Social Infrastructure and Charity Investments

ARMZ Uranium Holding makes a significant impact on the social and economic development of the territories of its presence, not only through its participation in CTGs and contributions to the local and municipal tax revenues, but also by implementing a package of social and charity programs.

The main areas of our charitable activities are:

• support for educational programs and projects;
• projects related to culture and awareness, preservation of cultural heritage;
• providing support for environment initiatives;
• promotion of mass and amateur sports and healthy living;
• support of patriotic values and patriotic upbringing.

In 2017 Atomredmetzoloto, JSC gave RUB 7 mil in charitable aid to legal entities and individuals.

Main project financed by the Company

• Krasnokamensk Social Project Competition
• Publishing “Picture Perception Roadmap” sets of books to be distributed in specialized children’s institutions of Krasnokamensk Township (the Trans-Baikal Territory) and Dalmatovo Township (the Kurgan Region).
• A support program for education institution of he Kurgan Region.

To celebrate the Holding’s 10-years anniversary, a dedicated “Dalur” class for children of the company’s employees was formed in Uksyanskoye general middle school.

In the context of this program, RUB 3 m were allocated to equip specialized classes and purchase laboratory sets for physics studies and projects in schools of Uksyanskoye village (Dalmatovsky District) and Trud i Znaniye Village (Zverinogolovsky District).

Volunteer initiatives proposed by employees of Atomredmetzoloto, JSC

10 good deeds to celebrate ARMZ’ 10-years’ anniversary

To celebrate the Company’s anniversary, our employees initiated and implemented on their own account the program they called “10 good deeds to celebrate ARMZ’ 10-years’ anniversary”.

1. The “Display Window” initiative: buying a display window to exhibit the show pieces in the Privokzalnaya School Museum in Volokolamsk.
2. The “Concert” initiative: attending a concert in the Music Hall and giving the proceedings to the children hospice “Home with the Lighthouse”
3. The “Batteries” initiative: disposal of spent batteries;
4. The “Lightbulb” initiative: disposal of burned-out lightbulbs;
5. The “Meaningful Decorations” initiative: a fair/exhibition held together with the “Safe Home” Foundation and “Maria’s Children” Art Center.
6. The “Orphanage in Aleksino” initiative: buying arts and crafts sets for the children in the orphanage.
7. The “Good Haul” initiative: collecting various necessities for those in need.
8. The “Alma” initiative: collecting necessities for the “Alma” animal shelter.
9. The “Numismatics” initiative: providing support to patriotism and awareness project carried out by the Numismatics Club.
10. The “Joy in Old Age” initiative: collecting New Year presents for senior citizens living in the retirement homes.

The “Good Deed Boxes” were installed in all the Holding companies in 2017, to collect the necessities for children in orphanages and shelters.

Over 100 employees of Khiagda, JSC responded to the cry for help to the orphaned children. Using the money donated, the company bought children’s clothes, learning games and necessities. The donations were sent in part to the Orphanage No.1 (Chita) and in part to the Chita Regional Children’s Hospital, where the orphaned children are treated.

By the start of the school year employees of VNIPIpromtechnologii, JSC donated money and bought backpacks and school kits for the kids in Yelat’ma Orphanage and Boarding School for Mentally Handicapped Children (Kasimovsky District, the Ryazan Region).

Development of the Regions of Operation

Investments in social infrastructure and charity

ARMZ Uranium Holding has a major impact on the social and economic development of areas of operation by not only participating in the CTG and generating an income basis of regional and local budgets, but also by implementing a range of social and charitable programs.

The main directions of charity activities are:

• support of educational programs and projects;
• cultural and educational initiatives and cultural heritage preservation;
• support of environmental activities;
• popularization of grassroots and amateur sports and healthy lifestyle;
• support of patriotic values and patriotic education.

In 2016, spending of JSC Atomredmetzoloto for charitable assistance to businesses and individuals amounted to RUR 7.68 million.

Principal Social Projects Implemented at the Expense of the Company’s Funds

Development of Social Entrepreneurship:

• Competition for the provision of financial support (grants) to socially-oriented small and medium businesses for the development of current operations and (or) launching and maintenance of a new type of activity) on the terms of 30 % cofinancing (July-August 2016);
• Applications from 17 small business representatives;
• Results: 10 grantees, grants from RUB 95 to 200 thousand.

Publication of book sets “Illustration Perception Atlas” for distribution in children’s specialized institutions of Krasnokamensk (Trans-Baikal Territory), town of Dolmatovo (Kurgan Region).

Operation in regions

Investment in infrastructure is an important aspect of the social responsibility of the Holding. Since the Holding enterprises are located in such regions of the Russian Federation as Kurgan region, Republic of Buryatia and Trans-Baikal Territory, the Company takes into account the possible social and economic consequences of its decisions and cooperates closely with all stakeholders in the regions.

Impact on the local population in the regions where the company operates

ARMZ Uranium Holding is committed to following social responsibility principles adherent to the business and, given the operation geography, considers maintenance of stable jobs and creation of new jobs both in the territories of own operation and in those of its business partners being suppliers and contractors one of its main objectives.

In order to achieve these tasks, the Holding initiates corporate social programmes for assuring population employment in the regions of its operation.

ARMZ Uranium Holding has a major impact on the social and economic development of areas of operation by not only participating in the CTG and generating an income basis of regional and local budgets, but also by implementing a range of social and charitable programmes.

In 2015, spending of JSC Atomredmetzoloto for charitable assistance to businesses and individuals amounted to RUR 8.5 million.

Development of Social Entrepreneurship

ARMZ Uranium Holding is pursuing a consistent policy of support of social entrepreneurship in the town of Krasnokamensk and the Krasnokamensk area. During the reporting year, the Company implemented a set of incentive measures for small and medium businesses and development of self-employment of the citizens. The social entrepreneurship support project is implemented in close cooperation with the municipal authorities. Competitive selection lasted two months (May-June 2015). 14 small business representatives decided to take part in it

• Competition for the provision of financial support (grants) to socially-oriented small and medium businesses for the development of current operations and (or) launching and maintenance of a new type of activity) on the terms of 30% cofinancing;
• results: 10 grant receivers, RUR 150 thousand each.

Projects Marking the 70-Year Anniversary of the Great Victory

JSC Atomredmetzoloto supported a charitable cultural and historical project dedicated to the 70-year anniversary of the Victory. First screening of the movie “Red Division” was held at the House of Russian Expatriate Community in May 2015.

“Red Division” is a documentary that aims to bring to the global audience the historical truth about the Great War by doing so through Europeans rather than Russians. The movie is based on interweaving history and modernity. The movie tells the story of the so-called 2nd Guard Rifle Division, an English World War II reenactment group portraying heroic battles of the Soviet Army and reminding their contemporaries of the price paid for the Great Victory over Nazi Germany.

Given the high social significance of the project, JSC Atomredmetzoloto launched a crowd funding campaign for making the movie. Many employees of the Company shared the enthusiasm of the movie creators and supported the project with their personal funds. The Company added a corporate contribution to these donations.

Festivities in Krasnokamensk, Trans-Baikal Territory

• special concert for veterans at the Dauria concert hall;
• literary and musical performance “Bless the Bright Moment!”;
• exhibition of photographs and artwork of Krasnokamensk residents dedicated to the 70-year anniversary of the Victory;
• literary competition “We Are the Heirs of the Victory”;
• photo competition “70 Years Have Passed Since the War”;
• drawing competition “There Was the Great War”.

In total, 750 town residents of all ages took part in the contests.

Krasnokamensk joined the All-Russian commemorative rally “Immortal Regiment”. More than one thousand citizens holding portraits of their relatives, who took part in the Great Patriotic War, walked in a solemn march to the sound of metronome.

Plan for 2016

In 2016, JSC Atomredmetzoloto will continue to provide charitable assistance to individuals and legal entities in accordance with the approved regulations and budget of the Company.

In 2016, a contest for further entrepreneurial initiative support will be held in Krasnokamensk.

Trans-Baikal Territory, Chita, Krasnokamensk

During the second year of operation of the regional Social and Economic Development Program of Krasnokamensk and Krasnokamensk area (adopted in 2013):

• Small capacity aircraft L-410 was purchased, the number of flights between Chita and Krasnokamensk increased to three a week. Due to compensation of carrier costs by the Government of Zabaikalsky Krai, the airfare is maintained at a comfortable level;
• Sports hall Argun was opened in Krasnokamensk in November 2014 after refurbishing;
• Two kindergartens (one completely renovated, the second built from scratch) were opened, which solved the problem of long lines in the kindergartens of Krasnokamensk;
• An apartment house in Krasnokamensk was commissioned;
• 100 million rubles were invested in repair of intercity road network.

Kurgan Oblast, Dalmatovsky and Shumikhinsky areas

• 15 million rubles were transferred to the budget of Dalmatovsky area for implementation of socially significant projects, and ​​500 thousand rubles to the budget of Shumikhinsky area.
• Gratuitous financial aid was provided to educational, pre-school and other social care institutions; in particular, special attention was paid to financing of the construction of school in Uksyanskoe settlement, Dalmatovsky area, with the total amount of funding of 30 million rubles.
• Two apartment houses were commissioned.

Impact on the local population

ARMZ Uranium Holding Co. seeks to follow the principles of corporate social responsibility and, taking into account the territory of operations, it sees one of its main objectives in the preservation of stable jobs and creation of new jobs both in the regions where it operates and in areas where its business partners, suppliers and contractors operate.

In order to achieve these objectives, ARMZ initiates corporate social programs to raise local employment in the regions.

A unified remuneration system (URS) allowed to define a common approach to formation of wages at ARMZ and guarantee stable wages to workers. Interaction with the regional authorities, development of corporate social programs and timely payment of wages helps reduce social tension in the region and improve the attractiveness of ARMZ enterprises as employers. Minimum wages at all enterprises exceed the minimum wage in the regions where they operate.

The priority is given to hiring local residents, subject to availability of qualified stuff in the region. More than a half of the top management of ARMZ Uranium Holding Co. in the regions was employed from among local residents. During the reporting period, no voluntary and/or involuntary resettlement of the local population was carried out due to construction of the Company’s facilities.

Investments in public infrastructure and charity

ARMZ Uranium Holding Co. has a significant impact on socio-economic development of the regions where it operates, not only by participating in CTG and forming the revenue base of regional and local budgets, but also implementing a set of social and charitable programs.

In 2014 JSC Atomredmetzoloto established Charity Committee to define the objectives and priority areas for charitable activities.