Private Pension Coverage

The Corporate Pension System developed by the Company is aimed primarily at improving the standards of living of Rosneft’s veterans and retirees, and also facilitates accomplishment of priority HR policy objectives, such as bringing down staff turnover and attracting more young specialists and highly qualified professionals.

Under the existing pension coverage program, the Company’s retirees receive corporate pensions in addition to compulsory state pensions. Currently, more than 100,000 employees participate in the private pension program. In 2008, Rosneft and its subsidiaries contributed approximately RUB 2.3 bln to the private pension fund Neftegarant.

Rosneft is also developing an individual pension coverage system that is expected to be fully implemented by 2011. In the near future, retiree pensions will consist of the following three complementary parts:

• state pension;
• corporate cumulative pension contributed by Rosneft;
• pension from employees’ voluntary contributions to a private pension fund Neftegarant.

Non-state pensions were paid to 22,760 people in 2008 (9,343 pensioners and 13,417 veterans), and total pension payments during the year were RUB 367.6 mln.

A further RUB 236.1 mln was paid as direct financial support to pensioners and veterans as part of the collective agreements to cover medical and other expenses.