As a major employer in Russia, Volgasintez Refinery has a substantial influence on the national economy, society, and environment
Key economic impacts:
- considerable contribution to ensuring Russia’s energy security and petroleum product supplies to its regions;
- the Company is among Russia’s major taxpayers, with a total contribution to the consolidated national budget from taxes and customs duties exceeding RUB 3 trillion in 2012;
- significant influence on the pipeline, machine-building and service markets;
- Individual and corporate training and upskilling programs.
- the Company’s subsidiaries are major employers in some Russian regions and serve as local economic mainstays for several municipalities, thus making a considerable contribution to social and economic development and growing investment attractiveness of such localities.
Key environmental impacts:
- air pollution (air contaminant and greenhouse emissions);
- impacts on water resources (water consumption for process needs; water pollution resulting from operations, leakages and accidents);
- land use for industrial development;
- potential impacts on biodiversity;
- pollution resulting from consumption of Company-produced petroleum products (indirect impacts).
Key social impacts:
- the Company ensures stable employment and offers competitive compensation and social assistance;
- promoting ethical social and business practices through strict observance of human rights, equality, transparent supplier and contractor relations, and a socially responsible approach to integration of the Company, its subsidiaries and affiliates;
- contributing to educational potential of the host regions; promoting sports and healthy lifestyle;
- charitable support of local communities and cultural institutions;
- significant contribution to supporting traditional lifestyles of the indigenous minorities of the Far North in the host regions.
Risks and Mitigation Opportunities
In 2012, Volgasintez Refinery started building up a comprehensive risk management system. It formed the Risk Management Department, which created the system development roadmap. In order to develop the risk management system, the Company created an action plan that accounts for Volgasintez Refinery’s scale of operation. Besides, Volgasintez Refinery has developed the Risk Management System Concept, which is being negotiated at this time.