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Tripartite Agreement on the Development of Housing Construction in Berezniki Signed

06.12.2013
Tripartite Agreement on the Development of Housing Construction in Berezniki Signed

On 5 December 2013 Uralkali (the “Company”; LSE: URKA) signed an agreement with the Government of the Perm Region and the Administration of the town of Berezniki providing for the financing, from 2013 to 2015, of the relocation of people living in uninhabitable housing facilities in Berezniki, including the construction of new infrastructure facilities and demolition of uninhabitable housing facilities.

In the agreement, the Company undertook to pay to the Perm Region and the town of Berezniki a total of RUB 2,539,684,100 (approx. USD 76.7 million), payable in installments by 1 August 2015. This amount includes approximately RUB 300 million that was paid by Uralkali in July 2013. A similar amount will be paid to Berezniki from the budget of the Perm Territory.

The agreement will be effected pursuant to the state programme on “Securing of quality housing and facilities for the citizens of the Perm Region” and is in line with the decisions adopted by the Governmental Commission on Prevention of the Impact of the Flooding of the Berezniki-1 mine of the Verkhnekamskoye potassium and magnesium field (Berezniki, Perm Region).

Viktor Belyakov, acting CEO of JSC Uralkali, said:

The signing of the agreement with the Government of the Perm Territory and the Administration of the Town of Berezniki is an important step in development of housing construction in the town where the majority of Uralkali employees were born, grown up and are living. The town will receive over RUB 5 billion by 25 December 2013. I am sure that these funds will enhance the housing in the town and give a new impulse to the development of Berezniki.

On 25 November 2013 Uralkali presented a master plan for the development of the Berezniki-Solikamsk agglomeration. The master plan, which was prepared by German architects, was among the first such plans in Russia. The development plan “Kama triad” contemplates the creation of a new modern model of urban development and the preservation of the distinct historical and architectural character of the towns of Berezniki, Solikamsk and Usolye.

Uralkali (www.uralkali.com) is one of the world’s largest potash producers with a share of about 20% in global potash production. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm Region, Russia). Uralkali employs ca.11,800 people (in the main production unit). Uralkali’s shares and GDRs are traded on the Moscow Exchange and LSE, respectively.

CORPORATE SOCIAL RESPONSIBLIITY POLICY OF OJSC "URALKALI"

OJSC "Uralkali" (OJSC "Uralkali", Company,) is one of the world’s leading potash producers. Our aim is to produce potash fertilizers to satisfy the worldwide demand for the high-quality food; we develop potash deposits in an efficient and responsible manner in order to ensure continuous development of the Company.

We follow the principles of social responsibility and we know how important it is to respect the interests of all our stakeholders (employees, partners, investors, shareholders, government authorities, public organizations, the media and the residents of the regions of Uralkalis corporate presence). We know that, as a large industrial company, we are expected to be reliable, open and stable. We aspire to fully meet these expectations in full by consistently implementing the strategy of sustainable development.

Planning our work for years ahead, we care about the well-being of the future generations and honor the obligations that we have undertaken voluntarily:

  • Securing the well-being and personal development of our employees;
  • Taking into account the unique social features of the regions where we work both when solving current problems and when making decisions regarding the Companys new projects;
  • Taking all necessary actions in order to reduce the negative impact on the safety, health and living conditions of our employees, partners and residents of the territories of Uralkalis corporate presence;
  • Maintaining an open dialogue with all the Companys stakeholders, regularly informing all interested parties of the situation in the Company and the status of the actions taken in order to reduce and eliminate environmental and social risks;
  • Taking into account the opinions of the stakeholders when making decisions in the sphere of industrial, environmental and social safety when realizing current and future projects.

Our social policy serves as a guide for each employee of OJSC "Uralkali" and it is reflected in all our programs and plans. We understand how important it is to fulfill our obligations in a full and timely way and we are committed to finding a balance between the interests of the Company, its employees and other stakeholders. We believe that this balance is the only true foundation for the harmonious growth and development of OJSC "Uralkali" and society as a whole.

URALKALIs Health, Safety and Environment Policy

OJSC “Uralkali” aims to be a leader in every aspect of its operations.

Health, safety and environment are key priorities for us and serve as a framework for every action and decision we make, irrespective of the type of activity.

We fully realise that no achievement or economic benefit may justify death of people or damage to human health and the environment of our planet. Each and every employee of OJSC Uralkali has the right to be provided with safe and comfortable conditions of labour. With that, the Company expects that every employee will strictly abide by safety regulations and will demonstrate responsible attitude towards own and fellow colleagues life and health. Only through maintaining a mutually responsible behaviour in health, safety and environment will we be able to achieve a greater level of development for our business.

Our goals are very simple and clear:

  • Zero accidents;
  • Zero industrial emergencies;
  • Reduction of environmental impact.

To achieve these goals and to ensure the maximum compliance with legal and regulatory requirements, we must create a health, safety and environment management system based on established standards.

An efficient management and continuous improvement of the corporate health and safety culture will enable us to gain significant progress in preventing and/or mitigating HSE-related issues.

We strongly believe that a successful implementation of these efforts will create conditions for the sustainable development of OJSC Uralkali.

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