Social Responsibility
Social review
Nostrum is a proud community partner and strives to foster a culture of openness and engagement. We are pleased to be able to offer social and financial support to promote the wellbeing of local residents.
2020 key initiatives
The Company did not participate in charitable or social projects/events in 2020 or provide any sponsorship. However, Nostrum provides support on an as needed basis, such as lending special machinery in emergency situations in rural districts on occasions of extreme snow or infrastructure accidents and providing transport for rural children to participate in excursions to historical places within the region.
Payment to governments
Nostrum is committed to transparency in its business activities and payments to governments. We have a formal public relations and government relations procedure which regulates our relationships with the local community and with government, and details how and why we engage with various stakeholder groups. In 2020, a total of US$31.5 million was paid to governments by Nostrum and its subsidiary undertakings. We will report on 2021 payments to governments in the first half of 2022. For more details, please see the Governance page of our website.
Liquidation fund contribution
Under the terms of the Chinarevskoye PSA, Nostrum is building up liquidation funds of US$12.7 million to eliminate the consequences of operating activities, namely the conservation of the environment, the liquidation of drilled wells and the elimination of other facilities. These projects will be subject to confirmatory approval by the Company, the local community, and government. At the end of 2020, US$7.7 million was held on restricted cash accounts as liquidation fund deposits including amounts held in respect of Rostoshinskoye which was sold in 2021 (2019: US$7.6 million, which included deposits for the subsoil use agreements for Yuzhno-Gremyachenskoye and Darinskoye).
Anti-corruption and bribery policy
For more information view the Group’s Anti-corruption and bribery policy.
Spend with suppliers
We are committed to partnering with local companies and in 2020 we spent 73% of our supplier budget with Kazakh national suppliers.
Labour practices
There were no complaints filed against the Group for violation of labour practices in 2020. The details of the complaints system existing in the Group are set out in our Annual Report on pages 34 – 35 and 42.