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Preliminary Results of Charity, Sponsorship and Humanitarian Projects Completed in 2019

Date of publication: 16 January 2020

Transneft has reviewed preliminary results of its charity, sponsorship and humanitarian projects completed in 2019. The Company is implementing a target charity programme envisaging the construction and repair of socially significant facilities as well as the support of projects in culture and sports, nature and environment, delivery of socially important projects in the territories of its operation.

Helping Regions Stricken by Natural Disasters and Emergencies

Being aware of its social responsibility, Transneft vigorously helps with the response to emergencies caused by natural disasters and man-caused accidents in Russian regions.

Transneft actively assists in fighting forest fires. Within the agreement on engagement with the EMERCOM of Russia, the Company’s fire guard units performed more than 700 raids together with the EMERCOM and forestry units.

During the fire danger season 2019, Transneft engaged 1,770 employees and 524 vehicles to extinguish dry grass and forest fires in Russian regions.

In 2019, Transneft subsidiaries got involved in eliminating the consequences of ruinous floods in Russia’s Far East.

In Irkutsk Region, the largest freshet in the region’s history resulted in the inundation of 1,786 residential houses, as well as of socially significant facilities and motor road sections. From July to October, Transneft East performed the works to eliminate the consequences of the freshet, using 12 of its own heavy-duty vehicles and involving its personnel. Rubbles were cleared away, garbage was removed, people were evacuated and fire safety was ensured.

The Company supplied bottled potable water and essentials, allocated funds to help three schools in the affected regions buy equipment and furniture.

The Company’s employees delivered humanitarian aid for residents of Nizhneudinsk, Tayshet and Tulun Districts (personal care items, bedclothes, gas stoves, medications, baby food).

To assist residents of the affected territories in Irkutsk Region, four rural health posts (RHP) were constructed and outfitted with medical equipment, as part of the first phase of the project. The plan calls for the construction and commissioning of six other RHPs in 2020.

In the town of Tulun, Transneft East created extra jobs, including for the employment of people with disabilities according to job quotas.

The Company provided pecuniary aid for 69 employees who fully or partly lost their chattels as a result of the freshet; five repair crews that were created specifically for the purpose renovated the homes of 14 employees.

In Amur Region, sections of transport infrastructure, including the Beloyarovo — Druzhnoye motor road, were inundated, and a number of villages were isolated from medical and educational institutions. Transneft Far East arranged the transportation of soil for the road restoration. The Company’s dump trucks drove 3,000 m3 of soil over the distance of 125 km. At the request of Amur Region’s Construction Ministry, the Company also procured building materials to eliminate the consequences of emergencies.

Last year, Chernomortransneft helped respond to a drastic elevation of the water level in the rivers of Krasnodar Territory, caused by heavy rains in autumn 2018. In Tuapse District, Chernomortransneft allocated monetary funds to restore the bridges in Georgievsky Settlement and the roads in Veliaminovsky Settlement. The Company also assisted in building roads to villages, arranging drainage of stormwater from residential development zones of settlements in Apsheronsky District. An overhaul of the water supply pump station in Tuapse was carried out.

The Company helps to eliminate the consequences of man-caused accidents in the regions of its operation.

For instance, an accident at one of the mines in Ukhta District of the Komi Republic resulted in a fire breaking out on the area of 2,000 m2. At the request of the EMERCOM of Russia’s Main Office in the Komi Republic, Transneft North provided a special-purpose vehicle that helped eliminate the fire in no time, minimizing the damage.

In July, torrential rains eroded a section of railways, interrupting the train traffic in Sosnogorsk District of the Komi Republic. At the local government’s request, Transneft North provided buses for passenger transportation. Until the railway traffic was restored, about 300 passengers had been delivered to the nearest stations. The average length of the route was 140 km.

Charity

Last year, as part of the target charity programme, the construction and overhaul of 46 facilities were completed. Among the most remarkable projects were construction of a school for 320 students, revamping of a heat supply station at the in-patient clinic of a psychotherapeutic centre in the Republic of Bashkortostan, construction of an apartment building in the city of Saratov, construction of a football field in Rostov Region, overhaul of nursery school buildings and a lyceum in Tula Region, as well as repair of the IT and Industrial Technology College in the city of Penza.

In 2019, Transneft East completed its 3-year corporate charity programme for the development of school education in regions. Last year, charitable aid was provided to 171 schools in 44 regions of the Russian Federation.

Overall, 241 schools received target aid in 2017-2019; the programme covered 169 townships in the regions of the Company’s operation within eight federal districts. The allocated funds were used, in particular, for equipping the educational institutions with laboratory and demonstration tools, interactive multimedia systems, digital laboratories and instruments for experiments. The implementation of the charity programme will improve the quality of school education in exact sciences and allow students to acquire the basic knowledge needed to enter technical vocational education institutions.

As part of its charitable activities, Transneft supports educational projects in history. To facilitate the tutorial and research activities of teachers, as well as students and senior schoolchildren, special issues of the Istorik (Historian) magazine sponsored by the Company were handed over to libraries and universities of the regions.

As part of its charitable activities, Transneft carries out comprehensive restoration of the Assumption Cathedral of the Moscow Kremlin’s architectural ensemble. Funds have been allocated for the development of design documents and estimates, restoration of the central vault in the western part of the Cathedral, its south-western vault, roof and part of the northern facade, the vault of the northern nave and the north-western dome. Exploration works are planned to discover the wall paintings of the 15th and 17th centuries in the diaconicon, sacristy and Dmitrovsky annex. The works are to be completed in 2023.

Since 2011, Transneft has been aiding Gorchakov Public Diplomacy Support Foundation. Among the foundation’s key objectives is facilitating the development of public diplomacy. Last year, the Company allocated charitable funds to support the foundation’s activities called to create a favourable environment for effective international cooperation in politics, economy and culture.

Charitable donations were allocated last year for the construction of an exhibition hall in the Izborsk preserve museum and a community centre in Nizhny Novgorod Region, as well as for creating the Soviet Soldier Memorial in Rzhev, Tver Region.

As part of the environment and wildlife conservation projects, Transneft collaborates with research institutes, non-government and environmental organizations. In 2019, charitable donations were used to finance the rare flora and fauna species conservation endeavour.

Health promotion and social support projects are being implemented, including financial assistance, social rehabilitation and medication procurement. Charitable aid was provided for the Novorossiysk Clinical Centre of the Federal Medical and Biological Agency, needed for the acquisition of diagnostic medical tools, as well as for the creation of the Inclusive Education Centre for children with disabilities in Irkutsk Region.

The Company maintains ongoing interaction with the Fund for Facilitation of the Russian Orthodox Church of All Saints Construction and has already helped to build the church in the city of Strasbourg. The financing provided by Transneft will allow a number of extra works needed for the functioning of the church buildings.

Among the Company’s charitable priorities is the support of mass sports. In 2019, charitable aid was provided for the Association of Sports Clubs in Nizhny Novgorod Region, the Volleyball Federation in Krasnodar Territory and the Charity Fund for the Support of Track and Field.

Sponsorship

The Company provides sponsorship support to events contributing to the development of culture, preservation and promotion of spiritual values.

Transneft has been cooperating with Tretyakov State Picture Gallery for many years. The sponsorship support of Transneft was instrumental in holding the Vasily Polenov: 175th Anniversary exposition. The Company also supports the Eighth Moscow International Contemporary Art Biennale, one of the main contemporary culture projects.

The financial support of Transneft helped to open an exposition in the exhibition halls of the Moscow Kremlin Museums, called Peter the Great: Art Collector, Researcher, Artist.

The Company also helped the Jewish Museum and Tolerance Centre to organize the Youth Union. Russian Avant-Garde of 1909-1914 exhibition, dedicated to the creative association of key Avant-Garde painters in the first third of the 20th century.

Since 2011, Transneft has been the general partner of the Spasskaya Tower Military Music Festival. The festival has already hosted over 160 groups from 54 countries and is among the world’s TOP-3 most famous military music festivals.

For the eighth year in a row, Transneft supports the Russian Folk Arts and Crafts Association. In 2019, Transneft once again assumed the role of the general sponsor to the LADYA exhibition, which is the biggest national event showcasing Russian Folk Arts.

In 2019, the sponsorship support of Transneft helped the Institute for Advanced Research in History, in collaboration with the Institute of World History under the Russian Academy of Sciences and State Academic University for the Humanities, to complete their three-year research project titled Russia in the World. As part of this project, monographs and digests were published and international and federal research events, including the ones for students and schoolchildren, were held.

The third Russian meeting within the Fort Ross Dialogue international conference was held in Vologda in June 2019 with support of Transneft and at its initiative. Participating in that memorable event were more than 180 people, including public servants, as well as businessmen and scientists from Russia and the United States. In October 2019, Transneft joined hands with the Russian Geographical Society to organise the Russian America photo exposition, as part of the Fort Ross Dialogue conference, in California, the USA.

Among other sponsorship projects of the past year was the support of the Russian Energy Week international forum and other remarkable industry-related conventions and trade fairs.

Volunteer Effort

The volunteer movement of Transneft has been effective for many years. Year-after-year thousands of volunteers from among the employees of Transneft subsidiaries join the Company’s corporate projects.

In 2019, more than 79,000 volunteers, employees of Transneft Group and their family members, implemented over 450 volunteer projects and helped more than half a million people. Charitable campaigns were conducted in 140 cities and towns in all federal districts of the Russian Federation.

Fledgling specialists visit senior citizen homes and children’s social institutions, hold entertaining events for the residents and bring them numerous gifts.

On a regular basis, volunteers raise funds and gather essential items for people confronted with adversity and large families, help lonely senior citizens, arrange tea parties, as well as hand gifts to WWII veterans. The Company’s employees also help animal charity centres, buying food and medications for them.

As part of the annual volunteer thrust, volunteers from Transneft subsidiaries help children from families of scanty means and orphans to get ready for school, buying clothing and stationery for them.

Every year, on Christmas and New Year Eve, the Company’s employees take part in the corporate Bag of Wishes charity marathon. In all the regions of Transneft operations, the Company’s volunteers buy gifts using their personal funds in keeping with the wishes of children from orphanages, remedial schools and other social institutions.

University Support

Transneft appoints student scholarships and pays welfare benefits to teachers of tertiary educational institutions, to facilitate better education and training for young people seeking employment at oil and petroleum products pipeline transport facilities.

Russia’s leading specialised universities are supported by the Company, including Gubkin State Oil and Gas University, the International Energy Policy and Diplomacy Institute at the MGIMO university under the Ministry of the Interior, the Tyumen Industrial University, the Ufa State Petroleum Technical University, the National Research Tomsk Polytechnic University, the Samara State Technical University, the Ukhta State Technical University, the Far Eastern Federal University.

The targeted social payments are intended for publishing lecture courses or monographs, receiving advanced trainings, conducting dissertation research, as well as introducing modern information technologies. The scholarships are granted to students who demonstrate good academic results, conduct scientific research in pipeline transport and participate in Transneft’s youth science and technology conferences.

In the school year 2019-2020, Transneft scholarships have been awarded to 111 students, whereas welfare benefits were appointed for 45 teachers.

Furthermore, Transneft is implementing its 2018-2020 programme of engagement with higher educational institutions, which envisions the development of their facilities and resources. The programme anticipates the repair and revamping of university facilities and labs and their technical maintenance, as part of cooperation agreements with certain higher education institutions. The Company also finances the publication of textbooks and the conduct of joint conferences.

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