to override 
of controls andor manipulation of results may be increased
we assessed the overall control environment of the group including 
the arrangements for staff to “whistleblow” inappropriate actions 
and interviewed senior management and those responsible for group’s 
c o m p l ia n c e 	 w e 	 ex a m i n e d 	 t h e 	 si g n i fi c a n t 	 a c c o u n t i n g 	 e st i ma te s 	 a n d 	
j u dg e m e n t s 	 re l e va n t 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 fo r 	 e v i d e n c e 	 o f 	 b ia s 	 b y 	
the directors that may represent a risk of material misstatement due 
to fraud in particular we tested key reconciliations and manual 
journal entries 64 ruspetro plc annual report and accounts 2014
financial statements
independent auditors’ report  
to the members of ruspetro plc continued 
going concern
th e 	 d i re c t o r s 	 ha ve 	 v o l u n t a r i ly 	 c o m p l i e d 	 w i t h 	 l i st i n g 	 ru l e 	 98  6 r  3  	 o f 	 t h e 	 f i na n c ia l 	 c o n d u c t 	 au t h o r i t y 	 a n d 	 p ro v i d e d 	 a 	 st a te m e n t 	 i n 	
relation to going concern set out on page 61 required for companies with a premium listing on the london stock exchange
we have nothing to report having performed our review
a s 	 n ote d 	 i n 	 t h e 	 d i re c t o r s ’ 	 st a te m e n t 	 t h e 	 d i re c t o r s 	 ha ve 	 c o n cl u d e d 	 t ha t 	 i t 	 i s 	 a p p ro p r ia te 	 t o 	 p re pa re 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 u si n g 	 t h e 	 g o i n g 	
concern basis of accounting the going concern basis presumes that the group has adequate resources to remain in operation and that the 
d i re c t o r s 	 i n te n d 	 i t 	 t o 	 do 	 so  	 fo r 	 a t 	 l e a st 	 o n e 	 y e a r 	 f ro m 	 t h e 	 d a te 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 w e re 	 si g n e d 	 a s 	 pa r t 	 o f 	 o u r 	 a u d i t 	 w e 	 ha ve 	 c o n cl u d e d	
that the directors’ use of the going concern basis is appropriate
however because not all future events or conditions can be predicted these statements are not a guarantee as to the group’s ability to 
continue as a going concern
opinion on other matter prescribed by the companies act 2006
in 	 o u r 	 o p i n i o n 	 t h e 	 i n fo r ma t i o n 	 g ive n 	 i n 	 t h e 	 st ra teg i c 	 re po r t 	 a n d 	 t h e 	 d i re c t o r s ’ 	 re po r t 	 fo r 	 t h e 	 fi na n c ia l 	 y e a r 	 fo r 	 wh i ch 	 t h e 	 fi na n c ia l 	
st a te m e n t s 	 a re 	 p re pa re d 	 i s 	 c o n si ste n t 	 w i t h 	 t h e 	 fi na n c ia l 	 st a te m e n t s
other matters on which we are required to report by exception
adequacy of information and explanations received
under the companies act 2006 we are required to report to you if in our opinion we have not received all the information and explanations 
we require for our audit we have no exceptions to report arising from this responsibility 
directors’ remuneration
u n d e r 	 t h e 	 c o m pa n i e s 	 ac t 	 2 00 6 	 w e 	 a re 	 re q u i re d 	 t o 	 re po r t 	 t o 	 y o u 	 i f  	 i n 	 o u r 	 o p i n i o n 	 c e r t a i n 	 d i scl osu re s 	 o f 	 d i re c t o r s ’ 	 re m u n e ra t i o n 	 spe c i fi e d 	 b y 	
law are not made we have no exceptions to report arising from this responsibility 
corporate governance statement
under the listing rules we are required to review the part of the corporate governance statement relating to the company’s compliance 
w i t h 	 n i n e 	 p ro v i si o n s 	 o f 	 t h e 	 u k 	 c o r po ra te 	 g o ve r na n c e 	 c od e 	  ‘ t h e 	 c od e ’   	 on 	 pag e 	 6 1 	 o f 	 t h e 	 a n n ua l 	 re po r t	 a s 	 re q u i re d 	 b y 	 t h e 	 c od e 	 p ro v i si o n	
c11 the directors state that they consider the annual report taken as a whole to be fair balanced and understandable and provides the 
information necessary for members to assess the group’s performance business model and strategy on page 38 as required by c38 of the 
c od e 	 t h e 	 au d i t 	 c o m m i t te e 	 ha s 	 set 	 o u t 	 t h e 	 si g n i fi c a n t 	 i s su e s 	 t ha t 	 i t 	 c o n si d e re d 	 i n 	 re la t i o n 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 h ow 	 t h e y 	 w e re	
a d d re s se d 	 u n d e r 	 isa s 	 u k 	  	 ire la n d  	 w e 	 a re 	 re q u i re d 	 t o 	 re po r t 	 t o 	 y o u 	 i f  	 i n 	 o u r 	 o p i n i o n 	
• the statement given by the directors is materially inconsistent with our knowledge of the group acquired in the course of performing our 
audit or
• the section of the annual report describing the work of the  
audit committee does not appropriately address matters communicated by us to the audit committee
we have no exceptions to report arising from this responsibility
other information in the annual report
u n d e r 	 isa s 	 u k 	  	 ire la n d  	 w e 	 a re 	 re q u i re d 	 t o 	 re po r t 	 t o 	 y o u 	 i f 	 
in our opinion information in the annual report is
• ma te r ia l ly 	 i n c o n si ste n t 	 w i t h 	 t h e 	 i n fo r ma t i o n 	 i n 	 t h e 	 a u d i te d 	 fi na n c ia l 	 st a te m e n t s  	 o r
• apparently materially incorrect based on or materially inconsistent with our knowledge of the group acquired in the course of 
performing our audit or
• is otherwise misleading
we have no exceptions to report arising from this responsibility strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 6 5   
responsibilities for the financial statements and the audit
our responsibilities and those of the directors
as explained more fully in the directors’ responsibilities statement set out on page 61 the directors are responsible for the preparation of 
t h e 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 fo r 	 be i n g 	 sa t i sfi e d 	 t ha t 	 t h e y 	 g ive 	 a 	 t r u e 	 a n d 	 fa i r 	 v i ew 
o u r 	 re spo n sib i l i t y 	 i s 	 t o 	 a u d i t 	 a n d 	 ex p re s s 	 a n 	 o p i n i o n 	 o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 i n 	 a c c o rd a n c e 	 w i t h 	 a p p l i c a b l e 	 la w 	 a n d 	 isa s 	 u k 	  	 ire la n d   	
those standards require us to comply with the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior 
consent in writing
other matter
w e 	 ha ve 	 re po r te d 	 se pa ra te ly 	 o n 	 t h e 	 pa re n t 	 c o m pa n y 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 ru spet ro 	 p l c 	 fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 o n 	 t h e 	
information in the directors’ remuneration report that is described as having been audited that report includes an emphasis of matter
kevin reynard senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
aberdeen
30 april 2015
notes
 a 	 t he 	 m a i n ten a nc e 	 a nd 	 i n te g r it y 	 of 	 t he 	 ru s p e t r o 	 p lc 	 web site 	 i s 	 t he 	 r e s p on si b i l it y 	 of 	 t he 	 d i r e c tor s 	 t he 	 work 	 c a r r ie d 	 out 	 by 	 t he 	 a ud itor s 	 do e s 	 not 	 i nvo lve 	 c on sider a t ion 	 of 	 t he s e 	
m a t ter s 	 a nd  	 ac c or d i ng ly  	 t he 	 a ud itor s 	 ac c ept 	 no 	 r e s p on si b i l it y 	 for 	 a ny 	 c h a ng e s 	 t h a t 	 m ay 	 h ave 	 o c c u r r e d 	 to 	 t he 	 fi n a nc i a l 	 s t a temen t s 	 si nc e 	 t he y 	 wer e 	 i n it i a l ly 	 pr e s en te d 	 on 	 t he 	
website
 b 	 l e g i sl a t ion 	 i n 	 t he 	 u n ite d 	 k i ng do m 	 gover n i ng 	 t he 	 pr epa r a t ion 	 a nd 	 d i s s em i n a t ion 	 of 	 fi n a nc i a l 	 s t a temen t s 	 m ay 	 d i f fer 	 f r o m 	 le g i sl a t ion 	 i n 	 ot her 	 ju r i s d ic t ion s 66 ruspetro plc annual report and accounts 2014
financial statements
co n s o l i d a t ed 	 s t a t e m e n t 	 o f 	 p r o fi t 	 o r 	 l o ss 	 
and other comprehensive income 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 st a te d 
year ended 31 december
note 2014 2013
revenue 7 55100 79849
cost of sales 8 51688 65 900
gross profit 3412 13949
selling and administrative expenses 9 20822 22468 
other operating expenses 1160 2086 
operating loss 18570 10605
finance costs 11 37965 32 996
foreign exchange loss 20 202410 25586 
other expenses 10 4443 5062 
loss before income tax 263388 74249
in c o m e 	 t a x 	 be n efi t 12 495 11
loss for the period 262893 74238
other comprehensive lossincome that may be
reclassified subsequently to lossprofit net of income tax
exchange difference on translation to presentation currency 9832  1 1 0 6 3 
total comprehensive loss for the period 272725 85301
the entire amount of loss and total comprehensive loss for the period are attributable to equity holders of the company
loss per share
ba si c 	 a n d 	 d i l u te d 	 l os s 	 pe r 	 o rd i na r y 	 s ha re 	 u s   26 072 022 
 
john conlin      alexander betsky
ch i ef 	 e x e c u t ive 	 o f fi c e r	 	 	 	 f i na n c e 	 d i re c t o r
th e 	 a c c o m pa n y i n g 	 n ote s 	 o n 	 pag e s 	 7 0 	 t o 	 9 3 	 a re 	 a n 	 i n teg ra l 	 pa r t 	 o f 	 t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 6 7   
31 december
notes 2014 2013
assets
noncurrent assets
property plant and equipment 13 148139 234203
mineral rights and other intangibles 14 231562 395533
379701 629736
current assets
inventories 15 584 1681
trade and other receivables 16 6565 6660
income tax prepayment 21 35
other current assets 17 5065 –
cash and cash equivalents 18 12022 15832
24257 24208
total assets 403958 653944
shareholders’ equity
share capital 19 135493 51226
share premium 389558 220506
retained loss 429752 153106 
exchange difference on translation to presentation currency 44956 35 124
other reserves 25397 11759
total equity 75740 95261
liabilities
noncurrent liabilities
borrowings 20 238801 402896
provision for dismantlement 21 4238 7940
deferred tax liabilities 12 49457 83502
292496 494338
current liabilities
borrowings 20 8303 303
trade and other payables 22 25447 43842
taxes payable other than income tax 1550 2265
other current liabilities 17 422 17935
35722 64345
total liabilities 328218 558683
total equity and liabilities 403958 653944
john conlin      alexander betsky
ch i ef 	 e x e c u t ive 	 o f fi c e r	 	 	 	 f i na n c e 	 d i re c t o r
th e 	 a c c o m pa n y i n g 	 n ote s 	 o n 	 pag e s 	 7 0 	 t o 	 9 3 	 a re 	 a n 	 i n teg ra l 	 pa r t 	 o f 	 t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s
consolidated statement of financial position 
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 st a te d  68 ruspetro plc annual report and accounts 2014
financial statements
consolidated statement of changes in equity 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 n ote d 
note share capital
share 
premium
retained 
earnings
exchange 
difference on 
translation to 
presentation 
currency other reserves total equity
balance as at 1 january 2013 51226 220506  87 7 41   24  0 6 1  20517 180447
loss for the period – – 7 4238 – – 7 4238
other comprehensive loss for the period – – –  1 1 0 6 3  –  1 1 0 6 3 
total comprehensive loss for the period – – 74238 11063 – 85301
share options of shareholders 17 – – 8873 – 8873 –
sharebased payment compensation – – – – 115 115
balance as at 31 december 2013 51226 220506 153106  35 124 11759 95261
balance as at 1 january 2014 51226 220506 153106 35124 11759 95261
loss for the period – –  2 6289 3  – –  2 6289 3 
other comprehensive loss for the period – – –  9832  –  9832 
total comprehensive loss for the period – – 262893 9832 – 272725
issue of shares 84202 168986 – – – 253188
share options of shareholders 17 – – 13 753 – 13753 –
sharebased payment compensation 65 66 – – 115 16
balance as at 31 december 2014 135493 389558 429752 44956 25397 75740
 
john conlin      alexander betsky
ch i ef 	 e x e c u t ive 	 o f fi c e r	 	 	 	 f i na n c e 	 d i re c t o r
th e 	 a c c o m pa n y i n g 	 n ote s 	 o n 	 pag e s 	 7 0 	 t o 	 9 3 	 a re 	 a n 	 i n teg ra l 	 pa r t 	 o f 	 t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 6 9   
year ended 31 december
note 2014 2013
cash flows from operating activities
loss before income tax 263388 7 4249
adjustments for
 depreciation depletion and amortisation 13 14 26992 21748
 foreign exchange loss 20 202410 25586
 finance costs 11 37965 32996
 impairment of assets 10 2137 –
	 im pa i r m e n t 	 o f 	 fi na n c ia l 	 i n st r u m e n t s 10 1285 –
 sharebased payment compensation 16 115
 other operating expenses 353 1909
operating cash inflows before working capital adjustments 7770 8105
working capital adjustments
 change in trade and other receivables 631 1565
 change in inventories 575 886
 change in trade and other payables 2461 7140
 change in other taxes receivablepayable 1943 12347
net cash flows from operating activities 3310 26913
cash flows from investing activities
purchase of property plant and equipment 42541 441 06 
p u rcha se 	 o f 	 fi na n c ia l 	 i n st r u m e n t s 7062 –
net cash used in investing activities 49603 44106
cash flows from financing activities
p ro c e e d s 	 f ro m 	 i s su e 	 o f 	 s ha re 	 c a p i t a l 	  n et  19 37466 –
proceeds from loans and borrowings 20 160000 –
repayments of loans and borrowings 20 150750 –
interest paid 690 –
o t h e r 	 fi na n c i n g 	 cha r g e s 	 pa i d 20 1500  1  0 0 0 
net cash generated fromused in financing activities 44526  1  0 0 0 
net decrease in cash and cash equivalents 1767 18193
effect of exchange rate changes on cash and cash equivalents 2043 39 1
cash and cash equivalents at the beginning of the period 15832 34416
cash and cash equivalents at the end of the period 12022 15832
refe r 	 t o 	 n ote 	 2 0 	 fo r 	 t h e 	 refi na n c i n g 	 t ra n sa c t i o n 	 t ha t 	 d i d 	 n ot 	 re q u i re 	 t h e 	 u se 	 o f 	 c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 a n d 	 wa s 	 ex cl u d e d 	 f ro m 	 t h e 	 c a s h 	
fl ow 	 st a te m e n t 
 
john conlin      alexander betsky
ch i ef 	 e x e c u t ive 	 o f fi c e r	 	 	 	 f i na n c e 	 d i re c t o r
th e 	 a c c o m pa n y i n g 	 n ote s 	 o n 	 pag e s 	 7 0 	 t o 	 9 3 	 a re 	 a n 	 i n teg ra l 	 pa r t 	 o f 	 t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s
consolidated statement of cash flows 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 st a te d  70 ruspetro plc annual report and accounts 2014
1 corporate information
th e 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 ru spet ro 	 p l c 	  t h e 	 ‘ c o m pa n y ’ 	 o r 	 ‘ ru spet ro ’  	 a n d 	 i t s 	 su bsi d ia r i e s 	 t og et h e r 	 refe r re d 	 t o 	 a s 	 ‘ t h e 	 g ro u p ’	
for the year ended 31 december 2014 were approved by its board of directors on 30 april 2015 
the company was incorporated in the united kingdom on 20 october 2011 as a public company under the provisions of the companies act 
2 00 6 	 o f 	 e n g la n d 	 a n d 	 w a l e s 	 th e 	 c o m pa n y ’ s 	 reg i ste re d 	 o f fi c e 	 i s 	 5 8 	 g ros ve n o r 	 st re et 	 l o n do n 	 w 1k 	 3 j b 	 e n g la n d
the principal activities of the group are exploration for and production of crude oil the operating subsidiaries of the group – ojsc inga 
a n d 	 o j sc 	 t ra n s  o i l 	  h e re i na f te r 	 refe r re d 	 t o 	 a s 	 i n g a 	 a n d 	 t ra n s  o i l 	 re spe c t ive ly  	 h o l d 	 t h re e 	 l i c e n c e s 	 fo r 	 ex p l o ra t i o n 	 fo r  	 a n d 	 ex t ra c t i o n 	 o f 	
crude oil and natural gas in the khantymansiysk region of the russian federation 
details of subsidiaries consolidated within the group are as follows
effective ownership
company business activity country of incorporation
year of 
incorporation
31 december
2014 2013
ruspetro holding limited holding company republic of cyprus
2007 100 1 00 
ru spet ro 	 l l c 	  ‘ ru spet ro 	 ru s sia ’  crude oil sale russian federation
2005 100 1 00 
inga exploration and production of crude oil russian federation
1998 100 1 00 
transoil exploration and production of crude oil russian federation
2001 100 1 00 
2 basis of preparation
th e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 t h e 	 g ro u p 	 ha ve 	 be e n 	 p re pa re d 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 f i na n c ia l 	 re po r t i n g 	 st a n d a rd s 	
 if r s  	 a s 	 a do pte d 	 b y 	 t h e 	 e u ro pe a n 	 u n i o n  	 th e 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re pa re d 	 u n d e r 	 t h e 	 h i st o r i c a l 	 c ost 	 c o n ve n t i o n 	 m od i fi e d 	
for fair values under ifrs
th e 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re se n te d 	 i n 	 u s 	 do l la r s 	 u s   	 a n d 	 a l l 	 va l u e s 	 a re 	 ro u n d e d 	 t o 	 t h e 	 n e a re st 	 t h o u sa n d 	 u n l e s s 	 
otherwise indicated
group financial restructuring
on 	 5 	 de c e m be r 	 2 0 1 4 	 t h e 	 s ha re h o l d e r s 	 o f 	 t h e 	 c o m pa n y 	 a p p ro ve d 	 a 	 fi na n c ia l 	 re st r u c t u r i n g 	  t h e 	 re st r u c t u r i n g  	 a t 	 a 	 g e n e ra l 	 m e et i n g  	 th e	
restructuring included the issue of shares under an open offer and placing as well as in consideration for the capitalisation of existing 
indebtedness as described below 
on 	 9 	 de c e m be r 	 2 0 1 4 	 o j sc 	 sbe r b a n k 	 o f 	 ru s sia 	  “s be r ba n k ”  	 t ra n sfe r re d 	 i t s 	 cre d i t o r s 	 r i g h t s 	 a n d 	 l l c 	 s be r b a n k 	 c a p i t a l 	  “sbe r b a n k 	 c a p i t a l ” 	
t ra n sfe r re d 	 i t s 	 r i g h t s 	 u n d e r 	 i t s 	 p u t 	 o pt i o n 	 t o 	 m a st i n 	 h o l d i n g s 	 l i m i te d 	  “ m a st i n ”  	 i n 	 t ot a l 	 a m o u n t 	 o f 	 u s  35 8 076 	 t h o u sa n d 	 p a r t 	 o f 	 t h e 	 d ebt	
i n 	 t h e 	 a m o u n t 	 o f 	 u s  1 50  000 	 t h o u sa n d 	 wa s 	 re pa i d 	 b y 	 m e a n s 	 o f 	 a 	 five  y e a r 	 te r m 	 cre d i t 	 fa c i l i t y 	 re c e ive d 	 o n 	 1 0 	 de c e m be r 	 2 0 1 4 	 f ro m 	 o j sc 	
“ ba n k 	 o t k r i t i e 	 f i na n c ia l 	 c o r po ra t i o n ” 	  “ o t k r i t i e ”   	 th e 	 re ma i n i n g 	 d ebt 	 wa s 	 c a p i t a l i se d 	 t h ro ug h 	 t h e 	 i s su e 	 o f 	 n ew 	 o rd i na r y 	 s ha re s 	 t o 	 m a st i n 	
wh i ch 	 a l so 	 p u rcha se d 	 sbe r b a n k 	 c a p i t a l ’ s 	 s ha re h o l d i n g 	 i n 	 t h e 	 c o m pa n y ’ s 	 c a p i t a l 	 re su l t i n g 	 i n 	 m a st i n 	 ha v i n g 	 a n 	 ag g reg a te 	 25  	 s ha re h o l d i n g	
in the company’s enlarged issued share capital following the open offer and placing
on 11 december 2014 the company completed a fully underwritten open offer and a placing at 10 pence per ordinary share raising united 
k i n g do m 	 ste r l i n g 	  ‘ £’  	 3 2 9 	 m i l l i o n 	  a p p ro x i ma te ly 	 u s  52 3 	 m i l l i o n  	 befo re 	 ex pe n se s
th e 	 c o m pa n y ’ s 	 o b l i g a t i o n 	 t o 	 re pa y 	 a 	 s ha re h o l d e r 	 l oa n 	 f ro m 	 l i m o l i n e s 	 t ra n spo r t 	 l i m i te d 	 l i m o l i n e s  	 w i t h 	 p r i n c i pa l 	 a n d 	 i n te re st 	 a m o u n t i n g 	
t o 	 u s  1 0  7 	 m i l l i o n 	 i n 	 f eb r ua r y 	 2 0 1 5 	  t h e 	 l i m o l i n e s 	 l oa n  	 wa s 	 o f f  set 	 ag a i n st 	 l i m o l i n e s ’ 	 su bscr i pt i o n 	 fo r 	 n ew 	 o rd i na r y 	 s ha re s 	 i n 	 t h e 	 p la c i n g	
and open offer additionally the company undertook to pay us50 million in respect of accrued interest on a shareholder loan from 
makayla investments limited in may 2015 total shareholder outstanding loans as at 31 december 2014 were equal to us994 million
following the restructuring otkritie has committed to provide a new development facility for up to us1000 million as well as a new credit 
facility for up to us447 million
the guaranteed net proceeds of the restructuring comprising the initial tranche of the development facility of us500 million and gross 
p ro c e e d s 	 o f 	 £3 2 9 	 m i l l i o n 	  a p p ro x i ma te ly 	 u s  52 3 	 m i l l i o n  	 f ro m 	 t h e 	 p la c i n g 	 a n d 	 o pe n 	 o f fe r 	 l e s s 	 c ost s 	 o f 	 t h e 	 re st r u c t u r i n g 	 o f 	 a p p ro x i ma te ly 	
us57 million comprised approximately us966 million in addition the company will be able to draw down up to us447 million under 
the credit facility
th e 	 d ra w dow n 	 o f 	 t h e 	 d e ve l o p m e n t 	 fa c i l i t y 	 se c o n d 	 t ra n ch e 	 o f 	 u s  50  0 	 m i l l i o n 	  ex pe c te d 	 t o 	 be 	 a va i la b l e 	 f ro m 	 j u ly 	 2 0 1 5  	 i s 	 d e pe n d e n t 	 o n 	 
the group meeting certain covenants under the development facility should the applicable development facility covenants not be met or  
the development facility second tranche is not drawn down then the company will only receive the guaranteed net proceeds of  
the restructuring
notes to the consolidated financial statements 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	 strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 7 1   
the completion of the restructuring occurred on 11 december 2014 with the admission of 536310294 new ordinary shares to listing on  
t h e 	 p re m i u m 	 seg m e n t 	 o f 	 t h e 	 o f fi c ia l 	 l i st 	 o f 	 t h e 	 u k 	 l i st i n g 	 au t h o r i t y 	 a n d 	 t o 	 t ra d i n g 	 o n 	 t h e 	 l o n do n 	 st o ck 	 e x cha n g e ’ s 	 ma i n 	 ma r k et 	 fo r 	 l i ste d 	
se c u r i t i e s 	  t h e 	 ad m i s si o n   	 in 	 a d d i t i o n 	 t h e 	 c o m pa n y 	 i s su e d 	 42 0  2 42 	 n ew 	 o rd i na r y 	 s ha re s 	 i n 	 l i e u 	 o f 	 sa la r y 	 t o 	 c e r t a i n 	 c u r re n t 	 a n d 	 fo r m e r	
d i re c t o r s 	 f o l l ow i n g 	 t h e 	 ad m i s si o n 	 a n d 	 a s 	 a t 	 t h e 	 d a te 	 o f 	 t h e se 	 fi na n c ia l 	 st a te m e n t s 	 t h e 	 c o m pa n y ’ s 	 i s su e d 	 s ha re 	 c a p i t a l 	 c o m p r i se s	
870112016 ordinary shares
going concern
th e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re pa re d 	 o n 	 a 	 g o i n g 	 c o n c e r n 	 b a si s
at 31 december 2014 the group reported net current liabilities of us11465 thousand which included cash in hand of us12022 thousand
th e 	 g ro u p ’ s 	 c o n t i n u i n g 	 o pe ra t i o n s 	 a re 	 d e pe n d e n t 	 u po n 	 i t s 	 a b i l i t y 	 t o 	 ma k e 	 f u r t h e r 	 i n ve st m e n t s 	 i n 	 fi e l d 	 d e ve l o p m e n t 	 i n 	 o rd e r 	 t o 	 g row 	 i t s 	
h yd ro c a r bo n 	 p rod u c t i o n 	 a n d 	 sa l e s 	 in 	 t h e 	 s h o r t 	 te r m 	 t h i s 	 fi e l d 	 d e ve l o p m e n t 	 i s 	 p la n n e d 	 t o 	 i n v o lve 	 i n 	 pa r t i c u la r  	 t h e 	 d r i l l i n g 	 o f 	 a 	 n u m be r 	 o f	
h o r i z o n t a l 	 w e l l s 	 t h e 	 su c c e s s 	 o f 	 wh i ch 	 w i l l 	 o n ly 	 be 	 k n ow n 	 w i t h 	 c e r t a i n t y 	 o n c e 	 e a ch 	 w e l l 	 i s 	 c o m p l ete d 	 th e 	 fi r st 	 a n d 	 t h e 	 se c o n d 	 h o r i z o n t a l 	
wells were drilled and launched into production in july and october 2014 respectively in the light of these results the nature and extent of 
the group’s drilling programme may change over time with a consequent change in investment requirements
ac c o rd i n g ly  	 t h e 	 a b i l i t y 	 o f 	 t h e 	 g ro u p 	 t o 	 g e n e ra te 	 su f fi c i e n t 	 c a s h 	 f ro m 	 o pe ra t i o n s 	 ma y 	 be 	 ma te r ia l ly 	 a f fe c te d 	 b y 	 t h e 	 re su l t s 	 o f 	 t h e 	 g ro u p ’ s 	
current appraisal activity and the success of future drilling activities as well as by a number of economic factors to which the group’s 
fi na n c ia l 	 fo re c a st s 	 a re 	 pa r t i c u la r ly 	 se n si t ive 	 su ch 	 a s 	 cr u d e 	 o i l 	 p r i c e s 	 t h e 	 l e ve l 	 o f 	 i n fla t i o n 	 i n 	 ru s sia 	 a n d 	 fo re i g n 	 ex cha n g e 	 ra te s
th e 	 g ro u p 	 fi na n c e s 	 i t s 	 ex p l o ra t i o n 	 a n d 	 d e ve l o p m e n t 	 a c t iv i t i e s 	 u si n g 	 a 	 c o m b i na t i o n 	 o f 	 c a s h 	 i n 	 ha n d 	 o pe ra t i n g 	 c a s h 	 fl ow 	 g e n e ra te d 	 ma i n ly 	
f ro m 	 t h e 	 sa l e 	 o f 	 cr u d e 	 o i l 	 p rod u c t i o n 	 p re pa y m e n t s 	 f ro m 	 fo r wa rd 	 o i l 	 sa l e 	 ag re e m e n t s 	 a n d 	 a d d i t i o na l 	 d ebt 	 o r 	 e q u i t y 	 fi na n c i n g 	 a s 	 re q u i re d
in addition to the agreement with otkritie during the reporting period the group negotiated a rollover of the us30 million advance 
fi na n c i n g 	 a r ra n g e m e n t 	 w i t h 	 g l e n c o re 	 e n e r g y 	 u k 	 ltd 	  g l e n c o re  	 a n d 	 o bt a i n e d 	 ru s sia n 	 r u b l e 	  “ r u r ”  	 750  000 	 t h o u sa n d 	 u s  2 1  646	
t h o u sa n d  	 a n d 	 r u r 2 00  000 	 t h o u sa n d 	 u s  4  68 9 	 t h o u sa n d  	 a s 	 fo r wa rd 	 o i l 	 sa l e 	 p re pa y m e n t s 	 f ro m 	 l l c 	 e n e r g o re su r s 	  “ e n e r g o re su r s ” 	
 se e 	 n ote 	 2 2   	 th e 	 g ro u p 	 a l so 	 se c u re d 	 f u r t h e r 	 s ha re h o l d e r 	 fi na n c e 	 o f 	 u s  1 0 	 m i l l i o n 	 i n 	 s h o r t  te r m 	 f u n d i n g 	 a s 	 a n n o u n c e d 	 o n 	 2 6 	 aug u st 	 2 0 1 4 	
from limolines a major shareholder of the company
on 14 november 2014 an extension of existing shareholder loans was agreed until october 2016 and february 2020
as further discussed in note 20 the credit facility obtained from otkritie contains certain covenants which the group needs to meet to avoid 
acceleration of the debt repayment schedule the two sensitive covenants are ebitda and production volumes
th e 	 p ro j e c t i o n s 	 p re pa re d 	 b y 	 ma nag e m e n t 	 fo r 	 t h e 	 p u r pose s 	 o f 	 p re pa ra t i o n 	 o f 	 t h e se 	 fi na n c ia l 	 st a te m e n t s 	 s h ow s 	 t ha t 	 t h e 	 g ro u p 	 m i g h t 	 b re a ch 	
its ebitda covenant for the year ending 31 december 2015 and four consecutive quarters ending 31 march 2016 the main reason for this  
is a substantial decline of the oil price which is beyond the control of the group to mitigate this risk management has commenced 
negotiations with otkritie to revise the covenants to a level that is within the current forecasts the group has also received in april 2015  
a 	 w r it t e n 	 c o n fi r ma t i o n 	 t ha t 	 o t k r it ie 	 ha s 	 n o 	 i n t e n t i o n 	 to 	 t a k e 	 a n y 	 ac t i o n s 	 to 	 ac c e l e ra t e 	 repay m e n t 	 o f 	 t h e 	 l oa n s 	 a s 	 a 	 re su l t 	 o f 	 t h e 	 pos sib l e 	 b re ach	
of covenants for the periods referred to above the outcome of such negotiations cannot be certain and therefore the directors recognise 
t ha t 	 t h i s 	 re p re se n t s 	 a 	 ma te r ia l 	 u n c e r t a i n t y 	 wh i ch 	 ma y 	 c a st 	 si g n i fi c a n t 	 do u bt 	 o ve r 	 t h e 	 g ro u p ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 a 	 g o i n g 	 c o n c e r n 
h ow eve r  	 o n 	 t h e 	 b a s is 	 o f 	 t h e 	 a ssum pt i o ns 	 a n d 	 c a s h 	 fl ow 	 fo rec a st s 	 p re p a red 	 ma nag e m e n t 	 ha s 	 a ssum ed 	 t ha t 	 t h e 	 g ro u p 	 w i l l 	 co n t in u e 	 t o 	 o pe ra te	
w i t hin 	 bot h 	 a va i la b l e 	 a n d 	 p rospec t i ve 	 fa ci li t i es  	 acco rd in g l y  	 t h e 	 g ro u p 	 fina n cia l 	 sta te m e n t s 	 a re 	 p re p a red 	 o n 	 t h e 	 g o in g 	 co n ce r n 	 b a s is 	 a n d 	 do 	
not include any adjustments that would be required in the event that the group were no longer able to meet its liabilities as they fall due
3 summary of significant accounting policies
principles of consolidation
subsidiaries
subsidiaries are those entities in which the group has an interest of more than one half of the voting rights or otherwise has power to 
exercise control over their operations subsidiaries are consolidated from the date on which control is transferred to the group and are no 
longer consolidated from the date that control ceases 
all intercompany transactions balances and unrealised gains on transactions between group companies are eliminated unrealised losses 
are also eliminated unless the transaction provides evidence of an impairment of the asset transferred where necessary accounting policies 
for subsidiaries have been changed to ensure consistency with the policies adopted by the group 
th e 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 t h e 	 su bsi d ia r i e s 	 a re 	 p re pa re d 	 fo r 	 t h e 	 sa m e 	 re po r t i n g 	 y e a r 	 a s 	 t h e 	 c o m pa n y  	 u si n g 	 c o n si ste n t 	 a c c o u n t i n g 	 po l i c i e s 72 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
3 summary of significant accounting policies continued
oil and natural gas exploration evaluation and development expenditure 
oil and gas exploration activities are accounted for in a manner similar to the successful efforts method costs of successful development 
and exploratory wells are capitalised
development costs
expenditure on the construction installation or completion of infrastructure facilities such as platforms pipelines and the drilling of 
development wells including unsuccessful development or delineation wells is capitalised within oil and gas properties
property plant and equipment mineral rights and other intangibles
oil and gas properties and other property plant and equipment including mineral rights are stated at cost less accumulated depletion 
depreciation and accumulated impairment losses 
the initial cost of an asset comprises its purchase price or construction cost any costs directly attributable to bringing the asset into 
operation the initial estimate of the decommissioning obligation and for qualifying assets borrowing costs the purchase price or 
construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset 
depreciation and depletion
o i l 	 a n d 	 g a s 	 p ro pe r t i e s 	 a re 	 d e p re c ia te d 	 o n 	 a 	 u n i t  o f  p rod u c t i o n 	 b a si s 	 o ve r 	 p ro ve d 	 d e ve l o pe d 	 re se r ve s 	 o f 	 t h e 	 fi e l d 	 c o n c e r n e d 	 ex c e pt 	 i n 	 t h e 	 c a se	
o f 	 a s set s 	 wh ose 	 u sef u l 	 l i fe 	 i s 	 s h o r te r 	 t ha n 	 t h e 	 l i fet i m e 	 o f 	 t h e 	 fi e l d 	 i n 	 wh i ch 	 c a se 	 t h e 	 st ra i g h t l i n e 	 m et h od 	 i s 	 a p p l i e d 	 mi n e ra l 	 r i g h t s 	 a re	
depleted on the unitofproduction basis over proved and probable reserves of the relevant area
other property plant and equipment are generally depreciated on a straightline basis over their estimated useful lives as follows 
years
buildings and constructions 3050
other property plant and equipment 16
major maintenance and repairs
e x pe n d i t u re 	 o n 	 ma j o r 	 ma i n te na n c e 	 refi t s 	 o r 	 re pa i r s 	 c o m p r i se s 	 t h e 	 c ost 	 o f 	 re p la c e m e n t 	 a s set s 	 o r 	 pa r t s 	 o f 	 a s set s 	 i n spe c t i o n 	 c ost s 	 a n d 	
overhaul costs where an asset or part of an asset that was separately depreciated and is now written off is replaced and it is probable that 
f u t u re 	 e c o n o m i c 	 be n efi t s 	 a s so c ia te d 	 w i t h 	 t h e 	 i te m 	 w i l l 	 fl ow 	 t o 	 t h e 	 g ro u p  	 t h e 	 ex pe n d i t u re 	 i s 	 c a p i t a l i se d 	 w h e re 	 pa r t 	 o f 	 t h e 	 a s set 	 wa s 	 n ot	
separately considered as a component the replacement value is used to estimate the carrying amount of the replaced assets which is 
immediately written off inspection costs associated with major maintenance programs are capitalised and amortised over the period to  
the next inspection all other maintenance costs are expensed as incurred
intangible assets
intangible assets are stated at the amount initially recognised less accumulated amortisation and accumulated impairment losses 
intangible assets include computer software
intangible assets acquired separately are measured on initial recognition at cost the cost of intangible assets acquired in a business 
combination is fair value as at the date of acquisition following initial recognition intangible assets are carried at cost less any accumulated 
amortisation and any accumulated impairment losses amortisation is calculated on a straightline basis over their useful lives except for 
mineral rights that are depleted on the unitofproduction basis as explained above
impairment of assets
the group monitors internal and external indicators of impairment relating to its tangible and intangible assets
th e 	 re c o ve ra b l e 	 a m o u n t s 	 o f 	 c a s h g e n e ra t i n g 	 u n i t s 	 a n d 	 i n d iv i d ua l 	 a s set s 	 ha ve 	 be e n 	 d ete r m i n e d 	 b a se d 	 o n 	 t h e 	 h i g h e r 	 o f 	 va l u e  i n  u se 	  v i u  	
c a l c u la t i o n s 	 a n d 	 fa i r 	 va l u e s 	 l e s s 	 c ost s 	 t o 	 se l l 	  f v l c s   	 th e se 	 c a l c u la t i o n s 	 re q u i re 	 t h e 	 u se 	 o f 	 e st i ma te s 	 a n d 	 a s su m pt i o n s 	 i t 	 i s 	 re a so na b ly	
pos sib l e 	 t ha t 	 t h e 	 o i l 	 p r i c e 	 a s su m pt i o n 	 ma y 	 cha n g e 	 wh i ch 	 ma y 	 t h e n 	 i m pa c t 	 t h e 	 e st i ma te d 	 l i fe 	 o f 	 t h e 	 fi e l d 	 a n d 	 ma y 	 t h e n 	 re q u i re 	 a 	 ma te r ia l 	
adjustment to the carrying value of longterm assets 
g ive n 	 t h e 	 s ha re d 	 i n f ra st r u c t u re 	 a n d 	 i n te rd e pe n d e n c y 	 o f 	 c a s h 	 fl ow s 	 re la te d 	 t o 	 t h e 	 t h re e 	 l i c e n c e s 	 t h e 	 g ro u p 	 h o l d s 	 t h e 	 a s set s 	 a re 	 c o n si d e re d	 
t o 	 re p re se n t 	 o n e 	 c a s h 	 g e n e ra t i n g 	 u n i t 	  c g u   	 wh i ch 	 i s 	 t h e 	 l ow e st 	 l e ve l 	 wh e re 	 la r g e ly 	 i n d e pe n d e n t 	 c a s h 	 fl ow s 	 a re 	 d e e m e d 	 t o 	 ex i st
share option plan 
the share option plan under which the group has the ability to choose whether to settle it in cash or equity instruments at the discretion of 
the board of directors is accounted for as an equity settled transaction the fair value of the options granted by the company to employees is 
m e a su re d 	 a t 	 t h e 	 g ra n t 	 d a te 	 a n d 	 c a l c u la te d 	 u si n g 	 t h e 	 t r i n o m ia l 	 o pt i o n 	 p r i c i n g 	 m od e l 	 a n d 	 re c og n i se d 	 i n 	 t h e 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	
as a component of equity with a corresponding amount recognised in selling general and administrative expenses over the time share 
reward vest to the employee strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 7 3   
m od i fi c a t i o n s 	 o f 	 t h e 	 te r m s 	 o r 	 c o n d i t i o n s 	 o f 	 t h e 	 e q u i t y 	 i n st r u m e n t s 	 g ra n te d 	 i n 	 a 	 ma n n e r 	 t ha t 	 re d u c e s 	 t h e 	 t ot a l 	 fa i r 	 va l u e 	 o f 	 t h e 	 s ha re b a se d 	
pa y m e n t 	 a r ra n g e m e n t 	 o r 	 i s 	 n ot 	 ot h e r w i se 	 be n efi c ia l 	 t o 	 t h e 	 e m p l o y e e 	 a re 	 a c c o u n te d 	 fo r 	 a s 	 se r v i c e s 	 re c e ive d 	 i n 	 c o n si d e ra t i o n 	 fo r 	 t h e 	 e q u i t y	
i n st r u m e n t s 	 g ra n te d 	 a s 	 i f 	 t h e 	 m od i fi c a t i o n 	 ha d 	 n ot 	 o c c u r re d
financial instruments
a 	 fi na n c ia l 	 i n st r u m e n t 	 i s 	 a n y 	 c o n t ra c t 	 t ha t 	 g ive s 	 r i se 	 t o 	 fi na n c ia l 	 a s set s 	 o r 	 l ia b i l i t i e s
f i na n c ia l 	 a s set s 	 w i t h i n 	 t h e 	 sc o pe 	 o f 	 in te r na t i o na l 	 ac c o u n t i n g 	 st a n d a rd 	  i a s  	 3 9 	 a re 	 cla s si fi e d 	 a s 	 e i t h e r 	 fi na n c ia l 	 a s set s 	 a t 	 fa i r 	 va l u e 	 t h ro ug h 	
p ro fi t 	 o r 	 l os s 	 l oa n s 	 a n d 	 re c e iva b l e s 	 h e l d 	 t o 	 ma t u r i t y 	 i n ve st m e n t s 	 o r 	 a va i la b l e 	 fo r 	 sa l e 	 fi na n c ia l 	 a s set s 	 a s 	 a p p ro p r ia te 	 w h e n 	 fi na n c ia l 	 a s set s 	
a re 	 re c og n i se d 	 i n i t ia l ly  	 t h e y 	 a re 	 m e a su re d 	 a t 	 fa i r 	 va l u e 	 p l u s 	 d i re c t ly 	 a t t r ib u t a b l e 	 t ra n sa c t i o n 	 c ost s 	 fo r 	 a l l 	 fi na n c ia l 	 a s set s 	 n ot 	 c a r r i e d 	 a t 	 fa i r 	
va l u e 	 t h ro ug h 	 p rofi t 	 o r 	 l os s 	
th e 	 g ro u p 	 d ete r m i n e s 	 t h e 	 cla s si fi c a t i o n 	 o f 	 i t s 	 fi na n c ia l 	 a s set s 	 a t 	 i n i t ia l 	 re c og n i t i o n 
f i na n c ia l 	 i n st r u m e n t s 	 c a r r i e d 	 o n 	 t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 fi na n c ia l 	 posi t i o n 	 i n cl u d e 	 l oa n s 	 a n d 	 re c e iva b l e s 	 c a s h 	 a n d 	 c a s h 	 e q u iva l e n t	
balances borrowings accounts payable and put options the particular recognition and measurement methods adopted are disclosed in the 
individual policy statements associated with each item
a n 	 o b l i g a t i o n 	 t o 	 a c q u i re 	 ow n 	 s ha re s 	 i s 	 cla s si fi e d 	 a s 	 a 	 l ia b i l i t y  	 th e 	 l ia b i l i t y 	 t o 	 re p u rcha se 	 ow n 	 s ha re s 	 i s 	 i n i t ia l ly 	 re c og n i se d 	 a t 	 t h e 	 fa i r 	 va l u e	 
o f 	 c o n si d e ra t i o n 	 pa ya b l e 	  be i n g 	 t h e 	 n et 	 p re se n t 	 va l u e 	 o f 	 e st i ma te d 	 re d e m pt i o n 	 a m o u n t  	 a n d 	 i t 	 i s 	 re c o rd e d 	 a s 	 d e d u c t i o n 	 o f 	 e q u i t y  	 su bse q u e n t 	
cha n g e s 	  re v i si o n 	 o f 	 e st i ma te 	 u n w i n d i n g 	 o f 	 d i sc o u n t  	 a re 	 re c og n i se d 	 i n 	 p ro fi t 	 o r 	 l os s 	 if 	 o pt i o n s 	 a re 	 n ot 	 ex e rc i se d 	 t h e 	 a m o u n t 	 re c og n i se d 	 a s	
a liability is transferred to equity
r i g h t s 	 t o 	 a c q u i re 	 ow n 	 s ha re s 	 a re 	 cla s si fi e d 	 a s 	 a s set s 	 th e 	 r i g h t 	 t o 	 re p u rcha se 	 ow n 	 s ha re s 	 i s 	 i n i t ia l ly 	 re c og n i se d 	 a t 	 t h e 	 fa i r 	 va l u e 	 o f 	
consideration payable estimated using the blackscholes option pricing model and it is recorded as increase of equity subsequent changes 
 re v i si o n 	 o f 	 e st i ma te  	 a re 	 re c og n i se d 	 i n 	 p rofi t 	 a n d 	 l os s
loans and receivables
l oa n s 	 a n d 	 re c e iva b l e s 	 a re 	 n o n 	 d e r iva t ive 	 fi na n c ia l 	 a s set s 	 w i t h 	 fi x e d 	 o r 	 d ete r m i na b l e 	 pa y m e n t s 	 t ha t 	 a re 	 n ot 	 q u ote d 	 i n 	 a n 	 a c t ive 	 ma r k et 	 a f te r	
initial measurement loans and receivables are subsequently carried at amortised cost using the effective interest method less any provision 
for impairment
a provision for impairment is recognised when there is an objective evidence that the group will not be able to collect all amounts due 
according to the original terms of the loans and receivables the amount of provision is the difference between the assets’ carrying value  
a n d 	 t h e 	 p re se n t 	 va l u e 	 o f 	 t h e 	 e st i ma te d 	 f u t u re 	 c a s h 	 fl ow s 	 d i sc o u n te d 	 a t 	 t h e 	 o r i g i na l 	 ef fe c t ive 	 i n te re st 	 ra te 	 th e 	 cha n g e 	 i n 	 t h e 	 a m o u n t 	 o f 	 t h e 	
l oa n 	 o r 	 re c e iva b l e 	 i s 	 re c og n i se d 	 i n 	 p rofi t 	 o r 	 l os s 	 in te re st 	 i n c o m e 	 i s 	 re c og n i se d 	 i n 	 p ro fi t 	 o r 	 l os s 	 b y 	 a p p ly i n g 	 t h e 	 ef fe c t ive 	 i n te re st 	 ra te
cash and cash equivalents
c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 i n 	 t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 fi na n c ia l 	 posi t i o n 	 c o m p r i se 	 c a s h 	 a t 	 b a n k s 	 a n d 	 o n 	 ha n d 	 a n d 	 s h o r t 	 te r m 	 d e posi t s 	
with an original maturity of three months or less 
f o r 	 t h e 	 p u r pose 	 o f 	 t h e 	 c o n so l i d a te d 	 c a s h 	 fl ow 	 st a te m e n t 	 c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 c o n si st 	 o f 	 c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 a s 	 d efi n e d 	 a bo ve 	 
net of outstanding bank overdrafts if any
borrowings and accounts payable
th e 	 g ro u p ’ s 	 fi na n c ia l 	 l ia b i l i t i e s 	 a re 	 re p re se n te d 	 b y 	 a c c o u n t s 	 pa ya b l e 	 a n d 	 bo r row i n g s 	
borrowings are initially recognised at fair value of the consideration received less directly attributable transaction costs after initial 
recognition borrowings are measured at amortised cost using the effective interest method any difference between the initial fair value of 
t h e 	 c o n si d e ra t i o n 	 re c e ive d 	  n et 	 o f 	 t ra n sa c t i o n 	 c ost s  	 a n d 	 t h e 	 re d e m pt i o n 	 a m o u n t 	 i s 	 re c og n i se d 	 a s 	 a n 	 a d j u st m e n t 	 t o 	 i n te re st 	 ex pe n se 	 o ve r 	 t h e 	
period of the borrowings
a 	 fi na n c ia l 	 l ia b i l i t y 	 i s 	 d e re c og n i se d 	 wh e n 	 t h e 	 o b l i g a t i o n 	 u n d e r 	 t h e 	 l ia b i l i t y 	 i s 	 d i scha r g e d 	 o r 	 c a n c e l l e d 	 o r 	 ex p i re s 	 w h e re 	 a n 	 ex i st i n g 	 fi na n c ia l 	
liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially 
m od i fi e d 	 su ch 	 a n 	 ex cha n g e 	 o r 	 m od i fi c a t i o n 	 i s 	 t re a te d 	 a s 	 a 	 d e re c og n i t i o n 	 o f 	 t h e 	 o r i g i na l 	 l ia b i l i t y 	 a n d 	 t h e 	 re c og n i t i o n 	 o f 	 a 	 n ew 	 l ia b i l i t y  	 a n d 	 
t h e 	 d i f fe re n c e 	 i n 	 t h e 	 re spe c t ive 	 c a r r y i n g 	 a m o u n t s 	 i s 	 re c og n i se d 	 i n 	 t h e 	 p rofi t 	 o r 	 l os s 74 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
3 summary of significant accounting policies continued
impairment of financial assets 
th e 	 g ro u p 	 a s se s se s 	 a t 	 t h e 	 e n d 	 o f 	 e a ch 	 re po r t i n g 	 pe r i od 	 wh et h e r 	 t h e re 	 i s 	 a n y 	 o b j e c t ive 	 e v i d e n c e 	 t ha t 	 a 	 fi na n c ia l 	 a s set 	 o r 	 a 	 g ro u p 	 o f 	 fi na n c ia l 	
a s set s 	 i s 	 i m pa i re d 	 a 	 fi na n c ia l 	 a s set 	 o r 	 a 	 g ro u p 	 o f 	 fi na n c ia l 	 a s set s 	 i s 	 d e e m e d 	 t o 	 be 	 i m pa i re d 	 i f  	 a n d 	 o n ly 	 i f  	 t h e re 	 i s 	 a n 	 o b j e c t ive 	 e v i d e n c e 	 o f	
i m pa i r m e n t 	 a s 	 a 	 re su l t 	 o f 	 o n e 	 o r 	 m o re 	 e ve n t s 	 t ha t 	 ha s 	 o c c u r re d 	 a f te r 	 t h e 	 i n i t ia l 	 re c og n i t i o n 	 o f 	 t h e 	 a s set 	  a n 	 i n c u r re d 	 ‘ l os s 	 e ve n t ’  	 a n d 	 t ha t 	 l os s 	
e ve n t 	 ha s 	 a n 	 i m pa c t 	 o n 	 t h e 	 e st i ma te d 	 f u t u re 	 c a s h 	 fl ow s 	 o f 	 t h e 	 fi na n c ia l 	 a s set 	 o r 	 t h e 	 g ro u p 	 o f 	 fi na n c ia l 	 a s set s 	 t ha t 	 c a n 	 be 	 re l ia b ly 	 e st i ma te d 	
e v i d e n c e 	 o f 	 i m pa i r m e n t 	 ma y 	 i n cl u d e 	 i n d i c a t i o n s 	 t ha t 	 t h e 	 d ebt o r s 	 o r 	 a 	 g ro u p 	 o f 	 d ebt o r s 	 i s 	 ex pe r i e n c i n g 	 si g n i fi c a n t 	 fi na n c ia l 	 d i f fi c u l t y  	 d efa u l t	
o r 	 d e l i n q u e n c y 	 i n 	 i n te re st 	 o r 	 p r i n c i pa l 	 pa y m e n t s 	 t h e 	 p ro ba b i l i t y 	 t ha t 	 t h e y 	 w i l l 	 e n te r 	 b a n k r u pt c y 	 o r 	 ot h e r 	 fi na n c ia l 	 re o r g a n i sa t i o n 	 a n d 	 wh e re 	
o bse r va b l e 	 d a t a 	 i n d i c a te 	 t ha t 	 t h e re 	 i s 	 a 	 m e a su ra b l e 	 d e cre a se 	 i n 	 t h e 	 e st i ma te d 	 f u t u re 	 c a s h 	 fl ow s 	 su ch 	 a s 	 cha n g e s 	 i n 	 a r re a r s 	 o r 	 e c o n o m i c	
conditions that correlate with defaults
inventories
inventories are stated at the lower of cost and net realisable value cost of inventory is determined on the weighted average basis the cost of 
fi n i s h e d 	 g ood s 	 a n d 	 w o r k 	 i n 	 p rog re s s 	 c o m p r i se s 	 ra w 	 ma te r ia l 	 d i re c t 	 la bo u r  	 ot h e r 	 d i re c t 	 c ost s 	 a n d 	 re la te d 	 p rod u c t i o n 	 o ve r h e a d s 	  b a se d 	 o n	
n o r ma l 	 o pe ra t i n g 	 c a pa c i t y  	 b u t 	 ex cl u d e s 	 bo r row i n g 	 c ost s 	 n et 	 re a l i sa b l e 	 va l u e 	 i s 	 t h e 	 e st i ma te d 	 se l l i n g 	 p r i c e 	 i n 	 t h e 	 o rd i na r y 	 c o u r se 	 o f 	
business less the estimated cost of completion and selling expenses
provisions 
general
p ro v i si o n s 	 a re 	 re c og n i se d 	 wh e n 	 t h e 	 g ro u p 	 ha s 	 a 	 p re se n t 	 o b l i g a t i o n 	  l eg a l 	 o r 	 c o n st r u c t ive  	 a s 	 a 	 re su l t 	 o f 	 a 	 pa st 	 e ve n t 	 i t 	 i s 	 p ro b a b l e 	 t ha t 	 a n 	
o u t fl ow 	 o f 	 re so u rc e s 	 e m body i n g 	 e c o n o m i c 	 be n efi t s 	 w i l l 	 be 	 re q u i re d 	 t o 	 set t l e 	 t h e 	 o b l i g a t i o n 	 a n d 	 a 	 re l ia b l e 	 e st i ma te 	 c a n 	 be 	 ma d e 	 o f 	 t h e 	 a m o u n t 	
o f 	 t h e 	 o b l i g a t i o n  	 th e 	 ex pe n se 	 re la t i n g 	 t o 	 a n y 	 p ro v i si o n 	 i s 	 p re se n te d 	 i n 	 p rofi t 	 o r 	 l os s 	 n et 	 o f 	 a n y 	 re i m b u r se m e n t 	 if 	 t h e 	 ef fe c t 	 o f 	 t h e 	 t i m e 	 va l u e	
o f 	 m o n e y 	 i s 	 ma te r ia l 	 p ro v i si o n s 	 a re 	 d i sc o u n te d 	 u si n g 	 ra te s 	 t ha t 	 refl e c t 	 wh e re 	 a p p ro p r ia te 	 t h e 	 r i s k s 	 spe c i fi c 	 t o 	 t h e 	 l ia b i l i t y  	 w h e re	
d i sc o u n t i n g 	 i s 	 u se d 	 t h e 	 i n cre a se 	 i n 	 t h e 	 p ro v i si o n 	 d u e 	 t o 	 t h e 	 pa s sag e 	 o f 	 t i m e 	 i s 	 re c og n i se d 	 a s 	 fi na n c e 	 c ost s
provision for dismantlement
provision for dismantlement is related primarily to the conservation and abandonment of wells removal of pipelines and other oil and  
gas facilities together with site restoration activities related to the group’s licence areas when a constructive obligation to incur such costs  
i s 	 i d e n t i fi e d 	 a n d 	 t h e i r 	 a m o u n t 	 c a n 	 be 	 m e a su re d 	 re l ia b ly  	 t h e 	 n et 	 p re se n t 	 va l u e 	 o f 	 f u t u re 	 d e c o m m i s si o n i n g 	 a n d 	 si te 	 re st o ra t i o n 	 c ost s 	 i s 	
capitalised within property plant and equipment with a corresponding liability provisions are estimated based on engineering estimates 
licence and other statutory requirements and practices adopted in the industry and are discounted to net present value using discount rates 
refl e c t i n g 	 a d j u st m e n t s 	 fo r 	 r i s k s 	 spe c i fi c 	 t o 	 t h e 	 o b l i g a t i o n 
ad e q ua c y 	 o f 	 su ch 	 p ro v i si o n s 	 i s 	 pe r i od i c a l ly 	 re v i ew e d 	 cha n g e s 	 i n 	 p ro v i si o n s 	 re su l t i n g 	 f ro m 	 t h e 	 pa s sag e 	 o f 	 t i m e 	 a re 	 refl e c te d 	 i n 	 p rofi t 	 o r 	 l os s 	
e a ch 	 y e a r 	 u n d e r 	 fi na n c e 	 c ost s 	 o t h e r 	 cha n g e s 	 i n 	 p ro v i si o n s 	 re la t i n g 	 t o 	 a 	 cha n g e 	 i n 	 t h e 	 ex pe c te d 	 pa t te r n 	 o f 	 set t l e m e n t 	 o f 	 t h e 	 o b l i g a t i o n	
changes in the discount rate or in the estimated amount of the obligation are treated as a change in accounting estimate in the period of the 
cha n g e 	 a n d 	 a re 	 refl e c te d 	 a s 	 a n 	 a d j u st m e n t 	 t o 	 t h e 	 p ro v i si o n 	 a n d 	 a 	 c o r re spo n d i n g 	 a d j u st m e n t 	 t o 	 p ro pe r t y  	 p la n t 	 a n d 	 e q u i p m e n t 	 if 	 a 	 d e cre a se	
i n 	 t h e 	 l ia b i l i t y 	 ex c e e d s 	 t h e 	 c a r r y i n g 	 a m o u n t 	 o f 	 t h e 	 a s set 	 t h e 	 ex c e s s 	 i s 	 re c og n i se d 	 i m m e d ia te ly 	 i n 	 p rofi t 	 o r 	 l os s
taxes
income tax
the income tax expense comprises current and deferred taxes calculated based on the tax rates that have been enacted or substantively 
e na c te d 	 a t 	 t h e 	 e n d 	 o f 	 t h e 	 re po r t i n g 	 pe r i od 	 c u r re n t 	 a n d 	 d efe r re d 	 t a x e s 	 a re 	 cha r g e d 	 o r 	 cre d i te d 	 t o 	 p rofi t 	 o r 	 l os s 	 ex c e pt 	 wh e re 	 t h e y 	 a re 	
attributable to items which are charged or credited directly to equity in which case the corresponding tax is also taken to equity
c u r re n t 	 t a x 	 i s 	 t h e 	 a m o u n t 	 ex pe c te d 	 t o 	 be 	 pa i d 	 t o 	 o r 	 re c o ve re d 	 f ro m 	 t h e 	 t a x a t i o n 	 a u t h o r i t i e s 	 i n 	 re spe c t 	 o f 	 t a x a b l e 	 p rofi t s 	 o r 	 l os se s 	 fo r 	 t h e 	
current and prior periods 
deferred tax assets and liabilities are calculated in respect of temporary differences using the liability method deferred taxes provide for  
a l l 	 te m po ra r y 	 d i f fe re n c e s 	 a r i si n g 	 bet w e e n 	 t h e 	 t a x 	 b a se s 	 o f 	 a s set s 	 a n d 	 l ia b i l i t i e s 	 a n d 	 t h e i r 	 c a r r y i n g 	 va l u e s 	 fo r 	 fi na n c ia l 	 re po r t i n g 	 p u r pose s 	
except where the deferred tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination 
a n d 	 a t 	 t h e 	 t i m e 	 o f 	 t h e 	 t ra n sa c t i o n 	 a f fe c t s 	 n e i t h e r 	 t h e 	 a c c o u n t i n g 	 p ro fi t 	 n o r 	 t a x a b l e 	 p rofi t 	 o r 	 l os s
a deferred tax asset is recognised for all deductible temporary differences and carry forward of unused tax credits and unused tax losses 
o n ly 	 t o 	 t h e 	 ex te n t 	 t ha t 	 i t 	 i s 	 p ro ba b l e 	 t ha t 	 t a x a b l e 	 p rofi t 	 w i l l 	 be 	 a va i la b l e 	 ag a i n st 	 wh i ch 	 t h e 	 d e d u c t ib l e 	 te m po ra r y 	 d i f fe re n c e s 	 o r 	 c a r r y 	 
forward losses can be utilised 
unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become 
p ro ba b l e 	 t ha t 	 f u t u re 	 t a x a b l e 	 p rofi t 	 w i l l 	 a l l ow 	 t h e 	 d efe r re d 	 t a x 	 a s set 	 t o 	 be 	 re c o ve re d
deferred tax assets and liabilities are offset when the group has a legally enforceable right to set off current tax assets and liabilities when 
d efe r re d 	 t a x 	 ba la n c e s 	 a re 	 refe r re d 	 t o 	 t h e 	 sa m e 	 g o ve r n m e n t a l 	 body 	  i  e 	 fe d e ra l 	 reg i o na l 	 o r 	 l o c a l  	 a n d 	 t h e 	 sa m e 	 su b j e c t 	 o f 	 t a x a t i o n 	 a n d 	 wh e n	
the group intends to perform an offset of its current tax assets and liabilities  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 7 5   
value added tax
ru s sia n 	 v a l u e 	 ad d e d 	 t a x 	  v a t  	 a t 	 a 	 st a n d a rd 	 ra te 	 o f 	 1 8  	 i s 	 pa ya b l e 	 o n 	 t h e 	 d i f fe re n c e 	 bet w e e n 	 o u t p u t 	 v a t 	 o n 	 sa l e s 	 o f 	 g ood s 	 a n d 	 se r v i c e s 	 a n d 	
recoverable input vat charged by suppliers output vat is charged on the earliest of the dates either the date of the shipment of goods 
 w o r k s 	 se r v i c e s  	 o r 	 t h e 	 d a te 	 o f 	 a dva n c e 	 pa y m e n t 	 b y 	 t h e 	 b uy e r  	 in p u t 	 v a t 	 c o u l d 	 be 	 re c o ve re d 	 wh e n 	 p u rcha se d 	 g ood s 	  w o r k s 	 se r v i c e s  	 a re	
accounted for and other necessary requirements provided by the tax legislation are met
vat related to sales and purchases is recognised in the consolidated balance sheet on a gross basis and disclosed separately as a current asset 
and liability
mineral extraction tax 
mineral extraction tax on hydrocarbons including natural gas and crude oil is due on the basis of quantities of natural resources extracted 
mi n e ra l 	 ex t ra c t i o n 	 t a x 	 fo r 	 cr u d e 	 o i l 	 i s 	 d ete r m i n e d 	 ba se d 	 o n 	 t h e 	 v o l u m e 	 p rod u c e d 	 pe r 	 fi x e d 	 t a x 	 ra te 	 a d j u ste d 	 d e pe n d i n g 	 o n 	 t h e 	 m o n t h ly 	
average market prices of the urals blend and the rurus exchange rate for the preceding month the ultimate amount of the mineral 
ex t ra c t i o n 	 t a x 	 o n 	 cr u d e 	 o i l 	 d e pe n d s 	 a l so 	 o n 	 t h e 	 d e p l et i o n 	 a n d 	 g e og ra p h i c 	 l o c a t i o n 	 o f 	 t h e 	 o i l 	 fi e l d 	 mi n e ra l 	 ex t ra c t i o n 	 t a x 	 o n 	 g a s 	 c o n d e n sa te 	 i s	
d ete r m i n e d 	 ba se d 	 o n 	 a 	 fi x e d 	 pe rc e n t ag e 	 f ro m 	 t h e 	 va l u e 	 o f 	 t h e 	 ex t ra c te d 	 m i n e ra l 	 re so u rc e s 	 mi n e ra l 	 ex t ra c t i o n 	 t a x 	 i s 	 a c cr u e d 	 a s 	 a 	 t a x 	 o n	
production and recorded within cost of sales
equity
share capital
ord i na r y 	 s ha re s 	 a re 	 cla s si fi e d 	 a s 	 e q u i t y  	 in cre m e n t a l 	 c ost s 	 d i re c t ly 	 a t t r ib u t a b l e 	 t o 	 t h e 	 i s su e 	 o f 	 n ew 	 s ha re s 	 a n d 	 o pt i o n s 	 a re 	 s h ow n 	 i n 	 e q u i t y 	 
as a deduction net of tax from the proceeds any excess of the fair value of shares issued or liabilities extinguishment over the par value of 
shares issued is recorded as share premium
other reserves
other reserves include a reserve on reorganisation of the group the amount of share options of shareholders and an amount related to fair 
va l u e 	 o f 	 d i re c t o r s ’ 	 o pt i o n s 	  n ote 	 1 7  
revenue recognition
revenue is measured at the fair value of the consideration received or receivable for goods provided or services rendered less any trade 
discounts vat and similar salesbased taxes after eliminating sales within the group 
re ve n u e 	 f ro m 	 sa l e 	 o f 	 cr u d e 	 o i l 	 a n d 	 g a s 	 c o n d e n sa te 	 i s 	 re c og n i se d 	 wh e n 	 t h e 	 si g n i fi c a n t 	 r i s k s 	 a n d 	 rewa rd s 	 o f 	 ow n e r s h i p 	 ha ve 	 be e n 	 t ra n sfe r re d 	
t o 	 t h e 	 c u st o m e r  	 t h e 	 a m o u n t 	 o f 	 re ve n u e 	 c a n 	 be 	 m e a su re d 	 re l ia b ly  	 i t 	 i s 	 p ro b a b l e 	 t ha t 	 t h e 	 e c o n o m i c 	 be n efi t s 	 a s so c ia te d 	 w i t h 	 t h e 	 t ra n sa c t i o n 	
w i l l 	 fl ow 	 t o 	 t h e 	 g ro u p 	 a n d 	 c ost s 	 i n c u r re d 	 o r 	 t o 	 be 	 i n c u r re d 	 i n 	 re spe c t 	 o f 	 t h i s 	 t ra n sa c t i o n 	 c a n 	 be 	 m e a su re d 	 re l ia b ly  	 if 	 t h e 	 g ro u p 	 ag re e s 	 t o	
t ra n spo r t 	 t h e 	 g ood s 	 t o 	 a 	 spe c i fi e d 	 l o c a t i o n 	 re ve n u e 	 i s 	 re c og n i se d 	 wh e n 	 g ood s 	 a re 	 pa s se d 	 t o 	 t h e 	 c u st o m e r 	 a t 	 t h e 	 d e si g na te d 	 l o c a t i o n  	
other revenue is recognised in accordance with contract terms 
interest income is accrued on a regular basis by reference to the outstanding principal amount and the applicable effective interest rate 
wh i ch 	 i s 	 t h e 	 ra te 	 t ha t 	 ex a c t ly 	 d i sc o u n t s 	 e st i ma te d 	 f u t u re 	 c a s h 	 re c e i pt s 	 t h ro ug h 	 t h e 	 ex pe c te d 	 l i fe 	 o f 	 t h e 	 fi na n c ia l 	 a s set 	 t o 	 t ha t 	 a s set ’ s 	 n et 	
carrying amount
borrowing costs
borrowing costs directly relating to the acquisition construction or production of a qualifying capital project under construction are 
capitalised and added to the project cost during construction until such time the assets are substantially ready for their intended use ie 
wh e n 	 t h e y 	 a re 	 c a pa b l e 	 o f 	 p rod u c t i o n  	 w h e re 	 f u n d s 	 a re 	 bo r row e d 	 spe c i fi c a l ly 	 t o 	 fi na n c e 	 a 	 p ro j e c t 	 t h e 	 a m o u n t 	 c a p i t a l i se d 	 re p re se n t s 	 t h e	
a c t ua l 	 bo r row i n g 	 c ost s 	 i n c u r re d 	 w h e re 	 su r p l u s 	 f u n d s 	 a re 	 a va i la b l e 	 fo r 	 a 	 s h o r t  te r m 	 o u t 	 o f 	 m o n e y 	 bo r row e d 	 spe c i fi c a l ly 	 t o 	 fi na n c e 	 a 	 p ro j e c t 	
the income generated from such short term investments is also capitalised and deducted from the total capitalised borrowing cost where 
t h e 	 f u n d s 	 u se d 	 t o 	 fi na n c e 	 a 	 p ro j e c t 	 fo r m 	 pa r t 	 o f 	 g e n e ra l 	 bo r row i n g s 	 t h e 	 a m o u n t 	 c a p i t a l i se d 	 i s 	 c a l c u la te d 	 u si n g 	 a 	 w e i g h te d 	 a ve rag e 	 o f 	 ra te s 	
a p p l i c a b l e 	 t o 	 re l e va n t 	 g e n e ra l 	 bo r row i n g s 	 o f 	 t h e 	 g ro u p 	 d u r i n g 	 t h e 	 pe r i od 	 a l l 	 ot h e r 	 bo r row i n g 	 c ost s 	 a re 	 re c og n i se d 	 i n 	 t h e 	 p rofi t 	 o r 	 l os s 	
a c c o u n t 	 a s 	 fi na n c e 	 c ost s 	 i n 	 t h e 	 pe r i od 	 i n 	 wh i ch 	 t h e y 	 a re 	 i n c u r re d
employee benefits 
wages salaries contributions to the russian federation state pension and social insurance funds paid annual leave and sick leave bonuses 
are expensed as incurred
foreign currency translation
foreign currency transactions are initially recognized in the functional currency at the exchange rate ruling at the date of transaction 
monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange in effect at the 
end of the reporting period  76 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
3 summary of significant accounting policies continued
th e 	 u s 	 do l la r 	 u s   	 i s 	 t h e 	 p re se n t a t i o n 	 c u r re n c y 	 o f 	 t h e 	 g ro u p 	 a n d 	 t h e 	 f u n c t i o na l 	 c u r re n c y 	 o f 	 t h e 	 c o m pa n y 	 th e 	 f u n c t i o na l 	 c u r re n c y 	 o f	
su bsi d ia r i e s 	 o pe ra t i n g 	 i n 	 t h e 	 ru s sia n 	 f e d e ra t i o n 	 i s 	 t h e 	 ru s sia n 	 r u b l e 	 r u r   	 th e 	 a s set s 	 a n d 	 l ia b i l i t i e s 	 o f 	 t h e 	 su bsi d ia r i e s 	 a re 	 t ra n s la te d 	 i n t o 	
the presentation currency of the group at the rate of exchange ruling at the end of each of the reporting periods income and expenses for 
e a ch 	 i n c o m e 	 st a te m e n t 	 a re 	 t ra n s la te d 	 a t 	 a ve rag e 	 ex cha n g e 	 ra te s 	  u n l e s s 	 t h i s 	 a ve rag e 	 i s 	 n ot 	 a 	 re a so na b l e 	 a p p ro x i ma t i o n 	 o f 	 t h e 	 c u m u la t ive 	
effect of the rates prevailing on the transaction dates in which case income and expenses are translated at the rate on the dates of the 
t ra n sa c t i o n s   	 a l l 	 t h e 	 re su l t i n g 	 ex cha n g e 	 d i f fe re n c e s 	 a re 	 re c o rd e d 	 i n 	 ot h e r 	 c o m p re h e n sive 	 i n c o m e	
the us to rur exchange rates were 5626 and 3273 as at 31 december 2014 and 31 december 2013 respectively and the average rates for 
the year ended 31 december 2014 and 2013 were 3847 and 3185 respectively the us to £ exchange rates were 064 and 061 as at 
31 december 2014 and 31 december 2013 respectively and the average rates for the year ended 31 december 2014 and 2013 were 061 and 
064 respectively the increase in the us to rur exchange rate for the year ended 31 december 2014 has resulted in a loss of us202410 
t h o u sa n d 	 i n 	 t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 p rofi t 	 o r 	 l os s 	 a n d 	 ot h e r 	 c o m p re h e n sive 	 l os s 	 a n d 	 a n 	 a d j u st m e n t 	 o f 	 u s  98 3 2 	 t h o u sa n d 	 i n 	 ot h e r	
c o m p re h e n sive 	 l os s 	  refe r 	 t o 	 n ote s 	 1 3 	 a n d 	 1 4  
4 significant accounting judgements estimates and assumptions
in the application of the group’s accounting policies management is required to make judgements estimates and assumptions about the 
carrying amounts of assets and liabilities that are not readily apparent from other sources 
the estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant actual 
results may differ from these estimates the estimates and underlying assumptions are reviewed on an ongoing basis revisions to 
accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period  
of the revision and future periods if the revision affects both current and future periods
th e 	 m ost 	 si g n i fi c a n t 	 a re a s 	 o f 	 a c c o u n t i n g 	 re q u i r i n g 	 t h e 	 u se 	 o f 	 t h e 	 g ro u p ’ s 	 ma nag e m e n t 	 e st i ma te s 	 a n d 	 a s su m pt i o n s 	 re la te 	 t o 	 o i l 	 a n d 	 g a s 	
reserves useful economic lives and residual values of property plant and equipment impairment of tangible assets provisions for 
dismantlement taxation and allowances
subsoil licences
the group conducts operations under exploration and production licences which require minimum levels of capital expenditure and mineral 
production timely payment of taxes provision of geological data to authorities and other such requirements the current periods of the 
group’s licences expire between december 2015 and june 2034 
the russian regulatory authorities exercise considerable discretion in issuing and renewing licences and in monitoring licensees’ compliance 
with licence terms the loss of licence would be considered a material adverse event for the group
i t 	 i s 	 ma nag e m e n t ’ s 	 ju dg e m e n t 	 t ha t 	 e a ch 	 o f 	 t h e 	 t h re e 	 l i c e n c e s 	 h e l d 	 b y 	 t h e 	 g ro u p 	 w i l l 	 be 	 re n ew e d 	 fo r 	 t h e 	 e c o n o m i c 	 l ive s 	 o f 	 t h e 	 fi e l d s 	 wh i ch 	 a re 	
p ro j e c te d 	 t o 	 be 	 u p 	 t o 	 2 04 0 	  t w o 	 l i c e n c e s 	 h e l d 	 b y 	 i n g a  	 a n d 	 2 02 9 	  t h e 	 l i c e n c e 	 h e l d 	 b y 	 t ra n s  o i l   	 th e 	 a p p ra i se d 	 e c o n o m i c 	 l ive s 	 o f 	 t h e 	 fi e l d s 	
are used as the basis for reserves estimation depletion calculation and impairment analysis in making this assessment management 
considers that the licence held by transoil which was extended for three years to december 2015 will be further extended this further 
extension will be dependent on management demonstrating to the licensing authorities that associated petroleum gas produced in the course 
of oil production is being utilised 
useful economic lives of property plant and equipment and mineral rights
oil and gas properties and mineral rights
th e 	 g ro u p ’ s 	 o i l 	 a n d 	 g a s 	 p ro pe r t i e s 	 a re 	 d e p l ete d 	 o ve r 	 t h e 	 re spe c t ive 	 l i fe 	 o f 	 t h e 	 o i l 	 a n d 	 g a s 	 fi e l d s 	 u si n g 	 t h e 	 u n i t  o f  p rod u c t i o n 	 m et h od 	 b a se d 	 o n 	
p ro ve d 	 d e ve l o pe d 	 o i l 	 a n d 	 g a s 	 re se r ve s 	  n ote 	 1 3   	 mi n e ra l 	 r i g h t s 	 a re 	 d e p l ete d 	 o ve r 	 t h e 	 re spe c t ive 	 l i fe 	 o f 	 t h e 	 o i l 	 a n d 	 g a s 	 fi e l d s 	 u si n g 	 t h e 	
u n i t  o f  p rod u c t i o n 	 m et h od 	 b a se d 	 o n 	 p ro ve d 	 a n d 	 p ro b a b l e 	 o i l 	 a n d 	 g a s 	 re se r ve s 	  n ote 	 1 4  	
reserves are determined using estimates of oil in place recovery factors and future oil prices
w h e n 	 d ete r m i n i n g 	 t h e 	 l i fe 	 o f 	 t h e 	 o i l 	 a n d 	 g a s 	 fi e l d 	 a s su m pt i o n s 	 t ha t 	 w e re 	 va l i d 	 a t 	 t h e 	 t i m e 	 o f 	 e st i ma t i o n 	 ma y 	 cha n g e 	 wh e n 	 n ew 	 i n fo r ma t i o n	
be c o m e s 	 a va i la b l e 	 th e 	 fa c t o r s 	 t ha t 	 c o u l d 	 a f fe c t 	 t h e 	 e st i ma t i o n 	 o f 	 t h e 	 l i fe 	 o f 	 a n 	 o i l 	 a n d 	 g a s 	 fi e l d 	 i n cl u d e 	 t h e 	 fo l l ow i n g 
• changes of proved and probable oil and gas reserves
• differences between actual commodity prices and commodity price assumptions used in the estimation of oil and gas reserves
• unforeseen operational issues and
• changes in capital operating processing and reclamation costs discount rates and foreign exchange rates possibly adversely affecting  
the economic viability of oil and gas reserves
any of these changes could affect prospective depletion of mineral rights and oil and gas assets and their carrying value strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 7 7   
other nonproduction assets
property plant and equipment other than oil and gas properties are depreciated on a straightline basis over their useful economic lives 
 n ote 	 1 3   	 at 	 t h e 	 e n d 	 o f 	 e a ch 	 re po r t i n g 	 pe r i od 	 ma nag e m e n t 	 re v i ew s 	 t h e 	 a p p ro p r ia te n e s s 	 o f 	 t h e 	 a s set s 	 u sef u l 	 e c o n o m i c 	 l ive s 	 a n d 	 re si d ua l 	
values the review is based on the current condition of the assets the estimated period during which they will continue to bring economic 
be n efi t 	 t o 	 t h e 	 g ro u p 	 a n d 	 t h e i r 	 e st i ma te d 	 re si d ua l 	 va l u e
estimation of oil and gas reserves
unitofproduction depreciation depletion and amortisation charges are principally measured based on group’s estimates of proved 
developed and proved and probable oil and gas reserves estimates of proved and probable reserves are also used in determination of 
impairment charges and reversals proved and probable reserves are estimated by an independent international reservoir engineers  
by reference to available geological and engineering data and only include volumes for which access to market is assured with  
reasonable certainty
information about the carrying amounts of oil and gas properties and the depreciation depletion and amortisation charged is provided in 
notes 13 and 14
estimates of oil and gas reserves are inherently imprecise require the application of judgements and are subject to regular revision  
either upward or downward based on new information such as from the drilling of additional wells observation of longterm reservoir 
performance under producing conditions and changes in economic factors including product prices contract terms or development plans 
changes to group’s estimates of proved and probable reserves affect prospectively the amounts of depreciation depletion and amortisation 
charged and consequently the carrying amounts of mineral rights and oil and gas properties
w e re 	 t h e 	 e st i ma te d 	 p ro ve d 	 re se r ve s 	 t o 	 d i f fe r 	 b y 	 1 0  	 f ro m 	 ma nag e m e n t ’ s 	 e st i ma te s 	 t h e 	 i m pa c t 	 o n 	 d e p l et i o n 	 w o u l d 	 be 	 a s 	 fo l l ow s 
increasedecrease in reserves estimation
effect on loss before tax for the year 
ended 31 december
2014 2013
10 2454  1 97 7 
1 0 2999 2416
provision for dismantlement
th e 	 g ro u p 	 ha s 	 a 	 c o n st r u c t ive 	 o b l i g a t i o n 	 t o 	 re c og n i se 	 a 	 p ro v i si o n 	 fo r 	 d i s ma n t l e m e n t 	 fo r 	 i t s 	 o i l 	 a n d 	 g a s 	 a s set s 	  n ote 	 2 1   	 th e 	 fa i r 	 va l u e s 	 o f	
these obligations are recorded as liabilities on a discounted basis which is typically at the time when assets are installed the group 
pe r fo r m s 	 a na ly si s 	 a n d 	 ma k e s 	 e st i ma te s 	 i n 	 o rd e r 	 t o 	 d ete r m i n e 	 t h e 	 p ro b a b i l i t y  	 t i m i n g 	 a n d 	 a m o u n t 	 i n v o lve d 	 w i t h 	 p ro b a b l e 	 re q u i re d 	 o u t fl ow	 
o f 	 re so u rc e s 	 e st i ma t i n g 	 t h e 	 a m o u n t s 	 a n d 	 t i m i n g 	 o f 	 su ch 	 d i s ma n t l e m e n t 	 c ost s 	 re q u i re s 	 si g n i fi c a n t 	 j u dg e m e n t 	 th e 	 j u dg e m e n t 	 i s 	 b a se d 	 o n	
cost and engineering studies using currently available technology and is based on current environmental regulations provision for 
dismantlement is subject to change because of change in laws and regulations and their interpretation
e st i ma te d 	 d i s ma n t l e m e n t 	 c ost s 	 fo r 	 wh i ch 	 t h e 	 o u t fl ow 	 o f 	 re so u rc e s 	 i s 	 d ete r m i n e d 	 t o 	 be 	 p ro b a b l e 	 a re 	 re c og n i se d 	 a s 	 a 	 p ro v i si o n 	 i n 	 t h e 	 g ro u p ’ s	
fi na n c ia l 	 st a te m e n t s 	
impairment of noncurrent assets 
the group accounts for the impairment of noncurrent assets in accordance with ias 36 impairment of assets under ias 36 the group is 
required to assess the conditions that could cause assets to become impaired and to perform a recoverability test for potentially impaired 
a s set s 	 h e l d 	 b y 	 t h e 	 g ro u p  	 th e se 	 c o n d i t i o n s 	 i n cl u d e 	 wh et h e r 	 a 	 si g n i fi c a n t 	 d e cre a se 	 i n 	 t h e 	 ma r k et 	 va l u e 	 o f 	 t h e 	 a s set s 	 ha s 	 o c c u r re d 	 wh et h e r	
cha n g e s 	 i n 	 t h e 	 g ro u p ’ s 	 b u si n e s s 	 p la n 	 fo r 	 t h e 	 a s set s 	 ha ve 	 be e n 	 ma d e 	 o r 	 wh et h e r 	 a 	 si g n i fi c a n t 	 a dve r se 	 cha n g e 	 i n 	 t h e 	 b u si n e s s 	 e n v i ro n m e n t 	 
has arisen
subsequent to the year end the group’s shares have been trading at a level which indicate that the market capitalisation of the group is 
be l ow 	 t h e 	 c a r r y i n g 	 va l u e 	 o f 	 n et 	 a s set s 	 th i s 	 ha s 	 re su l te d 	 i n 	 a 	 re v i ew 	 o f 	 t h e 	 g ro u p ’ s 	 n o n  c u r re n t 	 a s set s 	  o i l 	 a n d 	 ga s 	 p ro pe r t i e s 	 a n d 	 mi n e ra l 	
r i g h t s  	 t o 	 d ete r m i n e 	 wh et h e r 	 t h e y 	 a re 	 i m pa i re d 	 a s 	 a t 	 t h e 	 re po r t i n g 	 d a te
the recoverable amount was estimated using value in use approach the models developed by management to calculate value in use involved 
a s su m pt i o n s 	 a s 	 t o 	 f u t u re 	 h yd ro c a r bo n 	 p r i c e s 	 t a x e s 	 p rod u c t i o n 	 v o l u m e s 	 a n d 	 i n fla t i o n  	 th e 	 m od e l s 	 a l so 	 u se 	 e st i ma te s 	 o f 	 p ro ve d 	 d e ve l o pe d	
re se r ve s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	 a s 	 c a l c u la te d 	 b y 	 t h e 	 ma nag e m e n t 	 o f 	 t h e 	 g ro u p  	 e st i ma te d 	 c a s h 	 fl ow s 	 w e re 	 d i sc o u n te d 	 w i t h 	 a 	 r i s k 	 a d j u ste d 	
d i sc o u n t 	 ra te 	 d e r ive d 	 a s 	 t h e 	 w e i g h te d 	 a ve rag e 	 c ost 	 o f 	 c a p i t a l 	  w a c c  	 f o r 	 t h e 	 g ro u p ’ s 	 b u si n e s se s 	 t h e 	 a f te r 	 t a x 	 n o m i na l 	 d i sc o u n t 	 ra te 	 i s	
estimated at 10 percent
based on the impairment analysis performed management does not consider that the group’s noncurrent assets are impaired as at 
31 december 2014  78 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
4 significant accounting judgements estimates and assumptions continued
assumptions used in developing cash flow forecasts of the group
assumption value
average crude oil price gradual increase from us60 to 80 per barrel by january 2017
average effective rate of mineral extraction tax of crude oil gradual increase from rur3263 to 7213 per ton by january 2018
p rod u c t i o n 	 v o l u m e 	 o f 	 cr u d e 	 o i l 	 o ve r 	 e c o n o m i c 	 l i fe 	 o f 	 t h e 	 fi e l d s 246077 thousand barrels
taxation
th e 	 g ro u p 	 i s 	 su b j e c t 	 t o 	 i n c o m e 	 a n d 	 ot h e r 	 t a x e s 	 si g n i fi c a n t 	 j u dg e m e n t 	 i s 	 re q u i re d 	 i n 	 d ete r m i n i n g 	 t h e 	 p ro v i si o n 	 fo r 	 i n c o m e 	 t a x 	 a n d 	 ot h e r 	
taxes due to complexity of the tax legislation of the russian federation deferred tax assets are recognised to the extent that it is probable 
t ha t 	 i t 	 w i l l 	 g e n e ra te 	 e n o ug h 	 t a x a b l e 	 p rofi t s 	 t o 	 u t i l i se 	 d efe r re d 	 i n c o m e 	 t a x 	 re c og n i se d 	 si g n i fi c a n t 	 ma nag e m e n t 	 j u dg e m e n t 	 i s 	 re q u i re d 	 t o 	
d ete r m i n e 	 t h e 	 a m o u n t 	 o f 	 d efe r re d 	 t a x 	 a s set s 	 re c og n i se d 	 ba se d 	 u po n 	 t h e 	 l i k e ly 	 t i m i n g 	 a n d 	 t h e 	 l e ve l 	 o f 	 f u t u re 	 t a x a b l e 	 p ro fi t s 	 m a nag e m e n t	
p repa re s 	 c a s h 	 fl o w 	 f o re c a st s 	 to 	 su p po r t 	 re c o v e ra b i l it y 	 o f 	 def e r re d 	 t a x 	 a s set s 	 c a s h 	 fl o w 	 m ode l s 	 a re 	 ba se d 	 o n 	 a 	 n u m be r 	 o f 	 a s su m p t i o n s 	 re la t i n g	
to oil prices operating expenses production volumes etc these assumptions are consistent with those used by independent reservoir 
engineers management also takes into account uncertainties related to future activities of the group and going concern considerations 
w h e n 	 si g n i fi c a n t 	 u n c e r t a i n t i e s 	 ex i st 	 d efe r re d 	 t a x 	 a s set s 	 a r i si n g 	 f ro m 	 l os se s 	 a re 	 n ot 	 re c og n i se d 	 e ve n 	 i f 	 re c o ve ra b i l i t y 	 o f 	 t h e se 	 i s 	 su p po r te d 	 b y 	
c a s h 	 fl ow 	 fo re c a st s
segment reporting
m a nag e m e n t 	 v i ew s 	 t h e 	 g ro u p 	 a s 	 o n e 	 o pe ra t i n g 	 seg m e n t 	 a n d 	 u se s 	 re po r t s 	 fo r 	 t h e 	 e n t i re 	 g ro u p 	 t o 	 ma k e 	 st ra teg i c 	 d e c i si o n s	 98  	 o f 	 t ot a l	
revenues from external customers in 2014 and 2013 were derived from sales of crude oil and gas condensate these sales are made to 
domestic and international oil traders although there are a limited number of these traders the group is not dependent on any one of them 
as crude oil is widely traded and there are a number of other potential buyers of this commodity the group’s operations are entirely located 
in russia
the company’s board of directors evaluates performance of the entity on the basis of different measures including total expenses capital 
expenditures operating expenses per barrel and others 
5 adoption of the new and revised standards
at 	 t h e 	 d a te 	 o f 	 a p p ro va l 	 o f 	 t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s 	 t h e 	 fo l l ow i n g 	 a c c o u n t i n g 	 st a n d a rd s 	 a m e n d m e n t s 	 a n d 	 i n te r p ret a t i o n s 	 w e re	
issued by the international accounting standards board and ifrs interpretations committee in the year ended 31 december 2014 or earlier 
but are not yet effective and therefore have not been applied
i not endorsed by the european union
new standards and interpretations 
• if r s 	 9 	 – 	 f i na n c ia l 	 in st r u m e n t s 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 8  
• if r s 	 1 4 	 – 	 reg u la t o r y 	 defe r ra l 	 ac c o u n t s 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 6  
• if r s 	 1 5 	 – 	 re ve n u e 	 f ro m 	 c o n t ra c t s 	 w i t h 	 c u st o m e r s 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 7  
amendments
• a n n ua l 	 im p ro ve m e n t s 	 t o 	 if r s s 	 2 0 1 0 2 0 12 	 c y cl e 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 beg i n n i n g 	 o n 	 o r 	 a f te r 	 1 	 j u ly 	 2 0 1 4  	
• a m e n d m e n t s 	 t o 	 i a s 	 1 9 	 – 	 defi n e d 	 be n efi t 	 p la n s  	 e m p l o y e e 	 c o n t r ib u t i o n s 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 beg i n n i n g 	 1 	 j u ly 	 2 0 1 4  
• a m e n d m e n t s 	 t o 	 if r s 	 1 0  	 if r s 	 12 	 a n d 	 i a s 	 2 8 	 – 	 in ve st m e n t 	 e n t i t i e s  	 ap p ly i n g 	 t h e 	 c o n so l i d a t i o n 	 e x c e pt i o n 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s	
beg i n n i n g 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 6  
• a m e n d m e n t s 	 t o 	 i a s 	 1 	 – 	 d i scl osu re 	 in i t ia t ive 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 beg i n n i n g 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 6  
• a n n ua l 	 im p ro ve m e n t s 	 t o 	 if r s s 	 2 0 122 0 1 4 	 c y cl e 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 beg i n n i n g 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 6  	
• a m e n d m e n t s 	 t o 	 if r s 	 1 0 	 a n d 	 i a s 	 2 8 	 – 	 sa l e 	 o r 	 c o n t r ib u t i o n 	 o f 	 a s set s 	 bet w e e n 	 a n 	 in ve st o r 	 a n d 	 i t s 	 a s so c ia te 	 o r 	 j o i n t 	 v e n t u re 	  ef fe c t ive 	 fo r 	
a n n ua l 	 pe r i od s 	 beg i n n i n g 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 6  
• a m e n d m e n t s 	 t o 	 i a s 	 2 7 	 – 	 e q u i t y 	 m et h od 	 i n 	 s e pa ra te 	 f i na n c ia l 	 st a te m e n t s 	  ef fe c t ive 	 fo r 	 a n n ua l 	 pe r i od s 	 beg i n n i n g 	 1 	 j a n ua r y 	 2 0 1 6   	
• a m e n d m e n t s 	 t o 	 i a s 	 1 6 	 a n d 	 i a s 	 3 8 	 – 	 cla r i fi c a t i o n 	 o f 	 ac c e pt a b l e 	 m et h od s 	 o f 	 de p re c ia t i o n 	 a n d 	 a m o r t i sa t i o n 	  ef fe c t ive 	 fo r 	 t h e 	 pe r i od s 	
beg i n n i n g 	 o n 	 o r 	 a f te r 	 1 	 j a n ua r y 	 2 0 1 6  	
• a m e n d m e n t s 	 t o 	 if r s 	 1 1 	 – 	 ac c o u n t i n g 	 fo r 	 ac q u i si t i o n s 	 o f 	 in te re st s 	 i n 	 j o i n t 	 o pe ra t i o n s 	  ef fe c t ive 	 fo r 	 t h e 	 pe r i od s 	 beg i n n i n g 	 o n 	 o r 	 a f te r 	
1 	 j a n ua r y 	 2 0 1 6  
m a nag e m e n t 	 ex pe c t s 	 t ha t 	 t h e 	 a do pt i o n 	 o f 	 t h e se 	 a c c o u n t i n g 	 st a n d a rd s 	 i n 	 f u t u re 	 pe r i od s 	 w i l l 	 n ot 	 ha ve 	 a 	 ma te r ia l 	 ef fe c t 	 o n 	 t h e 	 fi na n c ia l 	
statements of the group strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 7 9   
6 segment reporting 
m a nag e m e n t 	 v i ew s 	 t h e 	 o pe ra t i o n s 	 o f 	 t h e 	 g ro u p 	 a s 	 o n e 	 o pe ra t i n g 	 seg m e n t 	 sh o u l d 	 t h e 	 g ro u p 	 d ive r si f y 	 i t s 	 o pe ra t i o n s 	 i t s 	 fi na n c ia l 	 re po r t i n g 	
w i l l 	 be 	 a d j u ste d 	 t o 	 refl e c t 	 su ch 	 cha n g e 	
the company’s board of directors evaluates performance of the group on the basis of different measures including production volumes 
related revenues capital expenditures operating expenses per barrel and others
7 revenue
year ended 31 december
2014 2013
revenue from crude oil sales 53795 67326
revenue from gas condensate sales 299 11267
other revenue 1006 1256
total revenue 55100 79849
other revenue includes proceeds from third parties for crude oil transportation 
for the years ended 31 december 2014 and 2013 revenue from export sales of crude oil amounted to us18811 thousand and us13306 
thousand respectively 
re ve n u e s 	 f ro m 	 c e r t a i n 	 i n d iv i d ua l 	 c u st o m e r s 	 f ro m 	 sa l e s 	 o f 	 cr u d e 	 o i l 	 a n d 	 g a s 	 c o n d e n sa te 	 a p p ro x i ma te ly 	 e q ua l l e d 	 o r 	 ex c e e d e d 	 1 0  	 o f 	 t ot a l 	
group revenue
year ended 31 december
customer 2014 2013
customer 1 18811 13306
customer 2 15936 –
customer 3 9406 36623
customer 4 3383 23368
47536 73297
 
8 cost of sales
year ended 31 december
2014 2013
depletion depreciation and amortisation 24722 18488
e m p l o y e e 	 be n efi t 	 ex pe n se 8614 7915
production services 5567 6649
mineral extraction tax 5506 25600
taxes other than income tax 2511 2678
repairs and maintenance 2010 1587
change of inventories 1138 491
transportation services 543 1292
reserves evaluation 377 608
other 700 592
total cost of sales 51688 65900
th e 	 d e cre a se 	 o f 	 m i n e ra l 	 ex t ra c t i o n 	 t a x 	 i n 	 2 0 1 4 	 re la te d 	 t o 	 t h e 	 80  	 re l i ef 	 b y 	 refe re n c e 	 t o 	 a 	 b a se 	 t a x 	 ra te 	 pe r 	 t o n	 wh i ch 	 i s 	 e st a b l i s h e d 	 m o n t h ly	
on the monthly average market prices of the urals blend and the rurus exchange rate for the preceding month relief was effective from 
s e pte m be r 	 2 0 1 3  	 a p p l i c a b l e 	 t o 	 t i g h t 	 o i l 	 a n d 	 re la te s 	 t o 	 a p p ro x i ma te ly 	 9 7  	 o f 	 t h e 	 g ro u p ’ s 	 c u r re n t 	 cr u d e 	 o i l 	 p rod u c t i o n 
f o r 	 a 	 bet te r 	 p re se n t a t i o n 	 o f 	 t h e i r 	 e c o n o m i c 	 na t u re 	 t a x e s 	 ot h e r 	 t ha n 	 i n c o m e 	 t a x  	  ma i n ly 	 p ro pe r t y 	 t a x   	 wh i ch 	 i n 	 2 0 1 3 	 w e re 	 i n cl u d e d 	 i n	
administrative expenses amounting to us2678 thousand in 2014 are included in cost of sales for comparability these costs in 2013 were 
also restated and reallocated from administrative expenses to cost of sales 80 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
9 selling and administrative expenses
year ended 31 december
2014 2013
selling expenses
oil transportation costs 2605 1838
administrative expenses
e m p l o y e e 	 be n efi t 	 ex pe n se 10278 9108
sharebased payment compensation 16 210
depreciation and amortisation 2270 3260
professional services 2083 2781
rent expenses 1625 1717
it telecom and other information services 465 1036
travel expenses 465 1240
bank charges 172 72
other 843 1206
total selling and administrative expenses 20822 22468
o i l 	 t ra n spo r t a t i o n 	 c ost s 	 re p re se n t 	 t h e 	 c ost 	 o f 	 t ra n sfe r r i n g 	 o i l 	 t o 	 ex po r t 	 c u st o m e r s 	 t h ro ug h 	 t h e 	 ‘ t ra n s n ef t ’ 	 p i pe l i n e 	 s y ste m 	
auditor remuneration
d u r i n g 	 t h e 	 y e a r 	 t h e 	 g ro u p 	 o bt a i n e d 	 t h e 	 fo l l ow i n g 	 se r v i c e s 	 f ro m 	 t h e 	 c o m pa n y ’ s 	 a u d i t o r 	 a n d 	 i t s 	 n et w o r k 	 fi r m s 
year ended 31 december
2014 2013
f e e s 	 pa ya b l e 	 t o 	 t h e 	 c o m pa n y ’ s 	 a u d i t o r 	 a n d 	 i t s 	 a s so c ia te s 	 fo r 	 t h e 	 a u d i t 	 o f 	 c o m pa n y 	 a n d 	 c o n so l i d a te d 	 fi na n c ia l 	
statements
370 370
fees payable to the company’s auditor and its associates for other services
– tax advisory services 32 80
– other consulting services 665 360
employee benefit expense
the employee numbers and costs incurred in the reporting years were as follows
year ended 31 december
selling expenses 2014 2013
wages and salaries 16698 14543
social security costs 2194 2487
total employee costs 18892 17030
sharebased payment compensation 16 210
a ve rag e 	 n u m be r 	 o f 	 e m p l o y e e s 	  i n cl u d i n g 	 d i re c t o r s  205 211
details of the remuneration of senior management are set out in note 24
10 other expenses
o t h e r 	 ex pe n se s 	 ma i n ly 	 c o n si st 	 o f 	 i m pa i r m e n t 	 o f 	 fi x e d 	 a n d 	 ot h e r 	 a s set s 	 i n 	 a m o u n t 	 o f 	 u s  2 1 3 7 	 t h o u sa n d 	 i m pa i r m e n t 	 o f 	 fi na n c ia l 	
instruments in amount of us1285 thousand and professional fees incurred in connection with the cancellation of a previously proposed 
fi na n c ia l 	 t ra n sa c t i o n 	 b y 	 t h e 	 c o m pa n y  	 i n 	 a m o u n t 	 o f 	 u s  7 09 	 t h o u sa n d strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 81   
11 finance costs
year ended 31 december
2014 2013
interest expense on borrowings 30883 28132
u n w i n d i n g 	 d i sc o u n t 	 o f 	 p u t 	 o pt i o n 	 l ia b i l i t i e s 	  n ote 	 1 7  2032 1147
u n w i n d i n g 	 d i sc o u n t 	 o f 	 p ro v i si o n 	 fo r 	 d i s ma n t l e m e n t 	  n ote 	 2 1  807 793
o t h e r 	 fi na n c ia l 	 ex pe n se s 4243 2924
total finance cost 37965 32996
for the years ended 31 december 2014 and 2013 borrowing costs amounting to us3912 thousand and us5722 thousand respectively 
were capitalised in property plant and equipment and are not included above the capitalisation rate used to determine the amount of 
bo r row i n g 	 c ost s 	 e l i g ib l e 	 fo r 	 c a p i t a l i sa t i o n 	 fo r 	 bot h 	 o f 	 t h e 	 y e a r s 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 2 0 1 3 	 wa s 	 1 0  	 pe r 	 a n n u m
o t h e r 	 fi na n c ia l 	 ex pe n se s 	 i n cl u d e 	 i n te re st 	 o n 	 t h e 	 o u t st a n d i n g 	 a m o u n t 	 o f 	 g l e n c o re 	 a n d 	 e n e r g o re su r s 	 p re pa y m e n t 	 fa c i l i t y 	  se e 	 n ote 	 2 2  	 a n d 	
amortisation of payment for the sberbank credit facility
12 income tax
the major components of income tax expense for the years ended 31 december 2014 and 2013 were
year ended 31 december
2014 2013
current income tax expense 22 51
defe r re d 	 t a x 	 be n efi t 517 62 
total income tax benefit 495 11
l os s 	 befo re 	 t a x a t i o n 	 fo r 	 fi na n c ia l 	 re po r t i n g 	 p u r pose s 	 i s 	 re c o n c i l e d 	 t o 	 t h e 	 t a x 	 c a l c u la t i o n 	 fo r 	 t h e 	 pe r i od 	 a s 	 fo l l ow s 
year ended 31 december
2014 2013
loss before income tax 263388 7 4249
in c o m e 	 t a x 	 be n efi t 	 a t 	 a p p l i c a b l e 	 t a x 	 ra te 52678 14850
tax effect of losses for which no deferred income tax asset was recognized 48419 24533
tax effect of losses utilised – 13752
tax effect of sharebase payment compensation 4  41 
tax effect interest on shareholders’ loans 1910 1 730 
tax effect of nondeductible expenses 1850 2287 
income tax benefit 495 11
differences between ifrs and statutory taxation regulations in russia give rise to temporary differences between the carrying amount of 
a s set s 	 a n d 	 l ia b i l i t i e s 	 fo r 	 fi na n c ia l 	 re po r t i n g 	 p u r pose s 	 a n d 	 t h e i r 	 t a x 	 b a se s 	 th e 	 t a x 	 ef fe c t 	 o f 	 t h e 	 m o ve m e n t s 	 i n 	 t h e se 	 te m po ra r y 	 d i f fe re n c e s 	 i s	
d et a i l e d 	 be l ow 	 a n d 	 i s 	 re c o rd e d 	 a t 	 t h e 	 ra te 	 o f 	 2 0  	 fo r 	 g ro u p 	 c o m pa n i e s 	 i n c o r po ra te d 	 i n 	 t h e 	 ru s sia n 	 f e d e ra t i o n 
the movements in deferred tax assets and liabilities relates to the following
 1 january 2014 
 recognised in 
p rofi t 	 o r 	 l oss
translation 
difference 
31 december 
2014
 assets
 tax loss carryforward 2682 2485 1 907  3260
 deferred income tax assets 2682 2485 1907 3260
liabilities
  property plant and equipment  8870 2060  3107 7823
  mineral rights and intangible assets  79 050   441 33201  46290
  inventories 21 60 32 7
  loans and borrowings –  439 139 300
  accounts payable 1214 943 806  1351
  accounts receivable 501 89 238  352
 deferred income tax liabilities 86184 1968 35435 52717 82 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
12 income tax continued
 1 january 2013 
 recognised in 
p rofi t 	 o r 	 l oss
translation 
difference 
31 december 
2013
 assets
 tax loss carryforward – 2757  75 2682
 deferred income tax assets – 2757 75 2682
liabilities
  property plant and equipment 6403 2870  403  8870
  mineral rights and intangible assets  85059 118  6127  79 050 
  inventories – 21 – 21
  accounts payable 1016 278  80 1214
  accounts receivable 546 6  39 501
  deferred income tax liabilities  89 900  2  6 9 5  6411 86184 
 deferred income tax liabilities 86184 1968 35435 52717
th e 	 g ro u p 	 re c og n i se s 	 d efe r re d 	 t a x 	 a s set s 	 i n 	 re spe c t 	 o f 	 t a x 	 l os se s 	 i n c u r re d 	 o n ly 	 b y 	 i n g a  	 be c a u se 	 i t 	 i s 	 p ro b a b l e 	 t ha t 	 su f fi c i e n t 	 t a x a b l e 	 p rofi t s 	
will be available in the future to utilise the deductible temporary difference
the group did not recognise deferred income tax assets of us65172 thousand and us39682 thousand in respect of losses that can be 
carried forward against future taxable income amounting to us325861 thousand and us198410 thousand as at 31 december 2014 and 
31 december 2013 respectively as at 31 december 2014 losses amounting to us29230 thousand us21578 thousand us15139 
thousand us24009 thousand us25210 thousand and us210695 thousand expire in 2018 2019 2020 2021 2023 2024 respectively 
as at 31 december 2013 losses amounting to us51087 thousand us36899 thousand us26559 thousand us41400 thousand and 
us42465 thousand expire in 2018 2019 2020 2021 2023 respectively
13 property plant and equipment
oil and gas 
properties
other property 
plant and 
equipment
construction in 
progress total 
cost as at 1 january 2014 223088 11425 74258 308771
additions – – 38143 38143
t ra n sfe r s 	 t o 	 fi x e d 	 a s set s 70070 1082 71152  –
cha n g e 	 i n 	 p ro v i si o n 	 fo r 	 d i s ma n t l e m e n t 	  n ote 	 2 1  1354  – – 1354 
disposals 314 181  311 806 
effect of translation to presentation currency 108831   450 1 18268  131600 
cost as at 31 december 2014 182659 7825 22670 213154
accumulated depletion and impairment as at 1 january 2014 68789 5779 – 74568
charge for the period 24487  2149  – 26636 
impairment 33 6   80 1  952  2089 
disposals 215 78 – 293
effect of translation to presentation currency 35095 2890 – 37985
accumulated depletion and impairment as at 31 december 2014 58302 5761 952 65015
net book value as at 31 december 2014 124357 2064 21718 148139 strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 83   
oil and gas 
properties
other property 
plant and 
equipment
construction in 
progress total 
cost as at 1 january 2013 212417 11339 61203 284959
additions – – 45507 45507
t ra n sfe r s 	 t o 	 fi x e d 	 a s set s 26268 1009 27277  –
cha n g e 	 i n 	 p ro v i si o n 	 fo r 	 d i s ma n t l e m e n t 	  n ote 	 2 1  26 – – 26
disposals 187  154  – 341
effect of translation to presentation currency 15436  769 5 175  21380 
cost as at 31 december 2013 223088 11425 74258 308771
accumulated depletion and impairment as at 1 january 2013 55177 3046 – 58223
charge for the period 18060  31 0 1 – 2116 1 
disposals 119 77 – 196
effect of translation to presentation currency 4329 291 – 4620
accumulated depletion and impairment as at 31 december 2013 68789 5779 – 74568
net book value as at 31 december 2013 154299 5646 74258 234203 
for the year ended 31 december 2014 additions to construction in progress are primarily made up of additions to production facilities 
including wells as well as additions to infrastructure as at 31 december 2014 the construction in progress balance mainly represents 
p rod u c t i o n 	 w e l l s 	 a n d 	 o i l 	 p rod u c t i o n 	 i n f ra st r u c t u re 	 n ot 	 fi na l i se d 	  e g  	 pa d s 	 e l e c t r i c i t y 	 g r i d s 	 et c   
none of the group’s property plant and equipment was pledged as at the reporting dates
14 mineral rights and other intangibles
mineral rights
other  
intangible  
assets total
cost as at 1 january 2014 395779 1495 397274
additions – 2482 2482
effect of translation to presentation currency 165526   1 4 1 1  166 937 
cost as at 31 december 2014 230253 2566 232819
accumulated depletion and impairment as at 1 january 2014 1587 154 1741
charge for the period 255 101  356
impairment – 48 48
effect of translation to presentation currency 779 109 888
accumulated depletion and impairment as at 31 december 2014 1063 194 1257
net book value as at 1 january 2014 394192 1341 395533
net book value as at 31 december 2014 229190 2372 231562
mineral rights
other  
intangible  
assets total
cost as at 1 january 2013 426490 320 426810
additions – 1231 1231
effect of translation to presentation currency 30 711 56 30767 
cost as at 31 december 2013 395779 1495 397274
accumulated depletion and impairment as at 1 january 2013 1205 54 1259
charge for the period  480 107  587
effect of translation to presentation currency 98 7 105
accumulated depletion and impairment as at 31 december 2013 1587 154 1741
net book value as at 1 january 2013 425285 266 425551
net book value as at 31 december 2013 394192 1341 395533
intangible assets of the group are not pledged as security for liabilities and their titles are not restricted 84 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
15 inventories
31 december
2014 2013
spare parts consumables and other inventories 109 957
crude oil 475 724
total inventories 584 1681
the group did not have any obsolete or slowmoving inventory at either of the reporting dates
16 trade and other receivables
31 december
2014 2013
trade receivables 1205 2629
other receivables and prepayments 1953 2783
vat recoverable 3407 1248
total trade and other receivables 6565 6660
trade receivables are mainly denominated in rur and are not pastdue or impaired other receivables and prepayments are mostly rur 
denominated and relate to counterparties with no history of delays in settlements vat recoverable is used either to offset against amounts 
due for mineral extraction tax or is recovered in cash the vat is recovered within three to six months from its initiation following a review 
by the tax authorities 
as at 31 december 2014 and 31 december 2013 the group has impaired prepayments amounting to us129 thousand and us384 
thousand respectively in determining the recoverability of trade and other receivables the group considers any change in the credit quality 
of the receivable from the date credit was initially granted up to the reporting date 
17 other current assets and liabilities
other current assets
in november 2014 the group entered into an agreement to purchase promissory notes denominated in rur and valued at us7062 
t h o u sa n d 	 a t 	 t h e 	 d a te 	 o f 	 ag re e m e n t 	 d u e 	 t o 	 a 	 si g n i fi c a n t 	 w e a k e n i n g 	 o f 	 r u r 	 ex cha n g e 	 ra te 	 ag a i n st 	 u s  	 b y 	 t h e 	 d a te 	 o f 	 pa y m e n t 	 a n d 	 f u r t h e r 	
weakening of rur exchange rate against us by the reporting date the group recognised an impairment loss in amount of us1285 
thousand and a foreign exchange loss in amount of us712 thousand
options on shares of the company
on 2 december 2011 the company and sberbank capital entered into an option agreement which became effective on 17 january 2012 
pursuant to which sberbank capital granted the company a call option to acquire the 10362632 ordinary shares held by sberbank capital 
the call option expired on 19 april 2013 the call option was only able to be exercised once only at any time prior to the day which is 15 
months from the date of the company’s ipo on 24 january 2012 at an exercise price equal to the ipo offer price of £134 per share less  
1 0  	 re su l t i n g 	 re se r ve s 	 a m o u n t i n g 	 t o 	 u s  4  05 9 	 t h o u sa n d 	 i n i t ia l ly 	 re c og n i se d 	 i n 	 e q u i t y  	 w e re 	 t ra n sfe r re d 	 t o 	 ret a i n e d 	 e a r n i n g s
in addition pursuant to this agreement sberbank capital may have put these ordinary shares issued back to the company the put option 
may have been exercised once only at any time between the second and third anniversary of the company’s ipo on 24 january 2012 at an 
ex e rc i se 	 p r i c e 	 e q ua l 	 t o 	 t h e 	 ipo 	 o f fe r 	 p r i c e 	 o f 	 £ 1  3 4 	 pe r 	 s ha re 	 l e s s 	 2 0  	 w i t h 	 re spe c t 	 t o 	 t h e 	 p u t 	 o pt i o n 	 a 	 l ia b i l i t y 	 o f 	 u s  1 7  02 6 	 t h o u sa n d 	 wa s	
recorded as at 31 december 2013
in november 2014 an investment and assignment agreement was entered into between sberbank capital mastin and the company in 
accordance with the agreement sberbank capital transferred its rights under the put option agreement to mastin as part of the 
restructuring 20115743 ordinary shares were issued as a consideration for cancellation of the put option
the following table shows the changes of value of the put option for the year ended 31 december 2014 and its cancellation by means of  
share issue
2014 2013
as at 1 january 17026 15365
unwinding of discount 2032 1147
settlement against share issue 17725 –
foreign exchange loss related to put option 1333 514
as at 31 december – 17026 strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 85   
during 2013 one of the executive directors who has been granted an option to acquire shares in the company left the group’s employment 
in accordance with the terms of the option this director lost the right to exercise part of his option to acquire 4145053 ordinary shares 
reserves amounting to us4814 thousand initially recognised in equity were transferred to retained earnings
other liabilities
other liabilities mainly include environmental tax obligations arising in the ordinary course of business
18 cash and cash equivalents
31 december
2014 2013
cash in bank denominated in us 4248 10653
cash in bank denominated in £ 7713 4921
cash in bank denominated in rur 45 258
cash in bank denominated in eur 16 –
total cash and cash equivalents 12022 15832
c a s h 	 ba la n c e s 	 g e n e ra l ly 	 c a r r y 	 n o 	 i n te re st 	 th e 	 g ro u p 	 h o l d s 	 i t s 	 c a s h 	 w i t h 	 s be r b a n k 	 m oody ’ s 	 ra t i n g 	 ba1  	 d  p 2 	  n eg a t ive  	 a t 	 3 1 	 de c e m be r	
2 0 1 4   	 ba n k 	 o f 	 a m e r i c a 	 m oody ’ s 	 ra t i n g 	 ba a 2  p 2 	  st a b l e  	 a t 	 3 1 	 de c e m be r 	 2 0 1 4   	 c i t ib a n k 	  f i t ch ’ s 	 ra t i n g 	 b b b  b b b   f 3 	  n eg a t ive  	 a t	
3 1 	 de c e m be r 	 2 0 1 4  	 a n d 	 ba n k 	 o f 	 c y p r u s 	 m oody ’ s 	 ra t i n g 	 c a a 3  e  n p 	  st a b l e  	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  
19 shareholders’ equity
share capital
31 december
2014 2013
ordinary share capital 135493 51226
on 11 december 2014 on completion of the restructuring 536730536 new ordinary shares were issued as follows
• 179061411 new ordinary shares were issued pursuant to applications received for open offer and excess shares 
• 4298403 new ordinary shares were taken up by the underwriting shareholders pursuant to their underwriting commitment under the 
open offer 
• 145890169 new ordinary shares were taken up by underwriting shareholders pursuant to the terms of the placing
in total 329249983 new ordinary shares were issued at par value of 10 pence per share with existing shareholders being offered the right to 
subscribe for 055 new shares for each existing share held
mastin purchased from sberbank capital 10362632 existing ordinary shares including 20115743 new ordinary shares issued to it to set 
o f f 	 t h e 	 p u t 	 o b l i g a t i o n 	 o f 	 t h e 	 c o m pa n y  	 a 	 t ot a l 	 2 07  0 60 3 1 1 	 n ew 	 o rd i na r y 	 s ha re s 	 w e re 	 i s su e d 	 t o 	 m a st i n 	 re su l t i n g 	 i n 	 i t 	 ha v i n g 	 a 	 25  	 h o l d i n g 	 i n 	
the enlarged issued ordinary share capital as at 31 december 2014
in addition on 19 december 2014 a further 420242 shares were issued to current and former directors in lieu of salary for the period from 
1 april 2013 to 31 march 2014
refl e c t i n g 	 t h e se 	 t ra n sa c t i o n s 	 t h e 	 i s su e d 	 a n d 	 pa i d  u p 	 s ha re 	 c a p i t a l 	 o f 	 t h e 	 c o m pa n y 	 c o n si ste d 	 o f 	 8 7 0  1 12 0 1 6 	 a n d 	 333 3 8 1  480 	 o rd i na r y 	
shares with a par value of £010 each at 31 december 2014 and 2013 respectively 86 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
20 borrowings
31 december
2014 2013
current
otkritie 3000 –
shortterm loans from shareholders of the company 5303 303
total current borrowings 8303 303
31 december
2014 2013
noncurrent
otkritie 144750 –
sberbank – 313393
longterm loans from shareholders of the company 94051 89503
total longterm borrowings 238801 402896
otkritie credit facilities under the terms of the restructuring the group obtained a loan from otkritie in the amount of us150000 
thousand on 8 december 2014 pursuant to a loan agreement dated 14 november 2014 the loan is repayable in november 2019 bears 
i n te re st 	 a t 	 8  	 pe r 	 a n n u m 	 a n d 	 i s 	 su b j e c t 	 t o 	 c e r t a i n 	 c o ve na n t s 	 i n cl u d i n g 	 eb i t d a 	 a n d 	 p rod u c t i o n 	 t a r g et s	
14 november 2014 loan agreements for us100000 thousand and us44700 thousand were entered into with otkritie for the group’s  
fi e l d 	 d e ve l o p m e n t 	 a n d 	 fo r 	 g e n e ra l 	 w o r k i n g 	 c a p i t a l 	 p u r pose s 	 re spe c t ive ly  	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  	 n o 	 fa c i l i t i e s 	 w e re 	 d ra w n 	 dow n 	 u n d e r	 
these agreements
sberbank credit facility on 10 december 2014 an assignment and transfer agreement was entered into between ruspetro russia 
ruspetro holding limited and mastin in accordance with the agreement the creditor rights in relation to the total debt in the amount of 
us337894 thousand being due to sberbank as at 10 december 2014 were transferred to mastin part of the loan in the amount of 
us150000 thousand was repaid through the corresponding credit facility provided by otkritie in december 2014 the remaining part of 
the loan in the amount of us187894 thousand was settled by the issuance to mastin of new ordinary shares in the company
loans from shareholders of the company the group has a number of us denominated loans obtained from shareholders of the 
c o m pa n y  	 a l l 	 o f 	 t h e se 	 l oa n s 	 a re 	 u n se c u re d 	 a n d 	 t h e 	 i n te re st 	 ra te 	 o n 	 m ost 	 o f 	 t h e se 	 l oa n s 	 i s 	 l ibo r 	  1 0  	 pe r 	 a n n u m 	
14 november 2014 the group rescheduled the maturity of the main shareholders’ loans until october 2016 and february 2020 with 
us5000 thousand payable in accrued interest on 31 may 2015 these amendments did not substantially alter the terms of these original 
loans and were therefore were not treated as extinguishment of an existing liability and recognition of a new liability the present value 
difference arising from the renegotiation was recognised over the remaining life of these loans by adjusting the effective interest rate
foreign exchange losses the group recognised a net foreign exchange loss amounting to us202410 thousand and us25586 
thousand during the years ended 31 december 2014 and 2013 respectively out of which us196084 thousand and us24694 thousand 
relate to the us denominated credit facilities and outstanding accrued interest for the years ended 31 december 2014 and 2013 respectively
21 provision for dismantlement
the provision for dismantlement represents the net present value of the estimated future obligations for abandonment and site restoration 
c ost s 	 wh i ch 	 a re 	 ex pe c te d 	 t o 	 be 	 i n c u r re d 	 a t 	 t h e 	 e n d 	 o f 	 t h e 	 p rod u c t i o n 	 l ive s 	 o f 	 t h e 	 o i l 	 a n d 	 g a s 	 fi e l d s 	 wh i ch 	 i s 	 e st i ma te d 	 t o 	 be 	 i n 	 2 0 	 y e a r s 	 f ro m 	
31 december 2014
2014 2013
as at 1 january 7940 7697
ad d i t i o n s 	 fo r 	 n ew 	 o b l i g a t i o n s 	 a n d 	 cha n g e s 	 i n 	 e st i ma te s 	  n ote 	 1 3  1354 26
unwinding of discount 807 793
effect of translation to presentation currency 3155 576
as at 31 december 4238 7940
this provision has been created based on the group’s internal estimates assumptions based on the current economic environment have 
been made which management believes are a reasonable basis upon which to estimate future dismantlement liability these estimates are 
reviewed regularly to take into account any material changes to the assumptions however actual dismantlement costs will ultimately 
d e pe n d 	 u po n 	 f u t u re 	 ma r k et 	 p r i c e s 	 fo r 	 t h e 	 n e c e s sa r y 	 d i s ma n t l e m e n t 	 w o r k s 	 re q u i re d 	 wh i ch 	 w i l l 	 refl e c t 	 ma r k et 	 c o n d i t i o n s 	 a t 	 t h e 	 re l e va n t 	 t i m e	
f u r t h e r m o re 	 t h e 	 t i m i n g 	 i s 	 l i k e ly 	 t o 	 d e pe n d 	 o n 	 wh e n 	 t h e 	 fi e l d s 	 c e a se 	 t o 	 p rod u c e 	 a t 	 e c o n o m i c a l ly 	 v ia b l e 	 l e ve l s 	 th i s 	 i n 	 t u r n 	 w i l l 	 d e pe n d 	 u po n	
future oil and gas prices and future operating costs which are inherently uncertain strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 87   
22 trade and other payables
31 december
2014 2013
trade payables 6135 23888
o t h e r 	 n o n  fi na n c ia l 	 l ia b i l i t i e s 19312 19954
total trade and other payables 25447 43842
trade and other payables are denominated primarily in russian rubles
on 27 march 2014 the group signed a prepayment agreement with glencore which renewed and replaced an original prepayment facility 
w i t h 	 g l e n c o re 	 e n te re d 	 i n t o 	 i n 	 aug u st 	 2 0 1 3 	  “ or i g i na l 	 f a c i l i t y ”   	 th e 	 su m 	 o f 	 p re pa y m e n t 	 re c e ive d 	 f ro m 	 g l e n c o re 	 a m o u n te d 	 t o 	 u s  3 0  000 	
thousand the facility is for a period of one year and requires the group to deliver a minimum of 112050 barrels per quarter of crude oil to 
glencore the us10000 thousand outstanding under the original facility was paid down in full as part of the new facility resulting in net 
proceeds of us20000 thousand to the group
in may and october 2014 the group entered into two domestic forward oil sale prepayment agreements with energoresurs the 
p re pa y m e n t s 	 re c e ive d 	 f ro m 	 e n e r g o re su r s 	 a m o u n te d 	 t o 	 r u r 750  000 	 t h o u sa n d 	 u s  2 1  646 	 t h o u sa n d  	 a n d 	 r u r 2 00  000 	 t h o u sa n d	
u s  4  68 9 	 t h o u sa n d   	 u n d e r 	 t h e 	 p ro v i si o n s 	 o f 	 t h e 	 c o r re spo n d i n g 	 p re pa y m e n t 	 ag re e m e n t s 	 t h e 	 g ro u p 	 i s 	 o b l i g e d 	 t o 	 su p p ly 	 u p 	 t o 	 6 2 7  480	
barrels of crude oil commencing in june 2014 for a duration of one year and up to 149400 barrels of crude oil commencing in november 
2 0 1 4 	 fo r 	 a 	 d u ra t i o n 	 o f 	 si x  m o n t h s 	 pe r i od 	 th e 	 i n te re st 	 ra te s 	 o n 	 t h e 	 o u t st a n d i n g 	 a m o u n t s 	 o f 	 t h e 	 p re pa y m e n t s 	 a re 	 1 3  00  	 a n d 	 1 8  3 4  	 pe r 	
a n n u m 	 th e 	 o u t st a n d i n g 	 a m o u n t s 	 o f 	 t h e 	 p re pa y m e n t s 	 a re 	 p re se n te d 	 i n 	 ot h e r 	 n o n  fi na n c ia l 	 l ia b i l i t i e s
23 capital commitments and other contingencies 
capital commitments
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  	 t h e 	 g ro u p 	 ha d 	 c o n t ra c t ua l 	 c o m m i t m e n t s 	 fo r 	 c a p i t a l 	 ex pe n d i t u re s 	 o f 	 u s  2360 	 t h o u sa n d 	 3 1 	 de c e m be r 	 2 0 1 3  	 n i l  
licence commitments
the group’s exploration and production licences require certain operational commitments these include performance criteria certain  
of which have not been fully met during 2014 the directors note that breach of licence performance conditions has not given rise to any 
ma te r ia l 	 fi n e s 	 o r 	 pe na l t i e s 	 f u r t h e r m o re 	 ma nag e m e n t 	 ha s 	 be e n 	 u n d e r t a k i n g 	 pa r t i c u la r 	 a c t i o n s 	 t o 	 m e et 	 re q u i re d 	 l i c e n c e 	 pe r fo r ma n c e	
criteria the directors also note that the group’s production programme has been inspected by the russian licensing authorities subsequent 
t o 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 t ha t 	 n o 	 ma te r ia l 	 fi n e s 	 o r 	 pe na l t i e s 	 ha ve 	 re su l te d
liquidity of subsidiary undertakings
in accordance with the legal framework in the russian federation creditors and tax authorities may initiate bankruptcy proceedings against 
an entity with negative net assets as at 31 december 2014 ruspetro russia reported net liabilities under russian gaap however no such 
bankruptcy proceedings have been initiated either by the creditors or the tax authorities against them the directors consider such net 
liability position to be not abnormal given that the group is still at a development stage
operating lease commitments – group as lessee
the group has entered into leases for land plots woodlots and motor vehicles the land in the russian federation on which the group’s 
production facilities are located is owned by the state the group leases land through operating lease agreements which expire in various 
years through 2034 these leases have renewal terms at the option of the lessee at lease payments based on market prices at the time of 
renewal there are no restrictions placed upon the lessee by entering into these leases
future minimum lease payments under noncancellable operating leases as at 31 december 2014 and 2013 were as follows
31 december
2014 2013
within one year 609 803
a f te r 	 o n e 	 y e a r 	 b u t 	 n ot 	 m o re 	 t ha n 	 five 	 y e a r s 56 822
m o re 	 t ha n 	 five 	 y e a r s 86 14
total operating lease commitments and other contingencies 751 1639
operating risks and contingencies
pledge of shares 
on the opening of its credit facility with otkritie the group provided to otkritie as collateral its shares in inga and transoil as at 
31 december 2013 the shares of inga and transoil were provided to sberbank as a collateral 88 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
23 capital commitments and other contingencies continued
taxation contingencies
russian tax currency and customs legislation is subject to varying interpretations and changes which can occur frequently management’s 
interpretation of such legislation as applied to the transactions and activity of the group may be challenged by the relevant regional and 
federal authorities in the russian federation 
recent events within the russian federation indicate that the russian tax authorities may be taking a more assertive position in their 
interpretation of the prevailing legislation and assessments and it is possible that transactions and activities which have not been challenged 
in the past may be challenged in the future the supreme arbitration court of the russian federation has issued guidance to lower courts on 
re v i ew i n g 	 t a x 	 c a se s 	 p ro v i d i n g 	 a 	 s y ste m i c 	 roa d ma p 	 fo r 	 a n t i a v o i d a n c e 	 cla i m s 	 a n d 	 i t 	 i s 	 pos sib l e 	 t ha t 	 t h i s 	 w i l l 	 si g n i fi c a n t ly 	 i n cre a se 	 t h e 	 l e ve l 	
a n d 	 f re q u e n c y 	 o f 	 t h e 	 t a x 	 a u t h o r i t i e s ’ 	 scr u t i n y  	 a s 	 a 	 re su l t 	 si g n i fi c a n t 	 a d d i t i o na l 	 t a x e s 	 pe na l t i e s 	 a n d 	 i n te re st 	 ma y 	 be 	 a s se s se d 	 f i sc a l 	 pe r i od s	
remain open to review by the authorities in respect of taxes for three calendar years preceding the year of review under certain 
circumstances reviews may cover longer periods 
amended russian transfer pricing legislation took effect from 1 january 2012 the new transfer pricing rules appear to be more technically 
elaborate and to a certain extent better aligned with the international transfer pricing principles developed by the organisation for 
e c o n o m i c 	 c oo pe ra t i o n 	 a n d 	 de ve l o p m e n t 	  o e cd   	 th e 	 n ew 	 l eg i s la t i o n 	 p ro v i d e s 	 t h e 	 pos sib i l i t y 	 fo r 	 t a x 	 a u t h o r i t i e s 	 t o 	 ma k e 	 t ra n sfe r 	 p r i c i n g 	
a d j u st m e n t s 	 a n d 	 i m pose 	 a d d i t i o na l 	 t a x 	 l ia b i l i t i e s 	 i n 	 re spe c t 	 o f 	 c o n t ro l l e d 	 t ra n sa c t i o n s 	  t ra n sa c t i o n s 	 w i t h 	 re la te d 	 pa r t i e s 	 a n d 	 so m e 	 t y pe s 	 o f 	
t ra n sa c t i o n s 	 w i t h 	 u n re la te d 	 pa r t i e s   	 p ro v i d e d 	 t ha t 	 t h e 	 t ra n sa c t i o n 	 p r i c e 	 i s 	 n ot 	 a r m ’ s 	 l e n g t h	
management believes that its pricing policy is arm’s length and it has implemented internal controls to be in compliance with the new 
transfer pricing legislation 
given that the practice of implementation of the new russian transfer pricing rules has not yet developed the impact of any challenge of the 
g ro u p ’ s 	 t ra n sfe r 	 p r i c e s 	 c a n n ot 	 be 	 re l ia b ly 	 e st i ma te d 	 h ow e ve r  	 su ch 	 cha l l e n g e 	 c o u l d 	 p ro ve 	 si g n i fi c a n t 	 t o 	 t h e 	 fi na n c ia l 	 c o n d i t i o n s 	 a n d o r 	 t h e 	
overall operations of the group 
the group includes companies incorporated outside russia tax liabilities of the group are determined on the assumptions that these 
c o m pa n i e s 	 a re 	 n ot 	 su b j e c t 	 t o 	 ru s sia n 	 p rofi t s 	 t a x 	 be c a u se 	 t h e y 	 do 	 n ot 	 ha ve 	 a 	 pe r ma n e n t 	 e st a b l i s h m e n t 	 i n 	 ru s sia 	 ru s sia n 	 t a x 	 la w s 	 do 	 n ot	
provide detailed rules on taxation of foreign companies it is possible that with the evolution of the interpretation of these rules and the 
changes in the approach of the russian tax authorities the nontaxable status of some or all of the foreign companies of the group in russia 
ma y 	 be 	 cha l l e n g e d 	 th e 	 i m pa c t 	 o f 	 a n y 	 su ch 	 cha l l e n g e 	 c a n n ot 	 be 	 re l ia b ly 	 e st i ma te d  	 h ow e ve r  	 i t 	 ma y 	 be 	 si g n i fi c a n t 	 t o 	 t h e 	 fi na n c ia l 	 c o n d i t i o n 	
andor the overall operations of the entity 
management believes that its interpretation of the relevant legislation is appropriate and the group’s tax currency and customs positions 
will be sustained where management believes it is probable that a position cannot be sustained an appropriate amount is accrued for in 
t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s
operating environment of the group 
the russian federation displays certain characteristics of an emerging market its economy is particularly sensitive to oil and gas prices  
the legal tax and regulatory frameworks continue to develop and are subject to varying interpretations
political and economic turmoil witnessed in the region including the developments in ukraine have had and may continue to have a negative 
impact on the russian economy including weakening of the rouble and making it harder to raise international funding at present there is 
a n 	 o n g o i n g 	 t h re a t 	 o f 	 sa n c t i o n s 	 ag a i n st 	 ru s sia 	 a n d 	 ru s sia n 	 o f fi c ia l s 	 t h e 	 i m pa c t 	 o f 	 wh i ch 	 i f 	 t h e y 	 w e re 	 t o 	 be 	 i m p l e m e n te d 	 a re 	 a t 	 t h i s 	 st ag e	
d i f fi c u l t 	 t o 	 d ete r m i n e 	 th e 	 fi na n c ia l 	 ma r k et s 	 a re 	 u n c e r t a i n 	 a n d 	 v o la t i l e 	 th e se 	 a n d 	 ot h e r 	 e ve n t s 	 ma y 	 ha ve 	 a n 	 si g n i fi c a n t 	 i m pa c t 	 o n 	 t h e 	
g ro u p ’ s 	 o pe ra t i o n s 	 a n d 	 fi na n c ia l 	 posi t i o n 	 t h e 	 ef fe c t 	 o f 	 wh i ch 	 i s 	 d i f fi c u l t 	 t o 	 p re d i c t 	 m a nag e m e n t 	 ha s 	 a s se s se d 	 t h e 	 a b i l i t y 	 o f 	 t h e 	 g ro u p 	 t o	
continue as a going concern as well as possible impairment of the group’s longterm assets by considering the current economic environment 
a n d 	 o u t l oo k 	  refe r 	 t o 	 n ote 	 2   	 th e 	 f u t u re 	 e c o n o m i c 	 a n d 	 reg u la t o r y 	 si t ua t i o n 	 ma y 	 d i f fe r 	 f ro m 	 ma nag e m e n t ’ s 	 c u r re n t 	 ex pe c t a t i o n s
environmental matters
the enforcement of environmental regulation in the russian federation is evolving and the enforcement posture of government authorities 
is continually being reconsidered the group periodically evaluates its obligations under environmental regulations as obligations are 
determined they are recognised immediately potential liabilities which might arise as a result of changes in existing regulations civil 
litigation or legislation cannot be estimated but could be material in the current enforcement climate under existing legislation 
ma nag e m e n t 	 be l i e ve s 	 t ha t 	 t h e re 	 a re 	 n o 	 si g n i fi c a n t 	 l ia b i l i t i e s 	 fo r 	 e n v i ro n m e n t a l 	 d a mag e
legal proceedings
from time to time and in the normal course of business claims against the group are received the management is of the opinion that there 
a re 	 n o 	 c u r re n t 	 l eg a l 	 p ro c e e d i n g s 	 o r 	 ot h e r 	 cla i m s 	 o u t st a n d i n g 	 t ha t 	 c o u l d 	 ha ve 	 a 	 ma te r ia l 	 ef fe c t 	 o n 	 t h e 	 re su l t s 	 o f 	 o pe ra t i o n s 	 o r 	 fi na n c ia l 	
posi t i o n 	 o f 	 t h e 	 g ro u p 	 fo r 	 t h e 	 pe r i od 	 u n t i l 	 3 1 	 de c e m be r 	 2 0 1 4  	 wh i ch 	 ha ve 	 n ot 	 be e n 	 d i scl ose d 	 i n 	 t h e se 	 c o n so l i d a te d 	 fi na n c ia l 	 st a te m e n t s strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 8 9   
24related party disclosures 
compensation of key management personnel of the group
key management includes executive and nonexecutive directors of the group the compensation paid or payable to key management for 
employee services is shown below
31 december
2014 2013
sharebased payment compensation 16 210
employee remuneration 4035 1934
be n efi t s 	 i n 	 k i n d 192 102
nonexecutive directors’ fees 650 1316
total compensation of key management personnel of the group 4893 3562
from april 2013 a proportion of directors’ remuneration paid in cash has been reduced and was paid in shares the fair value of employee 
services received by the group was determined with reference to share price at the end of each remuneration accrual period
on 19 december 2014 the board issued in aggregate 420242 new ordinary shares to certain current and former directors in lieu of 
salaries and fees due for the period from 1 april 2013 to 31 march 2014 the salaries and fees were converted into shares at the company’s 
2012 ipo offer price of 134 pence per ordinary share
a l l 	 re la te d 	 pa r t y 	 t ra n sa c t i o n s 	 a re 	 o n 	 a n 	 a r m ’ s l e n g t h 	 ba si s 	 a n d 	 n o 	 fi na n c ia l 	 pe r i od 	 e n d 	 b a la n c e s 	 ha ve 	 a r i se n 	 a s 	 re su l t 	 o f 	 t h e se 	 t ra n sa c t i o n s
loans from related parties
the group has a number of loans from shareholders of the company with the following balances
2014 2013
as at 1 january 89806 81157
loan obtained 10000 –
interest accrued 10248 8649
loan and interest settled through share issue 10700 –
as at 31 december 99354 89806
the effective interest rates and conversion options of loans received are disclosed in note 20 
transactions with other related parties
ru spet ro 	 ru s sia 	 l e a se d 	 a n 	 o f fi c e 	 spa c e 	 i n 	 a 	 b u i l d i n g 	 f ro m 	 a 	 c o m pa n y  	 i n 	 wh i ch 	 o n e 	 o f 	 i t s 	 s ha re h o l d e r s 	 ha s 	 a n 	 i n te re st 	 fo r 	 a n 	 a n n ua l 	 re n t 	 a n d	
se r v i c e 	 cha r g e 	 o f 	 r u r 36  4 0 1 	 t h o u sa n du s  946 	 t h o u sa n d 	  ex cl u d i n g 	 v a t   	 th e 	 l e a se 	 w i l l 	 te r m i na te 	 o n 	 1 4 	 s e pte m be r 	 2 0 1 5 	 o r 	 e a r l i e r 	 wh e n	
l o n g  te r m 	 l e a se 	 ag re e m e n t 	 i s 	 e n te re d 	 i n t o 	 bet w e e n 	 t h e 	 pa r t i e s 	 ru spet ro 	 ru s sia 	 l e a se d 	 pa r k i n g 	 p la c e s 	 a t 	 t h e 	 o f fi c e 	 b u i l d i n g 	 f ro m 	 t h e 	 sa m e 	
c o m pa n y 	 fo r 	 a n 	 a n n ua l 	 re n t 	 a n d 	 se r v i c e 	 cha r g e 	 o f 	 r u r 2 02 9 	 t h o u sa n du s  53 	 t h o u sa n d 	  ex cl u d i n g 	 v a t   	 th i s 	 l e a se 	 w i l l 	 te r m i na te 	 o n	
1 october 2021
25 financial risk management objectives and policies
th e 	 g ro u p ’ s 	 p r i n c i pa l 	 fi na n c ia l 	 l ia b i l i t i e s 	 c o m p r i se 	 a c c o u n t s 	 pa ya b l e 	 b a n k 	 bo r row i n g s 	 a n d 	 ot h e r 	 l oa n s 	 th e 	 ma i n 	 p u r pose 	 o f 	 t h e se 	 fi na n c ia l 	
i n st r u m e n t s 	 a n d 	 l ia b i l i t i e s 	 i s 	 t o 	 ma nag e 	 s h o r t  te r m 	 c a s h 	 fl ow 	 a n d 	 ra i se 	 fi na n c e 	 fo r 	 t h e 	 g ro u p ’ s 	 c a p i t a l 	 ex pe n d i t u re 	 p rog ra m m e 	 th e 	 g ro u p	
ha s 	 va r i o u s 	 fi na n c ia l 	 a s set s 	 su ch 	 a s 	 a c c o u n t s 	 re c e iva b l e 	 a n d 	 c a s h 	 wh i ch 	 a r i se 	 d i re c t ly 	 f ro m 	 i t s 	 o pe ra t i o n s
it is and has been throughout the years ended 31 december 2014 and 2013 the group’s policy that no speculative trading in derivatives  
shall be undertaken
th e 	 ma i n 	 r i s k s 	 t ha t 	 c o u l d 	 a dve r se ly 	 a f fe c t 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 a s set s 	 l ia b i l i t i e s 	 o r 	 f u t u re 	 c a s h 	 fl ow s 	 a re 	 c o m m od i t y 	 p r i c e   	 i n te re st 	 ra te  	
foreign currency liquidity and credit risk related management reviews and agrees policies for managing each of these risks which are 
summarised below
the following discussion also includes a sensitivity analysis that is intended to illustrate the sensitivity to changes in market variables on  
t h e 	 g ro u p ’ s 	 fi na n c ia l 	 i n st r u m e n t s 	 a n d 	 s h ow 	 t h e 	 i m pa c t 	 o n 	 p rofi t 	 o r 	 l os s 	 a n d 	 s ha re h o l d e r s ’ 	 e q u i t y  	 wh e re 	 a p p l i c a b l e 	 f i na n c ia l 	 i n st r u m e n t s	
affected by market risk include bank loans and overdrafts accounts receivable accounts payable and accrued liabilities 
th e 	 se n si t iv i t y 	 ha s 	 be e n 	 p re pa re d 	 fo r 	 t h e 	 y e a r s 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 2 0 1 3 	 u si n g 	 t h e 	 a m o u n t s 	 o f 	 d ebt 	 a n d 	 ot h e r 	 fi na n c ia l 	 a s set s 	 a n d 	
l ia b i l i t i e s 	 h e l d 	 a s 	 a t 	 t h ose 	 st a te m e n t 	 o f 	 fi na n c i n g 	 posi t i o n 	 d a te s 90 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
25 financial risk management objectives and policies continued
capital risk management
the group considers capital to comprise both debt and equity total debt comprises longterm and shortterm loans and borrowings as 
s h ow n 	 i n 	 t h e 	 c o n so l i d a te d 	 st a te m e n t 	 o f 	 fi na n c ia l 	 posi t i o n  	 e q u i t y 	 o f 	 t h e 	 g ro u p 	 c o m p r i se s 	 s ha re 	 c a p i t a l 	 s ha re 	 p re m i u m 	 ot h e r 	 re se r ve s	 
and retained earnings equity of the group was equal to us75740 thousand and us95261 thousand as at 31 december 2014 and  
2013 respectively
total debt of the group was equal to us247104 thousand and us403199 thousand as at 31 december 2014 and 31 december 2013 
respectively
the group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide 
a d e q ua te 	 l e ve l s 	 o f 	 fi na n c i n g 	 fo r 	 i t s 	 c u r re n t 	 d e ve l o p m e n t 	 a n d 	 p rod u c t i o n 	 a c t iv i t i e s 	 in 	 o rd e r 	 t o 	 ma i n t a i n 	 o r 	 a d j u st 	 t h e 	 c a p i t a l 	 st r u c t u re	 
the group may issue new shares attract new or repay existing loans and borrowings 
the group manages its capital structure and makes adjustments to it based on the funds available to the group in order to support its 
c o n st r u c t i o n 	 a n d 	 p rod u c t i o n 	 a c t iv i t i e s 	 th e 	 g ro u p 	 i s 	 a t 	 a 	 d e ve l o p m e n t 	 st ag e  	 a s 	 su ch 	 i t 	 i s 	 d e pe n d e n t 	 o n 	 ex te r na l 	 fi na n c i n g 	 t o 	 f u n d 	 i t s 	
activities in order to carry out its planned construction and production activities and pay for administrative costs the group will spend its 
existing capital and raise additional amounts as needed
there were no changes in the group’s approach to capital management during the period as at 31 december 2014 and 2013 the group was 
n ot 	 su b j e c t 	 t o 	 a n y 	 ex te r na l ly 	 i m pose d 	 c a p i t a l 	 re q u i re m e n t s 	  ex c e pt 	 fo r 	 d e scr ibe d 	 i n 	 n ote 	 23   	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	 t h e 	 g ro u p 	 i s 	 su b j e c t 	 t o	
c e r t a i n 	 c o ve na n t s 	  n ote 	 2 0  
commodity price risk
the group sells crude oil and gas condensate under spot contracts on a monthly basis sales are centrally managed and during the reporting 
periods were made principally to domestic customers the basis for determining the export price is the price of brent crude changes in 
c o m m od i t y 	 p r i c e s 	 c a n 	 a f fe c t 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 pe r fo r ma n c e 	 e i t h e r 	 posi t ive ly 	 o r 	 n eg a t ive ly 	 a n d 	 ma k e 	 t h e 	 g ro u p ’ s 	 re ve n u e s 	 su b j e c t 	 t o	
v o la t i l i t y 	 i n 	 l i n e 	 w i t h 	 fl u c t ua t i o n s 	 i n 	 cr u d e 	 o i l 	 refe re n c e 	 p r i c e s 	 c u r re n t ly 	 t h e 	 g ro u p 	 do e s 	 n ot 	 u se 	 c o m m od i t y 	 d e r iva t ive 	 i n st r u m e n t s 	 t o	
mitigate the risk of crude oil price volatility
th e 	 t a b l e 	 be l ow 	 p ro v i d e s 	 t h e 	 se n si t iv i t y 	 o f 	 t h e 	 g ro u p ’ s 	 re ve n u e s 	 t o 	 a 	 1 0  	 cha n g e 	 i n 	 p r i c e 	 o f 	 cr u d e 	 o i l  	
year ended 31 december
commodity price risk 2014 2013
f a v o u ra b l e 	  1 0  5409 7859
u n fa v o u ra b l e 	  1 0  5409 7859 
f o r 	 t h e 	 p u r pose s 	 o f 	 t h i s 	 a na ly si s 	 t h e 	 ef fe c t 	 o f 	 a 	 va r ia t i o n 	 i n 	 cr u d e 	 o i l 	 p r i c e s 	 o n 	 g ro u p ’ s 	 p ro fi t 	 i s 	 c a l c u la te d 	 i n d e pe n d e n t ly 	 o f 	 a n y 	 cha n g e 	 i n 	
another assumption in reality changes in one factor may contribute to changes in another which may magnify or counteract these 
sensitivities
interest rate risk
th e 	 g ro u p 	 i s 	 ex pose d 	 t o 	 i n te re st 	 ra te 	 r i s k  	 h ow e ve r  	 t h e 	 pos sib l e 	 i m pa c t 	 o f 	 cha n g e s 	 i n 	 i n te re st 	 ra te s 	 a re 	 n ot 	 si g n i fi c a n t 	 si n c e 	 t h e 	 g ro u p ’ s 	
ma j o r 	 bo r row i n g s 	 a re 	 a t 	 fi x e d 	 i n te re st 	 ra te s 	 th e re 	 i s 	 n o 	 spe c i fi c 	 po l i c y 	 i n 	 p la c e 	 t o 	 h e dg e 	 ag a i n st 	 pos sib l e 	 a dve r se 	 cha n g e s 	 i n 	 i n te re st 	 ra te s
the following table demonstrates the sensitivity to a reasonably possible change in interest rates with all other variables held constant of 
t h e 	 g ro u p ’ s 	 l os s 	 befo re 	 t a x 	 t h ro ug h 	 t h e 	 i m pa c t 	 o n 	 fl oa t i n g 	 ra te 	 bo r row i n g s
year ended 31 december  
effect on loss before tax
increasedecrease in interest rate 2014 2013
10 991 895
10  991 895
foreign currency risk
the group has transactional currency exposures such exposure arises from borrowing in currencies other than the functional currency 
the group limits foreign currency risk by monitoring changes in exchange rates in the currencies in which its cash and borrowings  
are denominated
the group’s exposure to foreign currency exchange rate risk at the end of the reporting period was mainly concentrated in the otkritie  
credit facility strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 91   
the following table shows the sensitivity to a reasonably possible change in the usrur exchange rate with all other variables held 
constant of the group’s loss before tax due to changes in the carrying value of monetary assets and liabilities
year ended 31 december  
effect on loss before tax
us strengtheningweakening against rur 2014 2013
u s  	 st re n g t h e n i n g 	 b y 	 2 0  25875 52232 
u s  	 w e a k e n i n g 	 b y 	 2 0  38813 78348
liquidity risk
the group monitors liquidity risk by monitoring its debt rating and the maturity dates of existing debt 
th e 	 t a b l e 	 be l ow 	 su m ma r i se s 	 t h e 	 ma t u r i t y 	 p rofi l e 	 o f 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 l ia b i l i t i e s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 2 0 1 3 	 b a se d 	 o n 	 c o n t ra c t ua l 	
undiscounted payments
 31 december 2014
on demand less than 1 year 1 to 2 years 2 to 5 years  5 years total
bo r row i n g s 	  i n cl u d i n g 	 i n te re st  303 23040 40016 184106 127019 374484
trade payables – 6135 – – – 6135
303 29175 40016 184106 127019 380619
 31 december 2013
on demand less than 1 year 1 to 2 years 2 to 5 years  5 years total
bo r row i n g s 	  i n cl u d i n g 	 i n te re st  303 – 49155 503507 – 552965
trade payables – 23888 – – – 23888
other current liabilities – 19225 – – – 19225
303 43113 49155 503507 – 596078
credit risk
the group manages its own exposure to credit risk the group trades only with recognised creditworthy third parties all external 
c u st o m e r s 	 u n d e r g o 	 a 	 cre d i t w o r t h i n e s s 	 ch e ck  	 th e 	 g ro u p 	 pe r fo r m s 	 a n 	 o n g o i n g 	 a s se s s m e n t 	 a n d 	 m o n i t o r i n g 	 o f 	 fi na n c ia l 	 posi t i o n 	 a n d 	 t h e 	 r i s k 	
o f 	 d efa u l t 	 in 	 a d d i t i o n 	 re c e iva b l e 	 b a la n c e s 	 a re 	 m o n i t o re d 	 o n 	 a n 	 o n g o i n g 	 b a si s 	 t h u s 	 t h e 	 g ro u p ’ s 	 ex posu re 	 t o 	 b a d 	 d ebt s 	 i s 	 n ot 	 si g n i fi c a n t 	
th e 	 g ro u p 	 ha d 	 o n e 	 ma j o r 	 c u st o m e r 	 i n 	 2 0 1 4 	 be i n g 	 a n 	 i n te r na t i o na l 	 o i l 	 t ra d e r 	 a n d 	 a c c o u n t i n g 	 fo r 	 a t 	 l e a st 	 3 4  	 o f 	 t ot a l 	 sa l e s 	 i n 	 2 0 1 4 	  2 0 1 3  	
1 7    	 o t h e r 	 sa l e s 	 a re 	 ma d e 	 t o 	 do m e st i c 	 c u st o m e r s 	 th e 	 g ro u p 	 i s 	 h ow e ve r  	 n ot 	 d e pe n d e n t 	 o n 	 a n y 	 o f 	 i t s 	 ma j o r 	 c u st o m e r s 	 o r 	 a n y 	 o n e 	 pa r t i c u la r	
customer as there is a ready market for crude oil analysis of sales to key customers is included into note 7
th e 	 g ro u p 	 i s 	 ex pose d 	 t o 	 c o n c e n t ra t i o n s 	 o f 	 cre d i t 	 r i s k  	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  	 t h e 	 g ro u p 	 ha d 	 si x 	 c o u n te r pa r t i e s 	  2 0 1 3  	 si x 	 c o u n te r pa r t i e s 	
w i t h 	 ag g reg a te d 	 re c e iva b l e s 	 ba la n c e s 	 u s  1  1 0 3 	 t h o u sa n d 	  2 0 1 3  	 2 6 2 9  	 o r 	 1 7  	 o f 	 t h e 	 g ros s 	 a m o u n t 	 o f 	 t ra d e 	 a n d 	 ot h e r 	 re c e iva b l e s 	  2 0 1 3  	 39   
w i t h 	 re spe c t 	 t o 	 cre d i t 	 r i s k 	 a r i si n g 	 f ro m 	 t h e 	 ot h e r 	 fi na n c ia l 	 a s set s 	 o f 	 t h e 	 g ro u p  	 wh i ch 	 c o m p r i se 	 c a s h 	 a n d 	 e q u iva l e n t s 	 t h e 	 g ro u p ’ s 	 ex posu re 	 t o	
credit risk arises from default of the counterparty with a maximum exposure equal to the carrying amount of these instruments the credit 
risk on cash is limited because the counterparties are either highly rated banks or banks approved by the management of the group 
approval is made after certain procedures are performed to assess the reliability and creditworthiness of banks 
fair values
th e 	 g ro u p 	 ha s 	 fi na n c ia l 	 i n st r u m e n t s 	 c a r r i e d 	 a t 	 fa i r 	 va l u e 	 o n ly 	 i n 	 t h e 	 ‘ l e ve l 	 3 ’ 	 c a teg o r y 	
th e 	 d i f fe re n t 	 l e ve l s 	 ha ve 	 be e n 	 d efi n e d 	 a s 	 fo l l ow s 
• q u ote d 	 p r i c e s 	  u na d ju ste d  	 i n 	 a c t ive 	 ma r k et s 	 fo r 	 i d e n t i c a l 	 a s set s 	 o r 	 l ia b i l i t i e s 	 l e ve l 	 1  
• in p u t s 	 ot h e r 	 t ha n 	 q u ote d 	 p r i c e s 	 i n cl u d e d 	 w i t h i n 	 l e ve l 	 1 	 t ha t 	 a re 	 o bse r va b l e 	 fo r 	 t h e 	 a s set 	 o r 	 l ia b i l i t y  	 e i t h e r 	 d i re c t ly 	  t ha t 	 i s 	 a s 	 p r i c e s  	 o r	
i n d i re c t ly 	  t ha t 	 i s 	 d e r ive d 	 f ro m 	 p r i c e s  	 l e ve l 	 2  
• in p u t s 	 fo r 	 t h e 	 a s set 	 o r 	 l ia b i l i t y 	 t ha t 	 a re 	 n ot 	 ba se d 	 o n 	 o bse r va b l e 	 ma r k et 	 d a t a 	  t ha t 	 i s 	 u n o bse r va b l e 	 i n p u t s  	 l e ve l 	 3   92 ruspetro plc annual report and accounts 2014
financial statements
notes to the consolidated financial statements continued 
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
25 financial risk management objectives and policies continued
s et 	 o u t 	 be l ow 	 i s 	 a 	 c o m pa r i so n 	 b y 	 c a teg o r y 	 o f 	 c a r r y i n g 	 a m o u n t s 	 a n d 	 fa i r 	 va l u e s 	 o f 	 a l l 	 o f 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 i n st r u m e n t s 	 t ha t 	 a re 	 c a r r i e d 	 a t 	
a m o r t i se d 	 c ost 	 i n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 
carrying amount fair value
31 december 
2014
31 december
2013
31 december
2014
31 december
2013
financial assets 
cash and cash equivalents 12022 15832 12022 15832
trade receivables 1205 2629 1205 2629
other current assets 5065 – 5065 –
financial liabilities 
trade payables 6135 23888 6135 23888
borrowings 247104 403199 247104 403199
26 loss per share
basic
ba si c 	 e a r n i n g s 	 pe r 	 s ha re 	 a re 	 c a l c u la te d 	 b y 	 d iv i d i n g 	 t h e 	 p rofi t 	 a t t r ib u t a b l e 	 t o 	 e q u i t y 	 h o l d e r s 	 o f 	 t h e 	 c o m pa n y 	 b y 	 t h e 	 w e i g h te d 	 a ve rag e 	 n u m be r 	
of ordinary shares in issue during the period
year ended 31 december
2014 2013
loss attributable to equity holders of the company 262893 74238
weighted average number of ordinary shares in issue 364252656 333381480
ba si c 	 l os s 	 pe r 	 s ha re 	 u s   072 022
diluted
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to assume conversion of all dilutive 
potential ordinary shares 
the company has incurred a loss from continuing operations for the year ended 31 december 2014 and the effect of considering the exercise 
of the options on the company’s shares would be antidilutive that is it would reduce the loss per share
27 events after the statement of financial position date 
the group entered in a number of pledge agreements on 27 february 2015 in accordance with the terms of its credit facility agreements  
with otkritie
th e 	 g ro u p 	 ha s 	 re c e ive d 	 u s  2 1  000 	 t h o u sa n d 	 o f 	 t h e 	 u s  50 	 m i l l i o n 	 fi r st 	 t ra n ch e 	 u n d e r 	 i t s 	 u s  1 00 	 m i l l i o n 	 d e ve l o p m e n t 	 fa c i l i t y 	 l oa n 	
ag re e m e n t 	 a n d 	 u s  7  2 42 	 t h o u sa n d 	 u n d e r 	 i t s 	 u s  4 4  7 	 m i l l i o n 	 w o r k i n g 	 c a p i t a l 	 fi na n c i n g 	 l oa n 	 ag re e m e n t 	 w i t h 	 o t k r i t i e 	
there have been no other material events after the end of reporting period which require disclosure in these consolidated  
fi na n c ia l 	 st a te m e n t s
 
28 supplementary information unaudited
reserve quantity information
the company used the oil condensate and gas reserve information prepared by degolyer and macnaughton to evaluate reserves as at 
31 december 2013 and 30 june 2014 the reserves estimate as at 31 december 2014 was made by the company by adjusting reserves  
numbers as at 30 june 2014 for actual oil production in the second half of 2014 no third party was involved in estimating reserves as at 
3 1 	 dece m be r 	 2 0 14 	 as 	 n o 	 s i gnifi can t 	 n ew 	 da ta 	 was 	 g a th e red 	 s in ce 	 3 0 	 j un e 	 2 0 14 	 t o 	 j ustif y 	 in d e pe n d e n t 	 rev i ew  	 th e 	 co m p an y 	 p lans 	 t o 	 e n g ag e 	 an	
independent third party in 2015 to prepare updated reserve information based on the results of horizontal wells completed in 2014 and 2015
in 2014 the company suspended production in its palyanovo licence area due to poor economics of condensate production and to reduce 
u n n e c e s sa r y 	 g a s 	 fla r i n g  	 c o n se q u e n t ly  	 c o n d e n sa te 	 re se r ve s 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	 w e re 	 re cla s si fi e d 	 f ro m 	 p ro ve d 	 d e ve l o pe d 	 t o 	 p ro ve d 	
undeveloped
additionally the reserves assessment as at 30 june 2014 prepared by degolyer and macnaughton represented a horizontal well 
d e ve l o p m e n t 	 p rog ra m m e 	 wh i ch 	 i s 	 refl e c te d 	 i n 	 t h e 	 re v i si o n s 	 o f 	 re se r ve s 	 e st i ma te s
re se r ve s 	 i n fo r ma t i o n 	 ha s 	 be e n 	 p re pa re d 	 i n 	 a c c o rd a n c e 	 w i t h 	 p et ro l e u m 	 re so u rc e s 	 m a nag e m e n t 	 s y ste m 	  p r ms  	 d efi n i t i o n 	 a n d 	 
cla s si fi c a t i o n 	 s y ste m
developed reserves are expected quantities to be recovered from existing wells and facilities strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 93   
proved reserves are those quantities of petroleum which by analysis of geoscience and engineering data can be estimated with reasonable 
c e r t a i n t y 	 t o 	 be 	 c o m m e rc ia l ly 	 re c o ve ra b l e 	 f ro m 	 a 	 g ive n 	 d a te 	 fo r wa rd 	 f ro m 	 k n ow n 	 re se r v o i r s 	 a n d 	 u n d e r 	 d efi n e d 	 e c o n o m i c 	 c o n d i t i o n s 	
operating methods and government regulations if deterministic methods are used the term reasonable certainty is intended to express a 
h i g h 	 d eg re e 	 o f 	 c o n fi d e n c e 	 t ha t 	 t h e 	 q ua n t i t i e s 	 w i l l 	 be 	 re c o ve re d 	 if 	 p ro b a b i l i st i c 	 m et h od s 	 a re 	 u se d 	 t h e re 	 s h o u l d 	 be 	 a t 	 l e a st 	 a 	 9 0  	 p ro b a b i l i t y	
that the quantities actually recovered will equal or exceed the estimate
probable reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered 
than proved reserves but more certain to be recovered than possible reserves it is equally likely that actual remaining quantities recovered 
w i l l 	 be 	 g re a te r 	 t ha n 	 o r 	 l e s s 	 t ha n 	 t h e 	 su m 	 o f 	 t h e 	 e st i ma te d 	 p ro ve d 	 p l u s 	 p ro b a b l e 	 re se r ve s 	  2p   	 in 	 t h i s 	 c o n tex t 	 wh e n 	 p ro b a b i l i st i c 	 m et h od s 	 a re	
u se d 	 t h e re 	 s h o u l d 	 be 	 a t 	 l e a st 	 a 	 50  	 p ro ba b i l i t y 	 t ha t 	 t h e 	 a c t ua l 	 q ua n t i t i e s 	 re c o ve re d 	 w i l l 	 e q ua l 	 o r 	 ex c e e d 	 t h e 	 2p 	 e st i ma te
due to the inherent uncertainties and the necessarily limited nature of reservoir data estimates of reserves are inherently imprecise require 
the application of judgement and are subject to change as additional information becomes available
m a nag e m e n t 	 ha s 	 i n cl u d e d 	 w i t h i n 	 p ro ve d 	 re se r ve s 	 si g n i fi c a n t 	 q ua n t i t i e s 	 wh i ch 	 t h e 	 g ro u p 	 ex pe c t s 	 t o 	 p rod u c e 	 a f te r 	 t h e 	 ex p i r y 	 d a te s 	 o f 	 c e r t a i n 	
of its current production licences the subsoil law of the russian federation states that upon expiration a licence is subject to renewal at 
the initiative of the licence holder provided that further exploration appraisal production or remediation activities are necessary and 
provided that the license holder has not violated the terms of the license since the law applies both to newly issued and old licences 
ma nag e m e n t 	 be l i e ve s 	 t ha t 	 l i c e n c e s 	 w i l l 	 be 	 re n ew e d 	 u po n 	 t h e i r 	 ex p i ra t i o n 	 fo r 	 t h e 	 re ma i n d e r 	 o f 	 t h e 	 e c o n o m i c 	 l i fe 	 o f 	 e a ch 	 re spe c t ive 	 fi e l d
estimated net proved crude oil and condensate reserves for the period ended 31 december 2014 and 31 december 2013 are shown in ’000 
barrels in the table set out below
net proved crude oil and condensate reserves ’000 barrels
2014 2013
as at 1 january 190743 204588
revisions of previous estimates 16530  12  12 7 
production 1294 1 718 
as at 31 december 205979 190743
estimated net proved developed crude oil and condensate reserves as at 31 december 2013 and 31 december 2014 are shown in the table set out below
crude oil and condensate reserves ’000 barrels
proved 
developed
proved 
undeveloped
total  
proved probable
total proved  
plus probable
31 december 2013 12744 177999 190743 1462947 1653690
31 december 2014 5876 200103 205979 1539452 1745431
estimated net proved and probable gas reserves as at 31 december 2013 and 31 december 2014 are shown in the table set out below
gas reserves millions of cubic feet
proved 
developed
proved 
undeveloped
total  
proved probable
total proved  
plus probable
31 december 2013 96573 106128 202701 1192221 1394922
31 december 2014 – 307576 307576 1204356 1511932
crude oil and condensate reserves breakdown
th e 	 c o m pa n y 	 s h u t 	 i n 	 t h e 	 p a lya n o v o 	 fi e l d 	 i n 	 e a r ly 	 2 0 1 4 	 d u e 	 t o 	 u n e c o n o m i c 	 p rod u c t i o n 	 o f 	 c o n d e n sa te 	 a n d 	 t o 	 c o n se r ve 	 g a s 	 fo r 	 f u t u re	
c o m m e rc ia l i sa t i o n  	 a s 	 a 	 re su l t 	 d m 	 re  cla s si fi e d 	 5 8 8 1 	 t h o u sa n d 	 b a r re l s 	 o f 	 c o n d e n sa te 	 f ro m 	 p ro ve d 	 d e ve l o pe d 	 c a teg o r y 	 t o 	 t h e 	 p ro ve d 	
undeveloped category as at 30 june 2014
th e 	 t a b l e 	 be l ow 	 refl e c t s 	 t h e 	 sp l i t 	 o f 	 cr u d e 	 o i l 	 a n d 	 c o n d e n sa te 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4  	 c o m pa ra t ive 	 d a t a 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 3 	 i s 	 n ot	
presented as dm did not prepare the split as at this date
crude oil and condensate as at 31 december 2014 ’000 barrels
crude oil condensate
total crude oil  
and condensate
proved developed 5876 – 5876
total proved 199948 6031 205979 94 ruspetro plc annual report and accounts 2014
parent company financial statements
independent auditors’ report  
to the members of ruspetro plc
report on the parent company financial statements
our opinion
in 	 o u r 	 o p i n i o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 d efi n e d 	 be l ow
• g ive 	 a 	 t r u e 	 a n d 	 fa i r 	 v i ew 	 o f 	 t h e 	 st a te 	 o f 	 t h e 	 pa re n t 	 c o m pa n y ’ s 	 a f fa i r s 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	 a n d 	 o f 	 i t s 	 c a s h 	 fl ow s 	 fo r 	 t h e 	 y e a r 	 t h e n 	 e n d e d 
• ha ve 	 be e n 	 p ro pe r ly 	 p re pa re d 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 f i na n c ia l 	 re po r t i n g 	 st a n d a rd s 	  if r s s  	 a s 	 a do pte d 	 b y 	 t h e 	 e u ro pe a n 	 u n i o n 	
and as applied in accordance with the provisions of the companies act 2006 and
• have been prepared in accordance with the requirements of the companies act 2006
this opinion is to be read in the context of what we say in the remainder of this report
emphasis of matter – going concern
in 	 fo r m i n g 	 o u r 	 o p i n i o n 	 o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 wh i ch 	 i s 	 n ot 	 m od i fi e d 	 w e 	 ha ve 	 c o n si d e re d 	 t h e 	 a d e q ua c y 	 o f 	 t h e 	 d i scl osu re s 	 ma d e 	 i n 	 n ote 	 2 	
t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 c o n c e r n i n g 	 t h e 	 pa re n t 	 c o m pa n y ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 a 	 g o i n g 	 c o n c e r n  	 th i s 	 a b i l i t y 	 i s 	 d e pe n d e n t 	 o n 	 wh et h e r 	 t h e	
company can renegotiate its debt covenants successfully this condition indicates the existence of a material uncertainty which may cast 
si g n i fi c a n t 	 do u bt 	 a bo u t 	 t h e 	 c o m pa n y ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 a 	 g o i n g 	 c o n c e r n  	 th e 	 fi na n c ia l 	 st a te m e n t s 	 do 	 n ot 	 i n cl u d e 	 t h e 	 a d ju st m e n t s 	 t ha t 	
would result if the company was unable to continue as a going concern
what we have audited
th e 	 pa re n t 	 c o m pa n y 	 fi na n c ia l 	 st a te m e n t s 	  t h e 	 “fi na n c ia l 	 st a te m e n t s ”   	 wh i ch 	 a re 	 p re pa re d 	 b y 	 ru spet ro 	 p l c  	 c o m p r i se 
• t h e 	 st a te m e n t 	 o f 	 fi na n c ia l 	 posi t i o n 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 
• t h e 	 st a te m e n t 	 o f 	 c a s h 	 fl ow s 	 fo r 	 t h e 	 y e a r 	 t h e n 	 e n d e d 
• the statement of changes in equity for the year then ended and
• t h e 	 n ote s 	 t o 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 wh i ch 	 i n cl u d e 	 a 	 su m ma r y 	 o f 	 si g n i fi c a n t 	 a c c o u n t i n g 	 po l i c i e s 	 a n d 	 ot h e r 	 ex p la na t o r y 	 i n fo r ma t i o n 
th e 	 fi na n c ia l 	 re po r t i n g 	 f ra m ew o r k 	 t ha t 	 ha s 	 be e n 	 a p p l i e d 	 i n 	 t h e i r 	 p re pa ra t i o n 	 i s 	 a p p l i c a b l e 	 la w 	 a n d 	 if r s s 	 a s 	 a do pte d 	 b y 	 t h e 	 e u ro pe a n 	 u n i o n 	
and as applied in accordance with the provisions of the companies act 2006
what an audit of financial statements involves
w e 	 c o n d u c te d 	 o u r 	 a u d i t 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 st a n d a rd s 	 o n 	 au d i t i n g 	 u k 	 a n d 	 ire la n d  	  “ isa s 	 u k 	  	 ire la n d  ”  	 a n 	 a u d i t 	 i n v o lve s	
o bt a i n i n g 	 e v i d e n c e 	 a bo u t 	 t h e 	 a m o u n t s 	 a n d 	 d i scl osu re s 	 i n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 su f fi c i e n t 	 t o 	 g ive 	 re a so na b l e 	 a s su ra n c e 	 t ha t 	 t h e 	 fi na n c ia l 	
statements are free from material misstatement whether caused by fraud or error this includes an assessment of 
• whether the accounting policies are appropriate to the parent company’s circumstances and have been consistently applied and 
adequately disclosed 
• t h e 	 re a so na b l e n e s s 	 o f 	 si g n i fi c a n t 	 a c c o u n t i n g 	 e st i ma te s 	 ma d e 	 b y 	 t h e 	 d i re c t o r s  	 a n d	
• t h e 	 o ve ra l l 	 p re se n t a t i o n 	 o f 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	
in 	 a d d i t i o n 	 w e 	 re a d 	 a l l 	 t h e 	 fi na n c ia l 	 a n d 	 n o n  fi na n c ia l 	 i n fo r ma t i o n 	 i n 	 t h e 	 a n n ua l 	 re po r t 	 a n d 	 ac c o u n t s 	  t h e 	 “ a n n ua l 	 re po r t ”  	 t o 	 i d e n t i f y 	
ma te r ia l 	 i n c o n si ste n c i e s 	 w i t h 	 t h e 	 a u d i te d 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 t o 	 i d e n t i f y 	 a n y 	 i n fo r ma t i o n 	 t ha t 	 i s 	 a p pa re n t ly 	 ma te r ia l ly 	 i n c o r re c t 	 b a se d 	
on or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we become aware of any apparent 
material misstatements or inconsistencies we consider the implications for our report
opinions on other matters prescribed by the companies act 2006
in our opinion
• t h e 	 i n fo r ma t i o n 	 g ive n 	 i n 	 t h e 	 st ra teg i c 	 re po r t 	 a n d 	 t h e 	 d i re c t o r s ’ 	 re po r t 	 fo r 	 t h e 	 fi na n c ia l 	 y e a r 	 fo r 	 wh i ch 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 a re 	
p re pa re d 	 i s 	 c o n si ste n t 	 w i t h 	 t h e 	 fi na n c ia l 	 st a te m e n t s  	 a n d
• the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 2006
other matters on which we are required to report by exception
adequacy of accounting records and information and explanations received
under the companies act 2006 we are required to report to you if in our opinion
• we have not received all the information and explanations we require for our audit or
• adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received from 
branches not visited by us or
• t h e 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 t h e 	 pa r t 	 o f 	 t h e 	 d i re c t o r s ’ 	 re m u n e ra t i o n 	 re po r t 	 t o 	 be 	 a u d i te d 	 a re 	 n ot 	 i n 	 ag re e m e n t 	 w i t h 	 t h e 	 a c c o u n t i n g 	
records and returns
we have no exceptions to report arising from this responsibility strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 9 5   
directors’ remuneration
u n d e r 	 t h e 	 c o m pa n i e s 	 ac t 	 2 00 6 	 w e 	 a re 	 re q u i re d 	 t o 	 re po r t 	 t o 	 y o u 	 i f  	 i n 	 o u r 	 o p i n i o n 	 c e r t a i n 	 d i scl osu re s 	 o f 	 d i re c t o r s ’ 	 re m u n e ra t i o n 	 spe c i fi e d 	 b y 	
law are not made we have no exceptions to report arising from this responsibility 
other information in the annual report
u n d e r 	 isa s 	 u k 	  	 ire la n d  	 w e 	 a re 	 re q u i re d 	 t o 	 re po r t 	 t o 	 y o u 	 i f  	 i n 	 o u r 	 o p i n i o n 	 i n fo r ma t i o n 	 i n 	 t h e 	 a n n ua l 	 re po r t 	 i s 
• ma te r ia l ly 	 i n c o n si ste n t 	 w i t h 	 t h e 	 i n fo r ma t i o n 	 i n 	 t h e 	 a u d i te d 	 fi na n c ia l 	 st a te m e n t s  	 o r
• apparently materially incorrect based on or materially inconsistent with our knowledge of the company acquired in the course of 
performing our audit or
• is otherwise misleading
we have no exceptions to report arising from this responsibility
responsibilities for the financial statements and the audit
our responsibilities and those of the directors
as explained more fully in the directors’ responsibilities statement set out on page 61 the directors are responsible for the preparation of 
t h e 	 fi na n c ia l 	 st a te m e n t s 	 a n d 	 fo r 	 be i n g 	 sa t i sfi e d 	 t ha t 	 t h e y 	 g ive 	 a 	 t r u e 	 a n d 	 fa i r 	 v i ew 
o u r 	 re spo n sib i l i t y 	 i s 	 t o 	 a u d i t 	 a n d 	 ex p re s s 	 a n 	 o p i n i o n 	 o n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 i n 	 a c c o rd a n c e 	 w i t h 	 a p p l i c a b l e 	 la w 	 a n d 	 isa s 	 u k 	  	 ire la n d   	
those standards require us to comply with the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior 
consent in writing
other matter
w e 	 ha ve 	 re po r te d 	 se pa ra te ly 	 o n 	 t h e 	 g ro u p 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 ru spet ro 	 p l c 	 fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4  	 tha t 	 re po r t 	 i n cl u d e s 	 a n 	
emphasis of matter
kevin reynard senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
aberdeen
30 april 2015
notes
 a 	 t he 	 m a i n ten a nc e 	 a nd 	 i n te g r it y 	 of 	 t he 	 ru s p e t r o 	 p lc 	 web site 	 i s 	 t he 	 r e s p on si b i l it y 	 of 	 t he 	 d i r e c tor s 	 t he 	 work 	 c a r r ie d 	 out 	 by 	 t he 	 a ud itor s 	 do e s 	 not 	 i nvo lve 	 c on sider a t ion 	 of 	 t he s e 	
m a t ter s 	 a nd  	 ac c or d i ng ly  	 t he 	 a ud itor s 	 ac c ept 	 no 	 r e s p on si b i l it y 	 for 	 a ny 	 c h a ng e s 	 t h a t 	 m ay 	 h ave 	 o c c u r r e d 	 to 	 t he 	 fi n a nc i a l 	 s t a temen t s 	 si nc e 	 t he y 	 wer e 	 i n it i a l ly 	 pr e s en te d 	 on 	 t he 	
website
 b 	 l e g i sl a t ion 	 i n 	 t he 	 u n ite d 	 k i ng do m 	 gover n i ng 	 t he 	 pr epa r a t ion 	 a nd 	 d i s s em i n a t ion 	 of 	 fi n a nc i a l 	 s t a temen t s 	 m ay 	 d i f fer 	 f r o m 	 le g i sl a t ion 	 i n 	 ot her 	 ju r i s d ic t ion 96 ruspetro plc annual report and accounts 2014
parent company financial statements
statement of financial position
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 n ote d 	
note
31 december 
2014
31 december 
2013
assets
noncurrent assets
property plant and equipment 25 1164
investments in subsidiaries 5 441676 237882
loans issued to ruspetro llc 22988 –
464689 239046
current assets
receivables from ruspetro holding limited 7100 –
loans issued to ruspetro llc – 14800
trade and other receivables 195 369
vat recoverable 834 104
cash and cash equivalents 7 8121 5209
16250 20482
total assets 480939 259528
shareholders’ equity
share capital 8 135493 51226
share premium 8 389558 220506
retained loss 53275  25  976
other reserves 7221  6 41 7 
total equity 478997 239339
liabilities
noncurrent liabilities
other noncurrent liabilities – –
– –
current liabilities
payables to ruspetro llc 397 1388
trade and other payables 1545 1774
other current liabilities 6 – 17027
1942 20189
total liabilities 1942 20189
total equity and liabilities 480939 259528
 
john conlin      alexander betsky
ch i ef 	 e x e c u t ive 	 o f fi c e r	 	 	 	 f i na n c e 	 d i re c t o r strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 9 7   
note share capital share premium retained loss other reserves total equity
balance as at 1 january 2013 51226 220506 22240 2341 251833
loss for the period – –  12 609  –  12 609 
other comprehensive income for the period – – – – –
total comprehensive expense for the 
period 
– – 12609 – 12609
share options of shareholders 8 – – 4059  4059 –
share–based payment compensation 8 – – 4814  4699 115
balance as at 31 december 2013 51226 220506 25976 6417 239339
note share capital share premium retained loss other reserves total equity
balance as at 1 january 2014 51226 220506 25976 6417 239339
loss for the period – – 13546  – 13546 
other comprehensive income for the period – – – – –
total comprehensive expense for the 
period 
– – 13546 – 13546
issue of share capital 84202 168986 – – 253188
share options of shareholders 8 – – 13 753 13753 –
share–based payment compensation 8 65 66 – 115 16
balance as at 31 december 2014 135493 389558 53275 7221 478997
 
statement of changes in equity
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 n ote d 	 98 ruspetro plc annual report and accounts 2014
parent company financial statements
statement of cash flows
a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 	  p re se n te d 	 i n 	 u s  	 t h o u sa n d s 	 ex c e pt 	 ot h e r w i se 	 n ote d 	
year ended 31 december
note 2014 2013
cash flows from operating activities
loss before income tax 13546  12 609 
adjustments for
depreciation depletion and amortization 305 126
f o re i g n 	 ex cha n g e 	  g a i n   l os s	 1914 515
finance costs 2732 1147
loss on initial recognition 5812 
change in fair value of call option 8  24
impairment of property plant and equipment 801 
sharebased compensation expense 8 16 115
loss on disposal of property plant and equipment 33 
operating cash flow before working capital adjustments 5761 10682
working capital adjustments
change in trade and other receivables 174 63
change in trade and other payables 1237 779
change in other taxes receivablepayable 730 27 
net cash flows used in operating activities 7554 9993
cash flows from investing activities
purchase of property plant and equipment  675
investments in ruspetro llc and rhl 37000  8  0 0 0 
net cash used in investing activities 37000 8675
cash flows from financing activities
p ro c e e d s 	 f ro m 	 i s su e 	 o f 	 s ha re 	 c a p i t a l 	  n et 	 o f 	 ex pe n se s  37466 
proceeds from loans and borrowings 10000 
net cash generated from financing activities 47466 
net increasedecrease in cash and cash equivalents 2912 18668
cash and cash equivalents at the beginning of the period 5209 23877
cash and cash equivalents at the end of the period 8121 5209 strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 9 9   
1 corporate information
th e 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 ru spet ro 	 p l c 	  t h e 	 ‘ c o m pa n y ’ 	 o r 	 ‘ ru spet ro ’  	 fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	 w e re 	 a p p ro ve d 	 b y 	 i t s 	 boa rd 	 o f 	
directors on 30 april 2015 
the company was incorporated in the united kingdom on 20 october 2011 as a public company under the provisions of the companies act 
2 00 6 	 o f 	 e n g la n d 	 a n d 	 w a l e s 	 th e 	 c o m pa n y ’ s 	 reg i ste re d 	 o f fi c e 	 i s 	 5 8 	 g ros ve n o r 	 st re et 	 l o n do n 	 w 1k 	 3 j b 	 e n g la n d
the company is a parent of ruspetro group the principal activities of which are exploration for and production of crude oil in the khanty
mansiysk region of the russian federation 
details of subsidiaries of the company are as follows
effective 
ownership
company business activity country of incorporation
year of 
incorporation
31 december 
2014
ruspetro holding limited holding company republic of cyprus 2007 1 00
ru s p et ro 	 l l c 	  ‘ ru spet ro 	 ru s sia ’  crude oil sale russian federation 2005 1 00
inga exploration  
and production
of crude oil
russian federation 1998 1 00
transoil exploration and 
production
of crude oil
russian federation 2001 1 00
2 basis of preparation
th e 	 fi na n c ia l 	 st a te m e n t s 	 o f 	 t h e 	 c o m pa n y 	 ha ve 	 be e n 	 p re pa re d 	 i n 	 a c c o rd a n c e 	 w i t h 	 in te r na t i o na l 	 f i na n c ia l 	 re po r t i n g 	 st a n d a rd s 	  if r s  	 a s 	
a do pted 	 b y 	 th e 	 e uro pean 	 u ni o n  	 th e 	 finan cial 	 sta te m e n ts 	 are 	 p re p ared 	 un d e r 	 th e 	 hist o r i cal 	 cost 	 co n ve n ti o n  	 m odifi ed 	 fo r 	 fair 	 val u e 	 un d e r 	 ifr s 
th e se 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re se n te d 	 i n 	 u s 	 do l la r s 	 u s   	 a n d 	 a l l 	 va l u e s 	 a re 	 ro u n d e d 	 t o 	 t h e 	 n e a re st 	 t h o u sa n d 	 u n l e s s 	 ot h e r w i se 	 i n d i c a te d
as permitted by section 408 of the companies act 2006 the statement of comprehensive income of the parent company is not presented  
as part of these financial statements the loss dealt with in the financial statements of the company is us13546 thousand
going concern
th e se 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re pa re d 	 o n 	 a 	 g o i n g 	 c o n c e r n 	 b a si s 	 wh i ch 	 p re su m e s 	 t ha t 	 t h e 	 c o m pa n y 	 w i l l 	 be 	 a b l e 	 t o 	 re a l i se 	 i t s 	 a s set s 	 a n d 	
discharge its liabilities in the normal course of business in the foreseeable future
at 31 december 2014 the company had net current assets of 14308 thousand which included cash in hand of 8121 thousand 
management considers that the continued operational existence of the company is dependent upon the ability to make further investment in 
fi e l d 	 d e ve l o p m e n t 	 o f 	 t h e 	 su bsi d ia r i e s 	 i n 	 o rd e r 	 t o 	 i n cre a se 	 h yd ro c a r bo n 	 p rod u c t i o n 	 a n d 	 sa l e s 	 in 	 re spo n se 	 t o 	 t h e se 	 c i rc u m st a n c e s 	 t h e	
subsidiary of the company entered into development loan agreement for us100000 thousand no facilities were drawn down under this 
agreement at the reporting date
m a nag e m e n t 	 c o n si d e r s 	 t h e 	 d e ve l o p m e n t 	 l oa n 	 fa c i l i t y 	 o f 	 t h e 	 su bsi d ia r y 	 w i l l 	 p ro v i d e 	 su f fi c i e n t 	 fi na n c ia l 	 re so u rc e s 	 su ch 	 t ha t 	 t h e 	 su bsi d ia r y 	 c a n 	
f u r t h e r 	 i n ve st 	 i n 	 fi e l d 	 d e ve l o p m e n t 	 w i t h 	 t h e 	 i n te n t i o n 	 o f 	 ra i si n g 	 p rod u c t i o n  	 m a nag e m e n t 	 f u r t h e r 	 c o n si d e r s 	 t ha t 	 t h e 	 a d d i t i o na l 	 c a s h 	 fl ow s 	 t o 	
be generated from production would allow the subsidiaries to service debt further increase production and fund other activities in 
d e ve l o p i n g 	 t h e i r 	 c a s h 	 fl ow 	 fo re c a st s 	 ma nag e m e n t 	 ha s 	 a 	 n u m be r 	 o f 	 si g n i fi c a n t 	 a s su m pt i o n s 	 th e se 	 i n cl u d e 	 a s su m pt i o n s 	 a s 	 t o 	 f u t u re	
h yd ro c a r bo n 	 p r i c e s 	 t a x e s 	 p rod u c t i o n 	 v o l u m e s 	 a n d 	 i n fla t i o n 	 a n d 	 a re 	 f u r t h e r 	 d i sc u s se d 	 i n 	 n ote 	 4 
the development loan agreement obtained contains certain covenants which the subsidiary needs to meet to avoid acceleration of the debt 
repayment schedule the two sensitive covenants are ebitda and production volumes
th e 	 p ro j e c t i o n s 	 p re pa re d 	 b y 	 ma nag e m e n t 	 fo r 	 t h e 	 p u r pose s 	 o f 	 p re pa ra t i o n 	 o f 	 t h e se 	 fi na n c ia l 	 st a te m e n t s 	 s h ow 	 t ha t 	 t h e 	 su bsi d ia r y 	 m i g h t 	
breach its ebitda covenant to mitigate this risk management has commenced negotiations with the lender to revise the covenants  
th e 	 su bsi d ia r y 	 ha s 	 a l so 	 re c e ive d 	 i n 	 ap r i l 	 2 0 1 5  	 a 	 w r i t te n 	 c o n fi r ma t i o n 	 t ha t 	 t h e 	 l e n d e r 	 ha s 	 n o 	 i n te n t i o n 	 t o 	 t a k e 	 a n y 	 a c t i o n s 	 t o 	 a c c e l e ra te 	
repayment of the loans as a result of the possible breach of covenants the outcome of such negotiations cannot be certain and therefore 
t h e 	 d i re c t o r s 	 re c og n i se 	 t ha t 	 t h i s 	 re p re se n t s 	 a 	 ma te r ia l 	 u n c e r t a i n t y 	 wh i ch 	 ma y 	 c a st 	 si g n i fi c a n t 	 do u bt 	 o ve r 	 t h e 	 g ro u p ’ s 	 a b i l i t y 	 t o 	 c o n t i n u e 	 a s 	 
a going concern
notes to the financial statements
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	 100 ruspetro plc annual report and accounts 2014
parent company financial statements
notes to the financial statements continued
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	
2 basis of preparation continued
h ow e ve r  	 o n 	 t h e 	 b a si s 	 o f 	 t h e 	 a s su m pt i o n s 	 a n d 	 c a s h 	 fl ow 	 fo re c a st s 	 p re pa re d 	 ma nag e m e n t 	 ha ve 	 a s su m e d 	 t ha t 	 t h e 	 c o m pa n y 	 w i l l 	 c o n t i n u e 	 t o	
o pe ra te 	 w i t h i n 	 bot h 	 a va i la b l e 	 a n d 	 p rospe c t ive 	 fa c i l i t i e s 	 ac c o rd i n g ly  	 t h e 	 c o m pa n y ’ s 	 fi na n c ia l 	 st a te m e n t s 	 a re 	 p re pa re d 	 o n 	 t h e 	 g o i n g 	 c o n c e r n 	
basis and do not include any adjustments that would be required in the event that the loan holders do request repayment and alternative 
fi na n c e 	 i s 	 n ot 	 a va i la b l e
3 summary of significant accounting policies 
investments
investments in subsidiary undertakings are included in the balance sheet of the company at cost less any provision for impairment
impairment of nonfinancial assets
th e 	 c o m pa n y 	 pe r fo r m s 	 i m pa i r m e n t 	 re v i ew s 	 i n 	 re spe c t 	 o f 	 fi x e d 	 a s set 	 i n ve st m e n t s 	 wh e n e ve r 	 e ve n t s 	 o r 	 cha n g e s 	 i n 	 c i rc u m st a n c e 	 i n d i c a te 	 t ha t 	
the carrying amount may not be recoverable an impairment loss is recognised when the recoverable amount of an asset which is the higher 
of the asset’s net realisable value and its value in use is less than its carrying amount
financial instruments
th e 	 a c c o u n t i n g 	 po l i c y 	 fo r 	 fi na n c ia l 	 i n st r u m e n t s 	 i s 	 c o n si ste n t 	 w i t h 	 t h e 	 g ro u p 	 a c c o u n t i n g 	 po l i c y 	 a s 	 p re se n te d 	 i n 	 t h e 	 n ote s 	 t o 	 t h e 	 g ro u p 	
fi na n c ia l 	 st a te m e n t s 	 th e 	 c o m pa n y ’ s 	 fi na n c ia l 	 r i s k 	 ma nag e m e n t 	 po l i c y 	 i s 	 c o n si ste n t 	 w i t h 	 t h e 	 g ro u p ’ s 	 fi na n c ia l 	 r i s k 	 ma nag e m e n t 	 po l i c y 	
o u t l i n e d 	 i n 	 t h e 	 g ro u p 	 fi na n c ia l 	 st a te m e n t s
loans and receivables
l oa n s 	 a n d 	 re c e iva b l e s 	 a re 	 n o n 	 d e r iva t ive 	 fi na n c ia l 	 a s set s 	 w i t h 	 fi x e d 	 o r 	 d ete r m i na b l e 	 pa y m e n t s 	 t ha t 	 a re 	 n ot 	 q u ote d 	 i n 	 a n 	 a c t ive 	 ma r k et 	 
after initial measurement loans and receivables are subsequently carried at amortised cost using the effective interest method less any 
provision for impairment
a provision for impairment is recognised when there is an objective evidence that the company will not be able to collect all amounts due 
according to the original terms of the loans and receivables the amount of provision is the difference between the assets’ carrying value and 
t h e 	 p re se n t 	 va l u e 	 o f 	 t h e 	 e st i ma te d 	 f u t u re 	 c a s h 	 fl ow s 	 d i sc o u n te d 	 a t 	 t h e 	 o r i g i na l 	 ef fe c t ive 	 i n te re st 	 ra te 	 th e 	 cha n g e 	 i n 	 t h e 	 a m o u n t 	 o f 	 t h e 	 l oa n 	 o r	
re c e iva b l e 	 i s 	 re c og n i se d 	 i n 	 p rofi t 	 o r 	 l os s 	 in te re st 	 i n c o m e 	 i s 	 re c og n i se d 	 i n 	 p ro fi t 	 o r 	 l os s 	 b y 	 a p p ly i n g 	 t h e 	 ef fe c t ive 	 i n te re st 	 ra te
cash and cash equivalents
c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 i n 	 t h e 	 st a te m e n t 	 o f 	 fi na n c ia l 	 posi t i o n 	 c o m p r i se 	 c a s h 	 a t 	 b a n k s 	 a n d 	 o n 	 ha n d 	 a n d 	 s h o r t 	 te r m 	 d e posi t s 	 w i t h 	 a n 	
original maturity of three months or less 
f o r 	 t h e 	 p u r pose 	 o f 	 t h e 	 c a s h 	 fl ow 	 st a te m e n t 	 c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 c o n si st 	 o f 	 c a s h 	 a n d 	 c a s h 	 e q u iva l e n t s 	 a s 	 d efi n e d 	 a bo ve 	 n et 	 o f	
outstanding bank overdrafts if any
borrowings and accounts payable
th e 	 c o m pa n y ’ s 	 fi na n c ia l 	 l ia b i l i t i e s 	 a re 	 re p re se n te d 	 b y 	 t ra d e 	 a n d 	 ot h e r 	 pa ya b l e s 	
a 	 fi na n c ia l 	 l ia b i l i t y 	 i s 	 d e re c og n i se d 	 wh e n 	 t h e 	 o b l i g a t i o n 	 u n d e r 	 t h e 	 l ia b i l i t y 	 i s 	 d i scha r g e d 	 o r 	 c a n c e l l e d 	 o r 	 ex p i re s 	 w h e re 	 a n 	 ex i st i n g 	 fi na n c ia l 	
liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially 
m od i fi e d 	 su ch 	 a n 	 ex cha n g e 	 o r 	 m od i fi c a t i o n 	 i s 	 t re a te d 	 a s 	 a 	 d e re c og n i t i o n 	 o f 	 t h e 	 o r i g i na l 	 l ia b i l i t y 	 a n d 	 t h e 	 re c og n i t i o n 	 o f 	 a 	 n ew 	 l ia b i l i t y  	 a n d 	 t h e 	
d i f fe re n c e 	 i n 	 t h e 	 re spe c t ive 	 c a r r y i n g 	 a m o u n t s 	 i s 	 re c og n i se d 	 i n 	 t h e 	 p rofi t 	 o r 	 l os s
impairment of financial assets 
th e 	 c o m pa n y 	 a s se s se s 	 a t 	 t h e 	 e n d 	 o f 	 e a ch 	 re po r t i n g 	 pe r i od 	 wh et h e r 	 t h e re 	 i s 	 a n y 	 o b j e c t ive 	 e v i d e n c e 	 t ha t 	 a 	 fi na n c ia l 	 a s set 	 o r 	 a 	 g ro u p 	 o f 	
fi na n c ia l 	 a s set s 	 i s 	 i m pa i re d 	 a 	 fi na n c ia l 	 a s set 	 o r 	 a 	 g ro u p 	 o f 	 fi na n c ia l 	 a s set s 	 i s 	 d e e m e d 	 t o 	 be 	 i m pa i re d 	 i f  	 a n d 	 o n ly 	 i f  	 t h e re 	 i s 	 a n 	 o b j e c t ive	
e v i d e n c e 	 o f 	 i m pa i r m e n t 	 a s 	 a 	 re su l t 	 o f 	 o n e 	 o r 	 m o re 	 e ve n t s 	 t ha t 	 ha s 	 o c c u r re d 	 a f te r 	 t h e 	 i n i t ia l 	 re c og n i t i o n 	 o f 	 t h e 	 a s set 	  a n 	 i n c u r re d 	 ‘ l os s 	 e ve n t ’  	
a n d 	 t ha t 	 l os s 	 e ve n t 	 ha s 	 a n 	 i m pa c t 	 o n 	 t h e 	 e st i ma te d 	 f u t u re 	 c a s h 	 fl ow s 	 o f 	 t h e 	 fi na n c ia l 	 a s set 	 o r 	 t h e 	 g ro u p 	 o f 	 fi na n c ia l 	 a s set s 	 t ha t 	 c a n 	 be 	 re l ia b ly 	
e st i ma te d 	 e v i d e n c e 	 o f 	 i m pa i r m e n t 	 ma y 	 i n cl u d e 	 i n d i c a t i o n s 	 t ha t 	 t h e 	 d ebt o r s 	 o r 	 a 	 g ro u p 	 o f 	 d ebt o r s 	 i s 	 ex pe r i e n c i n g 	 si g n i fi c a n t 	 fi na n c ia l 	
d i f fi c u l t y  	 d efa u l t 	 o r 	 d e l i n q u e n c y 	 i n 	 i n te re st 	 o r 	 p r i n c i pa l 	 pa y m e n t s 	 t h e 	 p ro b a b i l i t y 	 t ha t 	 t h e y 	 w i l l 	 e n te r 	 b a n k r u pt c y 	 o r 	 ot h e r 	 fi na n c ia l 	
re o r g a n i sa t i o n 	 a n d 	 wh e re 	 o bse r va b l e 	 d a t a 	 i n d i c a te 	 t ha t 	 t h e re 	 i s 	 a 	 m e a su ra b l e 	 d e cre a se 	 i n 	 t h e 	 e st i ma te d 	 f u t u re 	 c a s h 	 fl ow s 	 su ch 	 a s 	 cha n g e s	 
in arrears or economic conditions that correlate with defaults
taxes
income tax
the income tax expense comprises current and deferred taxes calculated based on the tax rates that have been enacted or substantively 
e na c te d 	 a t 	 t h e 	 e n d 	 o f 	 t h e 	 re po r t i n g 	 pe r i od 	 c u r re n t 	 a n d 	 d efe r re d 	 t a x e s 	 a re 	 cha r g e d 	 o r 	 cre d i te d 	 t o 	 p rofi t 	 o r 	 l os s 	 ex c e pt 	 wh e re 	 t h e y 	 a re 	
attributable to items which are charged or credited directly to equity in which case the corresponding tax is also taken to equity
c u r re n t 	 t a x 	 i s 	 t h e 	 a m o u n t 	 ex pe c te d 	 t o 	 be 	 pa i d 	 t o 	 o r 	 re c o ve re d 	 f ro m 	 t h e 	 t a x a t i o n 	 a u t h o r i t i e s 	 i n 	 re spe c t 	 o f 	 t a x a b l e 	 p rofi t s 	 o r 	 l os se s 	 fo r 	 t h e 	
current and prior periods  strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 1 01   
deferred tax assets and liabilities are calculated in respect of temporary differences using the liability method deferred taxes provide for  
a l l 	 te m po ra r y 	 d i f fe re n c e s 	 a r i si n g 	 bet w e e n 	 t h e 	 t a x 	 b a se s 	 o f 	 a s set s 	 a n d 	 l ia b i l i t i e s 	 a n d 	 t h e i r 	 c a r r y i n g 	 va l u e s 	 fo r 	 fi na n c ia l 	 re po r t i n g 	 p u r pose s 	
except where the deferred tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination 
a n d 	 a t 	 t h e 	 t i m e 	 o f 	 t h e 	 t ra n sa c t i o n 	 a f fe c t s 	 n e i t h e r 	 t h e 	 a c c o u n t i n g 	 p ro fi t 	 n o r 	 t a x a b l e 	 p rofi t 	 o r 	 l os s
a deferred tax asset is recognised for all deductible temporary differences and carry forward of unused tax credits and unused tax losses 
o n ly 	 t o 	 t h e 	 ex te n t 	 t ha t 	 i t 	 i s 	 p ro ba b l e 	 t ha t 	 t a x a b l e 	 p rofi t 	 w i l l 	 be 	 a va i la b l e 	 ag a i n st 	 wh i ch 	 t h e 	 d e d u c t ib l e 	 te m po ra r y 	 d i f fe re n c e s 	 o r 	 c a r r y 	 fo r wa rd 	
can be utilised 
unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become 
p ro ba b l e 	 t ha t 	 f u t u re 	 t a x a b l e 	 p rofi t 	 w i l l 	 a l l ow 	 t h e 	 d efe r re d 	 t a x 	 a s set 	 t o 	 be 	 re c o ve re d
deferred tax assets and liabilities are offset when the company has a legally enforceable right to set off current tax assets and liabilities 
wh e n 	 d efe r re d 	 t a x 	 b a la n c e s 	 a re 	 refe r re d 	 t o 	 t h e 	 sa m e 	 g o ve r n m e n t a l 	 body 	  i  e 	 fe d e ra l 	 reg i o na l 	 o r 	 l o c a l  	 a n d 	 t h e 	 sa m e 	 su b j e c t 	 o f 	 t a x a t i o n	 
and when the company intends to perform an offset of its current tax assets and liabilities 
equity
share capital
ord i na r y 	 s ha re s 	 a re 	 cla s si fi e d 	 a s 	 e q u i t y  	 in cre m e n t a l 	 c ost s 	 d i re c t ly 	 a t t r ib u t a b l e 	 t o 	 t h e 	 i s su e 	 o f 	 n ew 	 s ha re s 	 a n d 	 o pt i o n s 	 a re 	 s h ow n 	 i n 	 e q u i t y 	 
as a deduction net of tax from the proceeds any excess of the fair value of consideration received over the par value of shares issued is 
recorded as share premium
foreign currency translation
foreign currency transactions are initially recognized in the functional currency at the exchange rate ruling at the date of transaction 
monetary assets and liabilities denominated in foreign currencies are translated at the functional currency rate of exchange in effect at  
the end of the reporting period 
th e 	 u s 	 do l la r 	  “u s  ”  	 i s 	 t h e 	 f u n c t i o na l 	 a n d 	 p re se n t a t i o n 	 c u r re n c y 	 o f 	 t h e 	 c o m pa n y  	 th e 	 a s set s 	 a n d 	 l ia b i l i t i e s 	 a re 	 t ra n s la te d 	 i n t o 	 t h e	
presentation currency at the rate of exchange ruling at the end of each of the reporting period income and expenses for each income 
st a te m e n t 	 a re 	 t ra n s la te d 	 a t 	 a ve rag e 	 ex cha n g e 	 ra te s 	  u n l e s s 	 t h i s 	 a ve rag e 	 i s 	 n ot 	 a 	 re a so na b l e 	 a p p ro x i ma t i o n 	 o f 	 t h e 	 c u m u la t ive 	 ef fe c t 	 o f 	 t h e 	 ra te s 	
p re va i l i n g 	 o n 	 t h e 	 t ra n sa c t i o n 	 d a te s 	 i n 	 wh i ch 	 c a se 	 i n c o m e 	 a n d 	 ex pe n se s 	 a re 	 t ra n s la te d 	 a t 	 t h e 	 ra te 	 o n 	 t h e 	 d a te s 	 o f 	 t h e 	 t ra n sa c t i o n s  	 a l l 	 t h e	
resulting exchange differences are recorded in other comprehensive income 
the us to £ exchange rates were 064 and 061 as at 31 december 2014 and 31 december 2013 respectively and the average rates for the 
year ended 31 december 2014 and 2013 were 061 and 064 respectively 
share option plan 
the share option plan under which the group has the ability to choose whether to settle it in cash or equity instruments at the discretion of 
the board of directors is accounted for as an equity settled transaction the fair value of the options granted by the parent to employees is 
m e a su re d 	 a t 	 t h e 	 g ra n t 	 d a te 	 a n d 	 c a l c u la te d 	 u si n g 	 t h e 	 t r i n o m ia l 	 o pt i o n 	 p r i c i n g 	 m od e l 	 a n d 	 re c og n i se d 	 i n 	 t h e 	 fi na n c ia l 	 st a te m e n t s 	 a s 	 a 	
component of equity with a corresponding amount recognised in selling general and administrative expenses over the time share reward 
vest to the employee
m od i fi c a t i o n s 	 o f 	 t h e 	 te r m s 	 o r 	 c o n d i t i o n s 	 o f 	 t h e 	 e q u i t y 	 i n st r u m e n t s 	 g ra n te d 	 i n 	 a 	 ma n n e r 	 t ha t 	 re d u c e s 	 t h e 	 t ot a l 	 fa i r 	 va l u e 	 o f 	 t h e 	 s ha re b a se d 	
pa y m e n t 	 a r ra n g e m e n t 	 o r 	 i s 	 n ot 	 ot h e r w i se 	 be n efi c ia l 	 t o 	 t h e 	 e m p l o y e e 	 a re 	 a c c o u n te d 	 fo r 	 a s 	 se r v i c e s 	 re c e ive d 	 i n 	 c o n si d e ra t i o n 	 fo r 	 t h e 	 e q u i t y	
i n st r u m e n t s 	 g ra n te d 	 a s 	 i f 	 t h e 	 m od i fi c a t i o n 	 ha d 	 n ot 	 o c c u r re d
4 significant accounting judgements estimates and assumptions 
th e 	 si g n i fi c a n t 	 a c c o u n t i n g 	 ju dg e m e n t s 	 e st i ma te s 	 a n d 	 a s su m pt i o n s 	 a re 	 c o n si ste n t 	 w i t h 	 t h e 	 g ro u p 	 si g n i fi c a n t 	 a c c o u n t i n g 	 j u dg e m e n t s 	
e st i ma te s 	 a n d 	 a s su m pt i o n s 	 a s 	 p re se n te d 	 i n 	 t h e 	 n ote s 	 t o 	 t h e 	 g ro u p 	 fi na n c ia l 	 st a te m e n t s
5 investments in subsidiaries
31 december
2014 2013
ruspetro holding limited 219638 31744
ruspetro llc 222038 206138
total investments in subsidiaries 441676 237882 102 ruspetro plc annual report and accounts 2014
6 options on shares of the company
on 2 december 2011 the company and sberbank capital entered into an option agreement which became effective on 17 january 2012 
pursuant to which sberbank capital granted the company a call option to acquire the 10362632 ordinary shares held by sberbank capital 
the call option expired on 19 april 2013 the call option was only able to be exercised once only at any time prior to the day which is 15 
m o n t h s 	 f ro m 	 t h e 	 d a te 	 o f 	 t h e 	 c o m pa n y ’ s 	 ipo 	 o n 	 2 4 	 j a n ua r y 	 2 0 12 	 a t 	 a n 	 ex e rc i se 	 p r i c e 	 e q ua l 	 t o 	 t h e 	 ipo 	 o f fe r 	 p r i c e 	 o f 	 £ 1  3 4 	 pe r 	 s ha re 	 l e s s 	 1 0  	
resulting reserves amounting to us4059 thousand initially recognised in equity were transferred to retained earnings
in addition pursuant to this agreement sberbank capital may have put these ordinary shares issued back to the company the put option 
may have been exercised once only at any time between the second and third anniversary of the company’s ipo on 24 january 2012 at an 
ex e rc i se 	 p r i c e 	 e q ua l 	 t o 	 t h e 	 ipo 	 o f fe r 	 p r i c e 	 o f 	 £ 1  3 4 	 pe r 	 s ha re 	 l e s s 	 2 0  	 w i t h 	 re spe c t 	 t o 	 t h e 	 p u t 	 o pt i o n 	 a 	 l ia b i l i t y 	 o f 	 u s  1 7  02 6 	 t h o u sa n d 	 wa s	
recorded as at 31 december 2013
in november 2014 an investment and assignment agreement was entered into between sberbank capital mastin and the company in 
accordance with the agreement sberbank capital transferred its rights under the put option agreement to mastin as part of the 
restructuring 20115743 ordinary shares were issued as a consideration for cancellation of the put option
the following table shows the changes of value of the put option for the year ended 31 december 2014 and its cancellation by means of  
share issue
2014 2013
as at 1 january 17027 15365
initial recognition of the option – –
unwinding of discount 2032 1147
settlement against share issue 17726 –
f o re i g n 	 ex cha n g e 	  g a i n   l os s 	 re la te d 	 t o 	 p u t 	 o pt i o n 1333 515
as at 31 december – 17027
during 2013 one of the executive directors who has been granted an option to acquire shares of the company had left the company in 
accordance with the terms of the option this director lost the right to exercise the part of the option to acquire 4145053 ordinary shares 
reserves amounting to us4814 thousand initially recognized in equity was transferred to retained earnings
7 cash and cash equivalents
31 december
2014 2013
cash in bank denominated in £ 7709 4709
cash in bank denominated in us 412 500
total cash and cash equivalents 8121 5209
 
c a s h 	 ba la n c e s 	 g e n e ra l ly 	 be a r 	 n o 	 i n te re st 	 th e 	 c o m pa n y 	 h o l d s 	 i t s 	 c a s h 	 w i t h 	 ba n k 	 o f 	 a m e r i c a 	 m oody ’ s 	 ra t i n g 	 ba a 2  p 2 	  st a b l e  	 a t	
3 1 	 de c e m be r 	 2 0 1 4  
8 shareholders’ equity
31 december
share capital 2014 2013
ordinary share capital 135493 51226
 
on 11 december 2014 on completion of the restructuring 536730536 new ordinary shares were issued as follows
• 179061411 new ordinary shares were issued pursuant to applications received for open offer and excess shares
• 4298403 new ordinary shares were taken up by the underwriting shareholders pursuant to their underwriting commitment under the 
open offer
• 145890169 new ordinary shares were taken up by underwriting shareholders pursuant to the terms of the placing 
in total 329249983 new ordinary shares were issued at par value of 10 pence per share with existing shareholders being offered the right to 
subscribe for 055 new shares for each existing share held mastin purchased from sberbank capital 10362632 existing ordinary shares 
including 20115743 new ordinary shares issued to it to set off the put obligation of the company a total 207060311 new ordinary shares 
w e re 	 i s su e d 	 t o 	 m a st i n 	 re su l t i n g 	 i n 	 i t 	 ha v i n g 	 a 	 25  	 h o l d i n g 	 i n 	 t h e 	 e n la r g e d 	 i s su e d 	 o rd i na r y 	 s ha re 	 c a p i t a l 	 a s 	 a t 	 3 1 	 de c e m be r 	 2 0 1 4 
in addition on 19 december 2014 a further 420242 share were issued to current and former directors in lieu of salary for the period from 
1 april 2013 to 31 march 2014
refl e c t i n g 	 t h e se 	 t ra n sa c t i o n s 	 t h e 	 i s su e d 	 a n d 	 pa i d 	 u p 	 s ha re 	 c a p i t a l 	 o f 	 t h e 	 c o m pa n y 	 t h e refo re 	 c o n si ste d 	 o f 	 8 7 0  1 12 0 1 6 	 a n d 	 333 3 8 1  480 	
ordinary shares with a par value of £010 each at 31 december 2014 and 2013 respectively 
parent company financial statements
notes to the financial statements continued
fo r 	 t h e 	 y e a r 	 e n d e d 	 3 1 	 de c e m be r 	 2 0 1 4 	  a l l 	 t a b u la r 	 a m o u n t s 	 a re 	 i n 	 u s  	 t h o u sa n d s 	 u n l e s s 	 ot h e r w i se 	 n ote d 	 strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 10 3   
rights and obligations attaching to ordinary shares
the rights and obligations of shareholders are set out in the company’s articles a summary of the rights and obligations attaching to the 
company’s shares are as follows
voting
holders of ordinary shares are entitled to
• receive all shareholder documents including notice of any general meetings of the company
• attend speak and exercise voting rights at any general meetings of the company either in person or by proxy and
• subject to applicable law and the company’s articles every shareholder shall have one vote for every share of which they are the holder if 
they are present in person by proxy or if a corporate shareholder by a duly authorised representative a shareholder entitled to attend 
and vote at a general meeting may appoint one or more proxies to attend and vote instead of him if a shareholder appoints more than one 
proxy the shareholder must specify the number of shares over which each proxy is entitled to exercise rights 
no shareholder holds securities carrying special rights as to the control of the company there are no agreements between holders of 
securities that are known to the company which may result in restrictions on the transfer of voting rights
transfer of shares
a 	 m e m be r 	 ma y 	 t ra n sfe r 	 a l l 	 o r 	 a n y 	 o f 	 h i s 	 c e r t i fi c a te d 	 s ha re s 	 b y 	 a n 	 i n st r u m e n t 	 o f 	 t ra n sfe r 	 i n 	 a n y 	 u sua l 	 fo r m 	 o r 	 i n 	 a n y 	 fo r m 	 wh i ch 	 t h e 	 boa rd 	
may approve an instrument of transfer shall be signed by or on behalf of the transferor and unless the share is fully paid by or on behalf of 
the transferee an instrument of transfer need not be under seal the transferor shall remain the holder of the shares concerned until the 
na m e 	 o f 	 t h e 	 t ra n sfe re e 	 i s 	 e n te re d 	 i n 	 t h e 	 reg i ste r 	 i n 	 re spe c t 	 o f 	 t h e 	 s ha re s 	 a l l 	 t ra n sfe r s 	 wh i ch 	 a re 	 i n 	 u n c e r t i fi c a te d 	 fo r m 	 s ha l l 	 be 	 a f fe c te d 	 b y 	
means of the relevant system unless the crest regulations provide otherwise 
th e 	 boa rd 	 ma y  	 i n 	 i t s 	 a bso l u te 	 d i scret i o n 	 ref u se 	 t o 	 reg i ste r 	 t h e 	 t ra n sfe r 	 o f 	 a 	 c e r t i fi c a te d 	 s ha re 	 wh i ch 	 i s 	 n ot 	 a 	 f u l ly 	 pa i d 	 s ha re 	 p ro v i d e d 	 t ha t 	
the refusal does not prevent dealings in shares in the company from taking place on an open and proper basis the board may also refuse to 
reg i ste r 	 t h e 	 t ra n sfe r 	 o f 	 a 	 c e r t i fi c a te d 	 s ha re 	 u n l e s s 	 t h e 	 i n st r u m e n t 	 o f 	 t ra n sfe r 	 i s 
• l odg e d 	 st a m pe d 	  i f 	 re q u i re d   	 a t 	 t h e 	 o f fi c e 	 o r 	 a t 	 a n ot h e r 	 p la c e 	 a p po i n te d 	 b y 	 t h e 	 boa rd 	 a c c o m pa n i e d 	 b y 	 t h e 	 c e r t i fi c a te 	 fo r 	 t h e 	 s ha re 	 t o 	
which it relates and such other evidence as the board may reasonably require to show the right of the transferor to make the transfer 
• in respect of one class of share only and 
• in favour of not more than four persons
if 	 t h e 	 boa rd 	 ref u se s 	 t o 	 reg i ste r 	 a 	 t ra n sfe r 	 o f 	 a 	 s ha re 	 i n 	 c e r t i fi c a te d 	 fo r m 	 i t 	 s ha l l 	 se n d 	 t h e 	 t ra n sfe re e 	 n ot i c e 	 o f 	 i t s 	 ref u sa l 	 w i t h i n 	 t w o 	 m o n t h s	
after the date on which the instrument of transfer was lodged with the company no fee shall be charged for the registration of any 
instrument of transfer or other document relating to or affecting the title to a share subject to the provisions of the crest regulations the 
boa rd 	 ma y 	 pe r m i t 	 t h e 	 h o l d i n g 	 o f 	 s ha re s 	 i n 	 a n y 	 cla s s 	 o f 	 s ha re s 	 i n 	 u n c e r t i fi c a te d 	 fo r m 	 a n d 	 t h e 	 t ra n sfe r 	 o f 	 t i t l e 	 t o 	 s ha re s 	 i n 	 t ha t 	 cla s s 	 b y 	 m e a n s	
of a relevant system and may determine that any class of shares shall cease to be a participating security
if a notice is given to a member in respect of a share which is subsequently transferred a person entitled to that share is bound by the notice 
if it was given to the member before the person entitled to that share was entered into the register as the holder of that share
dividend rights 
the company may by ordinary resolution declare dividends in accordance with the respective rights of the members provided that no 
dividend shall exceed the amount recommended by the board the board may also pay interim dividends no dividend may be paid other 
t ha n 	 o u t 	 o f 	 p rofi t s 	 a va i la b l e 	 fo r 	 d i st r ib u t i o n  	 d iv i d e n d s 	 ma y 	 be 	 d e cla re d 	 a n d 	 pa i d 	 i n 	 a n y 	 c u r re n c y 	 o r 	 c u r re n c i e s 	 t ha t 	 t h e 	 boa rd 	 
shall determine
return of capital
if the company is wound up the liquidator may with the sanction of a special resolution divide among the members in specie the whole or 
a n y 	 pa r t 	 o f 	 t h e 	 c o m pa n y ’ s 	 a s set s  	 o r 	 ve st 	 t h e 	 c o m pa n y ’ s 	 a s set s 	 i n 	 wh o l e 	 o r 	 i n 	 pa r t 	 i n 	 t r u ste e s 	 u po n 	 su ch 	 t r u st s 	 fo r 	 t h e 	 be n efi t 	 o f 	 t h e 	 m e m be r s 	
but no shareholder is compelled to accept any asset on which there is a liability
amendments to the articles of association
th e 	 a r t i cl e s 	 ma y 	 o n ly 	 be 	 a m e n d e d 	 b y 	 spe c ia l 	 re so l u t i o n 	 o f 	 t h e 	 s ha re h o l d e r s 	 a p p ro ve d 	 b y 	 n ot 	 l e s s 	 t ha n 	 75  	 o f 	 t h ose 	 s ha re h o l d e r s 	 v ot i n g 	 o n 	
the resolution
shareholder information 104 ruspetro plc annual report and accounts 2014
registrars 
shareholders should contact the company’s registrar capita asset services using the details below in relation to all general enquiries 
concerning their shareholding
capita asset services
the registry
34 beckenham road
beckenham kent br3 4tu
telephone – uk shareholders 0871 664 0300
telephone – overseas shareholders 44 20 3728 5000
website wwwcapitaregistrarscom
lines are open monday – friday from 900am – 530pm excluding bank holidays calls to 0871 numbers are charged at 10p per minute from a bt landline other telephone 
providers’ costs may vary
registered and other offices
registered office
4th floor
58 grosvenor street
london w1k 3jb
t e l e p h o n e  	  4 4 	  0 2 0 	 73 1 8 	 1 6 3 0
website wwwruspetrocom
moscow office
11th floor arcus iii business center 
37a bld 4 leningradsky prospect
moscow 125167
telephone 7 495 745 56 65
trading market and shareholder profiles
ruspetro plc’s shares are traded on the london stock exchange with ticker rpo the company’s sedol number is b4zh7j1 and isin 
number is gb00b4zh7j18
shareholder information continued advisers
auditors 
pricewaterhousecoopers llp
32 albyn place
aberdeen ab10 1yl
united kingdom
corporate broker 
mirabaud securities llp
33 grosvenor place
london sw1x 7hy
united kingdom
financial advisers
strand hanson limited
26 mount row
london w1k 3sq
united kingdom
legal advisers 
white  case llp
5 old broad street
london ec2n 1dw
united kingdom
company secretary 
prism cosec limited
10 margaret street
london w1w 8rl
united kingdom
financial pr advisers 
fti consulting 
holborn gate
26 southampton buildings
london wc2a 1pb
united kingdom
  ruspetro plc 
london office registered office
4th floor
58 grosvenor street
london 
w1k 3jb
p h o n e  	  44 	  0  2 0 	 7 3 1 8 	 1 6 3 0
moscow office head office
business center arcus iii
37a 4 leningradsky prospect
125167 moscow
p h o n e  	  7 	  4 9 5  	 7 45 	 5 6 6 5
f ax  	  7 	  4 9 5  	 7 45 	 5 6 6 7
wwwruspetrocom


Summary:
 06 ruspetro plc annual report and accounts 2014
strategic report
chairman’s statement
in the middle of the year ambiguity about the impact of 
sanctions on the business forced ruspetro into both 
cla r i fi c a t i o n s 	 a n d 	 c o n t i n g e n c y 	 a r ra n g e m e n t s 	 t o 	 e n su re 	
that operations were not hampered in due course that 
u n c e r t a i n t y 	 wa s 	 cla r i fi e d 	 a n d 	 o u r 	 te ch n o l og y 	 ha s 	 be e n 	
cleared for use
thereafter what started as a modest decline in the oil 
price to below us100 per barrel in the third quarter 
became a headlong plunge coupled with a slump in the 
value of the ruble while some stability has emerged in 
recent months in both the oil price and rubledollar 
exchange rate the credibility of forecasters has gone and 
we expect to live with both volatility and uncertainty for 
the medium term
this macroeconomic business context makes the 
transformational restructuring transaction that we 
completed in december all the more remarkable our 
l ia b i l i t i e s 	  i n cl u d i n g 	 d ebt 	 a n d 	 p u t 	 o pt i o n 	 o b l i g a t i o n s  	 w e re	
reduced by us2188 million while we raised us523 
million of new equity and arranged loan facilities of up to 
us1447 million in aggregate for development and 
working capital 
more important perhaps than the numbers is the 
relationship now established between ruspetro and 
otkritie currently the largest private bank in russia by 
assets otkritie and sergey gordeev are now our main 
lender and largest shareholder respectively and we are 
delighted that sergey has joined our board
successfully raising substantial development funds is a 
major milestone for the company and while the fall in oil 
prices impacted our revenues the weakening of the ruble 
has driven down our dollar cost base such that we can drill 
economically attractive production wells at current oil 
prices nevertheless given the extended period of low and 
volatile oil prices the board has decided that a cautious 
capital expenditure programme and a cautious use of loan 
facilities in 2015 is in the best interests of the company 
and that the capital invested should focus on maturing 
development opportunities for the medium term this 
philosophy is outlined in the ceo’s review 
it remains unclear how the oil and gas industry in russia 
will respond in the medium term a material reduction in 
activity seems unlikely given the dollarequivalent cost 
reduction that all operators will experience however we 
can expect some opportunities to drive costs down further 
a s 	 se r v i c e 	 p ro v i d e r s 	 ma nag e 	 c a s h 	 fl ow  	
in 2014 for a small 
exploration and 
production company 
operating with a 
technicallychallenging 
portfolio the business 
environment in russia 
could hardly have been 
more difficult strategic report
directors’ report
financial statements
ruspetro plc annual report and accounts 2014 0 7   
40
50
60
80
70
90
100
110
120
45
50
55
30
35
40
60
65
70
75 brent usrur
jan 14
feb 14
oil price usbbl
usrur
mar 14
apr 14
may 14
jun 14
jul 14
aug 14
sep 14
oct 14
nov 14
dec 14
jan 15
apr 15
feb 15
mar 15
our focus is on positioning ruspetro for the medium 
term understanding our reservoirs managing risk 
applying the right mix of technologies enhancing our 
reputation as an innovative company and creating value 
from every well that we drill in the medium term this is 
expected to build substantial shareholder value 
when 2014 started there was a strong sense of optimism 
in russia particularly given the winter olympics in 
february the dramatic events since including ruble 
devaluation and unexpected crash in oil prices have 
caused anxiety and their consequences remain to be seen 
however within ruspetro we have made substantial 
progress in the way that we operate and think we have 
rebuilt our technical core and our technical credibility on 
behalf of the board i would like to thank all our staff for 
t h e i r 	 ef fo r t s 	 u n d e r 	 d i f fi c u l t 	 c i rc u m st a n c e s 	 a n d 	 i n 	
particular welcome to the team those who have come on 
board in the last 12 months 
i would also like to thank our new partners for the 
c o n fi d e n c e 	 t h e y 	 ha ve 	 s h ow n 	 i n 	 j o i n i n g 	 t h e 	 ru spet ro 	
project we welcome them as shareholders and in 
particular welcome sergey gordeev to the board we have 
a highly experienced team of nonexecutive directors on 
the board and i would like to thank them for their 
invaluable input and challenge lastly i thank our 
shareholders for their support as we have navigated our 
wa y 	 t h ro ug h 	 d i f fi c u l t 	 ma cro e c o n o m i c 	 c o n d i t i o n s 	 a f fe c t i n g 	
the oil industry the course we have set should position 
ru spet ro 	 t o 	 ma k e 	 si g n i fi c a n t 	 p rog re s s 	 i n 	 2 0 1 5 
alexander chistyakov
executive chairman
“ i would like on behalf of the board 
to thank all our staff for their efforts 
under difficult circumstances and in 
particular welcome to the team those 
who have come on board in the last  
12 months”
oil price and us rur rate