Sustainable Development
Sustainable Development

4.1

Core principles and objectives of the HR policy

Human capital

Is among the key strategic factors that define a company’s success.

Therefore, UTLC ERA’s HR policy is focused on maintaining an optimal balance between updating and retaining staff, both numerically and qualitatively, and supporting employee development to meet the Company’s evolving needs.

the Company’s HR policy is established within the framework of applicable law and outlines the key areas of work with personnel: overall employee requirements, a focus on development and innovation, and adherence to corporate values.

Pull it out

Key functions of the HR policy:

Promoting UTLC ERA as an employer of choice

Optimizing staffing levels through innovative technical and technological solutions

Fostering team stability

Developing a strong talent pool and ensuring continuous human capital growth

Developing young specialists professionally and personally

Building a strong corporate culture aligned with UTLC ERA’s brand values

Attracting and retaining staff with the required qualifications

Providing opportunities for staff development and promotion

2,2%

182

EMPLOYEES

UTLC ERA’s staff headcount as of year - end 2024

UTLC ERA had 182 employees as of December 31, 2024, reflecting a 2.2% yearly growth (actual staff count: 179). Among them: 75 in management, 100 specialists, 6 administrative staff, and 1 manual worker.

39%

17

EMPLOYEES

were hired in 2024, UTLC ERA, 11 (or 39%) fewer than in 2023

1

13

EMPLOYEES

were terminated, which is one fewer compared to the previous year

7,14%

Staff turnover rate amounted to

the company's headcount, persons

Staff structure by category, persons

Staff structure by category, persons

Staff structure by age, persons

171

EMPLOYEE

have a higher education degree, and 22 hold a second degree

Among UTLC ERA employees, 171 have a higher education degree, and 22 hold a second degree. Three employees hold academic degrees or titles: two have a Candidate of Sciences (PhD equivalent), and one is an Associate Professor in criminal and civil law. Seven employees hold secondary vocational qualifications; one has basic general education.

41

AGE

average employee age in 2024

the average employee age in 2024 was 41, demonstrating staff balance. Experienced employees share their expertise with younger colleagues, who, in turn, support the continued development of UTLC ERA through innovation.

In 2024, a number of UTLC ERA’s local regulations were updated. the following documents have been reviewed and endorsed:

Employee remuneration policy: a new form of financial incentive for employees on commemorative occasions (awards) has been introduced, and an appendix titled “Bonus Payment Amounts for Company Employees by Types of Awards and Incentives” has been approved.

Regulations on the CEO’s incentives: the “Bonus Conditions” section was supplemented, the corrective coefficient scale for key performance indicators was revised, quarterly and annual KPIs were adjusted, and their targets were set. the methodology and formulas for calculating performance indicators, as well as data sources and the accounting system, have been updated.

Regulations on the incentives for the Board members: the “Bonus Conditions” section was supplemented, the corrective coefficient scale for key performance indicators was revised, quarterly and annual KPIs were adjusted, and their targets were set. the methodology and formulas for calculating performance indicators, as well as data sources and the accounting system, have been updated.

Regulations on the incentives for the "Management" group of employees: the “Bonus Conditions” section was supplemented, the corrective coefficient scale for key performance indicators was revised, quarterly and annual KPIs were adjusted, and their targets were set. the methodology and formulas for calculating performance indicators, as well as data sources and the accounting system, have been updated.

Regulations on the incentives for the “Production and Commercial” and “Business Support” groups of employees: the “Bonus Conditions” section was updated, and the adjustment scale for quarterly plan achievement was revised. Annual bonus conditions were revised, with new KPIs and their targets set. Methodology, formulas, data sources, and accounting system for annual financial performance indicators have been implemented.

Bonus policy for the Director of Internal Audit: updated “Bonus Conditions” section; quarterly and annual KPIs were revised, with target values established. the methodology and formulas for calculating performance indicators, as well as data sources and the accounting system, have been updated.

the Company's personnel adaptation policy has been updated: the Welcome Book has been revamped with a new corporate design; information on the Company’s strategic goal expanded; links to the corporate portal enhanced; a new section, “Your Opportunities,” added; and updates made to the electronic library details and availability of sports activities.

Commitment
to employee
well - being

Employees of UTLC ERA constitute the Company’s core competitive asset, with employee well - being firmly integrated into its corporate culture. the Company endeavors to foster an environment that fully supports the interests of its employees.

Our priorities include

the professional and personal development of each person employed by the Company

Cultivating a positive moral and psychological atmosphere along with comfortable working conditions

Fair assessment of employees' contributions and initiatives

the health and well - being of employees and their families

the Company delivers competitive compensation complemented by comprehensive social support and robust opportunities for continuous learning and professional development. the Company offers employees unrestricted access to psychological counseling services, without session limits. A total of 160 consultations were conducted in 2024.

Corporate events

Corporate events are a special means for UTLC ERA to embed corporate values, serve as an important component of corporate culture, and act as a tool for building an effective team.

Employees observe traditional holidays such as

February 23

March 8

the Company’s anniversary

Railway Workers’ Day

New Year

Health and medical support

UTLC ERA promotes a healthy office climate by adopting a hybrid working model, with employees working partially from the Company’s office - based workplace in Moscow three days per week and remotely two days.

the Company ensures access to its information resources and provisions individual personal computers as required. Employees recruited throughout 2024 adopted this working model following successful completion of their probation period.

the Company is committed to ensuring employees have access to premium medical services at the most progressive healthcare facilities across Moscow and the Moscow region. To maintain employee health and stable mental well - being, the Voluntary Medical Insurance program encompasses physician consultations, regular health screenings, dental services, and issuance of health resort certificates.

the Company has an active program delivering sanatorium and wellness treatment services. It governs the process of booking, assigning, and settling payments for wellness resort packages. In 2024, 21 employees utilized this benefit, marking a 61.5% increase with eight additional participants compared to the prior year. Furthermore, employees are eligible for a social guarantee providing reimbursement of up to 60,000 rubles per year per child for expenses related to children’s rest and health care. In 2024, eight employees took advantage of this option, marking a 14.3% increase from the previous year.

21

EMPLOYEES

participated in the sanatorium and spa treatment program

60 000

RUB per year

amount of reimbursement for a child’s rest
and wellness per child

UTLC ERA promotes the concept of corporate sports

UTLC ERA promotes the concept of corporate sports aimed at strengthening employee health. Fitness sessions are arranged at multiple centers, and a sports hall is made available for football matches.

In 2024, the employees’ team competed in two football tournaments, displaying a respectable level of training and securing prize - winning spots.

Moreover, a ping - pong table has been installed in the office, serving as a popular area for leisure and strengthening team spirit. In 2024, volleyball practices were launched, and the team achieved its first notable results in a tournament among transport and logistics sector companies.

corporate sports

UTLC ERA promotes the concept of corporate sports aimed at strengthening employee health.

Fitness

Football

volleyball

ping - pong

Supplementary Incentives

As supplementary incentives, the Company rewards top employees with honorary certificates, offers opportunities for training, career growth, and lateral rotation, and organizes corporate events and training sessions.

In 2024, eight UTLC ERA employees were recognized with honorary diplomas and financial incentives, including:

  • Three employees honored with the JSC Russian Railways’ Certificate of Honor for their outstanding contributions to the company’s growth and operational stability

  • Three employees recognized with Certificates of Honor from Belarusian Railway

  • Two employees formally recognized with commendations from the Chief of Belarusian Railway

Supplementary incentives drive the creation of a supportive work environment, strengthen the Company’s stature, and cultivate a healthy corporate culture.

Volunteering

Social responsibility is a fundamental aspect of the Company’s operations.

  • In spring 2024, employees joined forces with the Belarusian Railway Veterans Organization to engage in a community volunteer day focused on cleaning and enhancing the "Stalin Line" historical and cultural complex in Minsk.

  • In 2024, the Company sustained its commitment to supporting animal shelters for dogs and cats. Office employees collected over 50 kg of pet food, procured necessary medications for animal welfare, ensured their delivery to the shelter, and coordinated dog walking activities.

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 :

  • the Institute of Management and Digital Technologies at RUT (MIIT)

  • the Moscow State Institute of International Relations (MGIMO)

RUT MIIT

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 designed for students to enhance their skills in transport and logistics

Plekhanov Russian University of Economics

Thanks to the Society's support, the Plekhanov Russian University of Economics outfitted a dedicated laboratory to deepen students’ skills in logistics and transport.

MGIMO

MGIMO launched a master’s program focused on the “Ecosystem of International Trade.” This program seeks to align business and academic stakeholders to cultivate a skilled workforce in international trade and logistics, incorporating sustainability principles and the latest digital transformation trends. the employees deliver lectures and engage in the design and evaluation of educational curricula.

One employee has been enrolled in the master's program "Ecosystem of International Trade" specializing in "Trade Business," in accordance with the agreement between the Company and the Moscow State Institute of International Relations of the Ministry of Foreign Affairs of the Russian Federation (MGIMO), on a paid tuition basis. UTLC ERA provides partial compensation for educational expenses.

trainings

the Company hosts student practical trainings and facilitates paid apprenticeship opportunities. Knowledgeable mentors guide students in applying their theoretical learnings in practical settings, enabling them to acquire valuable professional experience. In 2024, UTLC ERA hosted 13 students for practical training, marking a 44.4% rise from 2023 with four additional participants. Eight people completed apprenticeships, compared to five the previous year (+60%).

44,4%

13

STUDENTS

completed practical training
at UTLC ERA

60%

8

PEOPLE

completed apprenticeships
at UTLC ERA

Training and development

In 2024, 136 employees received training and upgraded their qualifications, which is 14% lower than in 2023.

Training and professional development

To improve professional competencies and personal development in 2024, UTLC ERA made an electronic library available to employees. A total of 379 books were downloaded by employees, corresponding to 1,137 academic hours of study. Books are available in formats suitable for reading and listening on mobile devices and computers.

the Company’s corporate portal is widely used by employees as an efficient tool to keep them updated on Company developments, access the latest industry news, and facilitate training and knowledge exchange. We launched an IT solution called the "Opportunity Marketplace," enabling employees to get involved in designing training programs and driving innovations to improve our operations.

Investing in human capital continues to be a key priority for us, and we are committed to enhancing and broadening our training programs to support each employee’s professional and personal development.

To foster intellectual culture and strengthen team spirit, the employee team participated in the 2024 "What? Where? When?" Game Show, emerged victorious, and earned the well - deserved title of "the Most Intellectually Advanced Company in the Transport, Logistics, and Specialized Equipment Industry".

Areas of study

  • Professional executive assistant adapting to contemporary changes in management practices

  • Military registration and exemption of citizens

  • Professional coaching for career development experts

  • Risk management and internal control system of JSCo "RZD".
    "Level 1: Core concepts, strategies, and tools

  • Comprehensive approach to building negotiation skills in business

  • Microsoft Excel. Level 1. Using Excel spreadsheet software

  • Microsoft Excel. Level 2. Advanced features

  • Microsoft Excel. Level 3. Data analysis and visualization

  • 1C performance acceleration and optimization

  • Content marketing

  • Hardball negotiations: psychological arm wrestling

  • Personal data processing in the company

  • Online course: "Artificial Intelligence in HR

  • Practical Approaches and Tools for Human Resource Management

  • Information Technologies in Budgeting

  • Current Issues in Accounting and Taxation

  • Forum on Sustainable Development

  • First aid for the injured

  • Effective teamwork

  • Public speaking skills

Corporate culture

At UTLC ERA, the Corporate Code of Ethics sets the tone by outlining the key principles and behavioral expectations for employees, both individually and as a team.

the Company's values serve as the cornerstone of our work, shaping our interactions with customers, colleagues, partners, and shareholders.

UTLC ERA’s core corporate values

Company employees

Employees of UTLC ERA are our primary asset and main competitive advantage. Creating a conducive environment for the development of this valuable asset involves:

  • Professional and personal growth for each individual

  • Fair assessment of each employee's contribution

  • Establishing a positive moral and psychological atmosphere and providing comfortable workspaces

  • Sustaining the health and well - being of employees and their families

We appreciate the distinct talents of every employee and work to foster a positive environment that encourages the growth and fulfillment 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 everything we do, we uphold our commitments to business partners, employees, shareholders, government agencies, and all 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 skilled and gifted professionals! Every day, we put our knowledge and skills to work to accomplish the objectives set before us. 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

Reputation is the Company’s hallmark, and we treasure it deeply! 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

At first sight, our industry appears highly conservative, with strict standards, budgets, plans, and routes, making it seem like there’s no space for creativity — but that’s not the case. Our team is continuously seeking innovative approaches and solutions to address technological advancements and infrastructure development.

Innovation influences every facet of our Company’s work — from marketing and HR to finance and IT. We champion employee initiatives because lively ideas spark stronger involvement and motivation among the team and enable the Company to explore new, exciting paths while staying industry leaders.

4.2

Fire safety and labor protection

UTLC ERA’s health and fire safety management system is designed to meet all essential regulatory requirements:

  • the Labor Code of the Russian Federation (as amended on December 26, 2024)

  • Federal Law No. 69 - FZ "On Fire Safety" (as amended on August 8, 2024)

  • Federal Law No. 125 - FZ "On Mandatory Social Insurance against Industrial Accidents and Occupational Diseases" (as amended on May 29, 2024)

  • Federal Law No. 52 - FZ "On the Socio - Epidemiological Well - Being of the Population" (as amended on December 26, 2024)

  • Federal Law No. 123 - FZ "Technical Regulations on Fire Safety Requirements" (as amended on December 25, 2023)

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

  • Resolution of the Government of the Russian Federation No. 1479 "On Approval of Fire Safety Regulations in the Russian Federation" (as amended on March 30, 2023)

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

Under the current occupational health and safety management system at UTLC ERA and the 2024 occupational safety program, the Company carried out a number of initiatives with the goal of creating safe working environments.

Professional Risk Assessment

the Professional Risk Assessment (PRA) and Special Working Conditions Evaluation (SWCE) Commission, sanctioned by CEO's Order No. 24 dated March 26, 2024, and involving an independent expert organization, performed a comprehensive assessment of professional risk levels across all company jobs, including:

Formulated a provision on hazard identification and evaluation of professional risk levels (ratified by the CEO’s Order No. 40 dated 8 July 2024)

Performed an analysis of potential hazards emerging from both industrial and office activities

Created lists including identified and assessed risks, risk mitigation or control levels, and a register of discovered hazards

Prepared a professional risk assessment chart for UTLC ERA employees

Based on the results of the conducted work and submitted reports, the Territorial Office of the Social Fund of Russia for Moscow and the Moscow Region granted financial funding of 99,000 rubles for preventive actions aimed at reducing workplace injuries. the Professional Risk and Special Conditions Assessment Commission declared the working conditions acceptable at the workstations of newly hired employees and at those with updated job titles.

Employee Training

Pursuant to the occupational health and safety training and knowledge verification procedure approved by Government Resolution No. 2464 of December 24, 2021, and the training procedure for fire safety instruction programs defined by the Ministry of Emergency Situations Order No. 806 dated December 18, 2021, the following has been organized and carried out:

First aid instruction for the injured, with the engagement of a company offering worker safety training services -  for 74 employees

Initial and orientation workplace briefings with 16 new employees
and 11 interns

Repeat safety briefings for all employees of UTLC ERA

Fire safety

In 2024, by CEO's order No. 7 dated January 29, a responsible officer was assigned for carrying out fire safety instructions at UTLC ERA, and a program for joint introductory and initial fire safety training at the workplace was ratified.

In addition, the Company’s headquarters saw the removal of old evacuation management alarms and installation of eight new devices. Among the other key activities were the rerolling of fire hoses on new reels and the checking of fire valves in the internal fire water supply network. Also, throughout the year, routine periodic inspections of fire extinguishers in office premises were performed.

All office areas are equipped with essential primary fire extinguishing resources and are under the protection of an automatic fire alarm, alert, and evacuation control system.

4.3

Environmental protection

Environmental projects in 2024

the environmental initiatives are carried out equally with a total support fund of 4.5 million rubles allocated to beneficiaries in the UTLC ERA shareholder countries: Kazakhstan, Russia, and Belarus.

In 2024, the Company, together with foundations and nature reserves, implemented the following initiatives:

Recovery of Tugai forests in the Republic of Kazakhstan

Dates

February – December 2024

Budget

1.5 million rubles

UTLC ERA has been supporting the Tugai forest restoration project for three years to combat forest fires and establish a green mass. This ecosystem is essential to the region’s flora, providing habitat to many bird species, food for animals, and forming the natural landscape of the habitat.

the restoration uses three tree species native to the area: Populus diversifolia and Populus pruinosa (diverse - leaved and gray - leaved Turanga), Elaeagnus oxycarpa (sharp - fruited elaeagnus), and various willow species.

Results

15.1 thousand tree saplings planted on over 2.9 hectares

Conservation of Bowhead Whales in the Sea of Okhotsk

Dates

May – December 2024

Budget

1.5 million rubles

the bowhead whale population in the Sea of Okhotsk is decreasing and is at risk of extinction. Due to climate shifts and shortening ice seasons, the whales mostly spend summer in the shallow bays of the coldest Shantar region in the western Sea of Okhotsk, while a small number inhabit Shelikhov Bay in the northeast.

the core objective of the project is to develop and implement comprehensive species protection measures by identifying the exact causes of population decline and key habitats.

Up to now, only isolated and fragmented results of local bowhead whale studies in the Sea of Okhotsk exist. We know where they spend the summer, but the data isn’t enough. Scientists still lack knowledge of their winter habitats and migration routes. To develop and implement effective conservation actions, complete data on population status are needed, along with search expeditions and satellite tagging of whales. It is important to find out where whales winter and breed, and where their "birthing grounds" are located.

Results

UTLC ERA financed a three - day vessel charter for a research expedition that used innovative technology to place 10 tags on bowhead whales for tracking their movements and conducting further research to boost population numbers. This will allow for the collection of DNA samples to analyze the population’s status and to study new whale habitats. In addition, the chartering of a STERKH 1S aircraft was paid for to enable photo - identification and mapping of whales’ locations, evaluation of group size, number of calves, direction of movement, dominant behavior, responses to the aircraft, and species identification of all marine mammals spotted.

Enlargement of the living area of tarpanoid horses in the Naliboksky Republican Landscape Reserve and restoration of open habitats in the Western Berezina River floodplain

Date

February 2024 – March 2025

Budget

1.5 million rubles

the spread of weeds in Belarus’s forest and grassland ecosystems, leading to biodiversity loss, is a significant ecological issue in the country. Floodplain meadows are a foundational part of the region’s biosphere and provide habitats for red - listed birds, small mammals, and insects.

Centuries ago, floodplain meadows in Europe were kept open due to the presence of large herbivores like aurochs and tarpans. Yet in the last 30 to 40 years things have turned around: most floodplain meadows have become overgrown with shrubs and continue to do so.

That is why UTLC ERA is carrying out a joint project with the Naliboksky Republican Landscape Reserve to expand the habitat of the tarpanoid horse population and restore open habitats in the floodplain of the Western Berezina River. the project was initiated as early as 2023. Building on the initiative, in 2024 considerable new territories of floodplain meadows along the Western Berezina River in the reserve were included, aiding the ongoing restoration of the species’ open habitats and the enlargement of the tarpanoid horse’s range.

Results as of December 31, 2024

  • A total of 35 tarpanoid horses were caught and are now kept in enclosures to undergo required veterinary treatments

  • Diagnostic tests and examinations were carried out at the Belgosvetcenter, and the health status of all specimens is satisfactory

  • To enable further identification, tracking, and monitoring, all horses were fitted with microchips

Intensive efforts are being made to develop the required infrastructure at a new temporary holding site, which will house tarpanoid horses prior to their future release into rehabilitated areas.

Anticipated results

the exceptional use of tarpanoid horses in meadow ecosystem rehabilitation highlights the considerable promise of this environmental protection method in the Republic of Belarus.

the expansion of the species’ range and the restoration of 1.5 hectares of open meadow habitats.

Green Certificates

In 2024, UTLC ERA continued the tradition of awarding green certificates in the form of live bonsai trees to its 10 largest clients as a token of appreciation for choosing rail transport and symbolizing their joint contribution to environmental protection.

Thanks to the volumes handled by our service, the Company contributes to the ecology of the shareholder countries through which UTLC ERA’s route passes: Kazakhstan, Russia, and Belarus.

39,700

trees

were planted between 2022 and 2024

To calculate the green certificates, the Company applied a logic based on the distribution of the total number of trees planted annually relative to the total volume of all clients’ shipments throughout 2023, and then identified the top 10 clients based on this metric.

the tree symbolizes life on Earth, which is why a decorative miniature version of a regular tree — the bonsai — was chosen as the certificate representing care for the environment.

Use of energy resources

Consumption of basic resources in 2024

Measures to reduce resource use at UTLC ERA include

  • Installation of energy - saving lighting sources

  • Routine cleaning and servicing of ventilation and HVAC systems, which helps lower electricity usage by reducing the strain on air conditioners

  • Upgrading power units and surge filters at employee desks, which reduces energy loss and consequently cutting down electricity consumption

  • Conducting employee briefings on the mandatory shutdown of lighting, air conditioners, and heaters at the end of the workday

  • Maintenance and replacement of sololifts in sanitary facilities, enabling leak prevention and supporting efficient use of water and sewage systems

4.4

Procurement activities

UTLC ERA’s procurement operations comply with Federal Law No. 135 - FZ of July 26, 2006, "On Competition Protection," along with other regulatory legal documents of the Russian Federation.

To ensure compliance with standardized procurement procedures and implement uniform purchasing approaches, the Company relies on the following documents and regulations:

  • Regulations on purchasing goods, works, and services for the requirements of the Company, adopted by the UTLC ERA Board of Directors on January 27, 2022, with modifications as per Protocols No. 54 from August 5, 2022, and No. 63 from April 26, 2023

  • Instruction on interaction between the Company's structural units when procuring goods, works, and services, approved by CEO's Order No. 63 of September 16, 2022

  • Other by - laws of the Company governing the procurement organization and execution processes

Goals and principles of procurement activities

Promptness and thoroughness in fulfilling the Company's requirements

For products, works, and services, meeting the essential criteria of cost, quality, and dependability.

Effective utilization of monetary resources

Involves reaching the desired outcomes using the least amount of funds.

Transparency of procurements

Involves publishing information to provide clarity and access for all concerned parties.

Equal rights and justice

No discrimination or unwarranted limitations on competition; establishment of only reasonable and proportionate participant criteria.

Procurement structure

the UTLC ERA structure ensures effective coordination of management following a unified procedure that combines the Company's commercial and technical interests. To streamline procurement processes, local regulations have been created and enacted to address the interests of the Company and stakeholders in competitive procedures.

Members of the tender committee, chosen by the Company's Board, organize and oversee procurement activities, including planning and conducting procurement procedures, working jointly or with the participation of the Procurement and Legal Departments based on the tender committee’s rules.

Procurement procedure system

Competitive

  • Tender

  • Request for quotation

  • Bidding

  • Procurement by placing an offer

  • Competitive negotiations

Non - competitive

  • A sole supplier procurement

  • Small volume procurement

Simplified

  • Request for prices

2024 Procurement: Quantities and Savings

During the reporting period, UTLC ERA completed 65 competitive and simplified competitive procurements distributed as follows:

Relative cost savings ratio derived from competitive and simplified competitive procurement processes, %

Relative cost savings realized
from competitive procurement procedures

Relative cost savings genetared
by simlified competitive procurement procedures

Total value of simplified and competitive procurements for the year 2024

Cost savings (in relative terms) and growth in 2024 compared to 2023:

9,29%

competitive procedures

4,48%

simplified competitive procedures

>900

million RUB

Total value of competitive and simplified competitive procurements for 2024

Incentives for Competition

During the reporting period, the number of bids for competitive procedures reached 119, up from 99 in 2023, indicating an increase in competition within the Company’s procurement activities.

the number of bids received in competitive tenders (degree of competition)

Number of applications received in competitive procurement (level of competition)

Number of applications received in competitive procurement (level of competition)

This is facilitated by a number of measures implemented by UTLC ERA:

  • Information on procurements (such as the procurement plan, announcements, and documentation) is available on the Company’s official website utlc.com, accessible to an unlimited number of users

  • Competitive procedures are held electronically on electronic trading platforms in an open format

  • Sourcing and inviting potential suppliers, contractors, and executors to participation in the Company’s procurement activities

  • the Company ensures equal access to information and documentation essential for participating in competitive procedures. the documentation also provides a clear description 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 are made strictly in accordance with established Company policies and procedures that define the roles and authorities of procurement participants

4.5

Key ESG - results

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 organization. Our guiding principles revolve around sustainable development and aligning with the best Russian and international practices

440

million RUB

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

Charity and social responsibility

Veterans

  • Providing social aid to non - employed pensioners (Veterans Organization of the Belarusian Railway)

  • Purchase of medical supplies and office equipment for the City Outpatient Clinic No. 38

Children

  • Ensuring the material and technical support for the special boarding school (State Educational Institution ‘Zhdanovichy Special Boarding School’)

  • Improving the material and technical infrastructure of the Cultural and Sports Center (Unitary Enterprise “Minsk Branch of the Belarusian Railway”)

Ecology

Enlargement of the habitat territory for the tarpanoid horse population in the Naliboki protected area and recovery of open habitats in the floodplain of the Western Berezina River

Social initiatives

  • Conversion of the building of ticket office buildings at Minsk - Passazhirsky station into a cultural and educational facility

  • Implementing nationally important goals in physical education, sports, and patriotic training of the population (Presidential Sports Club)

  • Improvement of the material and technical resources of the children’s health camp “Lesnoye Ozero”, Health Center “Talko” (Unitary Enterprise “Minsk Branch of the Belarusian Railway”)

  • Renovation and upgrading of the material and technical resources of the Railway Workers’ House of Culture in Luninets Cultural and Sports Center (Unitary Enterprise “Baranovichi Branch of the Belarusian Railway”)

  • Renovation and upgrading of the material and technical resources of the "Issa" and "Ozyory" children's health camps at the "Magistralny" sanatorium (Unitary Enterprise “Baranovichi Branch of the Belarusian Railway”)

  • Purchase of a passenger bus for the Unitary Enterprise “Gomel Branch of the Belarusian Railway”

Veterans

Holding the "Silver Autumn" International Festival of Sports and Healthy Lifestyle (Charity Fund “Honor”)

Children

  • Offering support to children with severe medical conditions (Charity Fund “Line of Life”)

  • Charity Program "Book of Good Deeds" (Charity Fund “Transsoyuz”)

Ecology

Protection of bowhead whales in the Okhotsk Sea

Social initiatives

  • Donation to the Central Council of War and Labor Veterans of Russian Railway Transport (Charity Project “You Are Not Alone”)

  • Improvement and furnishing of social facilities within the South Ural and Volga Railway regions (Charity Fund “Honor”)

  • Development and support of youth football (Non - State Educational Institution “Locomotive Training Central”, FC “Arsenal”)

  • Fitness, health, and sports activities (Russian Physical Culture and Sports Society “Locomotive”)

  • Support and provision of technical resources to Russian - language schools in Kazakhstan (Public Fund “ADAL”)

  • Support for children, charity campaign "Bringing Hope to Children" (Charity Fund “Honor”)

Veterans

  • Procurement of 200 food baskets for railway transport veterans registered with the branches and subsidiaries of JSC "NC "KTZ", along with beneficiaries at the Astana hub, on the occasion of Nauryz Meyramy, Victory Day, Transport Workers’ Day, International Day of Older Persons, and New Year celebrations

  • Procurement of coal for pensioners and railway transport veterans for the heating season

  • Holding a roundtable with sector veterans within the framework of celebrating the 120th anniversary of Kazakhstan’s railroads

  • Holding a sports competition for sector veterans within the framework of the 120th anniversary of Kazakhstan’s railroads

  • Provision of gear for railway transport veterans participating in the "Silver Autumn" International Festival of Sports and Healthy Lifestyle (Kazakh Industry Trade Union of Railway, Automotive, Air, and Water Transport Workers)

Children

  • "Preparing Kids for School" Campaign

  • "Mom, Dad, and Me — a Family in Sports" Event

  • Hosting a futsal tournament and a marathon

Social initiatives

  • Support for and development of the "Barys" youth hockey club

  • Support for the Sports Shooting Federation

  • Promotion of the "Club of the Funny and Inventive" (KVN) among employees of JSC "NC "KTZ" (participation in KVN games organized by Samruk - Kazyna JSC)

  • Outfitting Zheleznodorozhnikov Park in Astana with recreational, sports, and children's playgrounds (Social Projects Fund)

Ecology

Restoration of riparian forests in the Republic of Kazakhstan

UTLC CUP

International Football Tournament – Moscow

Between August 13 and 18, 2024, Moscow hosted the 6th International UTLC CUP football tournament at the Sapsan Arena and RZD Arena, featuring eight teams from five countries: Russia, Serbia, Turkey, Belarus, and Kazakhstan

During the six - day tournament, 18 games took place, and a total of 51 goals were scored. Lokomotiv secured a 3 - 1 victory.

22

million rubles

UTLC ERA’s sponsorship contribution to the UTLC CUP tournament totals

UTLC ICE CUP

International Hockey Tournament – Astana

Between April 16 and 21, 2024, Astana hosted the 4th edition of the UTLC ICE CUP international youth hockey tournament, featuring top hockey players from Eurasian nations. Six teams from Russia, Kazakhstan, Belarus, Uzbekistan, and China took the ice.

Throughout the five - day event, a total of 11 games were played, resulting in 158 goals. For the third time in its history, Lokomotiv became the champion of the UTLC ICE CUP.

16

million rubles

UTLC ERA’s sponsorship contribution to the UTLC ICE CUP tournament totals