Personnel and Social Programs

The Company’s leading asset is its highly-qualified professionals who are focused on efficiency. Throughout 2018, the average headcount of Rosneft Group Subsidiaries totaled 308.0 thousand. The average headcount increased by 6.0 thousand persons year-on-year.

The headcount increase was primarily due to acquisition of new assets or their including into the Company’s Business Plan (Kharampurneftegaz, LLC SevKomNeftegaz, OJSC VNIPIneft, Russian National Research Institute for Oil Refinery, Russian Scientific Research and Process Design Institute of Oil Refining and Petrochemical Industry, Geology and Fossil Fuels Exploitation Institute, etc. – 1.9 thousand employees) in 2018, taking on personnel from third-party service contractors, and the increased number of subsidiaries due to business expansion.

The average age of the Company’s personnel did not deviate strongly from previous years, sitting at 40.2 years (40.1 years as at the end of 2017). Executive positions were held by 38.1 thousand employees (37.3 thousand in 2017), In 2018, the percentage of executive employees amounted to 12.4% of overall average headcount that is almost equal to the percentage in 2017 (12.3%).

Average·Headcount in 2018
Nominal Roll as at 31 December 2018
Workforce Productivity and Organizational Effectiveness

As workforce productivity remains a key priority for the Company, the internal methods of calculating workforce productivity were updated in 2018 for the entire Company, its major businesses, and the Group Subsidiaries. The target for workforce productivity across the entire Company was met as of the end of 2018 on a comparable basis, and a list of procedures aimed at the improvement of Rosneft’s workforce productivity has been developed. Each item on the list was incorporated into the Company’s Long-Term Development Program, which is reported annually. Workforce productivity for the Group Subsidiaries within the Company’s major businesses is taken into consideration as part of the annual business planning procedure when target headcounts are being discussed.

During 2018, fourteen standard corporate structuresThe standard corporate structure includes a standard subordination diagram, detailed description of functionality, standard numbers of employees per functions (if applicable and possible). were developed and distributed to the Group Subsidiaries for production and functional activity areas of the Group Subsidiaries within the major businesses. The structures will be implemented in steps by 2020 inclusive. The work on standard corporate structures will continue in 2019.

To gain benefits from automation of methodologically unified HR business processes, distributing the “Unified corporate template of HR management, work payment and social development” methodology was continued among 34 Group Subsidiaries based on two corporate IT-platforms: SAP and 1С.

Talent Pool Management
  1. Rosneft’s talent pool was managed in 2018 through HR committee meetings held by business areas and under the chairmanship of the Company’s top managers, in which a talent pool was approved for target first-level management positions. The talent pool of Bashneft Group Subsidiaries was developed. The process of automating the Company’s talent pool continued throughout 2018. The Company carries out comprehensive work in developing its management talent pool for maintaining requisite levels of skilled personnel through utilizing a multi-stage skills assessment system for candidate selection.
  2. In 2018, 10.3 thousand employees were assessed for including into the talent pool and development of succession pool members’ skills. Approximately 2.3 thousand succession pool members benefited from the training.
Personnel Training and Development System

The Company-wide training system covers all focus areas and personnel categories within Rosneft, generating efficient skills through the incorporation of governmental requirements, corporate policies and procedures, best Russian and international practices.

The training involves teachers from Russian and foreign universities, as well as leading domestic and international training and consulting companies. Training programs are adjusted to the Company’s business requirements.

In 2018, 534.8 thousand compulsory vocational, and managerial training man-courses were taught, exceeding the year’s plan by 22%.

Management Training

To develop management skills of the Company’s current executives and the talent pool, the following important corporate programs were implemented in 2018:

  • MBA and mini-MBA – four programs hosted by MGIMO University of the Ministry of Foreign Affairs of the Russian Federation in association with the Nord University Business School (Norway) and the Polytechnic University of Turin (Italy), the Saint Petersburg State University and the Gubkin Russian State University of Oil and Gas for 125 participants;
  • training courses for management potential enhancement, such as Management Analysis, Leadership, Process Control, for 118 participants;
  • training courses for personal performance development, such as Negotiations, Effective Presentation Skills, Stress Management, Emotional Intelligence, for 150 participants;
  • the General Director University - a three-level advanced training program for the senior managers of the Group Subsidiaries hosted by the Saint Petersburg State University and involving teachers from the NOVA University (Portugal) for 96 participants.
Professional Training by Business Areas

In 2018, the Young Engineers Comprehensive Program was continued, involving the career planning and development of young engineers in the following Upstream business areas: Drilling Supervizing and Engineering, Oilfield Chemistry, Offshore Drilling Supervizing, Offshore Drilling, Sedimentology and Sequence Stratigraphy, Petrophysics, Sedimentology. 167 young engineers of the Company were trained under the programs.

In association with the Lomonosov Moscow State University Business School, the professional retraining program for Production Efficiency Improvement and Production Rationalization Methods was organized for 40 shop supervisors and succession pool members of extraction enterprises.

More than 1,650 employees of the Company’s Group Subsidiaries participated in the international training course Well Monitoring. Gas, Oil and Water Inflows Well Control.

Approximately 100 specialists involved in Rosneft’s offshore projects were trained in innovative programs relating to offshore project management, offshore oil and gas field development, offshore petroleum geology of the Russian Federation at both the Gubkin Russian State University of Oil and Gas, and the Lomonosov Moscow State University.

Through 2018, seven short-term corporate training courses were carried out in the following areas: Modern Refinery Technologies and Innovations, Securing Accident-Free and Reliable Operation of All Types of Process Unit Equipment, Production Planning and Control at Refining Facilities, etc.; and the Oil Refining and Petrochemistry professional retraining program was implemented. 151 Company’s employees took part in the programs.

During execution of 2018–2020 Roadmap for Enhancing Energy Efficiency and Implementing the Energy Management System at Rosneft, 360 employees from 67 Group Subsidiaries were taught under four Energy Efficiency programs hosted by the Ufa State Petroleum Technical University.

Professional Training by Business Areas

Thirteen corporate advanced training programs for procurement were organized, including ones on the following subjects: Inventory Management; Basis of Corporate Procurement of Goods, Works, Services. Procurement Legislation of the Russian Federation; Category Management; Management of Negotiations with Suppliers; Procurement by Auctions and Tenders; Lotting. The Company implemented the professional retraining program for Supply System Management in the Oil and Gas Sector. 691 Company’s employees participated in the abovesaid training programs.

Eight corporate training courses were organized for capital construction: Construction Project Management; Studying the Experience of Large-Scale Investment Projects Implementation; Advanced Methods of Design and Organization of Oil and Gas Facilities Capital Construction; Organization of CAPEX Current Planning and Accounting; etc., where 416 Company’s employees were taught.

Under the Company’s retail development strategy, training in corporate service standards is currently in progress for filling stations, marketing, and associated product sales.

The Gubkin Russian State University of Oil and Gas and the Polytechnic University of Turin organized joint programs: Practical Engineering and Oil and Gas Production Technologies; Engineering Economics of Oil and Gas Production; Occupational Safety. 114 Company’s employees took part in training.

Rosneft organized mandatory training of 1,671 employees under the Occupational Safety program at the Gubkin Russian State University of Oil and Gas.

More than 15 thousand Company’s employees were involved in classroom and distance learning on anti-corruption, fraud management, and compliance.
Development of In-House Training Expertise

47% of training (253 thousand man-courses) is provided internally through corporate training centers with in-house coaches, experts, and workplace mentors.

Sixty-two effective training centers were incorporated into the Group Subsidiaries or established at educational institutions in the regions of the Company operation. The centers are equipped with testing areas and practical training sites, and offer Rosneft employees advanced, vocational, and requisite training.

In 2018, the Rosneft Corporate Training and Development Center at MGIMO University (Odintsovo Branch) was refitted with additional equipment. The project for the Company’s Technical Skills Center at the Gubkin Russian State University of Oil and Gas is continued.

The Company has started up the project for creation of the Professional Training Center with practical training sites in 2018–2020 at the Grozny State Oil Technical University, the Chechen Republic. The first stage was completed in 2018, including renovation and equipment of premises in the laboratory building for the Center arrangement and provision of training activities in it.

The Company is developing an internal training system to retain and share expertise within the Company.

Through 2018, a total of 537 internal Company-wide training courses were developed and taught to 10,491 employees.

150 training courses were executed under the Company’s in-house coaches training program, where 1,840 coaches were taught.

Over 53 thousand distance learning man-courses were conducted in 2018.

In 2018, 36 Company’s mentors took part in the Mentor All-Russian Forum and Best Mentor Competition organized by the Administration of the President of the Russian Federation. Two mentors – representatives of OJSC Achinsk Refinery and OJSC Samaraneftegaz – came through to the Competition final.

Participation in WorldSkills movement

The Company participates in WorldSkills, a global movement promoting vocational skills, providing preparation and running of the corporate championship in the Laboratory Chemical Analysis in Novokuibyshevsk (July 2018) with 30 participants and 32 experts involved. The Company’s team (six participants, six experts) participated in Hi-Tech 2018 national championship in Yekaterinburg in three categories. The team members took the second prize in the Laboratory Chemical Analysis category and the third prize in the Occupational Safety category. They came forth in the Electrical Wiring category.

The Company participated in the national WorldSkills 50+ championship “Skills of Wise”. The representative of OJSC Ryazan Oil Refining Company came the third in the Laboratory Chemical Analysis category.

Participation in WorldSkills movement
Training of Foreign Citizens

Rosneft engages its foreign partners in discussions relating to personnel training for their involvement in future joint projects and business projects in the fuel and energy sector.

In 2018, Rosneft continued its joint educational projects with both Cuba Petróleo (Cuba), Petróleos de Venezuela S.A. (PDVSA) (Bolivarian Republic of Venezuela), and the Mongolian Ministry of Education, Culture and Science. Rosneft continued organizing on-the-job training for KazMunayGaz employees at Rosneft’s facilities in Kazakhstan.

In March 2018, Rosneft and the Qatar Foundation signed the Science and Education Cooperation Agreement providing for advanced training and retraining of Russian and Qatar specialists and engineers in educational institutions supervised by the Qatar Foundation and leading Russian universities being Rosneft partners. Collaborative work on the training process arrangement is in progress.

In September 2018, Rosneft and the China National Petroleum Corporation (CNPC) signed the Education and Training Cooperation Agreement providing for implementation of joint educational projects and programs on oil and gas subjects, as well as sharing experiences in technology development in the oil and gas industry.

In compliance with the Agreement provisions:

  • CNPC’s employees underwent the on-the-job training at RN-Uvatneftegaz and RN-Center of Expert Support and Technical Development (Tyumen) in practical aspects of project management in October – November 2018. The training was attended by 20 managers of CNPC production departments.
  • The Company’s employees participated in practical training in oil recovery enhancement methods in China (Daqing, Chengdu) in December 2018, including sharing experiences in technology utilization and service provision at CNPC enterprises and sharing best practices. 23 managers of development, production and drilling departments were trained.

Within the framework of Educational Cooperation Agreement between Rosneft and ONGC Videsh Ltd (India), 20 managers and experts in production, processing and sales areas of Indian oil and gas companies were taught at the Gubkin Russian State University of Oil and Gas on production intensification and oil recovery enhancement at oil fields. The training took place in December 2018 and was held in English.

A three-party educational agreement was signed by Rosneft, the Saint Petersburg State University and NOVA University on 30 November 2018, so implementation of joint programs was started.

In 2018, the Company continued to introduce professional standards.

In pursuance of Directive of the Russian Government No. 5119p-P13 dated 14 July 2016, Rosneft’s Board of Directors reviewed the Introduction of Professional Standards in the Business of Rosneft and Group Subsidiaries at two meetings.

According to the last monitoring, the Company applies approximately 250 out of over one thousand approved national professional standards, with 38 standards being qualification prerequisites (depending on a subsidiary’s business). The standards apply to over 37.5 thousand employees, of whom 90% have an educational background meeting the national standard requirements.

Since 2015, Rosneft and other oil companies have been participating in the National Council for Professional Qualifications in the Oil and Gas Industry. According to the Council’s Action Plan, Rosneft has developed three industry standards with involvement of its Professional Expertise Center, the Nefteyugansk Corporate Institute, in 2018. These standards were publicly discussed in the community of professionals.

Training of Foreign Citizens
Skills Assessment Framework

Rosneft’s comprehensive personnel assessment framework sets unified knowledge and skill standards for employees across all segments of the Company’s business, including the Administration and Group Subsidiaries.

Employee assessments are carried out as part of the planning process for skills training sessions, during formation of the Company’s talent pool and expert communities, and upon employment or transfer of personnel. The assessments examine the managerial, corporate, professional, and technical skills of each employee, covering all personnel categories: senior managers, specialists, and on-site workers.

The Company’s skills assessment framework identifies gaps in knowledge, determines the priority areas of personnel development, optimizes training costs, and bolsters the knowledge and skillset of employees, as well as their performance.

A project unifying the Company’s corporate information system was further implemented in 2018 in order to accumulate personnel assessment results and integrate them with the shared HR database of Rosneft Group Subsidiaries, Administration, and training resources.

The Company’s·corporate and·managerial· skills·assessment is based on Rosneft’s Corporate and Management Skills Model, approved by the Chief Executive Officer. The Model reflects the Company’s culture and values, and includes an outline of each senior manager’s skills. In 2018, the Company used its Skills Model for over 17 thousand employee assessments.

The professional and technical skills assessment of the personnel is based on materials detailed in the Target Innovative Project (TIP) titled The Skills-Based Method for Personnel Development in All Business Segments of the Company.

The project is being implemented with assistance from specialized universities, such as The Gubkin Russian State University of Oil and Gas (for Oil Refining and Procurement projects), the Tomsk Polytechnic University (for Oil and Gas Production and Offshore projects), as well as leading Russian and foreign consulting companies.

In 2018 under the TIP the materials for the following business units were worked out by the Corporate Research and Design Institutes (CRDI): Procurement, Energy Efficiency Improvement; Economics, Finance, Accounting and Tax Accounting; Gas Projects; Oil Refining and Gas Processing, Oil and Gas Chemistry, and Energy.

Within the scope of the TIP, the professional and technical skills and tools of personnel enhancement assessment by business units were developed and implemented into the Company activities: Offshore Projects, Oil Refining, Oil and Gas Production, Oil Products Supply, Logistics and Transport, Capital Construction, Economics and Finance, Procurement, Energy Efficiency, Drilling and Well Retrofitting, Field Development.

Sets of materials for personnel assessment in Gas unit and Oil Refining and Gas Processing, Oil and Gas Chemistry, and Energy (CRDI) unit were prepared in 2018. Materials for assessment of professional and technical skills in CRDI Geology and Development unit, as well as CRDI Survey and Design Works of Production unit, were updated.

The professional and technical skills assessment system was implemented in 2018 for workers of nine key trades in Oil Refining, Oil and Gas Chemistry business units and three trades in Production business unit. The Company developed materials for skills assessment relative to six trades in Internal Service business unit. The project is being implemented in response to government policy on developing the national qualifications system, and its outcomes are the basis for the professional standards of the Ministry of Labor of the Russian Federation. Over 14 thousand of senior managers, specialists and workers underwent professional and technical skills assessments in 2018.

Youth Policy

Rosneft’s youth policy ensures a steady influx of young qualified specialists selected from among the top graduates of educational institutions, and maximally quick and effective onboarding process.

In line with its youth policy, Rosneft is also actively working on building an external young talent pool based on educational institutions in its regions of operation. In accordance with Rosneft – 2022 Development Strategy, one of the youth policy priorities in 2018 was working with talented youths.

The Company’s youth training system covers three target audiences: students in Rosneft classes (grade 10 and 11 engineering students), students at specialized universities, and young Company specialists. Rosneft also implements its youth policy through its corporate higher education program, School – University – Enterprise.

Pre-university Training

The first step of the Company’s higher education program includes pre-university training for school students, providing specialized Rosneft classes at top-ranking schools, lyceums, and gymnasiums in regions where the Company operates. Rosneft class – from school to enterprise – is one of the Company’s strategic projects.

The formation of class programs is supported by Rosneft Group Subsidiaries, based on a demand for young professionals and the Company’s objective to further build upon its development and capacity.

Rosneft classes are tailored to provide school students with a high-quality secondary education with advanced technical studies and opportunities to continue their engineering studies at universities while ensuring that graduates are employed at the Company following a relevant education.

With the Company’s support, 2,762 students attended 117 Rosneft classes that operated successfully in 2018 at a total of 62 educational institutions located in 56 cities and settlements of the Russian Federation (26 regions).

The number of Rosneft pre-university training programs for school students is consistently expanding, with new Rosneft classes being opened each year.

In 2018, four Rosneft classes were opened in the cities of Ufa (the Republic of Bashkortostan), Tyumen (the Tyumen region), Vladivostok (the Primorye Territory) and Izluchinsk urban-type settlement (the Khanty-Mansi Autonomous Area – Yugra). The Rosneft classes in Vladivostok and Bolshoy Kamen focus on training specialists in shipbuilding, in response to the rapidly growing shipbuilding cluster in the Russian Far East.

In 2018, the Company started development of a system for working with talented school students in Rosneft classes: special attention to participation of Rosneft class students in school Olympics movement, organization and execution of a pilot affiliate program for talented students of Rosneft classes hosted by the Sirius Educational Center (Sochi) in association with Talent and Success Educational Foundation. The Program was vocationally orientated; the educational component was implemented by means of project activities of the participants with direct involvement of young CRDI scientists and engineers.

The Pre-University Training project makes a strong positive impact on the Company’s reputation across the regions and helps maintain Rosneft’s image of a socially responsible partner of the public education system. Graduates of Rosneft classes who have received relevant higher education are employed at the Company, reflecting the effectiveness of the project. In 2018, 116 graduates of Rosneft classes were hired by 33 Group Subsidiaries, a total of 678 graduates of Rosneft classes were hired by 52 Group Subsidiaries.

Pre-university Training
Work with Young Specialists

In 2018, 3,994 young specialists worked in 108 Group Subsidiaries, 1,459 of them were hired during the current year.

The work with young specialists is accomplished according to the Regulations on Organizing Work with Young Specialists covering all focus areas of work with the mentioned target audience:

  • onboarding;
  • training and development;
  • recognition and development of potential leaders;
  • progress assessments;
  • financial support and social protection.

77 young specialists councils and the Supervision Institute work for onboarding of young specialists at the Group Subsidiaries. Training and professional growth of the young specialists take place according to their individual development plans.

In 2018, for development of professional, technical, corporate and managerial skills of young specialists:

  • a total of 3,378 man-courses were conducted under professional, technical, and managerial skills development programs;
  • participation of 2,391 young specialists in regional and cluster R&D conferences was organized. The Inter-Regional Research and Development Conference was attended by 334 young specialists, 93 of which were prize-winners, and 83 projects were recommended for implementation.

In efforts to build up a strategic young talent pool, 360 young specialists of the third year of employment from 74 Rosneft Group Subsidiaries underwent performance assessments in the form of competitive business evaluation games from June to September 2018. Based on the game results, 171 young specialists from 56 Group Subsidiaries were selected as ones possessing a high level of corporate and managerial skills. The selected specialists were recommended for consideration in the Company’s young strategic talent pool and listed as potential candidates for further training as per the target education program Three Steps, which is aimed at developing young specialists.

In 2018, 115 young specialists were selected based on the results of the competitive business evaluation games that were held the year prior.

Aimed at increasing the efficiency of young professionals councils, the Annual Council Conference for Young Specialists was held in December 2018, attended by 71 participants.

In 2018, Rosneft’s work on implementing the Youth Policy was highly esteemed by the Ministry of Energy of the Russian Federation – the Company was announced the winner of contest The Best Socially Oriented Company in Oil&Gas Industry in 2018 in nomination The Youth Policy.

Work with Young Specialists
Cooperation with Universities

In 2018, cooperation with 60 universities in Russia and abroad was developed under the related agreements in the majority of the Company’s regions of operation. Among them, 24 are Rosneft’s partner universities.

Agreements with the universities contribute to rapid development of cooperation in the field of personnel training and retraining, scientific and innovative activities, improvement of education and research infrastructure of universities for highly qualified specialists training according to current business needs.

In 2018, the Company took the following steps in line with cooperative agreements with universities:

  • continued functioning of 21 departments and establishment of two new specialized departments involving 78 employees of the Company to ensure educational research activities in 2018;
  • continued implementation of the universities infrastructure development projects improving the quality of specialists training (the Marine Engineering Research and Educational Center at the Saint Petersburg State Marine Technical University; Rosneft’s drilling laboratory at the Tyumen Industrial University; the Engineering Research and Educational Center Rosneft – Ufa State Petroleum Technological University; etc.);
  • continued financial support of interdisciplinary and convergent investigations cluster establishment in the field of sciences concerning education under the Russian Academy of Education Development Program for 2017–2020;
  • career guidance and image-building events - Rosneft’s Days - attended by over 20 thousand students;
  • 7,014 students and 39 teaching employees of the universities passed practical training at the Company’s enterprises;
  • In 2018, the Company’s Administration organized long-term practical training for 105 Master’s students of Rosneft’s partner universities.
In 2018, the Company promoted the cooperation with
Russian and foreign Universities
Cooperation with Universities
Charitable aid to educational institutions

Rosneft and Group Subsidiaries provide charitable aid to educational institutions of different levels to build an external talent pool and to provide the Company with a long-term talent pipeline, to develop partnership relations with the educational institutions training the specialists according to the business needs of the Company and participating in implementing the corporate continuing education framework “School – University – Enterprise”. The aid is aimed at:

  • supporting the education program syllabuses and organizing additional education in the disciplines relevant to Rosneft classes;
  • providing the specialized classrooms with equipment;
  • organizing the professional development of teachers;
  • organizing team-building and career guidance events for students;
  • working with talented students.

In 2018, Rosneft allocated RUB 213.6 mln to develop educational and infrastructural cooperation with higher and vocational education institutions, including improving and developing material and technical resources of the educational institutions, supporting operations of the specialized departments and Master’s courses of the partner universities to meet the Company’s strategic project needs, supporting the gifted students who aim for professional development within the Company, and the talented teachers (742 corporate scholarships and 209 corporate grants were awarded in 2018). RUB 973.9 mln were allocated for the charitable aid to educational institutions for the mentioned areas.

Social partnership and social benefits

For development and consolidation of the Corporate Social Partnership Program, Rosneft carried out the following activities in 2018:

  • continued activities on making positive and mutually profitable decisions together with the Interregional Trade Union Organization of Rosneft with respect to improvement of the Standard Collective Agreement of Rosneft Group Subsidiaries. In 2018, more than 35 updates and additions improving the social security of the employees were made;
  • tradition of annual meetings between the Company’s various focus areas managers and the HR and social service representatives with leaders of labor union organizations affiliated with ITUO Rosneft is maintained. The meeting held in November 2018 in Moscow covered major concerns of the personnel of Group Subsidiaries both as to the Company development strategy, priority tasks and projects, and to the more specific issues: indexation of wages, quality of workwear and order of its procurement process, provision with subsidized vacation tours, pension schemes, as well as issues pointed by the union leaders and requiring consideration by the Company.

Besides the Corporate Social Partnership Program, Rosneft actively promotes social partnership at the industrial level. Thus, in 2018, the Company continued activities within the framework of partnership relations with the Russian Association of Oil and Gas Employers. In this regard, Rosneft’s representative was included into the Council of the Russian Association of Oil and Gas Employers (the collective control body). During the reporting year, the Company’s representative attended the meetings of four Social and Labour Relations Regulation Committees. According to the results of this work, the Industry Agreement on the Companies of the Oil and Gas Industry and the Construction of the Oil and Gas Industry Facilities of the Russian Federation was amended allowing joining the Group Subsidiaries on reasonable terms. After such amendment, 63 Group Subsidiaries joined to the Industry Agreement.

63 Group Subsidiaries joined to the industrial agreement concerning organizations of oil and gas industry and construction of oil and gas complex facilities in the Russian Federation
Social Programs

Rosneft has been one of the most socially responsible employers in Russia for years. In 2018, according to the additional initiatives to Rosneft–2022 Strategy approved by the Board of Directors, the focused efforts on promoting the motivation and social security of the Company’s employees and pensioners were significantly enhanced.

In 2018, the Company allocated RUB 33 bln (for reference, RUB 28.1 bln in 2017) to creating optimal working conditions, promoting healthy lifestyles, and providing its employees with healthcare and social guarantees. Rosneft’s management has been committed to meeting high social security standards for its employees.

Key Social Policy Costs
17 %
growth of key social policy costs in 2018
Corporate Pension Schemes and Social Support of Veterans

The corporate pension program is an integral part of the Company’s HR and social policy. The program is aimed to promote the social security of the employees while retiring.

Pension contributions made by Rosneft Group Subsidiaries under such schemes totaled RUB 11.6 bln, while RUB 455.4 mln in social support were provided to veterans.

In 2018, JCS Targin, JSC Kondaneft, PJSOC Bashneft integrated in the Group before, and a number of other Group Subsidiaries have signed the pension agreements with JSC Neftegarant Non-State Pension Fund. Thus, since the beginning of 2018, about 17 thousand employees of the Group Subsidiaries have been provided with corporate pension as an additional social security level.

For more than 10 years, the veteran social assistance program has been supported in the Company involving 27.5 thousand persons at the end of 2018 and providing monthly corporate pension payment through the JSC Neftegarant Non-State Pension Fund. Annual indexation of corporate pensions at 5% was undertaken under the veteran project. The Company also continues providing financial assistance to retirees on holidays, subsidizing resort treatments, and granting one-off bonus payments.

In addition to corporate pension schemes for the Company’s employees, in 2018 the Active Longevity Program has been developed and approved focusing on improving the social conditions for retirees on holidays. The Program will be implemented within three years beginning from 2019. It includes two initiatives:

  • One-time indexation of corporate pensions granted through the year 2010;
  • Annual indexation of all corporate pensions covered by NFP Neftegarant investment income allowing to keep the purchasing power of corporate pensions during the whole period of payment.

Implementing the mentioned initiatives allows not only to extend the existing amount of social benefits and guarantees for the Company’s employees, which are well above the mandatory social package, but also to raise the social security of retirees on holidays.

The Company intends to maintain a strong focus on the development of its corporate pension program, as it helps address social issues and provides the Company with a competitive advantage by attracting and retaining the best talent in the industry.

Social Support of Veterans
Corporate Housing Program

For over 13 years, the Company has been implementing a comprehensive housing program, a crucial form of incentive as part of the corporate social policy. The initiative enables the Company to attract and retain highly qualified and valuable specialists for the long term by providing housing through particular arrangements:

  • mortgage lending;
  • provision of corporate apartments;
  • housing construction.

The living conditions of 886 families were improved through long-term mortgages provided by Rosneft in 2018.

Relocated specialists are provided with corporate apartments, the total number of which in the Company’s regions of operation exceeds 1.5 thousand.

886 families of the Company’s employees improved their living conditions in 2018
Working Conditions and Recreation

Rosneft continued an integrated program aimed at creating favorable working conditions for its employees in 2018. The program’s key focus is the construction and development of 95 employee housing complexes. Rosneft’s living quarters accommodated for close to 35 thousand employees of the Company and its contractors in 2018.

In 2018, the expenditure on the maintenance of industrial social service facilities totaled RUB 7.6 bln.

In 2018, the capital investments in construction, renovation, development and arrangement of employee housing, supporting facilities, sites, and workshops amounted to RUB 8 bln.

Working Conditions and Recreation
Health Care and Personal Insurance

Rosneft consistently provides a range of healthcare and personal insurance initiatives to its employees with the primary objective to preserve career longevity, bolster health and promote a healthy lifestyle.

The major initiatives include:

  • provision of emergency and planned medical aid for employees, including at remote and inaccessible Company’s production facilities;
  • voluntary health insurance that provides Company’s employees access to high-quality healthcare services at the finest Russian medical institutions in addition to the standard government ones;
  • provision of resort and rehabilitation treatment services for employees;
  • implementation of programs on disease prevention and reduction, promotion of healthy lifestyle, conducting the recreational activities;
  • reimbursement for membership costs at therapeutic groups and sporting clubs.

The Company has adopted uniform standards for on-site medical treatment and emergency aid, as well as for the aeromedical evacuation of injured or sick persons from the production facilities.

At present, all Company’s health centers are supplied with modern medical equipment. Considerable attention is given to medical personnel qualifications and large-scale medical training alerts focusing on exercising the emergency medical treatment skills, including aeromedical evacuation.

Under Rosneft–2022 Strategy approved by the Company’s Board of Directors, implementation of the following target programs has been started:

  • equipping the health centers with modern training aids for exercising the emergency medical treatment skills;
  • creating corporate telemedicine network consolidating the health centers of remote production facilities and the major regional advisory centers in order to significantly improve availability and quality of medical service in the inaccessible regions of Company’s operations;
  • organizing and conducting the standard medical examination of the Company’s employees focused on early identification of cardiovascular and oncological diseases.

Since 2017, the Company has been successfully implementing the program on prevention of the Group Subsidiaries’ employees cardiovascular diseases focusing on preserving the career longevity, reducing the risks of temporary disability, permanent disability and early mortality. In 2018, over 100 thousand employees from 140 Group Subsidiaries were involved in the program.

Live Longer! program is being implemented, which provides medical screening and identification of disease development risk factors, supporting of sports initiatives and involving of the Company’s employees in active lifestyle.

Resort treatment and rehabilitation, aimed at extending employee careers and preventing diseases, is an integral part of the social security provided to the Company’s employees, their families, and retirees (veterans of labor). In 2018, Rosneft provided health resort treatment to a total of 78 thousand employees, their families, and retirees both in the Company’s own health resorts and those of the third parties. Implementing the program on employees recreation and rehabilitation in the Republic of Cuba is continued. During the past year, over two thousand persons were treated in the Cuban health resorts. Throughout the whole period of cooperation since December 2013, over 10 thousand employees and their families improved their physical condition in the Republic of Cuba.

In 2018, the personal insurance programs (voluntary health insurance and voluntary accident insurance) covered over 300 thousand employees of the Group Subsidiaries and Rosneft Head Office.

Voluntary health insurance primarily focuses on extending the amount of medical and preventive treatment institutions for medical services rendering, including involvement of high-technology multi-field clinics with modern equipment, proximity of medical aid service to employees’ place of residence and improvement of medical services quality.

Voluntary accident insurance agreements concluded by the Group Subsidiaries ensure twenty-four-hour protection of employees in case of total/partial disability and resulting loss of income. Insurance terms and conditions ensure receiving the insurance indemnity by an employee’s family in case of accidental death. In 2018, 38 Group Subsidiaries considerably increased the individual amounts insured, within which the insurance indemnity can be paid to employees or their families.

Health Care and Personal Insurance
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