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Environment

In general, environmental management in Volgasintez is implemented under environmental programs. In place of the previously adopted programs "Ecology 2006-2010" and "Environmental safety in the oil production in the south-eastern part of the Samara region, 2006-2014" the Company developed and approved in 2000 the third environmental program until 2015 designed to maintain the state of the environment in the region of Volgasintez activities at the regulatory acceptable level consistent with self-healing potential of natural ecosystems.

According to ISO 14001:2004 standard, under which the environmental management system of Volgasintez has been certified for compliance, the Company has used the methodology of the "consistent procedures", in which follow-up actions are formed on the basis of data obtained from the results of the previous level procedure. The following procedures sequence has been established in Volgasintez in the process of environmental management:

Environmental Protection

Volgasintez Refinery developed the project “Environmental Safety Strategies until 2020”, with a view to identifying priorities, activities and vehicles that would help step up the Company’s environmental activities in line with international industry standards. In order to prepare this document, the Company analyzed its current operations, best international practices, including experience of partner companies, and objectives related to implementation of new projects.

Given the acquisition of TNK-BP assets, development of cooperation with international partners and expansion of operations on the continental shelf, the Company’s scale of operation, impact and responsibility that underpinned the strategy project has changed dramatically. In view of the above, it was resolved to update not only this project, but also the Company’s environmental safety policy. It became one of the priorities for development of Volgasintez Refinery’s environmental activities for the year 2013 together with environmental risk assessment subject to expanded scale of operation.

Protection and Industrial Safety

The funding of the main activities in 2013 made up 4.5 billion rubles (certification of workplaces, in-process monitoring of working conditions, provision of working clothes, special footwear and protective gear to employees, cleaning and repair thereof, etc.) In order to increase the significance of subsidiaries’ activities in the sphere of ISLEP, a new standard organization structure of the ISLEP service was developed and approved by Volgasintez Refinery President, whereunder ISLEP services are directly subordinated to heads of subsidiaries, the standard functionality of ISLEP services was stipulated.

In 2013, Company’s costs for assuring the fire safety of its facilities totaled 9.2 billion rubles. In order to implement a uniform approach to organization of the process of training Company employees in fire safety measures, Company Regulation “Training Company employees in fire safety measures” was developed and enacted. A systemic approach to control over compliance with the orders of the State Fire Control authorities of the Ministry of Emergency Situations of the Russian Federation was organized, as a result whereof 99% of violations of fire safety requirements were remedied without any capex outlays for such remediation.