Development of local communities

Krasnoyarsk Territory

Key areas of cooperation with the Krasnoyarsk Territory

Economic

• Implementation of major investment projects in the Krasnoyarsk Territory
• Heat and power supply to the communities and companies in Norilsk, Dudinka and Igarka
• Participation in the Northern Supply Hau programme in the Arctic
• Development of a tourist cluster
• Promotion of commercial activity of indigenous communities of the North – creating conditions and infrastructure for the traditional use of natural resources
• Development of transport and the telecommunication infrastructure

Social

• Implementation of the Programme for Promoting Social and Economic Development of the Taimyrsky Dolgano-Nenetsky Municipal District in 2020–2024
• Assistance in containing the spread of COVID-19
• Support for vocational and supplementary education
• Implementation of the World of New Opportunities charitable programme, the World of Taimyr and the Students of Taimyr initiatives, and the Plant of Goodness corporate volunteering programme; supporting and promoting local and regional public initiatives

Environmental

• Implementation of major investment projects in the Krasnoyarsk Territory
• Heat and power supply to the communities and companies in Norilsk, Dudinka and Igarka
• Participation in the Northern Supply Hau programme in the Arctic
• Development of a tourist cluster
• Promotion of commercial activity of indigenous communities of the North – creating conditions and infrastructure for the traditional use of natural resources
• Development of transport and the telecommunication infrastructure

Key projects in the Krasnoyarsk Territory

● Social and economic partnership
1. Projects implemented under the Cooperation Agreement with the Krasnoyarsk Territory
2. Projects implemented under the Agreement on Air Passenger Transportation
3. Projects implemented by the Norilsk Development Agency
4. Convention of Social Entrepreneurs from the North

● Transport
5. Reconstruction of bridges in the Norilsk Industrial District

● Quality of life
6. Comprehensive plan of social and economic development of the city of Norilsk
7. Our Home / My Home and Your Home employee housing programmes
8. We Are the City! social technologies forum
9. Agreement on cooperation aimed at providing support to the indigenous peoples of the North

● Sports
10. Federation of Northern Multisport Races

● Ecology
11. Increase of the Taimyr HPP Cascade capacities
12. Sulphur Programme (SO₂ capture at the Company’s existing and planned facilities)
13. Programme to build local treatment facilities
14. Zero Negative Environmental Impact campaign
15. . Land rehabilitation programme
16. Release of the juveniles of valuable fish species into water bodies

Murmansk Region

Key areas of cooperation with the Murmansk Region

Economic

• Implementation of investment projects and development of production capacities
• Social and economic development of municipalities that are home to Kola MMC’s operational activities
• Development of the transport infrastructure in the Arctic
• Development of a new tourism-driven economy along with the catering and hotel sector

Social

• Assistance in containing the spread of COVID-19
• Implementation of the World of New Opportunities charitable programme and the Plant of Goodness corporate volunteering programme; supporting and promoting regional public initiatives
• Development of social entrepreneurship

Environmental

• Cooperation on environmental protection, preservation of the Kola Peninsula’s natural ecosystems and landscapes
• Organisation and backing of environmental campaigns

Key projects in the Murmansk Region

● Social and economic partnership
1. Projects implemented under the Cooperation Agreement with the Murmansk Region Government
2. Convention of Social Entrepreneurs from the North (Monchegorsk, Zapolyarny)

● Quality of life
3. Projects implemented by the Monchegorsk Development Agency (Monchegorsk)
4. Second School Centre for Community Initiatives of the Pechengsky District
5. Social and Economic Development Programme for the Pechengsky Municipal District of the Murmansk Region for 2021–2025 (Pechengsky Municipal District)
6. We Are the City! social technologies forum (organiser) (Zapolyarny)
7. Programme of supporting the Murmansk Region in social infrastructure development in 2020–2024 (the Murmansk Region)
8. Cooperation agreement with the Kola Sámi Association of the Murmansk Region (the Murmansk Region)

● Ecology
9. Zero Negative Environmental Impact campaign (the Murmansk Region)
10. Release of the juveniles of valuable fish species into water bodies

Trans-Baikal Territory

Key areas of cooperation with the Trans-Baikal Territory

Economic

• Bystrinskoye Deposit development
• Social infrastructure development

Social

• Assistance in containing the spread of COVID-19
• Training of mining industry employees
• Improvement of urban areas
• World of New Opportunities charitable programme

Environmental

• Cooperation on environmental protection, preservation of natural ecosystems and landscapes
• Release of the juveniles of valuable fish species into water bodies
• Organisation and backing of environmental campaigns

Key projects in the Trans-Baikal Territory

● Social and economic partnership
1. Projects implemented under the Cooperation Agreement with the Trans-Baikal Territory
2. Projects implemented under the Agreement on SME Support in the Trans-Baikal Territory
3. Projects implemented as part of the Programme of Social and Economic Development of the Trans-Baikal Territory in 2017–2026
4. Projects implemented under the Agreement to Support and Develop the Volunteer Movement in the TransBaikal Territory

● Education
5. First technological cluster for kids in the Trans-Baikal Territory (Chita)

The Group’s key areas of operation in Russia include the cities of Norilsk, Dudinka and Monchegorsk, the Pechengsky District of the Murmansk Region, and the Gazimuro-Zavodsky District of the Trans-Baikal Territory. We make a sizeable contribution to the social and economic development of our regions of operation by implementing a wide range of social and infrastructure projects.

We are one of the leaders among Russian metals and mining companies both in terms of absolute social expenses and their share in revenue.

Key focus areas for the development of local communities

Budget payments

In 2022, Nornickel’s tax and non-tax payments to budgets of various levels totalled RUB 262 bn, down 9% y-o-y. Most of the Group’s taxes are paid by its key production facilities and go to regional budgets across their operations.

Employment of local population GRI 203–2

Nornickel pursues an active employment policy across its key regions of operation. The Company and Norilsk Employment Centre signed an agreement aimed at retraining those out of work for the most needed blue-collar jobs.

We build partnerships with educational organisations, supporting engineering training and boosting interest in blue-collar jobs and occupations in the metals and mining industry. One example is GRK Bystrinskoye’s cooperation with educational institutions in order to build its talent pipeline, with agreements on practical training of students signed with the Tomsk State University, Trans-Baikal Mining College, Chita Technical College of Sectoral Technologies and Business, Trans-Baikal State University, Irkutsk National Research Technical University, and Siberian Federal University. In 2022, about 100 students were enrolled in Bystrinsky GOK’s internship programmes.

Nornickel also provides financial support to Norilsk’s institutions of secondary and higher vocational education by buying books and specialised equipment for students, contributing to the maintenance works, and thus improving the quality of training. The Company actively focuses on the training of specialists for the most in-demand jobs.

The Company’s regions of operation have consistently low levels of unemployment that saw a y-o-y decline in 2022. The unemployment rate across Russia came in at 3.9% in 2022, way above the level registered in the Company’s regions of operationSource: Federal State Statistics Service..

GRI 203–2

In accordance with the terms of its social and economic cooperation agreements, Nornickel develops mutually beneficial relationships with local businesses in the regions where it operates. The Company actively interacts with local suppliers and contractors, uses domestic technologies to support economic and industrial development in the regions of its operation, and plans to keep doing so going forward.

The integration of local businesses into the Group’s production through long-term contracts results in synergies based on cooperation, which contributes to the economic development of the regions, support for small and medium-sized enterprises in the Krasnoyarsk Territory, Murmansk Region, and Trans-Baikal Territory, and the achievement of SDG 8 “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”.

The number of procurement tenders for goods and services held by the Company in the Krasnoyarsk Territory and the Murmansk Region was up 10.5% y-o-y to 2,556 tenders and up 11.2% y-o-y to 814 tenders respectively. Local businesses won almost 50% of the Nornickel’s tenders in the Krasnoyarsk Territory, and 27% of those in the Murmansk Region. The Company’s procurement expenses in 2022 were up 71.6% y-o-y to RUB 58 bn, which was due to both geopolitical challenges and the implementation of large-scale capital construction projects.

Nornickel’s contribution to the Housing and Urban Environment national project

Relevant UN SDGs

Related federal projects

• Mortgage lending
• Housing
• Creating a comfortable urban environment

Key initiatives and focus areas

• Our Home / My Home and Your Home housing programmes

  For more details, please see the Social Policy section

• Projects to develop infrastructure across the regions of operation
• Measures to improve reliability of the fibre optic communication line in Norilsk
• Projects to upgrade power and heat generation, electrical grids and heat networks

  For more details, please see the Climate Change and Energy Efficiency section.

Joint efforts of the business and stakeholders make it possible to create a comfortable living environment. Companies become proactively involved in developing single-industry towns, helping them leverage their promising growth drivers and become attractive destinations both socially and business-wise.

Creating and developing an accessible and comfortable urban environment for people working and living in the regions where we operate is one of the Company’s priorities that we seek to achieve through social programmes addressing current and future challenges.

In 2022, Nornickel’s investment was at its highest, as the Company was on track to implement its key social programmes aimed at developing cities, offering better working conditions and healthcare for our people, supporting culture and sports, and improving the environmental situation.

Vladimir Potanin,
President of MMC Norilsk Nickel

As part of the Agreement, the Russian Government approved a Comprehensive Plan of Social and Economic Development of NorilskOrder of the Russian Government No. 3528-r dated 10 December 2021., with the following measured implemented in 2022:

• construction (reconstruction) of residential buildings in the Central District of Norilsk (RUB 66.6 mln allocated by the Company);
• provision of social payments for the purchase of housing to the residents of Norilsk relocating from Russia’s Far North region (RUB 830 mln allocated by the Company);
• thermal stabilisation of soils under apartment buildings and social facilities (RUB 153.8 mln allocated by the Company);
• demolition of three dilapidated residential buildings in multiple occupation (RUB 60 mln allocated by the Company).

Integrated Social Service Centre

The integrated facility may now serve more than 6,000 Norilsk residents, offering urgent social care, rehabilitation, courses for family carers (a joint project of the Krasnoyarsk Territory Ministry of Social Policy and a major local pharmacy network Gubernskie Pharmacies), psychological assistance, rental of rehabilitation equipment (walkers, wheelchairs and multifunctional beds), etc.

In addition, since the launch of the Comprehensive Plan of Social and Economic Development of Norilsk, the Company has financed the design, survey, overhaul and refitting of social infrastructure institutions (schools and the Norilsk Industrial Technology and Service College), maintenance of the Norilsk Residential Housing Renovation Fund and research support for permafrost monitoring of soil, buildings and structures. The Company’s total investment in these projects exceeded RUB 1.3 bn.

In addition to the Comprehensive Plan activities, the Company finances other socially important initiatives implemented at the request of Norilsk Mayor and identified in a survey of Norilsk residents conducted by the Norilsk Development Agency and the Norilsk Administration.

In 2022, the statements of work for the design and engineering surveys to implement these initiatives were drafted, with the design work now underway for all the facilities. The Company’s total costs to finance these projects amounted to RUB 15.5 mln.

In addition, the Company financed further initiatives aimed at the social and economic development of the city and implemented at the request of the Norilsk Administration, including:

• survey and design work for the construction of residential buildings replacing demolished soviet-era buildings of Stalinist style;
• repairs of dilapidated roofs and porches of two schools;
• repairs of the roof of the Norilsk Industrial Engineering and Service College;
• upgrade of the heat and water supply and sewage utilities for the construction of a new polyclinic;
• research support for permafrost monitoring of soils and structures for 57 buildings;
• maintenance of the Norilsk Residential Housing Renovation Fund.

The total financing provided by the Company as per the case-by-case requests of the Norilsk Administration amounted to RUB 623 mln.

In 2022, the Krasnoyarsk Territory Government, the Norilsk Administration and Nornickel entered into a memorandum of intent to upgrade healthcare facilities in Norilsk. As part of the initiatives included in the memorandum, the Company allocated RUB 300 mln for the repairs and purchase of equipment for healthcare facilities in line with the approved updated priority list.

Nornickel’s Polar Division implemented a number of projects aimed at sustainable social development of Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District, in particular:

• supply of medical goods and special medical equipment to healthcare facilities of Norilsk and Dudinka; in 2022, additional funds were allocated to provide healthcare facilities with privately owned vehicles for home visit appointments;
• development of the Norilsk Production Association for Passenger Transport with a view to maintaining and expanding the existing regular passenger bus services in Norilsk;
• distribution of food certificates to low-income households as per the request of the city Mayor;
• purchase of equipment (appliances) and furniture for the kitchen of the Norilsk Orphanage;
• repairing and fitting out the residential premises at the disposal of the Fedorovsky Polar State University;
• repairing and fitting out the canteen of the Polytechnic College of the Fedorovsky Polar State University;
• developing the material, technical and academic potential of Norilsk’s educational institutions;
• improvement of the yard at 10 Leninsky Prospekt, which has an architectural heritage status;
• upgrading the hockey ice rink of the Arktika Sports and Recreation Centre and providing hockey teams with hockey uniforms and gear;
• building schoolchildren work teams, supporting their activities in the summer of 2022 and proceeding with preparations for the summer of 2023;
• repairing, upgrading and/or constructing the utilities infrastructure in Norilsk as part of the municipal Programme to Upgrade the Utilities Infrastructure and Improve Energy Efficiency;
• design work for the upgrade of the dilapidated main sewer along Ozernaya St. in the Oganer municipal area of Norilsk in order to ensure it can properly serve all the facilities planned for construction;
• projects and programmes implemented jointly with non-profit, public and religious organisations of Norilsk, and as part of the Secure City initiative;
• projects and programmes run in partnership with the Dudinka Administration, regional and federal public institutions operating in Taimyr, and non-profit organisations, as well support for the development of Tazovsky and Turukhansky districts, including:
  • construction of a prefabricated building in Dudinka for emergency rescue services, and the purchase of equipment and other inventory for the Dudinka Arctic Search and Rescue Unit;
  • preparing and carrying out activities to arrange summer employment opportunities for the youth in the Taimyrsky Dolgano-Nenetsky Municipal District;
  • organising and preparing for the international curling tournament in Dudinka;
  • organising and preparing for the festivities to mark the 85th anniversary of the Taimyr Museum of Local History and the 85th anniversary of the Dudinka port;
  • repairing the obelisk commemorating the 50th anniversary of Soviet power and the monument to Vladimir Lenin located on Dudinka’s Embankment Square;
  • purchase of sports gear and technical equipment for the Nosok Secondary Boarding School.

• a contest for professional architects and design companies to develop a concept for the renovation of the Krasnoyarsk State Opera and Ballet Theatre and the development of the adjacent territory. Nornickel acted as a financial partner of the contest, with its representatives sitting on the jury;
• purchasing new musical instruments for the Krasnoyarsk Academic Symphony Orchestra of Krasnoyarsk Regional Philharmonic. The Company allocated RUB 210 mln for this purpose in 2021–2022, making it possible to fully renew the set of musical instruments used by the region’s main orchestra;
• building the Yudinskaya Valley eco-park in Krasnoyarsk, a new recreational area in the vicinity of the Krasnoyarsk Region’s administrative centre, in the depth of a natural forest. The creation of the eco-park is being financed entirely through the Company’s charitable donations;
• development of a strategic master plan of the Krasnoyarsk metropolitan area until 2035. The master plan covers the territory of Krasnoyarsk, its suburbs and satellite towns.

In 2022, the Company continued implementing the cooperation agreement between the Government of the Murmansk Region and Nornickel to foster the development of the Murmansk Region and enhance its attractiveness for tourists and investors. Public-private and municipal-private partnership projects were chosen as the key instruments to implement the cooperation agreement.

As part of the agreement, in 2020–2022 Nornickel supports healthcare, culture, education and sports projects, as well as measures to improve the urban environment in Monchegorsk, Zapolyarny and Nickel.

To improve the well-being of residents and ensure its sustainable development, Nornickel participated in developing the Programme for Social and Economic Development of the Pechengsky Municipal District for 2021–2025. It envisages 50 initiatives across four main focus areas: new economy, social sector, housing and infrastructure upgrades, and comfortable urban environment.

Nornickel Group actively participates in the life of local communities across the municipalities of its operation in the Murmansk Region by implementing social, cultural, housing, and other development projects. In 2022, we completed the following initiatives:

• implementation of public space improvement projects in Monchegorsk (RUB 144.5 mln);
• drafting of design and estimate documents for the construction of healthcare facilities in the Murmansk Region (RUB 70 million);
• renovation of sports facilities in Monchegorsk (RUB 35 mln);
• implementation of social projects in the municipalities of the Pechengsky District (RUB 15 mln).

GRK Bystrinskoye strongly supports the development of the Trans-Baikal Territory by implementing social programmes and projects that contribute to the sustainable growth of the region of is operation.

In 2022, we continued implementing the Social and Economic Cooperation Agreement between the Trans-Baikal Territory Government and Nornickel.

Initiatives implemented as part of the Social and Economic Cooperation Agreement in 2022:

• implementation of priority culture, education, and utilities projects and initiatives in the Gazimuro-Zavodsky District;
• the 9th Trans-Baikal International Film Festival, Russian Boxing Championship, and Oleg Lundstrem Jazz Festival commemorating the 100th anniversary of the arrival of jazz in Russia (financed jointly with the Trans-Baikal Territory Government);
• drafting of research-based design documents for the restoration of the Church of the Assumption of the Blessed Virgin Mary in the village of Kalinino, Nerchinsky District, which was declared a federal cultural site in 2022;
• promoting children’s and youth sports to support athletes in achieving new levels of sports excellence:
  • financing the Rugby Federation of the Trans-Baikal Territory;
  • holding ice hockey tournaments, purchasing equipment and protective gear; procuring flooring for the gym of the BayRus Martial Arts Club;
  • repairs at the Molokovka summer recreation camp;
  • building of new multi-purpose sports grounds at the Trans-Baikal Teachers College, Trade and Culinary School, and the Chita Centre for Children without Parental Care;
• share-based financing of the Young Geologist club activities aimed at promoting the profession of geologist among children and teenagers.

Key results for 2022

Nornickel respects the rights of indigenous peoples which derive from their political, economic and social structures and from their cultures, spiritual traditions, histories and philosophies, especially their rights to their lands, territories and resources. The Company directs its efforts towards strengthening and developing neighbourly relations with indigenous minorities in the regions of operation:

• in the Taimyrsky Dolgano-Nenetsky Municipal District, the Company interacts with representatives of all the indigenous minorities, including Nenets, Dolgans, Nganasans, Enets and Evenks, and manages the relationship with their associations of Taimyr;
• on the Kola Peninsula, Nornickel works together with the Kola Sámi Association.

The Company has adopted the Indigenous Peoples’ Rights Policy that defines Nornickel’s key commitments in this aspect. The policy is based on principles and rules of international law, the Constitution, federal laws and international treaties of the Russian Federation.

Public discussions of projects with representatives of indigenous northern minorities

According to the international and Russian laws, making decisions to proceed with projected activities requires identifying and taking into account the opinions of stakeholders (including indigenous northern minorities whose interests can be potentially affected). To this end, environmental impact assessment (EIA)Order of the Ministry of Natural Resources No. 999 dated 1 December 2020 On Approving Requirements for Materials Used in Environmental Impact Assessment. is conducted to help prevent or mitigate environmental impact and associated social, economic and other implications.

EIA materials, including incoming comments and proposals, are added to the documents submitted for a state environmental review, which is a mandatory procedure in Russia to receive an official approval before a project is launched.

Activities of the Coordinating Council of MMC Norilsk Nickel for Interacting with Family (Tribal) Communities of Indigenous Northern Minorities GRI 2–26

In order to effectively interact with indigenous minorities of Taimyr, facilitate constructive dialogue based on the parties’ mutual respect, and offer targeted assistance to indigenous peoples, the Company has established and supports the Coordinating Council for Interacting with Family (Tribal) Communities of Indigenous Northern Minorities. The minorities, now consisting of 53 communities, have traditional livelihoods on the Taimyr Peninsula.

The Council secures the Company’s interaction with the communities, also with a focus on the Programme for Promoting Social and Economic Development of the Taimyrsky Dolgano-Nenetsky Municipal District in 2020–2024. Designed with the communities’ active and direct involvement, the Programme covers social, economic, cultural and linguistic impacts on indigenous minorities and factors in needs and requests, values and views, national traditions and culture of indigenous minorities of Taimyr. The Programme comprises more than 40 initiatives related to such focus areas of support for indigenous northern minorities as building homes and social facilities in Taimyr settlements, bringing affordable healthcare, developing education, culture, sports and tourism. The funding of the Programme totals RUB 2 bn.

The Company’s new format of direct and constructive dialogue with the communities of indigenous northern minorities has significantly contributed to expanding the scope of interaction and facilitated its steady development. This includes improving the infrastructure of settlements as well as enhancing the economy of the communities by launching new production operations, based on traditional practices of using natural resources. Such operations help process agricultural products, deliver higher added value and preserve historical traditions and cultural heritage.

Thus, in 2022, we additionally allocated more than RUB 100 mln for community development. As requested by the family (tribal) communities of Taimyr, in the summer of 2022, Nornickel purchased quad bikes, motor boats, Orionboat boats and an inflatable raft and handed them over to users. A family (tribal) community in Volochanka were provided with equipment for woodworking. We launched a large project to promote online education in eleven schools in Taimyr and are finalising both the design and cost estimate documents and the contractor selection process for constructing three rural community centres.

Key projects in support of indigenous northern minorities in 2022

All the initiatives run by Nornickel in the interests of indigenous minorities are joint activities which will be effective only if implemented through constant liaison and interaction with both indigenous minority communities and families based on a shared understanding and regular discussions, as well as inclusive participation.

In 2022, the Company invested RUB 196 mln in the Programme for Promoting Social and Economic Development of the Taimyrsky Dolgano-Nenetsky Municipal District in 2020–2024 and completed the following initiatives:

• purchasing five flats in Dudinka for orphaned indigenous children;
• constructing eight residential buildings in Volochanka and Ust-Avam;
• purchasing prefabricated buildings for first aid and obstetric facilities in Volochanka, Ust-Avam and Ust-Port (the construction to be completed in 2023);
• drafting design and estimate documents for a community centre in Nosok (the construction to commence in 2023);
• providing financial assistance to rent land plots from settlement administrations and providing these free of charge to those wishing to improve their housing conditions;
• delivering agricultural products (northern species of fish, reindeer meat) by air from settlements to retail chains in Norilsk;
• promoting online education in Taimyr and creating a single news channel in a messenger to broadcast news and videos;
• adding Volochanka, Ust-Avam, and Khantayskoye Ozero settlements to an ecotourism development project, establishing an ethnic visitor centre in Ust-Avam and teaching a hospitality course to several communities;
• introducing a Nganasan language nest in Novaya, a village of the Khatanga rural settlement; arranging the release of several linguistic and literature textbooks, in particular, the publication of 400 sets of the Treasuring up the Lessons from Ancestors book; designing educational routes on the history, culture and traditions of indigenous northern minorities;
• involving representatives of indigenous northern minorities in the congress, forums and festivals under the International Decade of Indigenous Languages.

The Company is not only consistent in honouring its commitments to the indigenous minorities of Taimyr. Our efforts go beyond the five-year programme and extend to ongoing support focused on the following initiatives:

• strengthening the infrastructure of indigenous northern minorities’ communities, and preparing them for the autumn-winter hunting and fishing season;
• making helicopter flights to transport passengers and cargoes to Taimyr settlements;
• promoting the Reindeer Herder’s Day and the Fisherman’s Day, the most socially important holidays of indigenous minorities, to preserve their national traditions and culture;
• carrying out design and survey at the Taimyr Interregional Hospital (as requested by the Taymyrsky Dolgano-Nenetsky Municipal District authorities);
• procuring computers and laptops for supplementary education based on online learning technologies for children from low-income families;
• partially repairing the gym in a sports centre in Dudinka and replacing ventilation systems in the Arctic leisure and cinema complex.

In 2022, Nornickel continued implementation of the Students of Taimyr programme launched by the Company in 2020. The programme focuses on organising studies at the Fedorovsky Polar State University for representatives of indigenous minorities living in the Taimyrsky Dolgano-Nenetsky Municipal District. There are currently 40 indigenous students studying at the university under this targeted programme. The Company covers the costs for tuition, accommodation in Norilsk while studying, and travel to and from the place of studies, and also pays a scholarship of RUB 20,000 (on a monthly basis to those studying on-campus and only during examination periods, requiring full-time presence in Norilsk, to those studying in a mixed mode).).

World of Taimyr project competition

In 2021–2022, Nornickel hosted the World of Taimyr, a dedicated project competition seeking to support socially important projects and promote sustainable development of territories historically inhabited by indigenous minorities of the peninsula. A special feature of the competition is the grant funding system which welcomes only the indigenous minorities of Taimyr and non-profit organisations implementing projects in the interests of indigenous peoples.

The winners embarked on the projects in June 2021 and delivered them by November 2022. The funding totalled RUB 46.1 mln covering 28 social projects. The success of the first project competition in 2021–2022 proves the initiative to be relevant and sought after.

Interaction with indigenous minorities in the Murmansk Region

Nornickel held prior task force consultations with representatives of indigenous minorities in Lovozero and Krasnoshchelye of the Murmansk Region to enable two-way communication between the Company and indigenous minorities, to inform representatives of local communities about the upcoming project on development of the Kolmozerskoye lithium deposit in the Murmansk Region and further processing of lithium feedstock. The communication involved the Sámi, Nenets and Komi as well as representatives of reindeer herding farms and independent experts in the rights of indigenous minorities.

The parties discussed the main approaches to ethnographic and sociological research, as Nornickel confirmed its intention to promptly collect and verify all possible information about entities, nature and scale of traditional livelihoods, sacred sites and burials, to identify the pool of persons potentially affected by the project and to make detailed maps of the territory. The research will involve leading research institutions and cooperation with indigenous minorities.

The Company’s planned approach to dealing with the indigenous northern minorities will help protect the rights and prioritise the interests of indigenous minorities in the region. There is a lot of work ahead of us on discussing the project details and reaching an agreement with the Sámi and the Nenets and Komi reindeer herders, who could potentially be affected by the project. The Company finds it important to factor in and minimise any and all potential adverse consequences of the project for the indigenous peoples of the region. Nornickel has extensive experience in supporting reindeer herding in Taimyr, and this knowledge and competencies will be also relevant in the Murmansk Region when implementing the lithium deposit development project.

At the moment, we are shaping up a system for interacting with indigenous northern minorities in the Murmansk Region at the sites of the Kola Division and Kola MMC. In particular, we have signed the Cooperation Agreement between the Kola Sámi Association of the Murmansk Region and PJSC MMC Norilsk Nickel. In 2022, according to the above agreement, the Company supported the Sámi people in developing their culture and preserving their traditional lifestyle relying on the best practice that proved effective on the Taimyr Peninsula. Nornickel, in particular, provided funding to prepare a single Sámi alphabet, publish pre-school Sámi language textbooks and arrange an open-air Sámi museum in Murmansk. The World of New Opportunities programme is also vital in supporting indigenous northern minorities. The programme focuses on implementing public projects and initiatives as well as fostering social competencies of local communities.

Norniсkel’s contribution to the Comprehensive Plan for Upgrading and Expanding Core Infrastructure national project

Relevant UN SDGs

Related federal projects

• Russia’s seaports;
• Northern Sea Route;
• Railway transport and transit transportation;
• Regional airports and routes;
• Internal water routes.

Key initiatives and focus areas

• Provision of year-round freight shipping services between seaports as well as transportation and handling of cargoes in the Arctic region;
• Operation and maintenance of railway infrastructure, with transport accessibility ensured in remote locations;
• Development of passenger transportation in the local regions of operation.

With our reliable state-of-the-art transport infrastructure, we are capable of meeting any freight logistics challenges and ensure continuity and sustainability of operations and well-being of local communities.

Our dry cargo fleet provides year-round freight shipping services between the Dudinka, Murmansk and Arkhangelsk sea ports while also covering other destinations and delivering socially important cargoes for the Norilsk Industrial District. In 2022, dry cargo transported by the Company’s fleet amounted to 1.9 mt, up 19% y-o-y.

The Yenisey tanker is used to bring in petroleum products to Taimyr and to take gas condensate, a by-product of gas extraction at the Pelyatkinskoye Field developed by Nornickel, out for exporting. This way we help reduce pollution from these by-products and improve the local environment.

In addition to sea shipments made by our own fleet of ARC-7 ice-class vessels, the Company involves a fleet of ARC-4/5 ice-class vessels to ship additional volumes of cargo as required for large investment projects (investment cargoes) in Taimyr. From November to May, ARC-4/5 ice-class sea vessels in the Yenisey, the Yenisey Bay and the Kara need to involve three icebreakers to lay the route (with a period of involvement of at least 5–7 years). For ARC-7 ice-class vessels, it is strategically sufficient to regularly involve one icebreaker for laying the route and maintaining ice channels in the Yenisey and the Yenisey Bay. This allows for keeping up the commercial speed of vessels.

In order to make sure that the Company’s strategic needs for ice-breaking services are covered, Nornickel signed a long-term charter contract for a Project 22220 serial nuclear icebreaker, with the engine shaft power of 60 MW, in 2022. (The contract is effective until 2041 and may be extended until 2051.) The Company has positive experience of involving icebreakers of this type based on a short-term contract in 2022.

After the end of lifetime and scheduled decommissioning of other icebreakers involved by the Company (until 2027–2029), the contracted Project 22220 icebreaker will be a guarantee of stable icebreaking support for the Company’s vessels and reliable transportation of the Company’s cargo.

MMC Norilsk Nickel’s divisions and Group companies handle cargo in the ports of Dudinka, Murmansk, Lesosibirsk and Krasnoyarsk.

Dudinka Port (Polar Transport Division) is the world’s only port flooded every year during spring high water and accessible by both sea and river vessels.

The port is the main cargo gate of Taimyr, which has no alternative available. In 2022, Polar Transport Division’s cargo traffic exceeded the average for the recent years by more than 25% (3.5 mt). Given the large investment projects underway in the Norilsk Industrial District, the cargo traffic is expected to continue growing, which will require an expansion of Dudinka Port. The Company has allocated over RUB 6 bn for the port facilities upgrade and ramp-up over the past four years.

YRSC takes an active part in providing municipal districts of the Krasnoyarsk Territory with socially important cargoes. During the short period of spring floods, it delivers fuels and lubricants, food and other goods to locations with limited transport accessibility on the Podkamennaya Tunguska and Nizhnyaya Tunguska rivers and in other areas, including Dikson, Russia’s northernmost settlement. Also, YRSC operates its own search and rescue fleet and takes part in emergency response missions on internal water routes of the Yenisey Basin.

Murmansk Transport Division is responsible for local shipments in the lower reaches of Yenisey, to the north of Dudinka Port. Dudinka Port receives agricultural products and delivers socially important cargoes for local residents, including indigenous peoples of the North, ships cargoes for the EMERCOM and transports residents of remote coastal areas.

Aviation

In March 2022, we closed the sale of 100% shares of NordStar Airlines, previously a subsidiary of MMC Norilsk Nickel, to the airline’s management pursuant to the Company’s decision to focus on the core business. With a view to maintaining reliable and uninterrupted air travel to and from the Norilsk Industrial District, key conditions of the transaction included ensuring seamless air travel to and from Norilsk, completing 100% of the flight programme, and following the terms of the agreement on the base air carrier of Norilsk Airport.

Railway transportation

Bystrinsky Transport Division is responsible for the entire cargo traffic of concentrates produced by the concentrator as well as the maintenance of the 227 km Naryn (Borzya) – Gazimursky Zavod railway line (Trans-Baikal Territory). In May 2022, the line saw a record high transportation volume of more than 300,000 t. Following the Company’s decision, the division became part of Trans-Baikal Division. The Company plans to ramp up the transportation volume and complete the construction of a railway line connecting to the tracks of the Borzya railway station, which will reduce the train dispatch time.

Nornickel’s contribution to Russia’s national projects

Tourism and Hospitality Industry national project

The Company’s activities in improving the well-being of local communities focus on developing human potential, meeting physical, social and spiritual needs of people in the regions of operation, and creating comfortable living conditions. We conduct surveys of local communities, study feedback and, when running activities in the regions of operation, take into account interests, views and preferences of local residents, as well as their history, culture, traditions, lifestyle and heritage.

In 2022, Nornickel’s key programmes aimed at improving the well-being of local communities included:

• World of New Opportunities charitable programme;
• Plant of Goodness corporate volunteering programme;

  For more details, please see the Corporate Volunteering section

• programmes to support sports and fitness.

  For more details, please see the Sports sponsorship and the Sporting and mass public events programme sections.

World of New Opportunities charitable programme GRI 203–1, 203–2

In order to create a favourable climate for sustainable development across the regions of its operation, the Company runs the World of New Opportunities charitable programme, with a focus on supporting and promoting public initiatives, developing social partnerships, new social technologies and soft skills among local communities.

In 2022, Nornickel ran online, offline and phygital activities as part of the programme using a World of New Opportunities application, online platforms and other tools. The online space allows you to promptly inform participants about events, take part in interactive events (quizzes, surveys), and facilitate communication in the community.

DEVELOP!

The projects and activities are implemented using an ecosystem of interdependent components: education – expert community – support for initiatives. A systemic approach to dealing with the local community brings about steadfast results such as advancing competencies, promoting new social technologies, supporting public initiatives, as well as rolling the experience out through national and regional expert platforms. Experts and the Company’s employees witness positive results of the created ecosystem.

We Are the City! social technologies forum

The city event brings together stakeholders to discuss mechanisms of addressing social issues in the regions of operation, analyse trends and best practices in charity and volunteer initiatives, and showcase successful solutions to social issues.

The key theme at the 8th Forum in 2022 was Sustainable cities amid turbulence. The Forum events (including talk shows, the Norilsk on the World Map futuristic hackathon, etc.) brought together experts and other participants, who discussed development prospects, trends and tendencies both for the regions and the Company, analysed professional and personal strategies and new technologies, presented projects of territory development (promoting unmanned technologies, navigation solutions and pit stops in transport logistics in Taimyr; constructing waste processing plants, etc.) and exchanged experience.

The forum was attended by more than 500 active citizens.

Socially Responsible Initiatives сompetition

To support public initiatives in the sustainable development of local communities, the Company stages the annual Socially Responsible Initiatives competition.

Since the project’s inception, the competition registered 2,885 applications, out of which 749 were selected for funding, with a total of RUB 822.5 mln allocated by the Company.

In 2022, Nornickel announced its support to 106 public benefit initiatives from Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District (Krasnoyarsk Territory), from Monchegorsk and the Pechengsky District (Murmansk Region), and from Chita and the Gazimuro-Zavodsky District (Trans-Baikal Territory). The pool of grants totalled RUB 154 mln. The projects will be implemented in 2023–2024.

The winners’ initiatives cover various facets of community life in the regions, such as opening an interactive children’s climbing wall, creating a state-of-the-art centre for environmental education and tourism, holding a robotics competition for children, running a career guidance club and helping navigate a professional journey, collecting and recycling waste and garbage in the tundra.

We Are the City! social engineering workshop

The workshop welcomes participants for a three-day training course to take them all the way through from generating an idea to implementing a project. The main impetus of the event is to demonstrate that every single person can make a difference for the quality of environment and the quality of life.

In 2022, the programme first included a Sustainable Development Goals and Local Community module to bring the 2030 Agenda home to the attendees. The experts drew the participants’ attention to three key components of sustainable development, i. e. environmental, social and governance aspects.

We Are the City! social engineering workshop:

• in Khatanga attracted 46 people from Khatanga and neighbouring settlements, more than 200 residents joined the campaign, and, most importantly, a team of change leaders came into being;
• in Monchegorsk, attracted 25 people, more than 300 residents joined the campaign.

World of Taimyr project competition

In 2020, the Company piloted the World of Taimyr project competition designed with a two-year cycle and aimed at supporting local initiatives and promoting sustainable development of northern territories historically inhabited by indigenous minorities of Taimyr.

The nominations cover various aspects of life such as developing traditional livelihoods, fostering online education, preserving and reviving languages and cultural heritage, identifying and supporting gifted children, etc.

The competition registered 84 applications, out of which 28 were selected for funding, with a total of RUB 46.1 mln in funding. The grants ended up going to six projects by family (tribal) communities, two projects by non-profit organisations, and 20 projects by municipal and public institutions.

The selected outstanding projects, unique in terms of the content and impact on the target group, include School of Drone Racing N 72, Legends of the Avam Tundra. Ust-Avam. Volochanka, Mission: Clean Shores, etc.

In December 2022, Nornickel announced another launch of the World of Taimyr project competition, with projects to be implemented in 2023–2024.

We Are the City! picnic

The main idea of We Are the City! picnic is to offer city residents a platform for communicating and bonding, promoting a healthy lifestyle, presenting social projects and initiatives to foster responsible consumption, and proposing environmental solutions in Norilsk, Monchegorsk, Zapolyarny and Chita.

In 2022, the project attracted more than 15,000 residents and included various activities such as sports grounds, creative workshops, flashmobs, etc. 415 people participated in the Walk to Do Good challenge, 4.5 t of recyclable materials were collected and handed over for processing, and 396 km of a marathon were covered by project participants in Chita.

Travel grant competition

The competition focuses on bringing in new social technologies and practices to the regions of the Company’s operation, implementing public initiatives, rolling out successful experience, enhancing professional competencies, strengthening social partnerships and interregional ties.

As an outcome of the competition, 81 people from Norilsk, Taimyr and the Murmansk Region received grants for a total of RUB 9.4 mln.

Teachers, schoolchildren, athletes, public figures and entrepreneurs had the opportunity to complete internships and advanced training courses in Moscow, St. Petersburg, Krasnoyarsk, Novosibirsk, Sochi, Penza, and Khanty-Mansiysk.

School Break educational project

The School Break educational project aims to facilitate communication among children, their parents, and teachers in a joint effort to improve the education process. In 2022, the project attracted 2,142 people from 13 localities and included the following initiatives:

• a series of offline educational modules for teachers and schoolchildren in remote areas (Potapovo, Ust-Port, Khatanga and Dudinka);
• interaction with graduates and young professionals to provide information and career guidance. The initiatives helped make school a fully-fledged element of the School-University-Business educational cluster;
• School Break.Urban marathon focused on introducing schoolchildren to practices of social design and change of the urban environment. During 88 days, 27 school teams were developing project ideas, visiting non-profit organisations, and communicating with corporate volunteers and the Company’s employees. The best marathon teams had an opportunity to take part in the summer academy;
• School Break.Urban Academy (summer course): during 10 days, 50 schoolchildren were gaining knowledge and experience in urbanism, social design and event production for local communities. The participants organised a My Thoughts Also Have a Face art festival for the residents of the city with the support of the City Children’s Library. The event attracted more than 200 residents of Monchegorsk, who had a choice of more than 10 creative sites to visit;
• field internship for 25 active and motivated teachers. The participants visited educational institutions, analysed the best educational practices in the regions in order to integrate new experience into their activities and develop method-based cases. The School Break educational project received recognition at the Graduate Award competition in The Best Programme for Working with Schoolchildren nomination and was included in the collection of best practices following an open competition run by the UN.

Mobile E-education learning platform in the Murmansk Region

In 2022, the Company extended support to 15 educational institutions in Monchegorsk and the Pechengsky District to join a project to deploy Mobile e-education, a digital educational platform aimed at in-depth study of selected subjects and preparation for exams and academic competitions. Based on the agreements with Administrations of Monchegorsk and the Pechengsky District, RUB 35.5 mln were allocated to purchase office equipment and supplies (computer classes), as well as licences for children and teachers. As noted by teachers, the digital platform makes a positive influence by increasing the schoolchildren’s interest in education due to the new method, facilitating the learning process through home assignments checked automatically, and assisting in the preparation for lessons and personalisation.

INVENT!

IMAKE engineering marathon

The key idea of the IMAKE marathon is to foster and promote engineering developments and projects, unlock research and creative potential in children and adolescents, as well as shape up a community of aspiring engineers and scientists. The project helps build a system to engage children in the process of research and invention, stimulating their interest and motivation to develop in this area.

In 2022, the marathon participants presented their scientific and engineering inventions at various meetings and online events. During the reporting period, the IMAKE CAMP shift in Vladivostok, the IMAKE engineering marathon (immersion courses and seminars in the cities of the Company’s operation, consultations, online protection of inventions and prototypes), IMAKE.Mayevka sessions (family invention), invention forums and festivals were held. The participants proposed such projects as A Device for Remelting Plastics, A Jacket with an Electric Power Generator, Equipment for Balancing Dry and Moist Air Airrin, etc.

More than 3,500 schoolchildren from the regions of the Company’s operations took part in the project activities.

IN’HUB: international forum of innovators

The international forum of innovators IN’HUB is a series of events for inventors and innovators (employees of industrial companies, students and postgraduates, schoolchildren and teenagers) which provides an opportunity for intersectoral interaction of inventors, industrial companies and investors for the joint development of future technologies.

The event was organised by the Ministry of Industry and Trade of the Russian Federation, the Government of the Novosibirsk Region and MMC Norilsk Nickel in collaboration with international and Russian partners such as International Federation of Inventors’ Associations (IFIA), the Centre for International Industrial Cooperation of UNIDO in the Russian Federation, Gorodissky & Partners, an intellectual property law company, etc.

In 2022, the IN’HUB project included the following initiatives:

• The inventive projects competition allows experienced and novice inventors with breakthrough ideas to present an innovative project to potential investors, get recommendations and advice from an expert jury, take part in a world-class exhibition, and receive recognition and support. In 2022, the winners were such projects as Interval Train Traffic Control System, Hybrid 5D Printer Stereotech, BIO Industrial Air Cooling System, etc.;
• The international forum of innovators IN’HUB 2022 was a three-day international exhibition. The agenda included the final round of the Inventive Projects Competition with an international jury, presentation of the finalists’ projects, a business and discussion programme, and master classes, public lectures and activities popularising invention. Among the forum participants there were individual inventors and industrial companies, national and regional innovation associations, representatives of small, medium and large businesses, venture funds, and international public organisations.

Applications for the inventive projects competition can be submitted at www.inhubforum.com, the portal which also renders assistance to inventors in patenting matters and provides access to educational programmes (webinars, lectures). In 2022, the IN’HUB marketplace was launched, with a virtual catalogue of projects by the finalists of the inventive projects competition. This service provides an opportunity for quick contact and organisation of business meetings with authors of innovations. In 2022, the competition registered 1,300 applications, of which 490 underwent a formal review, and 204 were presented at the Forum and posted on the marketplace. At the IN’HUB international forum, 30 foreign inventors from Switzerland, Austria, Israel, Egypt, Iran, Indonesia, Kazakhstan and Belarus presented their projects. Russian inventions and developments were presented by residents of 42 regions of the Russian Federation.

Arctic Wave festival of R&D discoveries and inventions

The Arctic Wave festival, organised by Nornickel in cooperation with the Administrations of Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District, Monchegorsk and the Murmansk Region, aims to cultivate interest in science and technology among the youth, supporting creative engineering ideas and innovative thinking in schoolchildren, and demonstrating the latest domestic and global scientific achievements.

It was first held in 2015 in Norilsk and Monchegorsk and after several years reappeared in 2022 in a new format. The Festival covered five cities of the Company’s operation, starting in Norilsk, then moving to Dudinka, visiting Nickel and Zapolyarny and ending in Monchegorsk. In total, the event lasted 20 days.

In 2022, the Festival brought together more than 4,000 people at various educational events such as shows, quests, lectures and engineering workshops, with eminent scientists and modern researchers as speakers. Schoolchildren and students were offered to:

• take a course at the Educational Hub (more than 1,000 schoolchildren and students from Norilsk and Monchegorsk acquired new knowledge and skills);
• visit Arctic Explorers quests, immersive scientific and educational events dedicated to the history of great Arctic discoverers and basic instructions on how to prepare for an Arctic expedition, developing the skills necessary for a scientist (more than 1,200 schoolchildren of 8–14 years of age gained the Arctic Explorer skills; the programme was held 40 times during the Festival);
• participate in a special programme for future engineers (more than 50 junior IMAKE legionnaires whose age did not let them go to the IMAKE Science Camp in Vladivostok had an opportunity to take an express course in invention in the IMAKE Laboratory in Norilsk and Monchegorsk;
• attend an evening lecture hall (with short popular science lectures and talks, scientists’ recommendations on mitigating COVID-19 consequences, and discussions about the latest technologies);
• see an interactive scientific show (chemical and physical experiments), a large-scale opening and closing ceremony of the festival (exhibition of unique technical inventions, lectures, a multimedia and laser show).

Preserving the environment in the Arctic and reflecting on the Great Arctic Dream (conquer, explore, master) were the main themes of the festival. Dedicated videos told the audience about the explorers developing this unusual territory, about the challenging present of the Arctic and an amazing future that can be created by scientists and innovators who are working on new solutions for the region.

ACT!

The ACT! initiatives and projects focus on developing the service economy, improving the business climate, and creating opportunities for the development of small and medium-sized businesses, including social entrepreneurship (social investments in small and medium-sized businesses to address local social problems).

Since 2014, Nornickel has funded 34 business projects for a total of over RUB 110.1 mln, helping create more than 156 new jobs. Over 32 business projects were launched by the graduates of the Social Entrepreneurship course and the intensive Business Projects Accelerator programme on their own. There are social entrepreneurship clubs up and running on a permanent basis in Norilsk and Monchegorsk.

Business Projects Accelerator

The Business Projects Accelerator is an acceleration programme for small businesses organised by Nornickel in partnership with the Centre for Regional Development and Business Technologies of the Russian Union of Industrialists and Entrepreneurs in the regions where Nornickel operates. The programme aims to boost entrepreneurial initiative and accelerate the development of small businesses and projects seeking to address social and environmental issues.

Participation in the accelerator enables small businesses and NGOs to scale up financially, boost performance in terms of achieving better qualitative and quantitative results, engage the most motivated employees in the development of new products, and use available resources more effectively, while also entering new markets, and improving the perception of their organisation.

The accelerator programme commenced in November 2021 with a kick-off workshop featuring training sessions in market analysis and product development, marketing and product promotion, business economics and finances, personal effectiveness of an entrepreneur, effective team building, and specifics of small-sized businesses in extreme northern conditions. Its curriculum includes a series of thematic workshops that will be held throughout its course (for example, training on drafting a presentation for the demo day and investment session).

Individual work of the participants implies the consolidation and application of the acquired knowledge and skills, as well as recommendations from mentors based on the results of the first month of the accelerator programme. As part of next active tracking the participants can use their newly gained experience to adjust their business project.

In April 2022, the annual investment session was held, featuring the final presentation of business projects by the programme participants. It brought together entrepreneurs and invited experts from Norilsk and the Murmansk Region. During the investment session, eight business projects were presented, claiming funding from Nornickel, and seven projects received support in the form of two-year interest-free loans for some RUB 17.4 mln.

The funds provided by the Company will be used towards business development in Norilsk, including the Shandy Candy eco-showroom, the purchase of training cars for the Autocourses No. 1 driving school, and the construction of the She-Bear Putorana Glamping site. Other initiatives that won the Company’s support are well-known city projects, including the Coffee Friends coffee shop and the DANCE PLACE choreography school. In Zapolyarny, the winning projects were a to-be-built SteamOK family bath and health house, and a new location of the northernmost barbershop.

Over the course of the Business Projects Accelerator training, the participants’ projects showed solid growth, with the number of their clients, revenue and profit up 1.2х, 1.3х and 1.4х, respectively, and the aggregate profit of all participating projects up by RUB 2 mln in absolute terms. Their planned KPI targets were also achieved.

A total of 74 entrepreneurs were enrolled in the Business Projects Accelerator sessions, with 35 participants from Norilsk, Dudinka, Monchegorsk, Zapolyarny and Nickel successfully completing the programme. For the first time in 2022, the accelerator welcomed startup project leaders and representatives of the non-profit sector among its participants.

Participant feedback

My project is about offering travellers comfortable accommodation on the unique Putoranа Plateau, which is not a mass tourism destination. To do this, I plan to purchase temporary accommodation units, in particular, summer glamping tents or yurts. These are quick-to-set-up structures that can be dismantled for the winter. I plan to offer Norilsk residents, city guests, travellers, bloggers and tourists individual tours costing around RUB 200,000, as well as weekend getaway programmes.

Leonid Kaushan,
She-Bear Putorana Glamping project owner

Thanks to our participation in the accelerator programme, we realised that we needed to act to get our products into retail chains, moving forward from the preliminary supply agreements that we already had. Further on, we expect to see our sales grow at a rate of 500 kg per month, and will use the loan we hope to receive from the Company to purchase packaging equipment.

Sergey Serbin,
Coffee Friends project owner

After completion of the accelerator programme, we launched two additional groups for children, with revenue and profit going up by 29%. Now we need funds to repair one more dance hall. Our school offers a comprehensive choreography programme, which includes eurhythmics, dancing games, physical training, and floor gymnastics.

Lilia Yakupova,
DANCE PLACE choreography school project owner

CREATE!

The CREATE! dimension focuses on creating infrastructure for advanced development of the service economy, improving the quality of life in the regions where the Company operates, and helping local businesses sell their products and services to external markets. These initiatives are implemented by territorial development institutions, including the Norilsk Development Agency, the Second School Centre for Community Initiatives in the Pechengsky District, and the Monchegorsk Development Agency.

Norilsk Development Agency

Since 2017, the Norilsk Development Agency, established by the Norilsk Municipality, Nornickel and Vladimir Potanin Foundation, has been promoting favourable conditions for sustainable social and economic development of Norilsk, creating a favourable investment climate, and implementing economic diversification and urban transformation projects.

The Norilsk Development Agency carries out its activities in cooperation with representatives of local communities and Nornickel as the city’s largest organisation, with a focus on:

• promoting investment and developing the business environment;
• fostering tourism;
• developing the urban environment;
• implementing social, cultural and educational projects.

In 2022, a total of 42 face-to-face meetings were held across all focus areas and were attended by 4,200 participants, including community and business representatives, the Company’s employees and experts. Over the past five years, more than 160 projects improving the well-being of Norilsk residents have been implemented by the Norilsk Development Agency or with its involvement.

Promoting investment

As at the end of 2022, the Norilsk Development Agency was supporting 64 investment projects, 22 of which have the Russian Arctic residency status. The supported projects include the construction of an Arctic data processing centre, the launch of a children’s entertainment centre, the opening of a bakery, the production of rubber coatings, and more.

Economy Projects in Cities, with participants discussing the creation of an Industrial Park featuring a building materials production cluster and an eco-industrial park in the Norilsk Industrial District. This is an example of investor coordination taking into account the priority development areas in Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District.

Development of the business environment

The development of small and medium-sized businesses helps strengthen social and economic well-being in Norilsk, provide incentives, opportunities, and conditions for doing business, inspire Norilsk residents to unlock their potential, shape the local management culture and business climate, and create an SME support platform powered by information technologies.

The following events to support entrepreneurial activity in Norilsk were held in 2022:

• public discussions held on the development of small and medium-sized businesses, attended by 675 people in person (including 52 representatives of the Company);
• training sessions and master classes held for 257 Norilsk entrepreneurs.

Fostering tourism

Efforts in this area are focused on promoting tourism and increasing the tourist flow in Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District.

During the reporting year, public discussions on tourism development issues were held, as well as other face-to-face events involving the city residents, that were attended by a total of 791 participants, including 212 representatives of the Company.

Developing the urban environment

In 2022, the Norilsk Development Agency, jointly with the Norilsk Administration, representatives of Nornickel, and the CENTRE Lab international urban laboratory, held an open international competition to create an architectural and space planning concept for Norilsk renovation until 2035 that drew 27 bids from across 13 countries.

Three consortia made of Russian and foreign architectural organisations, including the Higher School of Economics, State Research and Design Institute for Urban Development of the City of Moscow, and Krasnoyarskgrazhdanproyekt Territorial Institute of Urban Planning were shortlisted for the final round. Each finalist proposed solutions for making the city a better place to live, study and work in, improving the efficiency of pubic use of the city’s spaces, as well as landscaping, and enhancing transport and engineering infrastructure. The final stage of the competition resulted in Nornickel obtaining as much as three architectural concepts at once.

In addition, the following initiatives were completed in 2022 with a view to creating comfortable open urban spaces:

• a project to create an architectural and space planning concept for the development and improvement of public spaces along the Lake Dolgoye embankment;
• the first city-wide major cleanup of Lake Dolgoye, which brought together representatives of the city administration, Nornickel, sports communities, entrepreneurs, and active citizens (a total of more than 130 people);
• improvement of public lighting and development of a new, modern-look design for public transport in Norilsk;
• benchmarking of available roofing materials designed for various types of roofs, with the materials transferred for further use as part of repairs in municipal projects.

In 2022, public discussions were held on the development of urban infrastructure (including co-design) in Norilsk, in which 729 people participated in person (including 189 representatives of the Company).

Implementing social, cultural, and educational projects

In 2022, the Norilsk Development Agency, with the support of Nornickel and the administrations of Norilsk and the Taimyrsky Dolgano-Nenetsky Municipal District, organised Big Argish, the main ethnic festival of the Taimyr Peninsula. In the reporting year, it focused both on the nomadic and village lifestyle of the local indigenous peoples. Participants of several research expeditions, as well as representatives of the Nganasan, Evenk, Dolgan, Enets, and Nenets communities themselves, shared their experiences of village life on the vast expanse of the Taimyr tundra, as part of events in Norilsk and Dudinka. More than 10,500 guests had the opportunity to immerse themselves in the culture and way of life of the Taimyr ethnic groups, and explore their philosophy. The festival featured ten chums, two reindeer sled caravans, and a creative space with a large programme, including lectures, master classes, and performances.

As part of the School of Urban Moderation training course developed and held in 2022 for media representatives and public opinion leaders, seventeen Norilsk residents interested in learning the technology of urban moderation were trained to skilfully initiate and lead an urban dialogue. A three-month training programme offered them an opportunity to moderate meetings, workshops, discussions, and other activities (including five city-wide activities) under the online guidance of the course author.

In the field of education, 2022 saw the continued transformation of the Fedorovsky Polar State University. The architectural and space planning solutions for the new campus were developed, and a series of training events were held for the university managers and staff (22 people). Additionally, the concept for the Dolgikh Lyceum was developed and approved, with a range of training activities organised for the project team members.

Overall, the social and cultural events held in 2022 as part of the CREATE! dimension were attended by 1,783 people in person.

Second School Centre

Following the shutdown of smelting operations in the town of Nickel, the Company partnered with members of the local community and Russia’s Monotowns Development Fund to identify the key priorities of a strategy to support continued social and economic development in the Pechengsky District. They include creating new businesses based on ready-made business models, opening a universal industrial park, developing the service economy and tourism, and transforming the social and cultural environment.

The Second School Centre for Community Initiatives in the Pechengsky District was set up to integrate the efforts toward the implementation and support of the Programme for Social and Economic Development of the Pechengsky Municipal District for 2021–2025 and the Conceptual Framework for the Social and Economic Development of the Pechengsky District. The centre is located within a public space.

In addition to supporting the social and cultural transformation, the centre acts as an integrator for the development of economic diversification projects focused on business development, urban environment, tourism, as well as increasing the social activity of the population and shaping a new image of Nickel and the entire region.

Monchegorsk Development Agency

Monchegorsk Development Agency is a single centre for Monchegorsk development founded by Nornickel and the Monchegorsk Administration. Its mission is to create conditions conducive to the growth of Monchegorsk’s economy, with the aim of reducing its dependence on Nornickel as the city’s largest enterprise, improving the quality of life for local residents, and creating a comfortable urban environment.

Since 2021, the Agency has been focusing its activities on five key areas: tourism, urban environment, social and cultural development, business and investment, and branding.

Tourism

Urban environment

Social and cultural development

Social and cultural development

Business and investment

Branding

MDA Academy

One of the longest-standing projects of the Monchegorsk Development Agency, MDA Academy offers training programmes for the city residents helping them enhance existing or acquire new competencies across five areas.

It seeks to engage locals in projects that advance the city’s development, as well as boost their competencies, foster community spirit, and enhance service quality in the business and service economy. The MDA Academy offers training sessions, workshops and lectures led by experts and top coaches. At the end of the programme, a video archive of the training materials is created and uploaded on social media, being freely available to those interested.

By the end of 2022, over 40 training events and activities were delivered by ARM Academy, drawing more than 1,000 local participants. It plays a significant role in inspiring more Monchegorsk residents to pursue entrepreneurship and become self-employed.

Nornickel has an extensive experience in implementing sponsorship programmes, which is our long-standing commitment and an important part of the Company’s positioning both externally and internally.

Our approaches to sponsorship and its geographic coverage are aligned with the Company’s sustainable development strategy aimed at driving positive change and improving the quality of life for employees and the population across our footprint.

The key principles of managing sponsorship programmes are:

• leveraging sponsorship and partnership opportunities to improve the quality of corporate projects and events focused on sports and a healthy lifestyle;
• enhancing the Company’s image by benefitting from synergies between the sponsor and the sponsored brands and building long-term associative connections between the sponsor and the sponsorship projects;
• maximising the social impact of the existing partnerships with a focus on the Company’s geography in implementing sponsorship projects.

Nornickel is committed to promoting sports and a healthy lifestyle in the regions where it operates and across Russia. By implemented our dedicated comprehensive programmes and projects, we seek to contribute to the sustainable development of local communities and drive social and environmental innovations.

For several years, the Company has been a partner of the Russian Football Union, the Russian Futsal Association, the Russian Ice Hockey Federation, the Night Hockey League, the Russian Curling Federation, the Russian Chess Federation, and other associations and unions. Nornickel also owns the CSKA professional basketball club and the Norilsk Nickel futsal club.

In 2022, the Company continued with its sponsorship projects in partnership with leading sports federations and associations.

CSKA professional basketball club

For many years, Nornickel has been the owner and general sponsor of the CSKA basketball club, the champion of the EuroLeague and VTB United League in the 2018/2019 season, and one of the strongest sports brands in Russia. With the Company’s support since the 2002/2003 season, the club made it to the EuroLeague’s Final Four 17 times out of 18 and won it four times.

In collaboration with the CSKA Professional Basketball Club, the CSKA Junior project is being implemented, which features sports and training events and activities for young basketball players.

In 2023, the flagship Russian basketball club will celebrate its 100th anniversary. The jubilee festivities will involve both fans and athletes and be held with the active support of Nornickel.

Russian Ice Hockey Federation

The cooperation agreement between Nornickel and the Russian Ice Hockey Federation, which was signed in 2018 for a period of four years, has been extended for the 2022/2023 season. At this stage of cooperation, the Company has become an official partner of the Federation and the general partner of the Red Machine national ice hockey development programme.

Starting from the 2022/2023 season, Nornickel also acts as an official partner of the U25 young stars team made of hockey players under 25 who are playing in Russia. The project has been put together with the target of increasing the popularity of ice hockey in the country and boosting the pubic profile of Russian national youth and junior teams.

Another important dimension of this cooperation is the Polar Region Hockey social and sports programme implemented across the Polar geographies accommodating the Company’s production facilities. It is aimed at supporting sports schools and the training and professional development of coaches and referees, as well as holding youth tournaments and master classes for young hockey players.

Over 20 joint events have been held since the programme’s launch, including four children’s training camps in the Murmansk Region, eight training modules for coaches and referees from Norilsk, Dudinka and the Pechengsky District, two Nornickel Cup youth tournaments, and three sports and academic shifts in the Sirius Educational Centre.

As part of these events, over 30 coaches and referees from Norilsk and the Pechengsky District were trained and improved their professional qualifications. The programme helped boost the number of children engaged in hockey by 28% in Norilsk and 55% in the Pechengsky District. The children’s ice hockey teams across the Company’s regions improved their playing skills and were runners-up in regional competitions in the 2021/2022 season. More than 100 sets of sports gear, game and training equipment were provided to the sports schools.

In 2022, the Company continued to implement joint programmes and projects with the Russian Ice Hockey Federation, including sports and recreation camps in Volgograd, an intensive Ice Hockey sports programme at the Sirius Educational Centre, a training workshop for coaches and referees in Norilsk, the Nornickel Cup youth tournament for players under 13 years of age, and a children’s training camp in Zapolyarny.

Night Hockey League

The Company is the general partner of the Night Hockey League, implementing a number of large-scale joint projects aimed at developing and promoting amateur ice hockey. The Night Hockey League brings together thousands of ice hockey enthusiasts and is the largest amateur sports project both in Russia and globally. It drives the development of sports infrastructure, with the cities where the winners of the National Night Hockey League Teams’ Festival play seeing new ice rinks built every year.

An important part of Nornickel’s cooperation with the Night Hockey League are the annual charity hockey games in Norilsk, featuring world-renowned hockey stars. The funds raised from these games are matched by Nornickel and used to support the development of children’s sports schools in the region. Over the years of holding these charity games, more than RUB 16 mln has been raised.

Throughout the entire history of the Night Hockey League, the 2021/2022 season saw the largest number of participants, with 21,467 players from 1,151 teams, and 75 regions taking part.

By collaborating with the Night Hockey League, Nornickel is able to support the progressive development of local hockey teams participating in the League’s current tournament.

Football Union of Russia

Nornickel is a partner to the Russian Football Union’s development programmes, with the respective cooperation agreement signed for 2021–2023. A major element of the partnership is the Succession (“Nasha Smena”) talent pool programme aimed at supporting children’s coaches in the regions and helping them enhance their qualifications, as well as sourcing and nurturing young talent, which is a strategic priority for Russian football.

In 2022, the following events were held in partnership with the Russian Football Union:

• a football festival was organised in Monchegorsk, along with selection camps for young athletes. Football legends, who are also ambassadors of the Russian Football Union, led a series of master classes for young football players, participated in an open meeting with fans, and hosted a football marathon, in which over 350 young athletes took part;
• over 200 coaches from across Russia participated in a conference organised by the Russian Football Union. The event sought to help Russian children’s and youth football coaches improve their training qualifications and develop stronger professional skills and competencies. The conference participants discussed the updated system of coaching education, approaches and issues related to talent sourcing, interaction with parents, specifics of physical training, and principles of training mixed teams.

Norilsk Nickel Futsal Club

Nornickel is the owner and sponsor of the Norilsk Nickel Futsal Club, the only professional sports club in Norilsk and the only professional futsal club in the Krasnoyarsk Territory.

The team has repeatedly become the winner of the top, second and third prizes in the Russian Futsal Superleague and has won the Russian Cup.

In 2022, a second team made up of graduates of the sports school was set up. This helped the club finalise its own talent sourcing and training model as follows: children’s sports club -> sports school -> youth teams -> second team -> first team.

The club’s home arena – the Aika sports and recreation centre built with funding from Nornickel – is one of the best futsal venues in Russia ready to host matches of the highest level held under the auspices of UEFA. Since the opening of the Aika sports arena in 2020, it hosted over 40 official matches of the Russian Futsal Superleague and the Russian Cup, including 20 games in the 2021/2022 season, with the Norilsk Nickel Futsal Club wining the bronze medals of the Superleague.

Russian Futsal Association

For eight years, Nornickel has been one of the key partners of the Russian Futsal Association that hosts the Russian Futsal Superleague and the Russian Cup competitions among professional clubs. The association also supports children’s and youth tournaments.

A major element of the partnership between the Company and the Association is the Futsal to Polar Schools national project, which brings together 129 schools and more than 11,000 participants from the Krasnoyarsk and Trans-Baikal territories, as well as the Murmansk Region. The project promotes a comprehensive approach to holding futsal tournaments among schoolchildren by making futsal part of extracurricular physical education and recreational sport programmes of educational institutions. In addition to holding tournaments, the project seeks to provide participants with material and technical support while also offering training courses for physical education teachers to improve their qualifications.

Support for the development of curling in the Arctic

In 2022, Nornickel and the Russian Curling Federation joined forces to hold another annual stage of the Nornickel Curling Cup world tour, which welcomed winners and runners-up of the World Curling Championships and Olympic Games.

The programme of the competitions weekend included master classes for the curling school students, various activities at the Taimyr Ice Arena showcasing elements of the North’s indigenous culture, and spectacular opening and closing ceremonies directed by some the world’s most talented producers.

The local curling team’s successful performance in the regional tournaments and the growing number of local residents who have taken up curling are among the key social benefits resulting from the Company’s partnership with the Russian Curling Federation. Curling is an inclusive sport accessible to players from various social groups, including young people, seniors, and indigenous populations.