The Company’s position on corporate social responsibility (CSR) issues is based on the awareness that the key aspect of the Company’s CRS consists in providing for the reliable and uninterrupted supply of power to UNEG facilities. We have voluntary obligations before stakeholders, concerning the management of the Company’s impact on the environment, the public and the economy. We strive to fulfill these obligations in cooperation with stakeholders. The Company’s priorities in this respect include: sustainable development and implementation of the corporate strategy.

Since 2008, the Company has published annual reports on social responsibility and corporate sustainability, informing shareholders, investors, employees, partners, customers and local communities on the Company’s strategy for corporate social responsibility, and disclosing the efficiency of socially-significant corporate projects and their influence on the social and economic situation in the regions in which the Company operates. The Company’s social responsibility reports are prepared in accordance with disclosure standards for non-financial statements, and GRI (G3) Guidelines, the GRI’s industry energy protocol, and AA 1000 SES standard. Annual Report preparation involves discussions with stakeholders pertaining to the key topic of the Report and the collection of disclosure requests. Prior to publication, the text of the Report is discussed publicly in the form of hearings held either in absentia or in person.

The Company’s reports are registered in the National Registry for Corporate Non-Financial Reports, which is maintained by the Russian Union of Industrialists and Entrepreneurs (RUIE).

The Company’s 2011 Social Responsibility and Sustainability Report won “The Best Corporate Social Responsibility and Sustainable Development Report” category at the XV Annual Federal Annual Reports Contest.

The full text of the social responsibility and corporate sustainability reports of Federal Grid Company are available on the Company’s website at http://www.fsk-ees.ru/about/corporate_social_responsibility/

Stakeholder Relations

We are well aware of the importance of our business in a dynamically changing world, as well as of the impact that it has on the economy, the environment and social development, in general. As one of the leading energy companies, we consider stakeholder interactions to be a means to consolidate resources to resolve problems and to achieve common goals.

While interacting with stakeholders, we inform them about the Company’s key activities, sharing our views on events and facts. Understanding and analyzing key stakeholders’ expectations in regard to issues that are vital for the Company have formed the basis for upgrading corporate social responsibility processes.