Social and Economic Development of Regions and Charity in 2018

Rosneft represents the national interests not only in the sphere of oil and gas sector. Along with development of industrial potential it systematically implements the charity policy focused on integrated social and economic development of the regions of the Company’s operations.

Under the cooperation agreements concluded by Rosneft with regional government agencies on an annual basis, the Company supports developing the raw-materials base, improving the investment climate and preserving the social stability in the regions; implements the programs focused on the development of industrial and scientific potential of the regions, increase of environmental safety level and production energy efficiency.

Cooperation agreements also establish the arrangements on coordinated solution of tasks related to social sphere development, and define the main directions, principles and formats of balanced bilateral interaction.

Federal Law No. 135-FZ dated 11 August 1995 “On Charitable Activity and Charitable Organizations” states the charitable activities goals followed by the Company, including:

  • promoting social and economic development in the Company’s regions of operation;
  • developing partnerships with the Company’s regions of operation;
  • supporting the national education policy;
  • supporting government programs for the development of healthcare, physical education and sports, science and technology, environmental protection, etc.

In addition, the fixed and mandatory conditions for the Company when carrying out the charitable activities are:

  • legal compliance;
  • social responsibility;
  • openness and transparency;
  • prevention of corruption.

When determining organizations and events for charitable support, the Company aims at social and infrastructural projects that would most strongly benefit the lives of the local residents and employees in the Company’s regions of operation.

In 2018, Rosneft traditionally donated considerable finances for social infrastructure development and creation of comfortable environment in a number of localities.

Charity Expenses in 2018

A substantial part of social investments was allocated for the redevelopment of urban and rural areas, construction and repair of road traffic system and engineering infrastructure facilities, provision and improvement of material and technical resources of the strategic vital infrastructure facilities, implementation of regional and municipal programs related to housing and utility development and environmental improvement.

In the field of supporting education, science, and youth policy in 2018, along with the conventional repairs, redevelopment, and improvement of material and technical resources for schools and kindergartens, the Company plays a crucial role in ensuring anti-terrorist security, fire safety, and sanitary and epidemiological control at the mentioned organizations.

The primary focus areas of the Company’s charitable activities in 2018 were represented by designing new educational, cultural and recreational, sports facilities, and completing construction of existing ones to improve the living standards of the residents in the regions of the Company’s operation to the highest level.

In addition, in 2018, Rosneft conventionally supported a wide range of international and regional activities focused on developing the physical training, promoting the grassroots and junior sports, supporting the education and culture, science, art, enlightenment, patriotic upbringing, and intellectual development. Many of the projects mentioned have become a claim to fame for the regions of the Company’s operation.

The Company’s annual charitable policy is integral with health maintenance, sponsorship of child welfare institutions, organizations uniting the disabled people and veterans of war and labor, with financial assistance and running events confined to the Victory Day of the Great Patriotic War.

Charity Financing in 2018, RUB mln
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