Annual report 2023
Sustainable development

SHARED
OPPORTUNITY SPACE

Sustainable
development

Annual report 2023

004

Human capital is a critical resource
for UTLC ERA.

It represents the collective knowledge, skills, experience, and abilities of employees that contribute to the Company. The role of human capital is paramount in driving the success and competitiveness of the Company.

Principles of HR policy in UTLC ERA

  • 1

    Equal Opportunities

    All employees have equal opportunities for development and advancement within UTLC ERA.

  • 2

    Fairness

    Human resources policies are fair and transparent. Decisions related to hiring, promotion, dismissal, and remuneration of employees are based on objective criteria and procedures.

  • 3

    Personnel development

    UTLC ERA invests in the development of its employees through training, coaching, development programs, and opportunities for professional growth.

  • 4

    Flexibility

    HR policy is flexible and adaptive to the changing needs of the Company. It considers changes in the external environment, technological innovations, and changes in the Company’s business model.

  • 5

    Considering Employee Interests

    HR policies at UTLC ERA considers the interests and needs of employees, creating conditions to meet their professional and personal needs, ensuring their well-being and job satisfaction.

Personnel policy principles are the basic approaches that guide the Company in team building and personnel management.

Sustainable development policy

Политика в области устойчивого развития

The Company’s Corporate Social Responsibility (CSR) principles aim to promote sustainable development in local communities and environmental protection, while considering potential industry changes.

In line with the concept of social responsibility, the Company endeavors to promote CSR values to customers, partners, and other stakeholders.

351 million RUB

the amount of charitable assistance in Russia, Kazakhstan and Belarus, including the implementation of various social and environmental initiatives

Corporate culture

The Company has adopted and uses the Code of Corporate Ethics that outlines the norms and rules of collective behavior for our employees. Our Company’s values serve as the cornerstone of our work, shaping our interactions with customers, colleagues, partners, and shareholders.

Corporate values

  • Employees

    We prioritize our employees as our most valuable asset and core competitive advantage. Creating a conducive environment for the development of this valuable asset involves:

    • fostering professional and personal growth for each individual;
    • ensuring fair assessment of each employee’s contributions;
    • establishing a positive moral and psychological atmosphere and providing comfortable workspaces;
    • promoting the health and well-being of employees and their families.

    We appreciate the unique abilities of each team member and strive to cultivate a supportive environment for the realization and enhancement of their potential. We foster initiative and creativity, driving the continuous growth and development of our company.

  • Responsibility

    We take responsibility for our decisions, actions, and outcomes.

    In our work, we honor our commitments to business partners, employees, shareholders, government authorities, and other stakeholders.

    Our sense of responsibility goes beyond production processes to include our approach to personal health and the environment.

    We aim for efficient resource utilization, effective management, timely and precise task completion, high productivity, and the attainment of outstanding results.

  • Competencies

    We take pride in our team of highly skilled and talented employees who dedicate their knowledge, skills, and abilities to achieve our goals daily. Our commitment to continuous improvement drives us to engage in training, enhance our qualifications, and stay updated with the latest trends and innovations.

    It is expected that each employee makes informed decisions and provides competent advice within their expertise. We are confident that every team member significantly contributes to our company’s success and growth, propelling us to new achievements. We value the dedication and initiative shown by our colleagues, which strengthens and unites our team even further.

  • Reputation

    Our company’s reputation is its business card, and we hold it in high regard. Every employee plays a vital role in shaping and upholding a positive business reputation through their professionalism.

    Fairness and honesty are the foundation of our relationships with both internal and external customers. We prioritize delivering on our commitments without making empty promises. As such, we anticipate our customers and business partners to uphold these same principles.

  • Customer focus

    We are dedicated to fostering enduring partnerships with our clients.

    It is our priority that every client feels valued and confident. Therefore, we strive to understand the interests and needs of our partners and tailor our approach to each individual.

    We are committed to promptly and effectively addressing new challenges from our customers.

  • Innovative approach

    Our team is continuously seeking innovative approaches and solutions to address technological advancements and infrastructure development.

    Innovation encompasses all aspects of the Company’s operations, including marketing, HR policies, financial activities, IT technologies, and more. We promote employee initiatives, recognizing that fresh ideas not only enhance engagement in the work process and inspire colleagues, but also propel the Company towards new and exciting growth opportunities, securing its position as an industry leader.

Key ESG results of the reporting year

As a leading provider of trans-Eurasian rail container transportation, UTLC ERA is committed to setting a benchmark for its partners and customers as a successful and responsible company. Our guiding principles revolve around sustainable development and aligning with the best Russian and international practices

Charity and social responsibility 2023

BELARUS

  • Veterans

    • 2 million RUB

      Social assistance to non-working retirees

    • 1 million RUB

      Acquisition of medical supplies, office equipment, software

    • 1 million RUB

      Strengthening of material and technical base

  • Children

    • 2 million RUB

      Provision of material and technical base for special boarding school

    • 1 million RUB

      Provision of material and technical base for college of Railway Transport

    • 2 million RUB

      Provision of material and technical base for children’s health camp

  • Social initiatives

    • 100 million RUB

      Reconstruction of the building of ticket offices of Minsk-Passazhirsky station as a cultural and educational building

  • Ecology

    • 1.5 million RUB

      Reintroduction of large herbivore populations to restore floodplain meadow ecosystems

  • Total

    • 110.5 million RUB

RUSSIA

  • Veterans

    • 2 million RUB

      Donation to the Central Council of War and Labor Veterans of Russian Railway Transport

  • Children

    • 2 million RUB

      Providing assistance to those suffering from serious illnesses

    • 5 million RUB

      Charity program "The Book of Good Deeds"

  • Social initiatives

    • 23 million RUB

      Provision of material and technical base for the contribution to a healthy lifestyle of railway employees and retirees, as well as their family members

    • 10 million RUB

      Furnishing and equipping the gymnasium

    • 37 million RUB

      Equipping social infrastructure facilities

    • 10 million RUB

      Development of children’s and youth sports

    • 20 million RUB

      Cultural and educational project "Memory Train"

  • Ecology

    • 1.5 million RUB

      Increase in the numbers of the bison free living population in the Turmonsky Reserve in the Republic of North Ossetia — Alania

  • Total

    • 110.5 million RUB

KAZAKHSTAN

  • Veterans

    • 3 million RUB

      Support for railway veterans and retirees

  • Children

    • 3 million RUB

      Promotion "Let’s get children ready for school"

    • 0.8 million RUB

      Event "Mom, Dad, and I are a Sports Family"

    • 2.2 million RUB

      Organization of a mini football tournament and a marathon

  • Social initiatives

    • 100 million RUB

      Construction of social facility Railwaymen Park in Astana

  • Ecology

    • 1.5 million RUB

      Restoration of riparian forests in the Republic of Kazakhstan

  • Total

    • 110.5 million RUB

Human capital

By the end of 2023, the Company’s total workforce reached 178 employees, reflecting an 8.5% increase compared to the previous year. Within this workforce, there are 69 managers, 102 specialists, six officers, and one laborer. The growth in employee numbers is attributed to the expansion of cargo transportation both in volume and geography, as well as a rise in the customer base.

The success of the Company hinges on its human resources potential, with the HR policies geared towards striking a balance between recruitment and retention aligned with the Company’s requirements, regulations, and market conditions. These policies are an integral part of the Company’s overarching strategy, ensuring the availability of highly skilled personnel.

Key functions of the personnel policies encompass:

  • enhancing the Company’s appeal as an employer
  • implementing innovative strategies for workforce management
  • attracting and retaining qualified staff
  • fostering team stability
  • enabling career progression through staff rotation
  • formation of an effective talent pool and continuous personnel development
  • professional and personal development of young employees
  • reinforcing the corporate culture grounded in the Company’s core values

In 2023, the Company welcomed 28 new employees, reflecting a 3.7% year-on-year increase. Meanwhile, 14 employees were dismissed during this period, marking a 55.6% increase compared to 2022.

The personnel turnover rate (8.3%) is at the upper limit of the generally accepted turnover range (5–8%). The increase in this rate in 2023 can be attributed to a shift in the Company’s operational mode, with employees transitioning from remote access to office attendance.

178 employees

the Company’s total workforce by the end of 2023

+8.5 %

growth of the Company’s staff in 2023

Organizational structure of UTLC ERA as of January 1, 2024

The Company’s headcount, persons

Indicator 2021 2022 2023
Average headcount 133.4 152.9 168.3
Headcount at the end of the year, including: 146 164 178
— Co-workers 1 – –
— Hired 24 27 28
— Dismissed 8 9 14

Personnel structure by gender, persons

Indicator 2021 2022 2023
Males 69 77 87
Females 77 87 91
Total 146 164 178

UTLC ERA fosters a work environment based on equality of rights rejecting stereotypes and gender biases. The Company values human qualities such as flexibility, adaptability to change, organizational skills, and empathy. It promotes a favorable and inclusive workplace, with every employee empowered to thrive and succeed in their careers.

Personnel structure by category, persons

Indicator 2021 2022 2023
Managers 61 69 69
Specialists 79 88 102
Employees 5 6 6
Laborers 1 1 1
Total 146 164 178

A high percentage of management staff is a result of internal staff rotation and vertical career development programs. This motivational policy plays a key role in retaining talented employees.

Personnel structure by age, persons

Age 2021 2022 2023
21–30 years old 37 37 39
31–40 years old 50 61 56
41–50 years old 35 36 46
Over 50 years old 24 30 37
Total 146 164 178

The average age of the Company’s employees in 2023 is 40 years, demonstrating the workforce’s diversity. Experienced older employees share their knowledge with younger colleagues, who, in turn, bring fresh perspectives and innovative ideas that drive the Company’s growth.

Personnel structure by education, persons

Indicator 2021 2022 2023
Academic degree / academic title 2 3 3
Higher 138 154 168
Including second higher education 20 23 23
Secondary vocational 6 7 6
Basic general – – 1
Total 146 164 178

International rail transportation operations demand a high level of professionalism from employees. UTLC ERA carefully chooses skilled personnel with relevant work experience. In doing so, the Company actively recruits talented young professionals from specialized universities, such as RUT (MIIT) graduates, while senior students are provided with internship opportunities and paid internships, with potential for future employment with the Company.

94.4 %

of employees had higher education at the end of the reporting year

Training and development

Our employees undergo systematic training to enhance their professional skills.

The training programs encompassed:

  • instruction in essential areas such as risk management, business finance, payroll, and leases in compliance with FSAS 25/2018, and the administrative liability of legal entities;
  • practical courses and workshops focused on enhancing job-related skills, including occupational health and safety, safe work practices, and fire safety;
  • leadership and professional skills development programs, covering topics like marketing management, internal communications, and company sustainability;
  • courses on the use of software tools like Microsoft Excel and PowerPoint;
  • training sessions on legal aspects, including civil law contracts and coaching.

To enhance the professional development and personal growth of employees in 2023, the Company provided them with access to a digital library with 1,021 books downloaded in electronic and audio formats, equivalent to 2,553 academic hours of training.

The Company offers a popular corporate portal that serves as an effective platform for keeping employees informed about company updates, industry news, and facilitates training and knowledge sharing. Additionally, we introduced the IT solution "Opportunity Marketplace" enabling employees to contribute to educational programs and implement ideas for enhancing company processes.

Employee development remains among our top priorities, with ongoing efforts to expand and enhance training programs to support the professional and personal growth of each employee.

16 employees

took part in forums and conferences on corporate law, HR management, and finance

102 employees

were trained in occupational safety and first aid

158 employees

participated in training programs and professional development courses

marking a 17.9% increase compared to the previous year

Training and professional development

Indicator 2021 2022 2023
Conferences (seminars) 17 16 16
Professional development 54 52 40
Short-term courses 71 66 102
Total 142 134 158

The increase in the number of short-term courses is attributed to the training of employees in first aid for victims, as mandated by Section 4 of the Rules for Occupational Safety Training and Testing of Knowledge of Occupational Safety Requirements, approved by Resolution No. 2464 of the Government of the Russian Federation dated December 24, 2021.

In 2023, 158 employees took part in training programs, demonstrating the Company’s commitment to developing human resources and enhancing skills.

Non-financial motivation

As part of non-financial motivation, the Company recognizes outstanding employees with corporate awards, offers training, career development and job rotation opportunities, and facilitates participation in cross-functional internships.

Besides, the Company arranges corporate events and training sessions. In 2023, two employees successfully completed cross-functional internships.

Non-financial incentives also include providing a comfortable work environment, aiding in the integration of new employees, fostering a positive corporate culture, and upholding the Company’s reputation.

41 employees

were honored with corporate awards in 2023

Health and medical support

To maintain a healthy working environment, the Company has concluded new agreements for combined remote work with its employees since July 2023. These agreements allow employees to split their work time between the Moscow office and remote locations, with three days in the office and two days working remotely. The Company offers remote access to its information resources and provides employees with personal computers as needed.

New employees hired in 2023 were offered this combined work schedule having successfully completed their probationary period.

The Company provides its employees with access to leading medical services at advanced institutions in Moscow and the Moscow region. To support the well-being of the team, the voluntary medical insurance (VMI) program has been expanded significantly to include a wide range of services:

  • online therapy sessions;
  • appointment scheduling with specialized doctors via an app;
  • free psychological support for employees and their families;
  • around-the-clock access to resources promoting healthy lifestyles and team well-being;
  • option to purchase VMI medical policies for relatives at discounted rates;
  • arrangement of certificates for health resort treatments;
  • foreign travel insurance policies;
  • rehabilitation services for employees recovering from conditions like viral pneumonia, including COVID-19;
  • treatment for first-time diagnosed critical illnesses;
  • additional services under the VMI program.

The Company has initiated a comprehensive health assessment program through a survey involving 57 women and 44 men.

Additionally, the Company manages a health resort treatment program that oversees the booking and payment processes for stays at specialized recreational facilities

The Company not only values its employees but also extends its care to their children. Employees can receive compensation for their children’s vacations and health improvement. In 2023, seven employees utilized this benefit.

The Company operates a corporate sports development program designed to enhance the well-being of its personnel. This program includes organized classes in different fitness centers, the rental of a sports hall for football, and the installation of a table for table tennis in the office.

13 employees

participated in the program in 2023

60 THOUSAND rubles per year

the amount of compensation for each child is eligible to receive for vacation or health improvement expenses

Occupational health
and fire safety

The Company’s occupational health and fire safety system is based on the following key regulations:

  • Labor Code of the Russian Federation (as amended on December 25, 2023)

  • Federal Law of July 24, 1998, No. 125-FZ "On Compulsory Social Insurance against Industrial Accidents and Occupational Diseases" (as amended on December 25, 2023)

  • Federal Law No. 426-FZ of December 28, 2013 "On Special Assessment of Working Conditions" (as amended on July 24, 2023)

  • Resolution of the Government of the Russian Federation No. 2464 of December 24, 2021 "On the Procedure for Occupational Safety Training and Testing Knowledge of Occupational Safety Requirements" (together with "Rules for Occupational Safety Training and Testing Knowledge of Occupational Safety Requirements")

  • Federal Law of December 21, 1994, No. 69-FZ "On Fire Safety" (as amended on October 19, 2023)

  • Federal Law of March 30, 1999, No. 52-FZ "On the Social and Epidemiological Well-Being of the Population" (as amended on July 24, 2023)

  • Resolution of the Government of the Russian Federation No. 1479 of September 16, 2020 "On Approval of the Rules of Fire Prevention in the Russian Federation" (as amended on October 24, 2022)

In 2023, substantial changes were enacted that require the reform of the regulatory legal framework for labor protection. As a result, the Company has initiated the updating of the labor protection system in the following key areas.

The Company consistently enhances and updates its occupational health and safety procedures and documentation to ensure a safe working environment for all employees.

  • Development and implementation of an occupational health and safety management system (OHSMS)

    In 2023, the CEO approved and successfully implemented the OHSMS Regulation. This regulation clearly defines occupational health and safety policies and objectives, emphasizing the prioritization of safe working conditions and the continual improvement of procedures.

  • Conducting a special assessment of labor conditions

    In September 2023, an assessment of working conditions was conducted at 64 company workplaces, which did not uncover any potential hazards.

  • Training of personnel in occupational safety

    In line with the new regulations implemented at the start of 2023, over 100 employees received training on different facets of workplace safety.

  • Development and approval of internal regulations

    During the reporting period, there was active progress in updating internal rules and instructions, including briefing programs. This initiative aims to enhance the efficiency of organizational processes and ensure compliance with requirements.

Environmental program

UTLC ERA’s operations have a minimal impact on environmental systems. The Company closely monitors resource consumption and implements measures to optimize it.

Waste generation structure

Indicator Average consumption per year
Paper packages, pcs. 400–500
Cartridges, pcs. 28
Personal computers and MFDs, pcs. 25

The Company did not purchase any paper in 2023, as the inventory accumulated in 2022 was utilized.

Resource utilization

As part of the strategy to reduce resource utilization, the Company has implemented the following measures:

  • installation of energy-saving lighting sources;
  • replacement of power supplies and surge protectors at workstations to mitigate power losses and lower overall energy consumption;
  • maintenance of ventilation and air conditioning systems to optimize equipment operation and reduce energy consumption;
  • replacement of electric convectors with oil radiators for more efficient and cost-effective space heating;
  • installation of blinds on windows to minimize direct solar heating in summer, thereby decreasing the strain on air conditioning systems;
  • replacement of outdated water meters with modern models to enhance metering precision and optimize water usage.

Since September 2023, the Company’s employees have actively taken part in the "Good Paper" waste paper collection campaign. By recycling paper UTLC ERA supports the Stray Animal Aid Fund, with the proceeds from recycling being donated to the fund.

Consumption of basic resources in 2023

  • Power supply

    • 231,535 kw

      in kind

    • 1,555,4 THOUSAND RUB

      in monetary terms

  • Water supply

    • 1,846 М3

      in kind

    • 157,7 THOUSAND RUB

      in monetary terms

  • Heat consumption

    • 349 GCAL/M3

      in kind

    • 794,0 THOUSAND RUB

      in monetary terms

Biodiversity development projects

UTLC ERA actively participates in the #KeenOnGreen environmental initiative on an annual basis.

As an integration company with a parity approach in many matters, UTLC ERA participates in environmental projects in all three countries where shareholders are present, selecting one project in each of them and allocating the same budgets to each of the projects. Projects are generally implemented during the calendar year, but there are some that are implemented over a longer period of time. These projects are funded on an annual basis.

In each participating country, we select a partner organization that is officially authorized to engage in environmental restoration or conservation, and select the projects in its portfolio that are most interesting and close to the specifics of our business or the region where we operate. The list of projects and a fixed budget for their implementation is then submitted to the members of the Board of Directors for review and approval.

Implemented projects

Project Deadline Budget Description Outcome

Republic of Kazakhstan

Restoration of riparian forests

 From January 1 to October 31, 2023 1.5 million RUB UTLC ERA is involved in supporting a riparian forest restoration project that aims to combat forest fires and establish green spaces. This initiative includes the planting of diverse species of woody vegetation such as Populus diversifolia, Populus pruinosa, and Elaeagnus oxycarpa in small plots. Riparian forests are integral to the region’s ecosystem, offering habitats for numerous animal species and playing a significant role in the natural landscape. 13.6 thousand tree seedlings planted on more than 5.5 hectares

Russian Federation

Restoration of the bison population in the North Caucasus

 From January 1 to October 31, 2023 1.5 million RUB The European bison, known as Europe’s only wild bull, is at risk of extinction due to human activities such as habitat destruction and hunting. Efforts to recover the bison population have been ongoing since 1942. UTLC ERA has been supporting this conservation project for the second consecutive year. In 2023, various activities were conducted to boost the bison population, such as providing mineral supplementation, monitoring the groups of bison, and educating the public about the environment. Two salt marshes were constructed for feeding, 18 camera traps were installed for monitoring, and animal movements were analyzed. The bison population is anticipated to increase to 300–350 animals.

Republic of Belarus

Reproduction of large herbivores for restoration of floodplain meadow ecosystems

 From February 6 to January 31, 2024 1.5 million RUB Floodplain meadows in Europe are home to red-listed birds and other animals. However, in recent decades, many of these meadows have become overgrown with shrubs. To address this, a micro-population of Tarpan-like horses and aurochs-like cattle has been introduced in the Sporovsky Reserve. This initiative is contributing to the restoration of their habitats and the conservation of rare bird species. 22 aurochs-like cattle and 15 tarpan-like horses were relocated to help restore 1.5 hectares of floodplain meadows.

Climate agenda

Today, over half of international trade revolves around intermediate goods within global production and consumption chains. In the realm of global logistics, rail transportation stands out with a clear competitive edge due to its low environmental impact compared to various other modes of transport.

Given the heightened focus on environmental concerns by regulatory bodies in partner countries, the Company is actively seeking and implementing innovative solutions to reduce the carbon footprint of its logistics services.

As a leading rail container transportation operator in Eurasia, UTLC ERA plays a crucial role in facilitating the primary flow of cargo along the China—Europe—China route. The Company has introduced an online tool for tracking CO2 emissions, with detailed metrics accessible to customers on the portal www.index1520.com/en/. This platform also allows users to compare the environmental impact of different transportation modes for equivalent cargo volumes.

Volumes of greenhouse gas emissions by modes of transportation, t CO2 - equivalent for the volume of cargo transported in UTLC ERA services in the corresponding year for all directions as compared with other  modalities

The volume of direct CO2 emissions from UTLC ERA is calculated based on emissions along the Brest‑Dostyk route. On the basis of the Brest‑Dostyk route parameters, the Company calculates СО2 emissions per 1 TEU, G⁠GH⁠GTEU, which is multiplied by the total traffic volume in UTLC ERA’s services.

This value is calculated according to the formula:

To calculate total CO2 (WTW) emissions, internal company data for direct emissions (TTW) and methods and calculations provided by the EcoTransIT portal for indirect emissions (WTT) are used. This portal is recognized as the leading source of information on carbon footprint accounting and analysis, including assessment of the impacts of alternative modes of transport.

Procurement activities

UTLC ERA is dedicated to efficient procurement to meet the timely and complete satisfaction of goods, works, and services. Our primary objective is to establish ideal conditions for achieving exceptional standards of quality, reliability, and cost-effectiveness in procurement processes.

In its procurement activities the Company adheres strictly to the laws of the Russian Federation, including the Civil Code and Federal Law No. 135-FZ of July 26, 2006, "On Protection of Competition" along with other pertinent regulatory statutes. We ensure consistency in our procurement practices by abiding by relevant guidelines and regulations, including:

  • regulation on Procurement of Goods, Works, and Services for the Needs of JSC "UTLC ERA", approved by the decision of the Board of Directors of JSC "UTLC ERA" of January 27, 2022 (Minutes No. 47 of January 27, 2022) with amendments approved by the decision of the Board of Directors of JSC "UTLC ERA" (Minutes No. 54 of August 5, 2022, Minutes No. 63 of April 26, 2023 and Minutes No. 69 of October 25, 2023);
  • instruction on interaction between the Company’s structural units when procuring goods, works, and services, approved by General Director’s Order No. 63 of September 16, 2022;
  • other internal company directives that oversee the organization and execution of procurement processes.

Our procurement activities encompass meticulous planning, organization, and execution of procedures. Within our organizational framework, we facilitate seamless collaboration with procurement initiators to align the business and technical interests of the Company. To streamline these operations, we have developed the Instruction on Interaction of UTLC ERA’s Structural Units in Procurement of Goods, Works, and Services.

UTLC ERA’s Procurement Principles

  • Establishing the necessary conditions to ensure the Company’s timely and comprehensive fulfillment of its requirements for goods, services, and works, while maintaining essential benchmarks in terms of price, quality, and reliability
  • Efficient use of funds, while also maintaining transparency and promoting publicity in purchases
  • Information transparency of procurement
  • Equity, fairness, non-discrimination, and the absence of unreasonable restrictions on competition for procurement participants
  • Efficient and targeted allocation of funds for the purchase of goods, works, services, and measures to effectively reduce customer costs
  • Equal access to participation in procurement by avoiding setting disproportionate requirements for participants

The organization, coordination, and control of procurement activities and procedures are overseen by the Tender Commission, in collaboration with the Legal Department.

Procurement procedure system

Volume of purchases in 2022⁠–⁠2023, units

Measures taken to ensure a competitive environment

  • In 2023, the Company revised the Regulation on Procurement of Goods, Work, and Services for the Needs of UTLC ERA to eliminate restrictions on open competitive procedures
  • Procurement information, including the procurement plan, notices, and documentation, is published on the Company’s corporate website, ensuring accessibility to a broad audience
  • Competitive procurement is carried out electronically through electronic trading platforms
  • The Company actively search for invites potential suppliers, contractors, and performers to participate in procurements by sharing information on specialized websites
  • The Company ensures equal access to information and documentation essential for participating in competitive procedures, along with clear descriptions of key requirements and selection criteria for determining a winner
  • Winners in competitive procedures are chosen based on a thorough and objective evaluation conducted by the Tender Commission
  • Procurement decisions adhere strictly to established company policies and procedures that outline the roles and authority of procurement participants

Dynamics of savings during competitive procedures for 2022⁠–⁠2023, mln rub.

In 2023, the value of competitive purchases during the reporting period increased by RUB 1,510 million compared to 2022, reflecting significant investments in capital-intensive purchases and overall development. Additionally, savings rose by RUB 3.1 million.

The Company completed over 60 competitive procurements totaling RUB 1,782 million in 2023, a notable increase from more than 50 procurements valued at RUB 272 million in 2022.

13.6 %

savings increase in competitive procedures in 2023

Community development

Support for youth sports

UTLC ERA has a long-standing commitment to promoting youth sports. Since 2017, the Company has taken the lead in organizing the UTLC CUP football tournament. Building on this success, in 2019, UTLC ERA launched the inaugural UTLC ICE CUP youth hockey tournament.

This international youth project serves as a platform for talented athletes under the age of 14 to showcase their skills and capabilities. Through its social responsibility efforts, UTLC ERA has brought together nations across the Eurasian continent with a shared vision of Young Eurasian Stars. JSCo "RZD" is the project’s official partner.

International hockey tournament
UTLC ICE CUP — Astana

  • Six teams from Russia, Kazakhstan, and Belarus competed at the III International UTLC ICE CUP 2023 tournament
  • Throughout the five-day event, a total of 11 games were played, resulting in 105 goals being scored
  • Lokomotiv Yaroslavl won the tournament

15.5  million RUB

UTLC ERA’s sponsorship amount

International football
tournament UTLC CUP — Moscow

  • Eight teams from Russia, Belarus, Kazakhstan, Turkey, and Serbia gathered for the V International UTLC CUP 2023 tournament
  • During the five-day event, a total of 18 matches were played, resulting in 68 goals scored at both the Sapsan Arena and the RZD Arena
  • Crvena Zvezda from Serbia won the tournament, becoming a two-time UTLC CUP winner

20  million RUB

UTLC ERA’s sponsorship amount

Volunteering

Social responsibility is a fundamental aspect of the Company’s operations. Each year in the spring, employees and their families participate in Saturday clean-up days, improving hospitals’ grounds by planting trees and bushes.

In April 2023, a series of activities aimed at enhancing the sanitary, environmental, and aesthetic conditions of the N.A. Semashko Moscow Clinical Hospital site of JSC RZD-Medicine (located at 23 Stavropolskaya St.) took place. A total of 108 UTLC ERA employees were engaged in cleaning the area, planting various species of lilacs, jasmine, hydrangea, hosta, and other plants.

In 2023, a corporate animal volunteering project was launched at the initiative of the CEO and the Director for Organizational Development. The project partnered with the Stray Animals Fund, a leading organization that collaborates with animal shelters in Moscow and the Moscow region to facilitate trips for animal volunteers. To support this initiative, food and medicine collection boxes were placed in the office, and the collected items were donated to a shelter for dogs and cats in Nekrasovka.

Support for education

UTLC ERA is dedicated to enhancing education standards and expanding human resources within the transportation industry. We actively support specialized educational institutions in the transport sector and collaborate on the development of joint programs. Specifically, we have established partnership agreements with top universities such as RUT (MIIT) and the Moscow State Institute of International Relations (MGIMO). With our backing, the Institute of Management and Digital Technologies at RUT (MIIT) has developed unique software essential for creating a multi-functional interactive classroom where students can hone their transportation and logistics skills.

At MGIMO, a master’s program called "Ecosystem of International Trade" has been introduced to unify the efforts of business and academic professionals in fostering a skilled workforce crucial to international trade development while upholding sustainable principles. Faculty members deliver lectures, contribute to curriculum development, and assist in creating educational materials.

The Company welcomes students for practical training and organizes paid internships. Knowledgeable mentors guide students in applying their theoretical learnings in practical settings, enabling them to acquire valuable professional experience.

9  students

received practical training in the Company

5  students

received internships in the Company

next section

Corporate
governance