INTERACTION WITH THE SMALL-NUMBERED INDIGENOUS PEOPLES OF THE NORTH

Among the major objectives of «Surgutneftegas» PJSC are those to preserve the primordial living environment of the indigenous people and develop long-term and solid cooperation with the local population based on mu-tual respect and trust.

«Surgutneftegas» PJSC  is operating in territories historically inhabited by the small-numbered indigenous peoples of the North – the Khanty, Mansi, Nenets and other peoples, many of which are currently engaged in traditional industries – deer herding, hunting, fishing, gathering of berries, mushrooms and pine nuts.

For many years, the Company has been interacting with the small-numbered indigenous peoples of the North residing in traditional nature management areas where the Company carries out its operations. Surgutneftegas finances university and college education of their children, provides financial aid to improve their living conditions and covers costs of medical services.

In order to preserve cultural traditions and integrate local communities «Surgutneftegas» PJSC helps to organize national holidays and meetings of herders, fishermen and hunters, and provides gifts for the participants.

In 2017, 1,235 representatives of the small-numbered indigenous peoples of the North residing in 106 traditional nature management areas (in 2016 – 1,526 people in 139 traditional nature management areas, in 2015 – 1,565 people in 128 traditional nature management areas) were covered by economic agreements with the Company in KhMAO – Yugra.

In 2017, The Company granted over RUB 166 million (in 2016 – over RUB 127 million, in 2015 – over RUB 148 million) under the agreements with the authorized representatives of the families of the small-numbered indigenous peoples of the North in Surgutsky, Beloyarsky, Oktyabrsky, Nefteyugansky and Khanty-Mansiysky Districts of KhMAO – Yugra residing in traditional nature management areas where the Company carries out its operations.

These amounts include quarterly and lump-sum compensation payments to the families, accommodation fees, costs of dental treatment and prosthetics, education and transportation, funds for the purchase of prizes and gifts for the celebration of traditional festivals of the indigenous people, and costs of materials and equipment acquisition (fuels and lubricants, working clothes, building materials, etc.).

In 2017, under these agreements, the Company also provided the indigenous peoples with:

68 chainsaws (in 2016 — 66 items, in 2015 — 105 items),

61 snowmobiles (in 2016 — 87 items, in 2015 — 99 items),

25 motorboats (in 2016 — 24 items, in 2015 — 21 items),

87 boat engines (in 2016 — 15 items, in 2015 — 32 items),

48 power plants (in 2016 — 87 items, in 2015 — 103 items).

over 697 tonnes of gasoline (in 2016 — 613 tonnes, in 2015 — 729 tonnes),

over 27 tonnes of engine oil (in 2016 — 23 tonnes, in 2015 — 29 tonnes).

Social and economic support in the territory of residence of the indigenous peoples of the North is also provided under agreements about social and economic cooperation with local and regional authorities. In particular, within 13 years, the Company granted more than RUB 215 million under socio-economic agreements with Beloyarsky District of KhMAO – Yugra and Administration of the Budgetary Institution of KhMAO – Yugra «Numto nature park». The funds were assigned for allowances and costs of construction of village hall, chapel, pre-fabricated residential houses, post office, village first-aid station, construction and furnishing of Park’s visitor center, delivery of building materials, fuels and lubricants as well as aviation and motor transportation to the residents of Numto village. During the period from 2011 to 2017, the Company provided Numto national village with 12 accommodation units and additionally Yuilsk village with two units.

As a whole, under agreements about social and economic cooperation «Surgutneftegas» PJSC provides social and economic support to 20 municipalities and constituent territories of the Russian Federation, including Nenetsky Autonomous Okrug, the Republic of Sakha (Yakutia), Irkutskaya Oblast, etc.