NLMK Group (LSE: NLMK) has joined the Russian Anti-Corruption Charter for Business
, an initiative by the Russian Union of Industrialists & Entrepreneurs.
Joining the Charter represents a strong statement of NLMK’s commitment to further promote best practices in transparent and responsible business and corporate governance in Russia, as applied by the Group. It is also testament to their contribution to the fight against corruption, as well as to developing standards for conducting business honestly and impartially, in close cooperation with the Russian authorities and other companies.
Commenting on this recent development, Oleg Bagrin, President of NLMK Group, said: "NLMK Group has always adhered to best business practices, both in Russia and abroad. This is attested to by the company’s high level of attractiveness to investors. It is also evidenced by the fact that the Group is a preferred supplier to leading international corporations that are known for selecting their suppliers very carefully. In turn, NLMK imposes the same requirements on its own suppliers. Joining the Charter demonstrates that NLMK Group intends to stand shoulder to shoulder with other Russian companies to fight corruption and, ultimately, improve the investment climate in the country."
About the Russian Anti-Corruption Charter for Business
The Russian Union of Industrialists and Entrepreneurs, of which NLMK Group is a member, was the first organization in Russia to propose that the business community work together to help fight corruption in the corporate sector. At its congress in February last year, the RUIE approved the basic principles of anti-corruption practice for member companies, drawing up a founding document, which became the Russian Anti-Corruption Charter for Business. The document was signed at the XI Investment Forum in Sochi in the presence of Prime Minister Dmitry Medvedev by the heads of the RUIE, the Chamber of Commerce and Industry of the Russian Federation, Delovaya Rossiya (Business Russia) and OPORA Russia. The document outlines a number of special anti-corruption programmes and practices to be undertaken by companies. These programmes and practices are not limited to internal use, but also apply to external relationships with business partners and the government. Among other measures, the Charter requires members to reject preferential treatment for certain companies, carry out procurement based on public tenders, agree to financial control, provide staff training and development, and grant assistance to law enforcement authorities.
NLMK is a vertically integrated steelmaking company with production facilities in Russia, Europe and the USA, and the largest steel producer in Russia. The Company’s crude steel capacity is over 17 million tonnes per year, including 16 million tonnes in Russia. In 2012, the Company generated USD 12.2 billion in revenue and USD 1.9 billion in EBITDA. NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS), and its global depositary shares on the London Stock Exchange.