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      1. 3.3.1 Contribution to Achieving the UN Sustainable Development Goals
      2. 3.3.2 Personnel Management
      3. 3.3.3 Environment Protection
      4. 3.3.4 Management systems
      5. 3.3.5 Procurements
      6. 3.3.6 Anti-corruption Policy and Enforcement of Economic Security of Operations
      7. 3.3.7 Disclosures
      8. 3.3.8 Development of territories
      9. 3.3.9 Stakeholder Liaison
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Document for 2023

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3.3.5 Procurements

Purchase activities of the Company are regulated by Federal Law[45] and Rosseti’s Single Purchase Standard (Procurement Regulations)[46].

Principles for building-up purchase activities of the Company:

Principle 1:

Information transparency of tenders – enforcement of the transparency of purchase activities in compliance with the laws of the Russian Federation to the extent, required and sufficient for potential contractors to decide on tender bidding.

Principle 2:

Equal rights, lack of discrimination and unwarranted competitiveness restrictions towards tender bidders – provision of non-discriminatory access of suppliers (contractors) to tenders is preferential; suppliers (contractors) are selected mainly via tenders with equal opportunities, lack of discrimination and unwarranted restrictions toward tender bidders, in compliance with reasonable demand to potential tender bidders and purchased goods, works and services, keeping in mind, if required, product life cycle; discontinuation of single-source contract practices.

Principle 3:

Appropriate and efficient expenditures on goods, works and services, implementation of cost-cutting measures – offers are selected through a totality of predefined price and non-price criteria defining economic and other efficiency of a tender.

Principle 4:

Unrestricted access to a tender by setting immeasurable requirements for bidders.

Principle 5:

Transparency and controllability of purchasing activities – planning, accounting, monitoring, control and audit of purchasing activities on all stages.

Principle 6:

Professionalism and competency of employees engaged in purchasing activities – personal responsibility of officials for efficient arrangement of tenders and their decisions on tenders; flawless performance of actions prescribed in documents regulating tenders; evaluation and retraining of the personnel, liable for purchasing activities;

Principle 7:

Compliance with the laws regulating purchasing activities and combating corruption, incl. Anti-corruption Tender Regulations.

In 2024, the Company conducted 3,265 purchases worth RUBruble 54,203,548.159 thousand (plus VATvalue-added tax), namely:

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Tender type

Number of tenders

Tender value
pcs % of total amount of tenders RUBruble thousand, plus VATvalue-added tax % total tender value
Electronic tender 133 4.074 8,161,209.982 15.057
Price inquiry after competitive pre-selection 704 21.562 1,961,849.282 3.619
Price inquiry after pre-selection 362 11.087 9,870,068.237 18.209
Single-source purchase 474 14.518 5,820,324.087 10.738
Purchase from vendors 4 0.123 3,052.157 0.006
purchases after cancelled open tenders 1,075 32.924 22,395,284.032 41.316
Electronic auction 5 0.153 4,548,000.000 8.391
Electronic quote inquiry 115 3.522 117,934.673 0.218
Electronic price comparison 83 2.542 11,908.114 0.022
Electronic request for proposals 307 9.403 1,313,917.595 2.424
Electronic pre-selection 3 0.092 0 0

There were 2,787 e-commerce procurements worth RUBruble 48,380,171.915 thousand plus VATvalue-added tax (100% of total purchases and 100% of total value, net of single-source purchases and purchases from vendors).

Type of purchase Number of contracts Contract value
(RUBruble thousand, incl. VATvalue-added tax) 		Payments under concluded contracts
(RUBruble thousand, incl. VATvalue-added tax)		 % of concluded and paid contracts
Purchases from small and medium-size businesses 2,304 22,555,037.809 21,378,387.669 68.8%
Incl. purchases only from small and medium-size businesses (“special bidding”) 747 6,432,425.095 7,938,974.775 25.5%

The economic effect from the purchases amounted to RUBruble 1,017,573.416 thousand, incl. VATvalue-added tax or 2.059% of the announced price targets (net of single-source purchases). Open purchases contributed 89.256% to the total purchase value.

The following activities are enforced to enhance economic metrics, improve and promote purchase transparency: