6.1. EMPLOYEES

THE СOMPANY’S MAIN ASSET IS A TEAM OF HIGHLY SKILLED EMPLOYEES MOTIVATED TO DEMONSTRATE SUPERIOR PERFORMANCE.

261.5 THOUSAND PERSONS

ROSNEFT GROUP HEADCOUNT AS AT THE
END-2015

LABOR EFFICIENCY
IMPROVEMENT IS A KEY PRIORITY
OF THE COMPANY

As of December 31, 2015, the headcount of the Rosneft Group companies reached 261.5 thousand employees1. The main reasons for the headcount increase were acquisition of new assets and employees hired from third party service contractors to the Group companies.

The median age of the Company’s employees remained almost unchanged being 39.7 years (39.4 at year-end 2014).

Executive positions were held by 32,700 thousand employees (31,700 at year-end 2014). As of 31 December 2015, the number of employees in executive positions remained almost the same compared with 31.12.2014 (12.7 %) representing 12.5 % of the total headcount as of 31.12.2015.

LABOR EFFICIENCY

Increased labour efficiency is one of the main priorities of the Company

One of the Company’s key priorities is labor efficiency improvement. For implementation of this objective, in 2015 development and approval of consolidated labor efficiency performance indicators by the companies of the key business segments and the Company as a whole was completed.

The target value of labor efficiency performance indicator for the Company as a whole was approved by the Board of Directors as a technical and economic indicator of the Company included in the 2016 Business Plan.

As of 2016, performance KPIs by relevant business areas have been included in the lists of performance indicators of the Company’s top managers and chief executives of the Group companies.

In 2015, principles of classifying employees as administrative and management staff and the maximum ratio of administrative and management staff to the total headcount for such companies were developed for the staff of a number of general corporate service companies. This rate was used for development of the 2016–2020 Business Plan.

ADMINISTRATIVE CHANGES SUPPORT

Rosneft is a dynamically developing company, which makes the HR support of changes all the more important.

Undertakings for improving efficiency in the Upstream segment:

  1. RN Drilling restructuring (merging with Orenburg Drilling Company, LLC, creation of Orenburg branch, restructuring of Nefteyugansk and Gubkinsk branches;
  2. Restructuring of RN Service Group (creation of specialized holdings: RN-Remont NPO, LLC and Spetsyalny Tekhnologichesky Transport, LLC);
  3. Completed establishment of specialized holding RN-GRP, LLC (based on Trican Well Services) and its integration into the Company;
  4. Transition to the in-company servicing of energy facilities (RN-Nyaganneftegaz, PJSC Verkhnechonskneftegaz, RN-Uvatneftegaz);
  5. Replacement of drilling supervision performed by the third companies with the in-company drilling supervision;

Undertakings for manageability increase, business process optimization, and cost reduction at the companies of the Downstream segment:

  1. In order to improve the efficiency of the regional sales business, a draft organizational structure, LLC RN-Regional Sales, was developed, an evaluation of positions was performed, and a payroll range matrix was developed based on salary reviews.
  2. Transfer of logistics services of six refineries to the Company’s core enterprise, JSC RN-Trans, was implemented.
  3. A project of a standard structure of fueling sites / filling stations was developed for implementation on the assets of retail business.
  4. 15 terminal companies were associated with marketing and distribution companies (MDC). Operational management of terminals was transferred to the MDCs.
  5. HR support was provided to the project of returning the power units at four refineries: JSC Angarsk Petrochemical Company, JSC Novokuibyshevsk Refinery, JSC Kuibyshev Refinery, and LLC Novokuibyshevsk Oils and Additives Plant (calculation of the standard headcount was performed, organizational structures were developed and approved, personnel compensation conditions were agreed, and staffing of the new energy units was provided).
  6. In support of the integration process of a new asset, JSC Novokuibyshev Petrochemical Company (SANORS):
    • a new organizational structure and staffing of the company were developed and approved;
    • necessary changes were made to the staffing of the Company’s Head Office and to the company;
    • the company was instructed to implement the annual bonus system according to the practices and procedures of the Company.

HR RESERVE MANAGEMENT

Highly qualified employees
are the Company main asset

As part of the planned work with the talent pool in 2015, 29 meetings were held by the HR Committees chaired by senior managers of the Company. The talent pool for target positions of Level 1 of the Company management was upgraded (359 reservists were approved), and the talent pool was formed for Levels 1 and 2 of the Company management with 447 reservists.

In 2015, programs for development of the reservists of Level 1 of the Company management were implemented in accordance with the individual development plans approved in 2014.

ALIGNMENT OF FUNCTIONAL UNITS IN THE GROUP COMPANIES

In order to standardize the institution-building processes, model organizational and functional structures of the following functional areas were developed and submitted to the Group companies for implementation:

  • Model organizational structure of the Personnel and Social Programs segment;
  • Model organizational structure of the Geology and Field Development segment;
  • Model organizational structure of the Tax Management segment;
  • Model organizational structure of the Industrial Safety, Occupational Safety, and Environment Protection segment was updated.

ALIGNMENT AND AUTOMATION OF THE KEY HR PROCESSES

In 2015, as part of implementation of the Company’s approved Plan of Control Enforcement and Automation in HR Management, Payroll, and Social Development until 2020, we completed a pilot project for development and implementation of a single corporate template (SCT) for personnel accounting and payroll based on a single information platform (SAP) at two pilot companies (LLC RN-Yuganskneftegaz and JSC Kuibyshev Refinery). In the fall of 2015, a project of replicating this template solution in five more Group companies was launched, as well as a project of bringing the unified information system of the former TNK-BP to SCT algorithms. Simultaneously, development was started of a similar template solution based on the second information platform (1S), which is designed for smaller enterprises of the Company.

It is expected that by end-2016 the information systems on the basis of the uniform algorithms and methods will do accounting and calculation of payroll for 69 thousand employees (SAP platform) and for 2.5 thousand employees (1S-Payroll Management platform), which is approximately 47 % of the total headcount of the Company performed by corporate information systems (150 thousand persons). This will make approximately ~26 % of the total headcount of the Group Companies, where the Company owns 50 % and more stakes in the charter capital. Continuous full-scope implementation of 2020 Plan for enhancing control and automation of HR management, salary calculation and social development will contribute to significant growth of the Group companies’ involvement into the standard HR trend.

The key benefits from this large scale project are:

  • Standardizing the Company’s recurring business processes as related to HR management and payroll system;
  • Reducing the risk of employee personal data leaks due to data loss prevention controls embedded in the rolled-out solutions; Building a company-wide integrated HR and payroll system, enabling walkthrough of compliance with the Labor Law and the Company’s policies;
  • Optimizing routine HR processes (including reporting), reducing the level of service required to maintain HR and payroll processes.

The completion of the project is scheduled for 2020.

PERSONNEL TRAINING AND DEVELOPMENT SYSTEM

325.9

THOUSAND MAN/COURSES OF TRAINING PERFORMED IN 2015

Rosneft’s corporate personnel training and development system aims to achieve the following strategic objectives:

  • Assure the level of employees’ occupational competences to meet the Company’s current and future business needs;
  • Improve the Company’s managerial competences by developing an internal succession pool;
  • Provide the Company’s strategic projects with qualified personnel;
  • Comply with statutory requirements regarding the level of personnel training in operational quality and safety in the fuel and energy sector;
  • Assure the required level of competence for all Rosneft employees involved in the corporate industrial safety management and labor protection system.

In 2015, the Company delivered 325.9 thousand man-courses covering mandatory, professional and technical, and management training.

Among corporate training programs delivered in 2015, a special part is played by comprehensive corporate programs of employee training by the Company’s business segments.

For the Upstream segment:

In order to ensure a talent pool for the Company and to educate highly skilled engineering staff, in 2015, implementation was started of a comprehensive program for career planning and development of young engineers in the Upstream segment in 2015 – 2025. In the framework of the Program:

  • the need for the Group companies in young engineering personnel of hard-to-fill occupations until 2025 was stated, and a list of target positions in six business segments was approved (Geology, Drilling, Well Intervention, Development, Production, Shelf), for which young engineers must be trained in the framework of the Program;
  • the development and approval of 71 target profiles of vocational competences for the target position of the Program was provided with indication of the recruitment sources and selection criteria for participants;
  • the development of training programs for the training of specialists in the designated target positions was started.

Pursuant to the Company Order No. 548, On the measures to ensure the flush safety of Rosneft, of October 29, 2014, regular mandatory corporate training for supervising employees, specialized industrial safety specialists, foremen and specialists in drilling and workover is organized in the framework of Well Control international courses.

Innovative modular programs for additional education have been implemented on the basis of the Company’s partner universities, Lomonosov Moscow State University and Gubkin Oil and Gas University, namely, Oil and Gas Geology of the Russian Shelf, Environment Protection in Development of Offshore Oil and Gas Fields, and Development of Offshore Oil and Gas Fields (70 people).

An internship was delivered to students of Moscow State University programs at the White Sea Biological Station named after N. A. Pertsov (Karelia) (July, September 2015).

Development of the Rosneft Offshore Drilling research and education centers on the base of Gubkin Oil and Gas University was continued. The center will be the base platform for training specialists of the Company’s offshore projects. The opening of the Center is scheduled for Q4 2016.

For the Downstream segment:

In order to provide practical skills for operating personnel of hazardous production facilities, the Company management continued to implement the Program of Equipment of the Educational and Training Base of the Group companies of the Oil Refining and Petrochemicals segment with simulators for the period 2014 – 2020, approved by the Company management (as part of the Refinery Modernization Program). The Program includes the purchase of 167 simulators for 15 plants. In 2015, the Group companies of the segment purchased 16 simulator systems and trained 64 instructors.

In 2015, within the framework of the implementation of state requirements for the training of the fuel and energy complex staff and other corporate requirements to occupational safety, approximately 70 thousand man-courses of mandatory training were delivered in the Oil Refining and Petrochemicals segment.

The participation of the Company delegates in the 2nd National Championship of Interface Working Professions in High-Tech Industries by the WorldSkills Hi-tech-2015 method was organized in Yekaterinburg.

The Rosneft team won second place in the Chemical Analysis Laboratory Engineer competency.

Comprehensive training program is implemented on a regular basis for linear fueling site / filling station personnel; in 2015, more than 36.1 thousand man-courses were delivered. Corporate training programs for managers of fueling sites / filling stations were updated and implemented at marketing and distribution companies, namely, Efficient Management of Fueling Sites and Client-Oriented Behavior Skills.

Cross-functional training for all business segments:

As part of the implementation of the Program for Improvement of the Culture of Occupational Safety and Informed Leadership in the industrial and occupational safety field at Rosneft:

Internal trainers were selected and trained for corporate internal courses entitled Leadership in Industrial and Occupational Safety, Incident Investigation, and Restrictions Evaluation and Management (17 people).

Implementation of staff training under corporate programs was started; internal trainers of the Central Management Staff trained more than 500 people from the heads of departments of the Head Office and the Group companies.

The following distance learning courses were developed:

  • Measures for electrical safety of personnel when working with office equipment and household appliances (more than 1,500 employees of the Company’s Head Office trained);
  • Golden rules of occupational safety in the framework of mandatory training and testing for CMT staff (beginning of training scheduled for 2016).

Training was delivered to General Directors of the Group companies and reservists for these positions under the General Director University program at the Higher School of Management of St. Petersburg State University (87 people).

As part of the work with the Company talent pool, training was continued on corporate MBA programs on the basis of MGIMO MIEP, Higher School of Management of St. Petersburg State University, and Gubkin Oil and Gas University (64 people.)

Individual development plans of reservists of Level 1 were implemented in terms of training and development activities with 4 programs and 26 study groups implemented.

As part of the agreement on strategic cooperation between Rosneft and General Electric (GE), 5 training programs were organized with the involvement of GE Crotonville corporate university professors for managers and specialists of the Company.

Training in compliance for managers and specialists of CMT and the Group companies was organized. Internal trainers of the Company delivered intramural training sessions for employees on systemic approach to the development of the compliance function in the Company. Over 500 people were trained.

A multimedia distance learning course for workers of CMT and the Group companies was developed and put into operation on fighting corruption and fraud. Over 2 thousand people were trained.

Development of internal training resources:

Traditionally, the Company pays great attention to the development of internal training resources with the aim to accumulate and spread knowledge within the Company and to develop its own educational and training base at the level of international standards.

In 2015, coordination and methodo- logical support was provided for projects of educational and training base development in the regions, namely, design, construction, repair, and equipment (59 training sites). New training centers were established at the Group companies, namely, JSC Ulyanovsknefteprodukt and JSC Krasnoyarsknefteprodukt. Seven Group companies purchased 24 technology simulator systems and trained 96 instructors for training on simulators.

A system of internal corporate training is functioning successfully. The 2015 catalog of CMT internal training seminars contained 181 courses. CMT internal trainers delivered 245 training sessions and trained more than 4,000 people.

Tutorial materials for the design and implementation of internal courses were developed and sent to the internal trainers of CMT and the Group companies.

14 groups of internal trainers and 151 people were trained under the internal trainers’ program module. The 2016 catalog of internal courses was developed (165 programs).

Educational films were implemented at the Group companies for training workers in the following occupations: Oil and Gas, 20 films; Refining and Petrochemicals, 35 films, multimedia aids: Oil Refinery, Gas Refinery, Uniform Rules for Operation of Process Equipment in the Rosneft Retail Network.

Training of foreign citizens:

In 2015, implementation of targeted training programs for international projects of the Company was continued.

Training was continued of nationals of the Republic of Cuba and the Republic of Venezuela at Gubkin Oil and Gas University under a three-year program of language and master education (35 people), as well as baccalaureate training of 3 nationals of Mongolia at three partner universities: Lomonosov State University, Moscow State University of Foreign Affairs, Gubkin Oil and Gas University (9 people).

The following documents were developed and prepared for signing at the highest state level:

  • Memorandum of Cooperation in the field of education and science between Rosneft, PDVSA, Gubkin Oil and Gas University, and the Venezuelan University of Hydrocarbons dated June 18, 2015;
  • Agreement between Rosneft and the Ministry of Oil and Mineral Resources of the Arab Republic of Egypt in promoting the organization of training of Egyptian nationals in the Company’s partner universities dated August 26, 2015;
  • Agreement of Intention between Rosneft and Pertamina Company (Republic of Indonesia), including a Memorandum of Understanding in the field of promoting the organization of training for Pertamina employees in partner universities of Rosneft on dated November 5, 2015.

Competency assessment system:

The Company has a continuous process of improving the system of competency assessment and development of all categories of personnel. This system contributes to solution of significant business challenges of the Company:

  • planning the training and development of the Company staff;
  • selection of employees for the Talent Pool and expert community;
  • selection of talented youth;
  • providing up to date information to management about the level of competence development for HR decisions in hiring and promotion.

Employees are evaluated with advanced techniques that are used at major international companies.

In 2015, a model of corporate and management skills was designed based on the experience and best practices of foreign and Russian oil and gas companies. With the use of the new Competency Models, evaluation of candidates to the Company’s talent pool was started.

As part of the innovative project entitled Implementation of the competency method of personnel evaluation and development in all business segments of the Company (the project covers the period up to 2017) together with the Gubkin Oil and Gas University, the National Research Tomsk Polytechnical University, and the leading Russian consulting companies, vocational competencies are being developed. In 2015, a pilot evaluation of staff in the business segments Related Business Processes of the Production segment, Marketing and Distribution, and Logistics and Transport business segments was implemented. Over 2 thousand people were evaluated in the pilot implementation of the system in 2015. Competences are being developed for the segments Purchasing, Logistics and Transport, Capital Construction, Economy and Finance, and Energy Efficiency.

Knowledge and skills assessment tools were implemented in 10 major worker occupations in the Downstream segment. Over 1.5 thousand people were evaluated.

In 2015, evaluation activities were performed at the perimeter of the Company for more than
17 thousand people.

Rosneft is a participant of the state project of development of the national qualifications system.
In 2015, representatives of the Company became members of the Council for Vocational Qualifications in the Oil and Gas Sector. The Council was established with the support of the National Council for Vocational Qualifications of the President of the Russian Federation. Within the framework of this project, the Company has organized the review of 21 drafts of professional standards, which were published for public discussion on the website of Ministry of Labor of Russia.

The Company introduces skill and competence assessment tools for the main job positions

YOUTH POLICY

2,359

STUDENTS of 98 ROSNEFT CLASSES IN 46 CITIES OF RUSSIA IN 2015

47 UNIVERSITIES

IN LONG-TERM COOPERATION WITH THE COMPANY

Rosneft youth policy is geared towards achieving the following key objectives:

  • Building an external talent pool by screening the most talented graduates motivated to get the highest quality professional training and a job in the Company;
  • Ensuring influx of the required number of young talents among the best university graduates with the competence level adequate to the Company’s business requirements;
  • Facilitating young specialists’ efficient performance by accelerating their induction and adjustment, developing professional and managerial skills and engaging them in innovative, research and engineering activities;
  • Supporting government policy in vocational and professional education and engineering personnel training.

Rosneft’s corporate continuing education program, School-University-Enterprise, is an efficient solution to these objectives.

Building external talent pool begins in high school

Building an external talent pool begins in high school. Rosneft classes for grades 10 and 11 are opened in the best schools in all strategically important regions where the Company has a presence.

In 2015, there were 98 Rosneft classes supported by the Group companies in 46 Russian cities in the Central, Southern, North Caucasus, Volga, Northwestern, Urals, Siberian and Far Eastern Federal Districts. The first Rosneft classes appeared in Yuzhno-Sukhokumsk (Dagestan), Turtas (Tyumen oblast, Uvatsky district), and Moscow (opened in the framework of the Engineering Class to Moscow School project; Rosneft’s partner in this project is the Gubkin Oil and Gas University). The training program covered 2,359 students.

High quality of education in Rosneft classes is achieved through comprehensive and advanced school programs in physics and mathematics, and organization of additional profession-oriented education with the engagement of lectors from partner universities, annual workshops for training and development of the teachers of Rosneft classes. In 2015, there was a seminar at Lomonosov Moscow State University for the school principals where Rosneft classes are opened. The seminar was attended by 40 school principals from 37 cities.

In Rosneft classes a lot of emphasis is put on occupational guidance. In 2015, 9 Ladder to Success workshops were offered to students in the 10th grade (1,112 students from 48 schools).

In order to improve the efficiency of career guidance, a collection of events from the experience of schools entitled Career Guidance in Rosneft classes was developed and published.

Particular attention is paid to the employment of graduates of Rosneft classes at Rosneft enterprises. In 2015, after completing higher education, 91 young graduates of Rosneft classes, who had been trained in the core professions, were hired by the Company.

Work on building the external talent pool for the Company continues in universities. Rosneft and the Group’s subsidiaries are cooperating on the basis of long-term comprehensive agreements with 47 universities in the country, and 18 universities have the status of Rosneft Partner Universities. In 2015, Rosneft signed 5 cooperation agreements with universities. Two agreements, namely, with the National Mineral Resource University and the St. Petersburg State Marine Technical University, were signed in the framework of the 19th St. Petersburg International Economic Forum. Other new partners of Rosneft are the State University of Maritime and Inland Shipping, Tyumen State University, and Ukhta State Technical University.

Rosneft and its subsidiaries support talented students by giving corporate scholarships to the best of them. In 2015, scholarships were awarded and paid to 508 students. Corporate scholarship fellows have a priority right to on-the-job training and a subsequent employment at Rosneft subsidiaries.

As part of the practical training for professional activity, in 2015, at the perimeter of the Company internships were organized for 4,839 students of partner universities and relevant regional universities; in addition, Rosneft delivered internships to 85 graduate students of specialized educational programs.

In order to develop the School-University-Enterprise corporate system of continuous education, in the regions of the Company’s presence, as well as support of educational institutions involved in its implementation, Rosneft and the Group companies provide charity assistance to schools, technical schools, colleges and universities in the following areas:

  • opening and maintenance of Rosneft classes including the costs of additional education of students, training of teachers of core subjects, classroom equipment, and career guidance activities. In 2015, RUB 139.4 million was spent on these purposes;
  • development of cooperation with vocational and higher education organizations which are partners of the Company including modernization of educational programs, maintenance of the basic chairs and specialized graduate programs at partner universities, development of material and educational base of educational institutions, scholarship support for gifted students and grant support for teachers. The amount of charity donations to technical schools, colleges, and universities in 2015 amounted to RUB 654.9 million.

One of the priorities of the Company’s HR policy is working with young specialists.

In 2015, 1,389 graduates joined the ranks of young specialists of the Company.

In 2015, 3,667 young specialists were employed at the perimeter of the Company’s work
at 90 Group companies. The program of work with young specialists was also implemented
by 5 shipbuilding and ship repair enterprises, which employ 143 young specialists.

The Group companies have provided the conditions for professional and personal growth of young professionals and development of their vocational, leadership, and management skills.
The subsidiaries have operating councils of young professionals and mentoring for efficient management of the youth adaptation process. Every young professional has an individual development plan, according to which his / her training and development is organized.

As part of the corporate training and development program for young specialists and their mentors, 6,556 man / courses were delivered focusing on development of occupation-specific technical competencies and management competency.

1,632 young specialists took part in scientific and engineering conferences orga-nized by Rosneft; 86 young specialists became the winners in the concluding interregional conference. 68 winning projects presented by the conference participants were recommended for implementation.

For the purposes of identifying and developing high potential young specialists and building a talent pool within the organization, business games aiding in performance evaluation were held where 312 young professionals from 59 evaluation groups participated.

In 2015, there were 98 Rosneft classes supported
by the Group companies in 46 cities of Russia

SOCIAL PARTNERSHIP AND SOCIAL BENEFITS FOR EMPLOYEES

In 2015, Rosneft continued to strengthen the mutually beneficial partnership with the Interregional Trade Union Organization of Rosneft and the trade unions of its subsidiaries.

In an effort to continue efficient dialog and take good decisions under the social partnership program of the work group formed of representatives of the employer and trade union activists to develop a uniform position on social benefits of the employees.

Thus in 2015 the work group amended the Standard Labor Contract of Rosneft Group companies to enhance social protection of the employees.

In 2015, a Company template of the Model Regulation on Internal Labor Regulations was developed and agreed with the Interregional Trade Union Organization of Rosneft.

The Model Regulation is intended to establish uniform principles for all the subsidiaries of Rosneft concerning the following:

  • Establishment of the procedure for hire, transfer and dismissal of the Company’s employees;
  • Definition of the basic rights, duties, and responsibility of workers and employers;
  • Establishment of working hours and rest time;
  • Definition of requirements for the Company’s employees on compliance with the labor discipline and rules of conduct in the territory and facilities of the Company;
  • Strengthening of the labor discipline;
  • Rational use of working time.

The implementation of the model template is scheduled for 2016 after completion of all the approval procedures.

SOCIAL PROGRAMS

The Company’s social programs are designed in the first place to ensure safe and comfortable working conditions, support and promote a healthy lifestyle, address housing issues and improve the quality of life for employees and their families, and provide material support for veterans and retired workers.

CONDITIONS OF WORK AND RECREATION

In 2015, the Company approved the uniform requirements and put in place the guidelines entitled Organization of meals for employees of oil and gas production companies of the Group working in shifts and employees of oil and gas refining companies of the Group, which take account of the regional, climate, and geographic features and specify the rules of arrangement and maintenance of meal rooms, transport and storage of foods, requirements to the quality of ready meals and criteria for checking it.

For standard harmonization, the Company continued modernization of facilities in the social sphere in companies of the Group including a set of measures for construction, reconstruction, major / minor repairs, and design and survey works. The costs of development and construction of camps, support bases of teams, sites, and workshops in the reported year amounted to RUB 5.8 bln.

In 2015, 95 shift camps in the regions of the Company’s operations accommodated nearly
22 thousand Company’s and contractors’ employees.

CORPORATE PENSIONS AND SUPPORT FOR VETERANS

Rosneft’s care of the standard of living of its employees including retirees is an urgent need at the present time. In addition to solution of social problems, the corporate pension program provides additional motivation for employees to work at the Company.

The successful implementation of the corporate pension program enables (through the principle of joint obligation) to establish the employee’s future pension in addition to the state pension from the employer’s funds and the employee’s own funds through an individual pension agreement with NPF Neftegarant.

In addition, for many years the Company has been implementing a project of social support of veterans where they are paid a monthly supplement to the state pension. In 2015, more than 2,100 veterans of the new assets of the Company were included in the project and began receiving monthly pensions through NPF Neftegarant.

In 2015, the Company transferred approximately RUB 340 million to veterans of the Group companies as financial assistance for holidays, payment of resort treatment, and other vital issues. In honor of the 70th anniversary of Victory in the Great Patriotic War and the 50th anniversary of the Oil, Gas and Fuel Industry Worker Day, special assemblies, memorial meetings, and concerts were held for pensioners who are veterans of war and labor and financial support was provided.

CORPORATE HOUSING PROGRAMS

Housing programs for employees hold a special place in the corporate and social policy and are aimed at attracting and retaining promising and skilled workers and experts in scarce specialties at the Company.

A comprehensive housing assistance program offering mortgage loans, housing construction, and corporate lodging has been implemented since 2005 across the Company.

In 2015, 695 employees improved their living arrangements resorting to the corporate mortgage program.

In some regions where the residential stock is still low (Komsomolsk-on-Amur, Achinsk, Agoy village in the Tuapse district), the Company erects corporate apartment buildings. In 2015, the Company prepared for commissioning two residential buildings in Achinsk.

HEALTH CARE AND INSURANCE

The Company is particularly concerned with health care and personal insurance coverage for its employees, which are aimed at improving work efficiency and professional longevity, disease prevention, improving the quality of life of employees, and promotion of healthy lifestyles.

The main areas of this work are as follows:

  • delivery of health care at the production sites and in the shift camps;
  • voluntary medical insurance providing employees with a wide range of health services in addition to the scope guaranteed by compulsory health insurance;
  • providing health resort and rehabilitation treatment for employees;
  • preventive healthcare (preventive immunization and medical examination) to prevent and mitigate diseases in personnel;
  • arrangement and implementation of recreational sports for the Company employees;
  • implementation of a program to promote healthy lifestyles;
  • compensation of the cost of health groups and sport clubs to employees.

In 2015, in order to introduce common standards for staff healthcare, the Regulation entitled Organization of Emergency Medical Care on Facilities of the Group Companies was developed and put into operation. In accordance with the requirements of the Regulation, systematic work is carried out on equipping health centers with modern medical equipment. For improving the professional qualifications of medical staff at the health centers, a training program has been implemented on CCU and emergency care for injuries and bleeding. On the results of the training, the medical staff was given individual tests of the mastered knowledge and skills.

Resort treatment for workers and their families is considered by the Company to be an effective way to prevent diseases and to preserve the professional longevity of oil industry workers. In 2015, more than 54 thousand employees, retirees and family members enjoyed recreation and rehabilitation in the health resorts of Sochi, Anapa, Belokurikha, Crimea and other regions of Russia.

In accordance with the approved program to promote healthy lifestyles, themed health days with engagement of leading medical professionals and modern diagnostic equipment were implemented and received positive feedback at the Group companies.

In 2015, more than 190 thousand employees of the Group companies and management staff were covered by voluntary healthcare insurance. The company is constantly striving to improve the quality of service and to expand insurance coverage for the VHI program by increasing opportunities for employees to obtain the necessary medical care in the best regional medical institutions in Russia.

For 170 thousand employees of the Group companies, insurance coverage is effective in the event of death and total or partial disability resulting from an accident, and employees are insured not only for the period of performance of their duties but also during off-hours. Successful implementation of approaches to voluntary insurance of employees against accidents has also started at the Company’s contractor organizations.

A systemic approach to the implementation of all areas of social policy, careful attention to the needs of employees and their families, and a responsible business style contribute to the stability and efficiency of social investments not only within the Group companies but also in the regions of Rosneft’s presence.

The Company priority is
the implementation of health plan
and life insurance of employees