Local Communities

PRINCIPLES OF COOPERATION: partnership in addressing pressing social, economic, and environmental issues; ensuring the transparency of the Company’s business and decisions; developing an active dialogue; considering the interests of indigenous peoples.

The Company conducts an active dialogue with local communities, focused on environmental protection issues, solving regional development challenges, and preserving cultural traditions. Gazprom Neft believes that constructive cooperation with local authorities and the public is an important factor in developing the social potential of the regions and the creation of a favourable social environment for the implementation of the Company's strategy.

The Company carries out its regional activities based on its regional policy priorities. The Company chooses where to invest social funds based on dialogue with all stakeholders and monitoring of social wellbeing, which includes using data from the Company's own and independent studies.

The Company implements all social and charitable projects through the Home Towns social investment programme adopted in 2012. Gazprom Neft seeks to engage stakeholders in the implementation of this programme, seeing the social engagement of local communities as a basic condition for the sustainable regional development. An important mechanism for engaging local communities under this programme is the social initiatives grant competition introduced in 2013. Grant competitions were held in Yamalo-Nenets Autonomous District, Khanty-Mansiysk Autonomous District-Yugra, and Tomsk, Omsk, and Orenburg regions during the reporting year.

The Company actively engages stakeholders in dialogue. During the reporting year, the Company conducted round tables with representatives of local communities in two of the regions Detailed information on the dialogues can be found in the Regional Policies and Development of Local Communities chapter of this Report.where it operates..

The Company believes that public hearings are an essential mechanism for the development and implementation of industrial projects. In 2014, the Company held a series of public hearings, including in the Tazovsky (Yamalo-Nenets Autonomous) District regarding a project to move the boundaries of the Messo-Yakhinsky Nature Reserve. Exploration work could not be carried out in the Vostochno-Messoyakhsky area as its boundaries crossed those of the nature reserve, and the project aimed to solve this problem. As a result of multilateral dialogue between the Company, the regional administration, the Yamalo-Nenets Autonomous District environmental protection service, and public organizations, the boundaries of the reserve were moved to not only allow the oil company to explore the subsoil and meet its licence obligations to the state, but also to meet the nature reserve's main objective: to protect the Messoyakha riverbed.

Mechanisms for cooperating with Northern peoples

Gazprom Neft businesses operate in areas inhabited by the indigenous peoples of northern Russia. The Company places special emphasis on striking a balance between implementing its strategic plans and safeguarding the interests of indigenous peoples. When planning its activities, the Company develops and discusses with representatives of the indigenous peoples ways to minimize the impact of its industrial activities on their traditional way of life. Gazprom Neft is implementing programmes to support the traditional lifestyles of the indigenous peoples of the north and preserve the unique Yamal culture, while helping them to adapt to the modern economic and social environment.

As a result of the project, the reserve will expand from 91,000 to 114,000 hectares, and the Messoyakha River will be protected and accessible for traditional natural resource use only. When counting votes, the opinions of both participants in public hearings in the regional administrative centre and residents of inter-settlement territories were taken into account. A survey of the nomadic population was conducted on the eve of the hearings by the regional branch of the Yamal Potemkam [Yamal for Our Descendants] Association of Indigenous Peoples. Following the voting and hearings, the project to move the boundaries of the nature reserve was approved.