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Sustainability / Public & Government Relations

The Company continues to strengthen dialogue with federal government agencies and organizations to improve legislation in the oil and gas sector and establish a favorable investment climate in Russia.

GAZPROMNEFT’S INFORMATION POLICY AND INTERACTION WITH GOVERNMENT

The Company works closely with the authorities of the regions in which the Company has a presence to improve social and economic and legislative conditions for conducting and developing its business.

A set of principles and mechanisms of the Company’s corporate regional policy helps to systematize this work and build a long-term partnership with authorities and local communities in the regions where the Company has a presence.

In 2012, the Company continued to actively collaborate with stakeholders and public authorities, relying on the principles of dialogue and partnership.

Following the principles of transparency, the Company informs stakeholders about all aspects of its operations. For example, in 2012 126 official reports were published and the Company top management was interviewed by 21 media outlets.

Press tours were organized to give journalists from various regions the opportunity to visit the Company’s production facilities — the Omsk and Moscow Refineries and the Novoportovskoye field — and to see other Gazprom Neft industrial facilities in the area. Gazprom Neft’s top managers held press conferences and briefings, talking about the Company and answering questions asked by the media.

The websites of the Gazprom Neft Group, combined in a single integrated system that gives increased access to information about the Group’s activities to all interested parties, are the most important communication tool.

According to IQ Benchmark’s study, the Gazprom Neft website retained its first place ranking of the websites of Russia’s 30 largest companies included in the RTS Classic index. In 2012 its traffic increased by 30% as compared to 2011.

The Company has traditionally used the potential of sports sponsorship to promote its brands and increase customer loyalty. In 2012, it continued its cooperation with Zenit soccer club, Avangard and SKA hockey clubs, whose games were broadcast by main federal channels and did well in TV ratings.

Cooperation with professional clubs enables Gazprom Neft to make use of players’ images in its advertising and PR campaigns: the Company has developed advertising campaigns for branded G-Drive fuels, involving famous players of the Russian national team and Zenit soccer club. Some club players were also involved in special events, including openings of new filling stations.

In 2012, the Company issued 126 official announcements
In 2012, the Company’s top-level management was interviewed by the media 21 interviews
Corporate website traffic increased by 53% in 2011, and by 30% in 2012 — +30 %
According to IQ Benchmark, the Gazprom Neft website remains in 1st place in the ranking of websites of Russia’s 30 largest companies included in the RTS Classic index 1st place

In 2012, the Gazprom Neft website won several competitions, including the Gold Website all-Russian Internet Competition.

Gazprom Neft participates actively in the discussion of issues associated with developing sectoral law and creating a favorable investment environment in Russia.

 

In 2012, the Company worked closely with  authorities of regional Russian entities to  introduce a set of measures to improve the  economic efficiency of current operations, and  created favorable conditions for implementing  corporate business initiatives.

In 2012, the Company was actively involved in developing, monitoring, analyzing and adjusting documents related to the unified methodology for exemptions from customs duties. Specifically, this methodology was tested through the example of the Company’s Mesoyakha field cluster. In addition, the Company’s experts were engaged in the promotion of federal rules and regulations in the field of industrial safety, with amendments drafted for inclusion in Federal Law 116-FZ On Industrial Safety.

In 2012 a draft of amendments to Federal Law 223-FZ On Procurement of Goods, Works and Services by Certain Types of Legal Entities was also published; the draft was widely discussed by industry, scientific and expert organizations (Russian Union of Industrialists and Entrepreneurs, National Research University — Higher School of Economics, Moscow State University, Law Society of Russia, Russian Corporate Counsel Association). Their recommendations were submitted to the Prime Minister and First Deputy Primer Minister. The Company has also held consultations with Open Government and the Presidential Administration. This work resulted in prompt consideration of the draft by the State Duma in the first, second and third readings and approval by the Federation Council. Federal Law 324-FZ was signed by the President on December 30, 2012 and came into force on December 31, 2012.

To improve the regulatory environment in the gas sector, the Company has prepared proposals and supporting materials to amend the Tax Code of the Russian Federation to the extent applicable to determine natural gas MET rates for OJSC Gazprom Neft at the level of independent oil companies. A draft on amending Article 342 of the Tax Code has been agreed with the Ministry of Finance and the Ministry of Energy and was positively received by Deputy Prime Minister Arkady Dvorkovich

In addition, public authorities are working on the legal form of tax breaks for fields and blocks with hard-to-recover reserves within the framework of the Russian Government Decree of May 3, 2012 No. 700-р. Currently, the Ministry of Finance’s draft federal law on determining reduced MET rates for hard-to-recover oil reserves is in the process of being approved. In addition, the Company is working to initiate establishing favorable tax conditions when employing technologies of tertiary stimulation of production and oil recovery increase, through the example of the three-phase chemical flooding (ASP)

Preferential tax treatment for oil and gas companies is still valid in the Company’s key production regions (YANAD, KhMAD). According to some regional administrations, tax preferences for extractives companies continue to be an effective mechanism based on budgetary, socialand economic criteria.

The executive and local authorities in the regions where the Company operates continue to support the Company’s projects in the field of gas utilization, and new projects in the field of hydrocarbon production.

As a major industry expert, the Company is actively involved in the development and improvement of regional legislation aimed at promoting the investment attractiveness of these regions and improving the social and economic situation. The Company’s experts take part in the work of regional legislative establishments — the Legislative Assembly of the Yamal-Nenets Autonomous District, Tyumen Regional Duma, etc. The Company’s experts regularly monitor current legislative activities and carry out draft appraisals. Together with regional parliaments, the Company participates in appraisals of federal sectoral legislation.

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