4.1. Local Development
As the largest energy supplier, Gazprom plays a major role in developing local communities. Gazprom cooperates with government authorities, runs a large-scale gas infrastructure expansion program across Russian regions, pays taxes to local budgets, implements charity initiatives, sponsors sports events, and supports vulnerable population groups.
Key documents
- Regional Policy Concept of PJSC GazpromApproved by resolution of OJSC Gazprom Management Committee dated May 22, 2003.
- Cooperation agreements with Russian regions
- Agreements on contributing to social and economic development between PJSC Gazprom’s subsidiaries and municipal administrations of regions where they operate
PJSC Gazprom’s and its subsidiaries’ regional policies focus on making their efforts in driving local social and economic development more efficient. The Company works towards this goal by joining forces with Russian regions in building infrastructure, improving cities, towns and villages, and providing social support to local communities. Cooperation agreements signed by the Gazprom Group and governments across 81 Russian regions formalize its commitments with respect to the environment, indigenous rights protection, social support, job creation, economic growth, culture and sports.
Key areas of cooperation with local authorities concerning social and economic development:
- tax payments to budgets of all levels;
- assistance in addressing social issues;
- support of indigenous minorities of the North;
- urban improvement in cities, towns and villages;
- developing culture, sports and education;
- employment opportunities.
Cooperation with Regions in 2022
In the reporting year, the Gazprom Group signed four new cooperation agreements with regions. In addition, the Group was in close contact with regional governments as part of the program to expand gas infrastructure and negotiated key regulations in this area. Dedicated task forces comprising regional heads were set up to deal with issues arising in the course of PJSC Gazprom’s investment projects related to the Eastern Gas Supply System and the Volkhov—Murmansk gas trunkline.
New agreements with regions signed in 2022:
- A cooperation agreement with the Government of Moscow on developing local gas, electricity and heat supply
- A roadmap of cooperation between the St. Petersburg Government and PJSC Gazprom on social and economic development
- A cooperation agreement with the Republic of Bashkortostan
- A cooperation agreement with the Sakhalin Region Government as part of a preinvestment feasibility study of building an oil and gas condensate processing facility on Sakhalin
- An agreement of intent between the Irkutsk Region and PJSC Gazprom on gas infrastructure expansion in Sayansk and certain municipalities in the Irkutsk Region
- A cooperation agreement with the Sakhalin Region Government on constructing an LNG plant on Sakhalin and an LNG SR systemSR means LNG storage and regasification. on the Kuril Islands.
PJSC Gazprom helps implement infrastructure projects in St. Petersburg, including environmental initiatives related to transitioning public transport to methane to reduce harmful emissions. Also, work was ongoing to improve and restore the city’s historic center as part of a comprehensive improvement program. The Company contributes to a comfortable urban environment and economic growth.
The reporting year saw refurbishments on the Kronverksky Avenue, English Embankment, Moyka River Embankment, Obukhovskoy Oborony Avenue and Petrovskaya Embankment. Outdoor and architectural lighting was installed in the Admiralteysky, Vasileostrovsky, Petrogradsky and Tsentralny districts.
Cooperation for Urban Improvements and Infrastructure
- The Gazprom Group allocated funds to create a new urban space in Nadym. 2022 saw an opening ceremony for the Northern Lights public recreation area with a pedestrian light and music fountain.
- The Gazprom Group worked together with Sakha (Yakutia) municipalities to refurbish public spaces. We helped set up a state-of-the-art sports and playground for kids and adults in Lensk and an outdoor sports ground in Peleduy. In Vitim, a hockey pitch will soon be ready for commissioning.
- As part of a cooperation agreement between PJSC Gazprom and the Government of the Komi Republic, around 7.0 thousand m2 of premises in the Ukhta Interterritorial Maternity Hospital were overhauled using the previously allocated funds. Today, the town has a refurbished cutting-edge maternity hospital.
- In Novy Urengoy, the Company helped build a new modern outpatient facility including children’s polyclinic, women’s health clinic, day hospital for children and pregnant women, and a swimming pool for exercise therapy. The polyclinic will serve over 20,000 children.
Gas Infrastructure Expansion in Russian Regions
The Group set an ambitious goal to increase Russia’s gas penetration rate to 100% of what is technically feasible. Total gas penetration is a great advantage for Russians, among other things in terms of sustainable development as connection to gas supplies serves to improve living conditions and reduce GHG and pollutant emissions.
Gas Supply and Gas Infrastructure Expansion Programs
As of December 31, 2022, a total of 72 Russian regions had active gas supply development and gas infrastructure expansions programs for 2021–2025.
The reporting year saw 177 inter-settlement gas pipelines with a total length of 3,300 km built to ensure gas supplies to 81,700 houses and apartments along with 350 boiler houses in 423 localities, and 13 gas distribution stations set up.
In 2020, the Programs were approved by heads of 67 Russian regions and Chairman of the Management Committee of PJSC Gazprom Alexey Miller. In accordance with Alexey Miller’s instructionsInstructions No. 01-1899 dated May 25, 2022 and No. 01-2863 dated August 17, 2022., the Group updated its Programs for the following Russian regions:
1. Altai Territory
2. Amur Region
3. Arkhangelsk Region
4. Astrakhan Region
5. Belgorod Region
6. Bryansk Region
7. Vladimir Region
8. Volgograd Region
9. Vologda Region
10. Voronezh Region
11. Ivanovo Region
12. Irkutsk Region
13. Kabardino-Balkarian Republic
14. Kaliningrad Region
15. Kaluga Region
16. Karachayevo-Circassian Republic
17. Kemerovo Region — Kuzbass
18. Kirov Region
19. Krasnodar Territory
20. Kurgan Region
21. Kursk Region
22. Leningrad Region
23. Lipetsk Region
24. Moscow Region
25. Nizhny Novgorod Region
26. Novgorod Region
27. Novosibirsk Region
28. Omsk Region
29. Orenburg Region
30. Orel Region
31. Penza Region
32. Perm Territory
33. Primorye Territory
34. Pskov Region
35. Republic of Adygeya
36. Republic of Altai
37. Republic of Bashkortostan
38. Republic of Daghestan
39. Republic of Ingushetia
40. Republic of Kalmykia
41. Republic of Karelia
42. Komi Republic
43. Republic of Mari El
44. Republic of Mordovia
45. Republic of Sakha (Yakutia)
46. Republic of North Ossetia — Alania
47. Rostov Region
48. Ryazan Region
49. Samara Region
50. St. Petersburg
51. Saratov Region
52. Sakhalin Region
53. Smolensk Region
54. Stavropol Territory
55. Tambov Region
56. Tver Region
57. Tomsk Region
58. Tula Region
59. Tyumen Region
60. Udmurtian Republic
61. Ulyanovsk Region
62. Khabarovsk Territory
63. Khanty-Mansi — Yugra Autonomous Area
64. Chechen Republic
65. Chuvash Republic
66. Yamal-Nenets Autonomous Area
67. Yaroslavl Region
All Programs were approved by the heads of respective constituent entities and Chairman of the Management Committee of PJSC Gazprom Alexey Miller. The updated 2021–2025 Program for the Irkutsk Region was approved in 2022 on the sidelines of the St. Petersburg International Economic Forum.
In 2022, the Group drafted and approved the Programs for the Republic of Tatarstan and the Sverdlovsk, Chelyabinsk and Kostroma Regions.
Outcomes of Gas Infrastructure Expansion
| Indicator | 2020 | 2021 | 2022 |
|---|---|---|---|
| The Gazprom Group investments in gas supplies and gas infrastructure expansion, RUB billion | |||
| Actual investments of Gazprom Mezhregiongaz in gas supplies and gas infrastructure expansion in Russian regions | 31.5 | 52.2 | 66.0 |
| Actual investments of PJSC Gazprom in gas supplies and gas infrastructure expansion | 23.2 | 13.3 | 76.7 |
| Actual investments of PJSC Gazprom’s core subsidiaries in gas supplies and gas infrastructure expansion | 0.8 | 1.3 | 3.5 |
| Number of households across Russia prepared for gas infrastructure expansion, thousand | 63.1 | 83.6 | 81.7 |
| Number of regions covered by the ProgramsRussian regions that have approved gas supply and gas infrastructure expansion programs. | 67 | 68 | 72 |
In the reporting year, PJSC Gazprom launched a medium-scale LNG production, storage and shipment terminal in the vicinity of the Portovaya compressor station on the northeast coast of the Gulf of Finland. Apart from other intended uses, the terminal ships LNG as gas motor fuel for passenger transport in St. Petersburg.
Additional Gas Infrastructure Expansionin Gas-Supplied Localities
The Company consistently fulfils its obligations to connect households to the gas network in gas-supplied areasIn 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 is expanded based on requests from home owners, with no financing required on their part.
Federal Law No. 184-FZ On Amendments to Federal Law No. 69-FZ On Gas Supplyin the Russian Federation dated March 31, 1999 passed on June 11, 2021, established the single gas infrastructure expansion operator. Gazprom Gazifikatsiya was awarded this status and assigned to 72 entities and the Sirius federal territory.
In 2022, the company entered into agreements on financing additional gas infrastructure expansion with gas distribution companies. Joint efforts delivered the following resultsCumulative data from the start of additional gas infrastructure expansion.:
- financing agreements worth RUB 176.6 billion were signed;
- requests for financing additional gas infrastructure expansion totaling RUB 86.6 billion were submitted;
- RUB 57.1 billion were allocated.
The reporting year saw considerable progress as regards additional gas infrastructure expansion.
As of December 31, 2022, to ensure utility connection of individuals, gas distribution companies of the Gazprom Mezhregiongaz Group and Gazprom Transgaz KazanCumulative data from the start of additional gas infrastructure expansion.:
- made it technically possible to connect 502,200 households to gas supply;
- signed 530,700 contracts of additional gas infrastructure expansion for households;
- expanded gas infrastructure up to property boundaries as part of 371,200 contracts;
- connected and started gas supplies to 167,000 households.
In accordance with Clause 1b of List of Instructions of the President of the Russian Federation No. Pr-2067 dated October 30, 2022 issued after a plenary session at the Russian Energy Week International Forum, the Russian Government and PJSC Gazprom are to determine parameters for extending and implementing a social program to connect gas equipment of individuals, healthcare facilities and educational institutions to gas distribution networks in gas-supplied localities, as required, without financing on their part.
In furtherance of the said Clause 1b, the Russian Government’s Decree No. 2187 dated November 30, 2022 amended the Rules for Connecting Gas Equipment and Capital Construction Facilities to Gas Distribution Networks approved by the Russian Government’s Decree No. 1547 dated September 13, 2021. The document provides for additional gas infrastructure expansion on an ongoing basis and determined parameters for connecting boiler houses of healthcare and educational facilities to gas distribution networks as part of the relevant program.
In the Khanty-Mansi — Yugra and Yamal-Nenets Autonomous Areas, the Group together with its associated organizations and joint ventures cooperates with peoples included in the Common List of Minor Indigenous Peoples of Russia. These peoples are the Khanty, Mansi, Nenets, Selkups, Evenks, Evens (Lamuts), Nivkh people, Orok people (Ulta), and others.
The Gazprom Group takes into account indigenous minorities’ values and culture when planning and implementing its projects, holds public hearings to gain a better insight into their interests, and cooperates with indigenous associations.
No relocation is initiated, and no relevant programs are underway. In 2022, there were no registered violations of indigenous minorities’ rights in the Gazprom Group’s licensed areas.
Support Areas in 2022
| Initiatives to support indigenous minorities and promote traditional activities, investment in farming and fishing craft |
| 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 |
| Compensation of expenses related to the use of the Obskaya—Bovanenkovo railroad by indigenous minorities of the North |
| Environmental expedition to clean up Vilkitsky Island |
Spending in support of indigenous minorities, RUB million
| Indicator | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Sponsorship of indigenous minorities support | 256.54 | 294.74 | 368.2 | +24.9 |
Projects to Support Indigenous Minorities in 2022
Taking into account requests from indigenous minority communities, PJSC Gazprom keeps running projects to support traditional activities such as reindeer herding and fishing, preserve traditions (holidays and contests) and culture (arts and trades), and promote indigenous lifestyles and heritage by developing ethnic tourism and digitalizing corporate museum exhibitions.
Preserving culture and traditions
In 2022, Gazprom Dobycha Urengoy financed three projects to preserve and promote the culture and literature of Yamal indigenous minorities. They included The Legend of Yamal fashion theater in the Korotchaevo District, Novy Urengoy, PROYamal club of arts, crafts and folk art of indigenous Northern minorities in Novy Urengoy, and Tokholkova project for young representatives of indigenous minorities from Novy Urengoy. Gazprom Dobycha Urengoy’s team also took part in Yamal’s most important celebrations — Reindeer Herders’ Day and Fishermen’s Day and gave presents to tundra people.
Gazprom Dobycha Nadym helped the Yarsalinskoye municipal reindeer facility prepare for summer reindeer migration. In 2022, some 8,000 reindeer migrated through special passages crossing the utility lines of the Bovanenkovskoye field. The company also became a general partner in the traditional contest of reindeer herders in Nadym and Yar-Sale village of the Yamalsky District.
Gazprom Dobycha Yamburg provided financial aid to the exhibition of the Nenets artist Igor Khudi. This is a unique project to animate 33 graphic images using cutting-edge computer technologies. Each picture featured a short artistic video revealing the artist’s message and the mindset of the Northern people, and was accompanied by audio and text in Nenets and Russian languages.
In 2022, Gazprom Transgaz Tomsk organized a Beringia traditional dog sledding race in the localities where indigenous minorities reside. Over 1,000 spectators gathered to watch the competition of 15 dog drivers.
Support of students and employees from among indigenous minorities
In 2015, Gazprom Dobycha Urengoy, the Purovsly District administration and a Samburg boarding school launched a program called Samburg: Shaping Our Future Together. The program targets students of the ninth to eleventh grades from among indigenous Northern minorities, providing them with career guidance and employment opportunities with the company.
In 2022, Gazprom Dobycha Yamburg hired ten representatives of indigenous minorities, organized training for 36 eligible employees and helped a select group of indigenous students pay for their education.
PJSC Gazprom is developing the Kamennomysskoye-Sea field in the Gulf of Ob. Indigenous minorities expressed concern over a potential impact of this project on local aquatic bioresources and their traditional activities related to fishing.
The project is key to unlocking the industrial potential of the Russian Arctic, ensuring seamless gas supplies to domestic consumers in the long run, creating jobs, and strengthening national energy security.
In implementing the project, the Company complies with applicable Russian laws, including environmental ones. Design documents are subject to all necessary approvals, including public hearings involving the residents of adjacent territories.
The Federal Agency for Fishery (Rosrybolovstvo) gave a permit for field development in conformity with design documents. As stated in relevant opinions, the planned project’s impact on aquatic bioresources and habitat is acceptable subject to compliance with conditions determined by Rosrybolovstvo. Also, design documents for onshore facilities and interfield underwater lines were approved by a state environmental review board.
Gazprom InvestA wholly owned subsidiary of PJSC Gazprom., the owner of design documents, maintains an ongoing dialogue with Yamal-Nenets residents and organizes meeting with indigenous minorities.
