Annual Report & Accounts 2013
Severstal Annual Report 2013 Home > Sustainability > Social investment

Social investment

Our position

Severstal continues to play a crucial role in supporting the development of our communities and regions. We aim to make a long-term positive impact in key areas, such as education, youth policy, culture and sports. We develop the welfare of the society around us to improve the sustainability of our business.

Our action

We work closely with the regional authorities on a variety of strategic social programme in areas such as employment, career guidance, healthcare and occupational guidance and prevention of child neglect and homelessness. Our main commitments are integrated into our agreements with the regional authorities. We also provide charitable support to children’s, culture and sports programmes. We regard these programmes as an investment in the spiritual and physical development of the younger generation.


In 2013, we continued to support our priority projects focused on children, education, culture and sports. We spent over US$63.2 million on various social programs. We are committed to high-quality management of social programs and support development of innovative approaches and technologies in this area.

Our social initiatives received multiple awards. In 2013, Severstal was rated the first among the Russian top ten businesses with a systematic approach to charitable activities. Our non-profit and volunteering development programmes took the first two spots in the Leading Corporate Donors Award. We took the first spots in the steelmaking industry ranking and the Top 10, and won the People Investor 2013 award in the Development of Local Communities nomination. We won the Russian nationwide Every Child Needs a Family contest and the Best Russian Businesses – Agility, Efficiency & Responsibility award of RSPP for our contribution to demographic development.


Severstal maintains productive cooperation with local administrations and the public on acute social, economic and environmental challenges, and works with nationwide and regional non-profit organizations and professional associations. This cooperation helps to foster favorable social conditions in the regions where our businesses are located.

We support universities and colleges, culture and sports organizations, and provide financial help to war veterans and people with disabilities. We use competitive selection tools to qualify projects and expand our collaboration with professional associations and non-profit organizations. We design tools for multifaceted cooperation focused on addressing specific social issues and on developing the social potential of our regions.

The Agency for Urban Development, our non-profit joint venture with the City of Cherepovets focused on developing small and medium businesses, has brought tangible results. Cherepovets Steel Mill currently works with 281 service providers. In 2013, Cherepovets Steel Mill purchased 8.8 billion rubles worth of products and services from Cherepovets small and medium businesses, generating 76 per cent of their overall revenues. In 2012 and 2013, the Agency helped to establish 300 new businesses in Cherepovets (mostly in services, retail, manufacturing and construction) and to create 1953 jobs — in addition to keeping 2000 jobs in existing businesses.

In 2013, the Agency for Urban Development received Osnova Rosta 2013 award for efficient informational and analytic support of small and medium businesses. Established by the Social Projects and Programmes Foundation supported by the Russian Ministry of Economic Development and the Russian Union of Industrialists and Entrepreneurs, this award recognizes the contributions to the national economy through support of small and medium businesses.

In 2013, Vorkutaugol invested more than 20 million rubles in important social projects in the Komi Republic. The majority of this money was allocated to socially important venues through our agreement with the city. According to the agreement, we supported the most important components of municipal infrastructure including education, culture and sports.

Vorkutaugol finances the two largest social venues in the Extreme North – the Miners’ Palace of Culture that hosts more than a hundred regional and municipal cultural events per year, and the Universal Sports Centre Olymp, which is the largest sports and concert hall in Vorkuta and the home arena of Olymp Junior Hockey Club.

Karelsky Okatysh financed the upkeep of Druzhba culture and sports centre in Kostomuksha, where more than 90,000 people attend various events every year.

Olkon provides annual upkeep to Olenegorsk Culture Palace with at least 20 thousand visitors per year.

All our businesses also support disability organisations, veteran associations, children’s educational institutions, sports clubs and schools, and host regional and municipal festivals and celebrations.

Children and the future

Child neglect and orphanhood are among the most acute social issues in Russia. Public orphanages in Russia currently support 106,000 children. In 2006, Severstal initiated the unique Way Home program, which focuses on comprehensive prevention of child neglect and social orphanhood in Cherepovets. This program is currently active in six of our regions, including Cherepovets, Vorkuta, Kostomuksha, Balakovo, Veliky Ustyug and Olenegorsk. The Way Home program has 18 projects and 4 social services. Its new targets for 2013 include the focus on youth crime prevention and the transfer of best practices in child neglect prevention to other regions of Russia. In 2013, Severstal launched the new With Mum program in the Baby House in Cherepovets. This project focuses on prevention of early-childhood abandonment.

Culture and the arts

Severstal supports the leading Russian museums and theatres. In 2013, we continued our support of Bolshoi Theatre, Russian Museum, State Tretyakov Gallery, State Historical Museum, Cherepovets Museum Association, Kirillo-Belozersky Museum-Preserve, Museum of Dionisy Frescoes (Ferapontovo, Kirillovsky District), Vologda Museum and Reserve, Radishchev Arts Museum and Balakovo Art Gallery. Severstal sponsored the unique Pushkin Museum of Fine Arts exhibition, the largest in the whole history of the museum. We continue our support of the Golden Mask Theatre Festival in Moscow, Riga and Cherepovets.

In 2013, we continued to work with the Museums of Russian North grants programme focused on reviving regional arts museums. Under this program, we organized the fourth grants contest among the museums located in 12 northwestern regions of Russia. Five museums from Cherepovets, Veliky Ustyug, Leningrad region, Kirov region and Republic of Karelia won the 2013 contest.


Severstal promotes a healthy lifestyle among employees and their families by supporting the development of sport. Severstal invests in sports at the top competitive level: we believe that training the reserve for national teams is a great way to promote a healthy lifestyle, to support the psychological, social and spiritual welfare of youth, and to build the prestige of our company. We organise regional sports and public events for employees and local communities, and finance several leading sports teams. Severstal supports Severstal Hockey Club, which is sponsored by Cherepovets Steel Mill. Severstal Sports Club trains athletes at a top competitive level and organises their participation in nationwide and international events. Severstal Sports Club has trained 33 international masters and 330 national masters. We also sponsor the Dynamo women’s volleyball club.

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