Contribution to local communities

GRI 3-3, 203-1, 203-2

Russian Railways is the largest taxpayer to local treasuries and one of Russia’s biggest employers. The Company is also the largest consumer of goods produced by Russian businesses, with its orders providing employment to an average of 0.1–1.5% of labour force in the Russian regions hosting transport engineering hubs.

Russian Railways is responsible for long‑haul and suburban passenger traffic and freight traffic (including such critical transportation operations as the Northern Supply Haul and shipment of commodities from the regions producing raw materials). The Company also maintains local social infrastructure, effectively acting in the capacity of a government agency. In some regions, for example, Archangelsk, Amur, and Tomsk, there are destinations where railway remains the only available type of transportation.

The Company and its subsidiaries are the main providers of suburban passenger transportation in Russia. They are integrating suburban transport into urban transport systems and actively developing multi‑modal routes and transport interchange hubs to enhance the mobility of urban population.

Russian Railways’ investment programme for 2024Approved by the Company’s Board of Directors (Minutes No. 7 dated 26 December 2024). focuses on developing and upgrading the railway infrastructure and promoting high‑speed and ultra high‑speed railway transportation.

Improving the quality of life in the regions of operation

To align with the country’s national development goals and advance our strategic objectives regarding social welfare of employees and their families, as well as non‑employed retirees, Russian Railways collaborates with regional governments to execute a joint programme aimed at community development, particularly in areas where our employees reside. The plan is designed to improve the quality of life and safety in local communities. It is of particular relevance for inhabited areas located far away from administrative capitals.

The plan sets out 418 initiatives to be implemented in 2021–2035 in 75 localities from 35 Russian regions. These initiatives focus on improvements in culture, sports, healthcare, education, and social environment.

Some 242 initiatives are expected to be financed by the governments of Russian regions, with 142 funded by the Company, including 25 on co‑financing terms and nine financed by third parties.

In 2024, 78 initiatives were completed, of which 44 were funded by Russian Railways. These included:

• improvement of the central square and park at Dipkun, Amur Region;
• revitalisation of the Zarechny Park of Culture and Leisure in Abdulino, Orenburg Region;
• renovation of secondary school No. 1 in Mogocha, Trans‑Baikal Territory;
• overhaul of school No. 15 at Kuloy, Arkhangelsk Region;
• renovation of the Bagulnik rural community centre at Kuanda, Trans‑Baikal Territory.

The plan’s implementation on the railways is coordinated by working groups chaired by the first deputy heads of the railways and also involving relevant heads of the railway governance body, structural units of branches, and representatives of Russian regions.

In addition to the community development plan with a focus on local communities where Russian Railways’ employees live, the Company is implementing three other target programmes to develop social infrastructure and improve the quality of life of its employees:

• national programme for the socio‑economic development of the Far East until 2024 and further until 2035;
• Far Eastern Railway as an Accelerated Development Domain (programme until 2030);
• Plan to Attract and Retain Personnel at Russian Railways’ Facilities along the Baikal–Amur Mainline.

Far Eastern Railway as an Accelerated Development Domain

In 2020, Russian Railways launched Far Eastern Railway as an Accelerated Development Domain, a comprehensive initiative under the national programme for the socio‑economic development of the Far East until 2024 and further until 2035. The initiative aims to support progressive infrastructure development, improve quality of life for employees, and introduce new management approaches for the railway network across the Russian Far East, with a particular focus placed on the Company’s employees, passengers and shippers.

Digital Railway

The programme primarily focuses on the implementation of the virtual coupling technology and continued upgrade of the locomotive fleet. In 2024, 17,100 virtually coupled trains were assembled and dispatched. This helped significantly improve freight transportation efficiency across the Eastern Operating Domain without the need for large‑scale physical infrastructure expansion. In addition, 270 labour‑saving devices were deployed across the domain, including track‑tamping machines, rail‑cutting tools, autonomous screwdrivers, and others.

Social infrastructure and support

As part of the sanitary and welfare infrastructure upgrades, 124 modular buildings were constructed and commissioned, including heating stations, time‑keeping offices, and temporary construction worker settlements. This helped improve working conditions at over 880 job sites.

In the housing sector, a wide range of support measures are available: sponsored mortgage subsidies at an interest rate of 2%, housing rent reimbursements for invited or relocated managers, and targeted child birth payments ranging from RUB 200,000 to RUB 500,000. We also completed the construction of new residential buildings in the settlement of Smolyaninovo.

Furthermore, under the Plan to Attract and Retain Personnel at Russian Railways’ Facilities along the Baikal–Amur Mainline, middle managers and line supervisors of the Far Eastern Railway are eligible for grants to purchase a house or an apartment in the range from RUB 2.5 m to RUB 5 m depending on the years of service (five years – RUB 2.5 m, seven years – RUB 3.5 m, ten years – RUB 5 m). We also provide airfare reimbursements to employees travelling to Black Sea resorts, with nearly 2,200 people making use of this benefit in 2024.

Improved access to medical services

To enhance access to qualified medical care in remote areas, we launched a mobile consultative and diagnostic centre aboard the Saint Panteleimon train.

Further support was provided to dedicated healthcare institutions through one‑time compensation grants of RUB 17.9 m used to attract 14 medical professionals to Russian Railways’ healthcare facilities in the Far East. In addition, 225 students were enrolled in targeted education programmes for specialist and clinical residency training.

Support for vulnerable worker groups

Based on income analysis, we introduced targeted support for families of employees whose per capita income fell below the subsistence minimum. A total of 101 families, including 213 children, received an expanded compensation package, which covered utility payments, school supplies, and basic necessities for children under the age of three. The Company also continues active retraining efforts to help workers transition into digital professions.

Supplies for residents of remote areas

One of the projects implemented in the social area was a train shop designed to supply remote settlements with food and household goods at reduced prices. A pilot run took place on the Tynda–Verkhnezeysk route. Product ranges and delivery routes are determined based on employee needs and feedback.