Corruption risk management

Russian Railways’ corruption risk management is an integral part of the Company’s Risk Management and Internal Control System. It is based on the Guidelines for Corruption Risk ManagementRussian Railways’ Order No. 192/r dated 1 February 2021., Risk Management and Internal Control PolicyApproved by the Company’s Board of Directors (Minutes No. 15 dated 27 June 2024) and enforced by Russian Railways’ Order No. 1876/r dated 2 August 2024., and other documents.

Our business units conduct permanent, systematic corruption risk assessments with identified responsible personnel and multi‑level internal controls. Based on annual assessments, we created 2024 corruption risk registers, implemented mitigation plans, and updated our Consolidated Register of Corruption Risks.

Controlling regulatory compliance is central to our anti‑corruption work. In 2024, our units and controlled entities conducted 96 inspections of regional and structural units. Following inspections, we approved violation elimination plans, organised implementation oversight, and conducted training seminars for inspected unit employees.

We annually assess risk management and internal control system effectiveness through internal audits. Our auditors follow the Code of Ethics for Internal AuditorsRussian Railways’ Order No. 3034/r dated 25 December 2019., which establishes objectivity, independence, and no conflict of interest principles.

The Board of Directors’ Audit and Risk Committee regularly reviews monitoring outcomes for risk management and internal control process organisation as regards anti‑corruption performance and the effectiveness of relevant measures.

We conduct due diligence on companies intending to enter into contract with us. These procedures are mandatory for bidders competing in a tender or auction for a contract to supply goods, work or services for the Company’s needs. Our Security Department reviews every draft contract and conducts contractor reliability checks.

We include an anti‑corruption clause in contracts that requires regulatory compliance. If contractors commit corruption violations, we can terminate contracts unilaterally.