3.2 Dialogue with Local Communities

RUB 123.5

million

were provided by Gazprom Group companies for charity aimed at supporting the indigenous small-numbered peoples of the North in 2018.

GRI OG9

Gazprom respects the interests of indigenous small-numbered peoples of the North and their rights to keep the traditional way of life and preserve the primordial living environment, and maintains partner relations with the groups of indigenous minorities of this area.

Subsidiaries sign collaboration agreements with the YaNAA municipal districts formalizing mutual obligations as related to property and business relations, capital construction, energy saving, natural resources use, as well as the social policy. The Group’s companies collaborate with the regional NGOs of indigenous small-numbered peoples of the North (Yamal Regional Social Movement of indigenous minorities “Yamal”, YaNAA Association of indigenous peoples of the North “Yamal to Posterity!”, Urals Regional Social Movement “Vozrozhdenie”, the NPO YaNAA Children Support Charity Foundation “Yamine”). Donation agreements are concluded to support the lifestyle of indigenous small-numbered peoples of the North, arrange medical treatment, develop national crafts, arrange traditional national holidays and set up the prize funds for the Reindeer Herder Day, the Fishermen Day and the World Indigenous Communities Day. University tuition is paid for the representatives of indigenous minorities of the North, employment opportunities are offered to the graduates of the YaNAA vocational education institutions.

Questions from stakeholders

GRI 102-44
Question from the representatives of the investment community

What is Gazprom policy regarding relocation of the local communities?

The Company abides with the overriding priority of the local communities’ rights to maintain the traditional lifestyle in their ancestral habitats and does not develop any relocation programs.

While planning construction in the areas populated by indigenous peoples of the North, Gazprom identifies the potential ethnological impact. After that, the mitigation steps are defined, and the amount of potential losses inflicted to the unions of indigenous peoples of the North by the proposed construction is determined.

Discussion of the Projects with the Representatives of Local Communities

Before construction is started, public hearings are held. During the public hearings, representatives of the local community may express their point of view regarding the future project, their concerns and expectations.

Thus, in 2018, Gazprom Geologorazvedka  LLCheld public hearings in the Irkutsk Region with the NPO “Khandinskaya Evenk Neighbourhood Community”; in the Taz District the public hearings were initiated by tundra communities and representatives of Taz Division of “Yamal to Posterity!” Association; in the Yamal District, Yamal Regional Social Movement of indigenous peoples of the North “Yamal” participated in the hearings.

The large-scale seismic exploration program at Tambey fields cluster in the YaNAA was discussed at the meeting at the Yamal District Administration; representatives of Yamal Regional Social Movement “Yamal” and the contractor — TNG-Group  LLCparticipated in the hearings. Implementation of the resolutions passed at the meeting was viewed positively by the tundra community.

Gazprom Dobycha Irkutsk LLC participated in the public hearings regarding the design documentation Group Detailed Design for Producing Gas Wells Construction at Kovyktinskoye Gas Condensate Field Using ‘Light’ Structure (890 m Altitude of the Average Well), including the environmental impact assessment materials as related to placement of producing wells of Well Clusters 413, 414, 416, 417, 418 within boundaries of the environmental zone of atmospheric impact of the Baikal Designated Natural Area. The hearings were held at the Administration of Kazachinsko-Lensky Municipal District, and representatives of the NPO Khandinskaya Evenk Neighbourhood Community participated in them.

Charitable aid to indigenous population

Social commitments of the company operating in the area populated by indigenous small-numbered peoples of the North are set forth in the agreements with the regional authorities. The list and the addressees of charitable aid are defined annually in collaboration with administrations of municipal districts and proceeding from the requests received from non-profit organizations and individuals representing and pertaining to indigenous minorities of the North. Pursuant to the donation agreements, Gazprom Group companies provide annual financing to support the population’s traditional lifestyle, develop national crafts, organize traditional national festivals and education.

Thus, Gazprom Dobycha Noyabrsk LLCsigns and performs annual collaboration agreements for the total of RUB 3 million with three YaNAA municipal districts: the Purovsky District, the Noyabrsk and Gubkinsky towns. Pursuant to those agreements, the company modernizes the towns, provides charitable support to pre-school and general education institutions for children and healthcare institutions, as well as provides financing for sports and fitness development. In addition, the company arranged in 2018 air transportation services to deliver food to the indigenous population of Khalyasavey settlement for the total amount of RUB 1.2 million; NPO YaNAA Children Support Charity Foundation “Yamine” received financial aid in the amount of RUB 1.5 million to arrange medical treatment and diagnostics, in particular, for children of the indigenous peoples.

Over 15 years, Gazprom Transgaz Surgut  LLChas been carrying out the activities stipulated between the Governments of the KhMAA — Yugra, the YaNAA and PJSC Gazprom. In December 2018, the company representatives visited one of the most hard-to-reach settlements in the Surgut District — Kayukova national village, in order to wish the pupils of the primary boarding school Happy New Year and deliver presents for them.

Gazprom Dobycha Shelf Yuzhno-Sakhalinsk LLCsupports indigenous small-numbered peoples of the North under the agreements with the Government of the Sakhalin Region and the Administration of the Nogliksky Urban District.

As of January 1, 2018, the total headcount of the indigenous minorities living in the Nogliksky Urban District Municipal Area was 1,164 people, including 887 Nivkhi, 3 Nanais, 117 Oroks, 108 Uilta and 16 people belonging to other indigenous minorities.

The company’s charitable donations were spent on medical treatment improvement and improvement of the educational process at educational institutions attended predominantly by the children of indigenous peoples. In 2018, the Fur Mosaics cultural project aimed at national crafts development was implemented jointly with the Sakhalin Regional Art Museum.

Gazprom Group companies provide support to children and educational institutions, support children’s and amateur sports. Thus, New Year greetings for children, including those living with their families in tundra, has become a good tradition. Charitable support was provided in order to purchase equipment, arrange training camps, hold competitions to three Purovsky District sports schools for children, YaNAA Kyokushin Kaikan Karate Federation, YaNAA Tennis Federation, Taz District “Orion” Hockey Club, “Yamburg” STK, “Yamal” Children’s Football Club in the Labytnangi town, “Contact” Children and Youth Sports School in Novy Urengoy, “Nadym ” Ice Arena.

One of the key areas of the Group companies’ relations with the indigenous minorities of the North is support of the favourable environmental conditions. Employees of the companies participate in environmental campaigns removing waste and garbage from the tundra. The companies provide financing for planting trees, reindeer vaccination, fingerling stocking at lakes and rivers.

In September 2018, employees of contractor entities operating at Gazprom Geologorazvedka  LLCfacilities in the YaNAA’s Yamal District cleaned the territory adjacent to the well pads at Zapadno-Tambey, Severo-Tambey, Malyginsky and Tasiysky License Areas. The total territory cleaned was 2 hectares. The amount of waste collected exceeded 300 kg.

Thank You for Clean Tundra! environmental campaign was initiated by the YaNAA Reindeer Herders Union. It is held in collaboration with non-profit organizations and reindeer herders communities annually in September when weather conditions allow removing household and construction waste from the tundra along the reindeer foray routes and near settlements.

Gazprom Neft operates in the residence areas of indigenous minorities in the KhMAA — Yugra and the YaNAA. Its local community relations are governed by the Policy for Relations with Indigenous Minorities of the North, Siberia and the Far East. The fundamental principles of such relations are respect of the indigenous minorities’ rights, information transparency and constructive collaboration.

Gazprom Neft has developed and implemented the system for compensating the indigenous people for the damages caused by implementation of hydrocarbon production projects. The company concludes agreements with the representatives of the indigenous families, whereby it provides material aid to carry out traditional economic activity, gives indigenous families sustenance compensations, one-off payments based on individual applications, supplies fuel and lubricants. In addition, Gazprom Neft Group supports agricultural communities of indigenous people in the areas of hydrocarbons exploration and production. The funds are allocated to procure equipment, fishing gear, fuel and lubricants and construction materials. The company helps the reindeer herders deal with everyday issues, supports delivery of the required food to cattle camps, supports repair of machinery and equipment and provides means of communication, as well as grants access to social facilities built at the fields (medical stations, canteens, stores, heated waiting rooms at the helipads, etc.). In case of emergencies, Gazprom Neft provides charitable support to the affected families.

Respecting the indigenous peoples’ rights is the norm of business for Gazprom

Vladimir Markov, Member of the Management Committee and Head of Department at PJSC Gazprom

Are there any Company documents describing its approach to protecting the rights of the indigenous small-numbered peoples of the North?

We take into account the rights and interests of indigenous minorities both in the course of our operations and as part of the implementation of social programs. Those principles are set forth in the Regional Policy Concept, as well as in the PJSC Gazprom Code of Corporate Ethics.

How are the interests of indigenous peoples of the North taken into account when new PJSC Gazprom’s projects are defined?

The social aspects of PJSC Gazprom’s regional policy stipulate improvement of people’s quality of life in the areas of subsurface resources use, participation in preserving ecological well-being and traditional living environment of the indigenous small-numbered peoples of the North.

In case of Gazprom, such approach is the norm of business. We identify potential impacts of upon the ethnological environment, develop the steps to mitigate them, calculate the amount of potential damage inflicted to the unions of indigenous peoples by the proposed construction. And, of course, all activities are carried out at the investment projects’ facilities strictly in compliance with the environmental legislation.

Could you give some examples of collaboration with indigenous small-numbered peoples of the North in 2018?

One of the best examples of such collaboration was arranging the crossing of the Bovanenkovo oil and gas condensate field’s utility lines by reindeer herds in YaNAA. The total of 22 crossings were established, each of them was 20 — 50-meter wide and could accommodate about 10,000 reindeer during the foray period.

In 2018, Gazprom Dobycha Nadym  LLCproject Arghish Disappears over the Horizon summarizing the company’s unique experience of arranging the crossing of Bovanenkovo oil and gas condensate field’s utility lines by reindeer herds received an award of the international contest Environmental Culture. Peace and Harmony.