3.1 Partnership with the Regions



of the Russian Federation are covered by agreements with Gazprom

RUB 6.8


were contributed by Gazprom Neft for implementation of social projects in the regions under Home Towns program in 2018

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Gazprom Group companies operate in more than 80 regions of Russia, and in each of them Gazprom establishes partner relations with the regional authorities, businesses and non-governmental organizations.

Goals, objectives and directions of the regional relations are set forth in the Regional Policy Concept approved by Resolution No. 32 of OJSC Gazprom Management Committee dated May 22, 2003. The fundamental idea of the Concept is to set up and maintain the system of relations between PJSC Gazprom, its subsidiaries and public authorities of the constituent entities of the Russian Federation, as well as the organizations engaged in operational and business activities in the regions. The purpose of such system is to ensure the balance between the interests of the region and Gazprom Group companies.

Regional relations are based upon the cooperation agreements and contracts. While drafting those documents, special attention is paid to establishing favourable economic, legal and other conditions of business development, ecology, environmental protection, traditional forms of the indigenous peoples’ activities.

Pursuant to the agreements, the regional governments provide assistance to PJSC Gazprom and its subsidiaries as related to exploration of the mineral resource blocks, engineering, surveying and construction works, timely review of the utility tariffs for services provided by the subsidiary companies to customers, simplifying the procedure for land acquisition documents issue by the municipal authorities.

RUB 174.74


PJSC Gazprom expenses for social and transportation infrastructure construction in KhMAA — Yugra in 2018

Questions from stakeholders

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Question from the representatives of local communities

Does Gazprom participate in St. Petersburg urban improvement programs?

Gazprom participates in implementation of the projects aimed at improvement of St. Petersburg streets and squares, arranging artful spot lighting of architectural ensembles and outdoor lighting in the road and street network in the center of the city.

In 2018, improvement activities were carried out in Suvorovsky Prospekt, Millionnaya Street, Ligovsky Prospekt, St. Isaac’s Public Garden; outdoor lighting was installed at the architectural ensembles of Moskovsky Prospekt, Nevsky Prospekt and other streets of the city.

Regional relations include discharge of the social obligations by Gazprom. Social facilities and infrastructure, which construction is financed by the Group, are transferred to the municipal property.

For example, the agreement with the Government of KhMAA — Yugra stipulates co-financing of the social and transportation infrastructure construction in the municipal districts of the autonomous areas in 2018 by Gazprom Transgaz Yugorsk LLC and the Government of KhMAA — Yugra, including construction of dormitories for shift personnel, sports and fitness centres and motor road segments. Gazprom costs amounted to RUB 174.74 million.

In 2018, Gazprom Transgaz Ukhta LLC provided financing to the project aimed at the improvementof the Gazovikov Embankment in Ukhta. The total length of the renovated embankment will be about 2 km. Various sports facilities, children playgrounds, architectural and park ensembles and recreation areas will be located there. Bike and jogging lanes will be built along the river. The whole set of activities shall be completed by the end of 2019.

Subsidiaries hold environmental campaigns, carry out charity projects aimed at providing aid to vulnerable groups of people in the regions, support cultural and educational institutions.

The Regional Policy Concept stipulates, in particular, development of the industrial sectors manufacturing equipment and other products necessary for gas industry, thus creating the impetus for economic development of the regions and increasing the local population employment level.

Gazprom participates in development of the professional gas industry staff selection in the regions. Gazprom’s HR divisions analyse the regional labour markets and offer vacancies to the local residents.

Gazprom facilitates establishing the regional educational institutions to train or retrain human resources for gas industry. Therefore, agreements were signed with the universities both in Moscow and St. Petersburg and in other cities: Tomsk, Kazan, Ukhta, Ufa, Tyumen. At schools of five regions of the Russian Federation, 24 Gazprom Classes were opened.

In addition, PJSC Gazprom implements several social programs outside Russia. In particular, as PJSC Gazprom’s operations were expanded in Armenia, an educational and sports complex was built in Yerevan in 2018; its total space is 29,400 m2, it includes a nursery school, a comprehensive school, an indoor swimming pool, a gym, a futsal pitch, an indoor skating rink, as well as a sports and fitness center with the multipurpose arena accommodating 400 spectators.

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In 2018, Gazprom Neft allocated RUB 6.8 billion to support over 200 projects under the Home towns Program. Gazprom Neft’s financing of the social projects provided under the social and economic agreements with the governments of the Russian Federation entities amounted to RUB 4.2 billion in 2018. The funds were spent on setting up garden squares, repair of schools, nursery schools, libraries, construction of the residential buildings and sports facilities in Gazprom Neft operations areas.

The material indirect economic impact of Gazprom Energoholding entities includes employment of the population, creating new jobs in the regions of operations while upgrading the existing energy facilities and new facilities construction. In collaboration with the regional educational institutions, Gazprom Energoholding advances the employees’ knowledge level, arranges industrial work placements and pre-graduation practice for students. Gazprom Energoholding entities’ labour demand in over 3,000 people.

Improvement of the population quality of life is the key objective for Gazprom Neftekhim Salavat

Airat Karimov, Director General of Gazprom Neftekhim Salavat LLC

What do you think of Gazprom Neftekhim Salavat contribution to labour market development in the Republic of Bashkortostan?

Gazprom Neftekhim Salavat is one of the largest petrochemical complexes in Russia. We provide jobs to residents of Salavat, as well as Ishimbay and Sterlitamak towns. The group of companies employs 15,000 people. In 2018, the average salary was RUB 52,400. Gazprom Neftekhim Salavat liaises regularly with the Municipal Employment Center, holds educational meetings, provides coaching to students and hires annually dozens of graduates of Bashkortostan’s vocational education institutions and universities: in 2018, 81 people were hired, 75% of them graduated from Salavat Industrial College and Ufa State Petroleum Technological University. Moreover, Gazprom Neftekhim Salavat’s business develops and employment opportunities are expanded gradually. In 2018, 96 new jobs were created at the company, and the number of jobs for disabled people was increased to 135.

Gazprom Neftekhim Salavat’s procurement system also influences the labour market. In 2018, M&E procured from suppliers registered in the Republic of Bashkortostan accounted for 47% of the overall procurement structure.

Supporting the level of employment, collaboration with the local suppliers and contractors, creating opportunities for small and medium business development are the key components of Gazprom Neftekhim Salavat activities aimed at improving the quality of life and sustainable development of the region. Our work helps prevent such negative consequences as migration growth, especially among young people, decline of the economic and cultural potential.

Gazprom Neftekhim Salavat is the principal employer and mainstay in the town. Could you please provide examples of the company projects aimed at the local infrastructure development?

The company social program is highly important for Salavat. We support the initiatives of the local administration, work for the sake of people and try to create the conditions for quality life and achieving the potential of each person.

Gazprom Neftekhim Salavat participates in development of the town public sports infrastructure: the sports and entertainment complex, the swimming pool, the palace of sports and the stadium were constructed. The company’s annual spending on supporting sports for children and young people and promoting healthy lifestyle exceed RUB 200 million.

Gazprom Neftekhim Salavat’s environmental activities are a separate type of social work that is extremely important for the town. They include volunteer clean-ups, removal of unauthorized dumps, coasts cleaning. The company also carries out educational and cultural projects.

Does Gazprom Neftekhim Salavat develop its charity activities equally fast?

We implemented numerous charity projects over the past decade. We completed renovation of the Salavat Central Culture and Leisure Park named after the 50th Anniversary of October Revolution and we continue keeping it clean and tidy and maintain public order in it. In 2018, over RUB 21 million were allocated for the park maintenance.

Gazprom Neftekhim Salavat provides charitable support to the local non-governmental organizations: disabled children’s mothers community, the Council of Veterans having over 9,000 members, the regional division of the Russian Geographical Society and others.

Support is provided to municipal organizations (Town Children Hospital, Lyceum No. 1), the Dormition Cathedral, the central mosque, as well as to dozens of people in Bashkortostan: children and adults suffering from serious diseases and injuries, multiple-children families, the company veterans, veterans of the local wars, orphaned children and lonely elderly people.

Gazprom Neftekhim Salavat  LLCannually spends RUB 40 million for charity.