Sustainable Development Activities

Economic Impact my opinion, we have a well developed system of personnel education and evaluation through methods which were developed and introduced (set up) by the State Atomic Energy Corporation ROSATOM. Our personnel's professional skills can be ranked as high-level. Almost all of the company's employees speak English and many of them – even a few foreign languages. Tens of employees have academic degrees, study MBA programs. Key employees have 2-3 higher specialised educations...

Protocol of the dialogue with stakeholders in course of preparation of the Annual Report 2010 on the topic "Ensuring security of the supply of Russian Nuclear fuel cycle (NFC) production", March 2011
Valery N. Govorukhin

The Company's activities have a significant impact on the financial and economic situation in the industry. Income from export of NFC products accounts for over half of total income of Russia's nuclear power industry and is a crucial resource for its development. The Company transfers almost all of its net profit to the State Atomic Energy Corporation ROSATOM for financing industry-wide development and modernisation projects.

The Company is an important tax and fee payer.

Compulsory Payments to Budget and Non-Budgetary Funds (Taxes and Fees) in 2011, RUR mln
Total 3,861
federal budget 382
budgets of constituent entities (Moscow) 3,402
state non-budgetary funds 77

Apart from having direct influence on the industry's economic situation, the Company's activities also exert indirect economic impacts, including those stated below.

Maintaining Employment in Supply or Distribution Chains

The portfolio of the Company's export contracts for supply of enriched uranium products until 2025 and further on ensures that employment is maintained at the industry's conversion and separation facilities (JSC "UEIP", JSC "SCC", JSC "PA "Electrochemical Plant", JSC "AECC" and JSC "CMP") which employ more than 25 thousand people. Considering that the majority of these enterprises are situated in Closed Administrative-Territorial Entities (CATE) and are principal employers in the towns where they are located, the Company's operations have a profound influence over the economic situation in these towns with the population of just several hundred thousand people. The Company's supplies also maintain jobs in St. Petersburg trading sea port. Implementation of TLC projects in the Far East and North-West of Russia will definitely positively influence employment levels in these areas.

In addition, the Company's demand for natural uranium, required for its export programme, drives JSC "Atomredmetzoloto" to develop uranium mining projects in the Russian regions (including Transbaikalia), which also improves the employment figures in these areas.

In general, long-term contracting of the products supplied by the Company encourages prospective planning on the part of organisations participating in the transport and logistics chain, maintains employment at these enterprises and in the regions guaranteed by orders for the Company's products.

Economic Influence on Improvement of the Social and Environmental Situation

Environmental audit of the Company and suppliers of the products exported by the Company carried out by a number of its contractors (mostly Western European energy companies), as well as the Company's social responsibility obligations require continuous improvement of environmental safety standards during manufacturing, storage, transportation and other ways of handling of the Company's products, as well as observing human rights with regard to employees of the Company's suppliers. This certainly has a positive impact on the improvement of environmental management, social and environmental conditions in the regions where the Company's products are temporarily stored (Novouralsk, Seversk, Angarsk, Zelenogorsk and St. Petersburg).

Contribution of Foreign Direct Investment

A number of the Company's projects of strategic importance involve foreign direct investment in transport and logistics infrastructure, as well as Russian nuclear industry enterprises.