Contribution to the development of local communities
The Group’s key regions of operation in Russia
Norilsk
Dudinka
Monchegorsk
Pechengsky Municipal District, Murmansk Region (Zapolyarny)
Gazimuro‑Zavodsky District, Trans‑Baikal Territory
Cooperation with the authorities and civil society to ensure sustainable development and social stability in its regions of operation is a priority non‑core activity for Nornickel. To this end, the Company joins efforts with its stakeholders to address economic, social, and environmental matters. The Company fosters a favourable environment for regional development by implementing impactful infrastructure projects, makes a systemic contribution to socio‑economic progress, and helps improve living standards and promote a culture of giving.
The Company’s 2030 Socially Sustainable Development Strategy sets out its goals, KPIs, and relevant measures aimed at securing leadership in shaping the industry’s social agenda and delivering a new quality of life for local communities and indigenous peoples.
Key focus areas for local community development
Contribution to economic development
- Budget payments
- Supporting local employment
- Promoting stronger cooperation
- Operation of essential service providers within the Group (energy, transport)
Improving living standards in local communities
- Systematic implementation of charitable programmes
- Promotion of sports and culture
- Employee volunteering
- Support for vocational education institutions
Infrastructure development
- Housing construction
- Area improvements
- Bridge and road reconstruction
- Construction and redevelopment of educational, healthcare, sports, cultural, and entertainment facilities
- Rollout of high‑speed internet access in Norilsk
- Utility service efficiency improvements (Smart City initiative)
GRI 2-4
| Year/ Category | By accruals | By payments | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Charity | Social programmes and benefits for employees | SponsorshipListed as “Sponsorship (sports and social projects)” in Nornickel’s 2023 Sustainability Report. | Total | Payments under social investments and programmesListed as “Social investments and programmes, including investments in social infrastructure facilities” in Nornickel’s 2023 Sustainability Report. In 2024, the Company’s social spending amounted to RUB 12.0 billion (according to the consolidated financial statements), with charity expenses of RUB 14.0 billion and accruals and changes in estimates of liabilities under long-term agreements (social programmes) of RUB 4.2 billion (revenue). GRI 203-1 | Financing of subsidiary sports clubs | Charitable capitalReported under «Capital expenditures on infrastructure improvements» in Nornickel’s 2023 Sustainability Report. In 2024, the indicator was expanded to include capital investments in tourism and urban infrastructure. investmentsReported under “Capital expenditures on infrastructure improvements” in Nornickel’s 2023 Sustainability Report In 2024, the indicator was expanded to include capital investments in tourism and urban infrastructure. GRI 203-1 | Capital investments in infrastructureReported under “Capital expenditures on infrastructure improvements” in Nornickel’s 2023 Sustainability Report. GRI 203-1 | Charity GRI 203-1 | Total | |
| 2021 | 25.6 | 15.8 | 2.1 | 43.5 | 5.8 | 2.3 | 0.6 | 2.0 | 25.2 | 35.9 |
| 2022 | 21.4 | 15.6 | 1.8 | 38.8 | 7.5 | 2.2 | 2.4 | 1.0 | 21.7 | 34.8 |
| 2023 | 13.3 | 16.4 | 0.8 | 30.5 | 9.3 | 2.1 | 5.5 | 0.0 | 12.8 | 29.7 |
| 2024 | 14.0 | 16.5 | 0.5 | 30.9 | 9.0 | 2.4 | 2.1 | 0.1 | 14.0 | 27.6 |
Social and economic development of local communities
Budget payments
The changes in the amounts of tax and non‑tax payments in 2024 were due to lower revenue, resulting from a decline in average annual prices for nickel (–22%), palladium (–26%), and rhodium (–25%).
Tax revenues in the Company’s regions of operation were largely affected by the application of the Russian Ministry of Finance’s methodology for allocating income tax from former members of the consolidated taxpayer group (CTG) among the regions. Under this methodology, 60% of income tax payments by former CTG members in 2024 were pooled into a common “basket” and subsequently distributed across regions in proportion to the historical share of payments made by regional CTGs. Given Nornickel’s large share of total CTG contributions in prior years, income tax payments from former CTG members increased in 2024.
Supporting local employment
The Company supports employment in the regions where it operates by establishing in‑house recruitment centres – four such centres continued operations in 2024. In addition, the Company maintains open dialogue with institutions of higher, vocational, and additional education. This cooperation enables students to take internships with their future employer and align theoretical knowledge with practical experience. Nornickel also purchases educational literature and specialised equipment and contributes to the renovation of educational institution buildings and the construction of educational campuses in Norilsk and Chita. Nornickel managers actively engage with students, including through teaching at educational institutions. Nornickel also provides support to educational institutions in the Monchegorsk cluster.
The Company’s regions of operation have consistently demonstrated low unemployment rates, with 2024 showing either a decrease or no change from the previous year. The registered unemployment rate across Russia stood at 0.4% as of the end of December 2024, which is in line with the unemployment levels observed in the Company’s regions of operationSource: UIISS. .
| Region of operation | 2020 | 2021 | 2022 | 2023 | 2024 | Change 2024/2023 |
|---|---|---|---|---|---|---|
| Norilsk | 1.4 | 0.3 | 0.2 | 0.2 | 0.2 | |
| Taimyrsky Dolgano‑Nenetsky Municipal District | 1.2 | 0.7 | 0.5 | 0.5 | 0.4 | |
| Krasnoyarsk Territory | 3.5 | 0.8 | 0.8 | 0.7 | 0.6 | |
| Monchegorsk | 2.2 | 1.7 | 1.2 | 0.6 | 0.4 | |
| Zapolyarny | 1.9 | 1.6 | 0.8 | 0.5 | 0.3 | |
| Nikel | 3.0 | 2.2 | 1.4 | 0.7 | 0.7 | |
| Murmansk Region | 2.7 | 1.4 | 0.8 | 0.6 | 0.4 | |
| Trans‑Baikal Territory | 5.3 | 1.5 | 1.1 | 0.8 | 0.5 | |
Supporting local suppliers
To strengthen local economies across its footprint and optimise supply chains, Nornickel is building partnerships with local enterprises in its regions of operation through long‑term contracting. Company representatives maintain a regular cadence of meetings with local commercial organisations to update them on Nornickel’s activities, upcoming procurement plans, and terms of cooperation. In addition, Nornickel provides training for local suppliers on how to participate in tenders, register on the tender platform, and access information on ongoing procurement processes.
In 2024, the Company continued to implement its import substitution policy, focusing on sourcing products and services from Russian, and primarily local, suppliers. The share of procurement tenders for goods and services won by regional suppliers ranged from 17% to 46%.
| Indicators | 2022 | 2023 | 2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Krasnoyarsk Territory | Murmansk Region | Trans-Baikal Territory | Krasnoyarsk Territory | Murmansk Region | Trans-Baikal Territory | Krasnoyarsk Territory | Murmansk Region | Trans-Baikal Territory | |
| The Group’s spending on local suppliers, including: | 51.5 | 5.0 | 1.5 | 63.0 | 3.5 | 1.7 | 55.4 | 3.8 | 1.5 |
| 38.7 | 4.8 | 1.1 | 52.3 | 3.3 | 1.3 | 49.5 | 3.4 | 1.4 |
| 11.9 | 0.2 | 0.4 | 9.8 | 0.2 | 0.4 | 4.7 | 0.4 | 0.08 |
| 0.9 | — | — | 0.9 | — | 0.001 | 1.1 | — | 0.003 |
In 2024, Nornickel enterprises in the regions of operation spent RUB 62.4 billion on procurement, down 8.5% y‑o‑y. This change in the spending trend was due to the completion of the first stage of the Sulphur Project.
The Company engages with SMEs through both procurement processes and charitable programmes.
Its transparent procurement procedure in place ensures equal opportunities for both large enterprises and SME suppliers.
SMEs participate in procurement as equal market participants, and the volume of procurement from them continues to grow annually. For example, in the Polar Division, spending on local suppliers has surged over the past five years, rising from RUB 465 million in 2020 to RUB 8,273 million in 2024.
Since 2022, Nornickel and its partners have been running the GR Accelerator programme in the Company’s regions of operation. For three years, the accelerator programmes have been bringing together municipal officials, business community, non‑profit organisations, engaged citizens, and Company employees to work on infrastructure and investment projects.
In 2023–2024, the accelerator focused on implementing a municipal investment standard.
The programme results were highly praised by experts during the demo day. The Russian Ministry of Economic Development has recognised GR Accelerator practices as a benchmark for municipal support of investment projects.
The accelerator programme’s goal for 2024–2025 is to update the investment profiles of municipalities, improve the performance of investment commissioners in its regions of operation, and pilot support for new investment projects under updated profiles.
Nornickel’s contribution to the Efficient and Competitive Economy national project
Relevant UN SDGs
Related federal projects
Small and Medium‑Sized Businesses and Support of Individual Entrepreneurial Initiatives
Key initiatives and focus areas
Integration of local businesses into the Group’s production chain
Programme to promote the social and economic development of Taimyr
GR Accelerator programme
World of New Opportunities charitable programme
Improving transport connectivity for remote locations
Nornickel’s reliable transport infrastructure provides the business with raw and other materials, enables the timely delivery of finished products to customers, and serves as a foundation for the stable operation of Group enterprises and the well‑being of local communities across its footprint.
Transport and logistics assets
Maritime shipping is a highly regulated and strictly controlled industry. The Company’s vessels are intended for dry and liquid cargo transportation, with Nornickel ensuring compliance with all environmental safety requirements in this area.
For more details on the Group’s transport and logistics assets, please see Nornickel’s 2023 Sustainability Report.
Nornickel’s contribution to the Stable and Dynamic Economy national goal
Targets and objectives:
u) Increase the volume of international traffic by at least 1.5x from the 2021 level by 2030 [...]
Nornickel’s performance highlights and plans
Nornickel plans to increase cargo traffic along the Northern Sea Route from 1.6 mtpa to 3 mtpa by 2028–2030
Nornickel’s contribution to the Efficient Transport System national project
Relevant UN SDGs
Related federal projects
Development of the Great Northern Sea Route
Development of a Backbone Network of Seaports
Development of a Backbone Network of Inland Waterways
Development of a Backbone Network of Airfields
Development of a Backbone Railway Network
Key initiatives and focus areas
Provision of year‑round cargo shipping services between seaports as well as cargo transport and handling in the Arctic region
Operation and maintenance of rail infrastructure; improving transport connectivity for remote locations
Support for the development of passenger services in the Company’s regions of operation
Developing local social infrastructure
An accessible and comfortable urban environment for working and living in the regions of operation is one of Nornickel’s top priorities. In partnership with public authorities, the Company contributes to addressing a wide range of social and economic development objectives in Norilsk, Dudinka, Monchegorsk, and Zapolyarny.
When selecting social programmes or projects, Nornickel assesses their contribution to the social and economic development on both regional and local levels, as well as their relevance to addressing specific social issues. During the implementation phase, the effectiveness of initiatives is evaluated through continuous monitoring of any social changes that take place after the initiative’s launch; performance audits to check the alignment with goals and objectives, identify and correct any errors in a timely manner, and verify the reliability of collected data; and progress reviews of projects and programmes.
Economic projects should create jobs, develop infrastructure, promote education, and provide modern living standards and new opportunities for local communities.
Andrey Grachev, Vice President for Federal and Regional Programmes
Nornickel’s contribution to the Comfortable and Safe Living Environment national goal
Targets and objectives:
c) Renovate at least 20% of the housing stock by 2030 as compared to the 2019 level
d) Achieve a sustainable reduction of unsafe housing stock
f) Improve at least 30 thousand public spaces and implement no fewer than 1.6 thousand winning projects from the All‑Russian Competition of the Best Urban Environment Projects in small towns and historical settlements by 2030
h) Build and reconstruct (upgrade) at least 2 thousand drinking water supply and water treatment facilities by 2030
Nornickel’s performance highlights and plans
- Construction of new residential buildings in Norilsk by 2035
- Demolition of unsafe housing in Norilsk
- In 2021–2024, 1,086 families were provided with homes with financial support from the Company
- Improvement of public spaces in Norilsk, Monchegorsk, and other cities hosting the Company’s operations
- Design of a new water intake on the Norilskaya River
Nornickel’s contribution to the Infrastructure for Life national project
Relevant UN SDGs
Related federal projects
Housing
Creating a Comfortable Urban Environment
Infrastructure Development in Settlements
Key initiatives and focus areas
Implementation of the housing programmes Our Home / My Home and Your Home
For more details, please see the Social Support for Employees and Their Families section
Projects aimed at developing infrastructure in the regions of operation (including initiatives under the Comprehensive Plan for the Social and Economic Development of Norilsk and other local infrastructure projects)
Measures to improve reliability of the fibre‑optic communication line in Norilsk
For more details, please see the Digital Technology Development section
Projects to upgrade power and heat generation facilities, power grids, and heat networks
For more details, please see the Climate Change section
In 2024, Nornickel topped the Arctic development ranking of major companies operating in Arctic regions, which assesses their voluntary proactive contribution to the sustainable development of these regions. Nornickel was ranked in the Highest Level of Responsibility category with 41 points (the average score in the 2024 ranking was 22 points).
Krasnoyarsk Territory
Norilsk and the Taimyrsky Dolgano‑Nenetsky Municipal District
As part of efforts to create and enhance an accessible and comfortable urban environment for working and living in Norilsk, the Company continued to implement the Comprehensive Plan for the Social and Economic Development of Norilsk (the “Norilsk Renovation Plan” or the “Plan”) in 2024. The list of completed projects includes the renovation of the comprehensive social service centre, construction of a fire station in Oganer, upgrade of a preschool for 236 children, demolition of unsafe housing, and provision of social payments to citizens relocating from the Far North to purchase residential property. Other initiatives under the Plan remain in progress.
Activities under the Norilsk Renovation Plan in 2024
Alongside the Norilsk Renovation Plan, Nornickel is also funding additional initiatives identified through a resident survey in Norilsk. In 2024, Nornickel continued redeveloping a building to house the Tower, an all‑season public space, and renovating Fedorovsky Polar State University.
In addition, in 2021–2024, the Company financed various activities of the Norilsk City Administration in response to specific requests. It also supported urban clean‑up initiatives, including the demolition of unsafe buildings and the removal of pile caps left over from previous years.
Krasnoyarsk
In 2024, Nornickel continued supporting the Snow Class, a large‑scale social project for school students in grades 2–8 to train them in winter sports. Students are transported to the slope, provided with equipment, given a snack, and brought back afterwards. About 800 students have already participated in the project (almost twice as many as in the prior year). In 2024, they learned the basics of alpine skiing, and in early 2025 began practising snowboarding. The classes are given by professional instructors on a dedicated, safe learning slope equipped with conveyor belts.
Also in 2024, Bobrovy Log hosted the second youth forum on financial literacy, Healthy Finance in Bobrovy Log: Invest Smartly. Along with the basics of investing, financial market experts and investment analysts spoke about digital financial assets, their technologies and potential, and also paid special attention to cybersecurity. With about 200 students attending the event, the speaker presentations were also livestreamed to a broader audience, attracting approximately 5 thousand online viewers.
Murmansk Region
In 2023, the Government of the Murmansk Region and Nornickel signed a Cooperation Agreement envisaging a set of measures to improve the quality of life in Monchegorsk and the Pechengsky Municipal District in 2023–2025.
Trans‑Baikal Territory
In 2024, Nornickel and the Trans‑Baikal Territory signed an additional Cooperation Agreement, providing for a long‑term (until 2029) partnership between the Company and the region. Nornickel will allocate RUB 2.95 billion to support social‑impact activities implemented by the Government of the Trans‑Baikal Territory and regional authorities, including:
- cultural, sports, and social projects
- youth hockey promotion
- improvement of public spaces
- volunteering and patriotic education
- projects to develop the Gazimuro‑Zavodsky Municipal District.
In addition, the Company plans to contribute RUB 800 million towards the construction of the Transbaikal State University campus, subject to co‑financing by the government and other investors.
In 2024, the Trans‑Baikal Division:
- jointly with the Trans‑Baikal Development Fund, continued the project to preserve the Church of the Dormition of the Blessed Virgin Mary in the village of Kalinino, Nerchinsky District
- continued building the School – University – Bystra ecosystem of continuous development for young talent. A total of 17.9 thousand young people took part in related events, including the Mining Classes, Sirius. Summer, Nornickel’s City of Occupations, and Bystrinsky GOK’s Generation FAST projects.
Other Russian regions
Zavidovo
Nornickel runs corporate housing programmes in the Konakovsky District of the Tver Region, an area with strong social and economic potential and scenic natural beauty. Over the past 10 years, Nornickel has supported a range of development projects in Zavidovo, such as modern residential quarters with kindergartens, a polyclinic, a forest park, grocery supermarkets, and a modern leisure centre with a cinema and a Multifunctional Public Service Centre – effectively creating the necessary infrastructure for employees to enjoy a comfortable life after retiring from the Company. Flats in Zavidovo are distributed under a housing programme that covers several dozen Group entities. To date, around 3 thousand employees have received housing in Zavidovo under this programme. Nornickel prioritises the development of social infrastructure in the Zavidovo area to improve the quality of life for residents.
Nornickel-sponsored social-impact projects in the Konakovsky District, Tver Region
A school renovation project, including furniture and equipment purchases, participation in the construction of school buildings, installation of utility systems, and improvements of the surrounding area
Construction and equipping of a healthcare unit
Participation in the construction of a polyclinic, installation of utility systems, and procurement of essential equipment and machinery
Design and survey works for a planned fitness and health centre
Purchase of a CT scanner for a specialised medical centre
Nashe Zavidovo Endowment Fund
The Development endowment was established to use income from the placement of its capital to support non‑profit organisations, including non‑governmental organisations and public and municipal budgetary institutions (excluding state corporations, political parties, and social movements), active in the Tver Region in the areas of education, science, healthcare, culture, physical culture and sports (excluding professional sports), arts, social assistance (support), and environmental protection.
