6.1. Local Development
Understanding the importance of local development for the nation, Gazprom remains in touch with stakeholders across the Group’s geography: public authorities, non-profit organizations, and communities. Gazprom continues to implement its gas infrastructure expansion program and numerous charity projects, with the Group’s employees taking active part in volunteering initiatives.
In building relations with constituent entities of the Russian Federation, the Gazprom Group relies on its Regional Policy Concept. The Group signed 81 cooperation agreements documenting its commitment to protect the environment and minimize the impact on local communities and indigenous peoples.
Documents Adopted in 2021
In the reporting year, Gazprom signed new agreements with the regions, includingNone of the documents are legally binding or require funding to be provided by PJSC Gazprom.:
- cooperation agreement with St. Petersburg for 2022–2024;
- cooperation agreement with the Government of the Yamal-Nenets Autonomous Area for 2021–2023;
- cooperation agreement with the Republic of Tatarstan;
- memorandum of intent on an off-grid gas supply project in the Amur Region;
- cooperation agreement with the Astrakhan Region as part of a project to increase gas production at the Astrakhan gas condensate field;
- cooperation agreement with the Administration of the Volgograd Region on expanding the area of liquefied natural gas application in the Volgograd Region.
Contributing to St. Petersburg Development
PJSC Gazprom is implementing a large-scale program to support the development of St. Petersburg as its key region of operation and home to the Company’s headquarters. Seeking to fully meet local community interests, the program covers a wide range of issues, taking into account Gazprom’s key activities (gas infrastructure expansion, public transport conversion to methane, etc.). It also involves comprehensive urban improvement of the city’s historic center and extensive refurbishing projects, as well as support for culture and sports institutions. With this approach, the Company aims to ensure maximum comfort for personal development in the urban environment and promote qualitative growth of the region’s economy.
In the reporting period alone, St. Petersburg had 18 streets and squares completely upgraded, with over 80 historic streets, parks, embankments and squares renovated under the program, as well as more than 16,000 lights installed, including the newest LED lighting. Nevsky Avenue was fully equipped with LED lighting, which reduced energy consumption by a third, enabling the city to save over RUB 2 million per year.
Ahead of the 350th anniversary of Peter the Great, Gazprom has undertaken to refurbish the northern shoreline of the Lakhta Harbor and erect a memorial sign named Peter the Great Saves the Drowning near Lakhta. On top of that, the Company plans to present the Poltava Ship center for culture and history, as well as the Eco-Gallery, in addition to developing culture, leisure and sports facilities along the shoreline of the Park of the 300th Anniversary of St. Petersburg. The new infrastructure will boast signature lighting covering the city’s marine facade from end to end.
Gas Infrastructure Expansion in Russian Regions
One of Gazprom’s key focus areas is gas infrastructure expansion across Russia. Availability of gas to the most remote regions of the country contributes to the people’s well-being and infrastructure efficiency while also reducing pollutant emissions.
Gas Supply and Gas Infrastructure Expansion Programs
In 2020, gas supply and gas infrastructure expansion programs for 2021–2025 were approved by heads of 67 regions of the Russian Federation and Chairman of the Management Committee of PJSC Gazprom Alexey Miller. In 2021, added to the list was the Irkutsk Region, with the design of draft projects for 2021–2025 planned for the Republic of Tatarstan, as well as the Chelyabinsk and Kostroma Regions.
Additional Gas Infrastructure Expansion in Gas-Supplied Localities
In accordance with Clause 8 of List of Instructions of the President of the Russian Federation No. Pr-753 dated May 2, 2021, on delivering against the address of the President of the Russian Federation to the Federal Assembly of the Russian Federation dated April 21, 2021, gas infrastructure of gas-supplied localities shall be, without financing from local households, further expanded to households remaining isolated from the gas network located near the intra-settlement gas pipelines by 2023, provided a relevant request has been made, in accordance with the criteria and terms of such service (utility connection) established in advance.
Federal Law No. 184-FZ On Amendments to Federal Law No. 69-FZ On Gas Supply in the Russian Federation dated March 31, 1999 passed on June 11, 2021, established the single gas infrastructure expansion operator.
To deliver against the Federal Law On Gas Supply in the Russian Federation, Gazprom Gazifikatsiya began operating under the Gazprom Group as per Instruction of the Chairman of the Management Committee of PJSC Gazprom Alexey Miller No. 01-1981 dated June 15, 2021.
By order of the Government of the Russian Federation No. 3603-r dated December 15, 2021, Gazprom Gazifikatsiya was appointed the single gas infrastructure expansion operator and assigned to 72 entities and the Sirius federal territory, as well as to regions in the Siberian and Far Eastern Federal Districts where gas production and transportation facilities of PJSC Gazprom are currently unavailable.
In the spring 2021, Russia’s Ministry of Energy, in cooperation with Gazprom Mezhregiongaz, the Russian Energy Agency of Russia’s Ministry of Energy and regional administrations, conducted inventory count and estimated the cumulative potential for additional gas infrastructure expansion to cover 3.2 million households across the regions. Their connection in 2021–2024 may require an investment worth ca. RUB 480 billion (including VAT).
By the end of 2021, Gazprom received over 554,000 requests for additional gas expansion and signed over 152,000 agreements, under which:
- gas networks were expanded to more than 72,100 households;
- over 29,200 households were connected.
To ensure financing for the additional gas infrastructure expansion, in 2021, Gazprom Gazifikatsiya reviewed 259 offers to enter into agreements submitted by gas distribution companies. Upon considering the offers, 196 agreements were signed with a total value of RUB 128.2 billion.
Under the agreements, Gazprom Gazifikatsiya received 185 submissions from gas distribution companies worth RUB 13.6 billion, with 162 of them reviewed and over RUB 10.2 billion allocated. The financing was provided to 19 gas distribution companies in 19 regions.
Indigenous minorities fall into the Local Communities group of the Gazprom Group’s stakeholders. The Group strives to preserve their original habitat and traditional way of life.
Key Principles of Interaction with Indigenous Minorities
Partnership
- Long-term partnerships with associations of indigenous minorities and administrations of municipal districts
Equality
- Equal cooperation and mutual interests in dealing with common objectives
Specificity
- Factoring in the specifics of the economic and social development and use of natural resources by indigenous minorities
Social responsibility
- Gazprom’s involvement in solving social issues of indigenous minorities
The list of companies operating in the areas inhabited by the indigenous minorities of the Far North includes Gazprom Neft and the Group’s subsidiaries Gazprom Dobycha Nadym, Gazprom Dobycha Yamburg, Gazprom Dobycha Noyabrsk, Gazprom Dobycha Urengoy, Achimgaz, Severneftegazprom, Gazprom Transgaz Surgut and Gazprom Nedra. These companies support traditions and culture of indigenous minorities. To assist communes, public hearings, research and other initiatives are held, including interaction with associations of indigenous minorities (Yamal for Posterity!, Yamal, and Vozrozhdeniye social movement).
Gazprom Group’s spending in support of indigenous minorities in 2021
| Spending type | Amount spent, RUB million |
|---|---|
| Initiatives to support indigenous minorities of the North and promote traditional activities, investment in farming and fishing craft | 258.3 |
| Social care services, aid for people of the Far North with limited mobility, diagnostic assistance, medical treatment and rehabilitation of gravely sick and disabled children | 23.3 |
| Compensation of expenses related to the use of the Obskaya–Bovanenkovo railroad by indigenous minorities of the North | 2.0 |
| Environmental expedition to clean up Vilkitsky Island | 11.1 |
In 2021, there were no registered violations of indigenous minorities’ rights in the Gazprom Group’s licensed areas.
In the reporting year, no actual substantial or potential adverse impact on local communities took place, nor were there any conflicts with local communities and indigenous minorities.
Support of Tundra People
The Bovanenkovskoye and Kharasaveyskoye fields developed by Gazprom Dobycha Nadym are located in the traditional settlement area of indigenous minorities of the Far North crossed by routes for nomads.
The Gazprom Group strives to observe the rights of people inhabiting this region by taking the following measures:
- the Bovanenkovskoye field’s infrastructure is designed to take into account the needs of reindeer herders, leaving the traditional migration routes untouched;
- 22 crossings for reindeer herds were arranged;
- the filling of low-sloped banks was completed to ensure trouble-free movement of animals;
- ground communications were designed in a P-shape;
- before nomad migration, the crossings are examined by a dedicated working group;
- reindeer herders can get medical help and consultations of specialist physicians at the Bovanenkovo health center;
- children of remote nomad camps are transported by air to the boarding school in the Yar-Sale village of the Yamalsky District.
In 2021, Gazprom Dobycha Yamburg continued the implementation of the Cooperation Territory project to support local communities by encouraging social investment and charity and preserving the traditional habitat, way of life and cultural values of indigenous minorities. With the company’s help, the national celebrations of the Reindeer Herders’ Day and the Fishermen’s Day took place across nine localities in the region of its production operations. The participants of the events were given snowmobiles, boat motors and hard floor inflatable boats.
As part of the project, tundra people and pensioners of the Tazovsky District also received targeted aid throughout the reporting year, including assistance in hosting sports and cultural events, supplying food to tundra nomads, as well as buying New Year presents for members of the Tazovsky Division of the Yamal for Posterity! association.
Igor Safonov
Director General of Gazprom UGS
Responsible for one of Gazprom’s sustainable development goals, Igor is also in charge of the Company’s most important mission to ensure uninterrupted supplies to consumers. Underground gas storage is central to this process. By late 2021, UGS active capacity in Russia had achieved all-time highs.
6.1. Local Development ›Improving Local Living Standards
