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Sustainability / Community Development Policies

As one of the most efficient companies in its sector, Gazprom Neft also aims to be an efficient social investor. In 2012, an enlarged meeting of the Management Board adopted the ‘Home Towns’ program, refining the Company’s approach to social investment in the regions where it operates as part of implementing the concept of regional policy, which was approved by the Management Board in December 2010. The ‘Home Towns’ program aims at further developing tools to involve both local communities and the Company’s employees in the process of shaping the portfolio of projects, and in directly implementing social programs.

During the reporting year, the Company made an inventory of its social projects portfolio, which identified the most successful practices tried and tested by the Company in various regions over the period from 2007 to 2012. This can now serve as a model throughout the Company’s area of operation.

Gazprom Neft expects this approach to establish a standard for social projects, regardless of the region, and ensure the further implementation of the Company’s mission as an effective and reliable partner of the regional authorities and local communities for social and economic development of the regions.

The Company implements social projects both as part of agreements on social and economic cooperation with the regional and municipal authorities and by supporting local community initiatives.

In 2012, OJSC Gazprom Neft made 34 agreements on social and economic cooperation with Russia’s constituent entities and municipalities in the regions where the Company has its major production units.

In 2012, Gazprom Neft’s total costs associated with implementing the ‘Home Towns’ program amounted to RUB 2,399 million, of which RUB 2,052 million were spent on social investment as part of social and economic agreements with the regions and RUB 347 million on supporting charitable initiatives.

The main parts of the ‘Home Towns’ program are:

  • urban development (housing, urban land improvement);
  • creating infrastructure for children and grassroots sports;
  • support and development of education- and health-related initiatives and activities;
  • conservation of national and cultural traditions of the indigenous peoples of Northern Russia.
URBAN DEVELOPMENTURBAN DEVELOPMENT

Improving the urban environment is one of Gazprom Neft’s traditional areas for social investments. The company collaborates with municipal authorities based on the belief that small town residents should have the same access to a high-quality urban environment as residents of large cities do.

Construction and upgrades of housing, as well as helping to improve the urban environment, constitute one of the specific segments of the social investment program. For example, in 2012, the Company financed the construction of a modern apartment complex with 120 apartments in the town of Muravlenko (YANAD), and renovated houses in the villages of the Nizhnevartovsk Region (KhMAD-Yugra).

The lack of social housing is one of the reasons for the lack of qualified personnel in the social sector — education, healthcare and culture. The Company is involved in housing construction, as well as in financing the purchase of apartments for social workers.

During the reporting period, Gazprom Neft bought five apartments in the Uvat district, Tyumen Region, and financed the construction of a 27-apartment house for young professionals in the village of Parabel (Tomsk Region).

CHARITABLE ACTIVITIES AND VOLUNTEER PROGRAMCHARITABLE ACTIVITIES AND VOLUNTEER PROGRAMS

Common approaches to organizing charitable activities are determined by the policy of charitable activities and the corporate standard ‘Charity Support Procedures.’ The Company’s charitable activities are coordinated by the Charity Commission. Similar commissions have also been established in the Company’s subsidiaries and affiliates.

Corporate charitable projects are implemented using the Company’s own resources, as well as through the involvement of employees in charitable activities. Employees are involved in the implementation of charitable projects both in the form of fund-raising, and in the form of individual participation in a variety of volunteer programs.

Volunteer programs were attended by more than 5,000 Company employees in 2012. Among these programs are the corporate Blood Donor’s Days, and the volunteer programs ‘Letter to Santa’, ‘Prepare Your Child for School’, ‘Children’s Day’, and ‘Give-n-Take Fund’.

When implementing charitable projects, the Company tries to make use of urban facilities, whose construction is financed by Gazprom Neft.

CONSERVATION OF NATIONAL AND CULTURAL TRADITIONS OF THE INDIGENOUS PEOPLES OF NORTHERN RUSSIACONSERVATION OF NATIONAL AND CULTURAL TRADITIONS OF THE INDIGENOUS PEOPLES OF NORTHERN RUSSIA

Gazprom Neft contributes to improving the quality of life for the indigenous peoples of the North — in KhMAD-Yugra and YANAD. The programs that the Company actively supports have been developed taking into account the cultural sensitivity of indigenous peoples of the North. They aim to integrate them into the modern economic and social landscape, while maintaining their cultural identity and traditional ways of life.

In 2012, the Company helped communities in YANAD to buy snowmobiles, fuels, lubricants, and to arrange the Governor’s Cup competitions for reindeer herders in YANAD. Gazprom Neft participated in the construction of a rural cultural center in the Kutopyugan settlement. In 2012, with the participation of the Company, the construction of an ethnic day-care camp for the children of indigenous peoples of the North was continued in the village of Russkinskaya, KhMAD-Yugra (construction will be completed in 2014).

CREATING INFRASTRUCTURE FOR CHILDREN AND GRASSROOTS SPORTSCREATING INFRASTRUCTURE FOR CHILDREN AND GRASSROOTS SPORTS

The lack of an up-to-date sports infrastructure is one of the most pressing problems in the regions.

In 2012, Gazprom Neft completed the construction of the Zenith multi-purpose sports complex named after Yury Morozov in the town of Noyabrsk (YANAD), and continued building a similar complex in the town of Tarko-Sale (YANAD).

Along with developing a new infrastructure, the Company sponsors programs to modernize existing sports facilities.

In the reporting year, as part of the social investment program, the Company rebuilt a fitness center named after Pavel Sadyrin (completion of the work is scheduled for 2013) in the town of Muravlenko (YANAD), and a hockey site at the Children’s Center for Aesthetic Education (‘Neftyanik’) in the city of Omsk.

The Company’s project for constructing out-of-season yard playgrounds is one of the ways it supports grassroot sports and promotes active lifestyles among young people and families.

In the reporting year, the Company opened four playgrounds in the town of Noyabrsk, three in the town of Muravlenko, and remodeled three playgrounds and opened two new ones in the city of Omsk. Similar facilities will be opened in 2013 in the Orenburg Region and Yamal-Nenets Autonomous District.

The Company is involved in projects that support talented young athletes.

To support fitness and sports in the Omsk Region, Gazprom Neft sponsors the Avangard Sports Club non-commercial partnership. The comprehensive system of training hockey players starting at age 6 is a key feature of the Avangard Sports Club’s social project.

In 2012, as part of the ‘Gazprom to Children’ program, the Company launched a major inter-regional social project — ‘Avangard Hockey Academy’ — the goal of which is to establish a completely new contemporary system to train young players and develop hockey for children and youngsters. The project is being implemented under the aegis of Russia’s leading hockey club — Avangard Omsk, whose main foundations are the companies of the Gazprom Group. During the reporting year, the Company started building the central complex for the Avangard Hockey Academy in the city of Omsk. The Company’s flagship social project in the field of children’s sports is actively developing: the Sixth International ‘Gazprom Neft Cup’ Tournament for Children KHL Teams was held in 2012, and attended by 16 teams.

Over the past six years, the Gazprom Neft Cup has become one of the most significant children’s tournaments in Europe.

SUPPORT AND DEVELOPMENT OF EDUCATION-AND HEALTH-RELATED INITIATIVES AND ACTIVITIESSUPPORT AND DEVELOPMENT OF EDUCATION- AND HEALTH-RELATED INITIATIVES AND ACTIVITIES

The lack of capacity in child day-care facilities and the poor quality of their equipment is one of the most acute problems of the regions. On the one hand, this prevents a significant number of children from taking part in the continuous learning system at pre-school level, where the foundations of cognitive activity and social interaction are laid. On the other hand, this forces parents to extend their maternity leave, which causes involuntary unemployment and partial loss of skills.

In 2012, the Company implemented a number of projects aimed at developing education. Gazprom Neft sponsored the construction of the ‘Planet Childhood’ day-care facilities in the city of Khanty-Mansiysk (KhMAD-Yugra), designed for 200 children, child day-care facilities in the village of Mezhdurechiye (Omsk Region) and the upgrade of facilities at some educational institutions in the Tara District, Omsk Region. The Company helped to equip a number of Omsk schools with computer labs, chemical labs, school cafeterias and gyms. And this list of projects implemented by the Company in the field of education and healthcare during the reporting year is by no means complete.

Gazprom Neft places emphasis on healthcare, especially on the quality of health services. The Company invests annually in the healthcare systems of the regions where it operates by sponsoring health facility rennovations and purchasing medical equipment.

During the reporting year, the Company purchased equipment for Children’s Hospital No. 3, and paid for the repair of newborn rehabilitation rooms in Children’s Hospital No. 1 in Omsk.

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