The ability to adapt to a changing world is of importance

At the XXVI St. Petersburg International Economic Forum held from June 14 to 17, Vice President of Mining and Metallurgical Company Norilsk Nickel Andrey Grachyov answered - on the sidelines of the Forum - the questions of the RG (Russian Newspaper) correspondent.
A new economic reality has begun for the Russian companies when there is a significant sanctions pressure and conditions for unfair competition appear. How does the company withstand such “pressure”, and does the company management have plans ‘B’, ‘C’ or, maybe, ‘D’?
Andrey Grachyov: I would call this new reality the ‘new normal’ because our task is to adapt to these conditions of the sanctions pressure and unfair competition.
The president of our company Vladimir Olegovich Potanin once gave the following answer to a similar question, “There is no need to pretend that some letters are missing in the alphabet.” Therefore, there may be plans called ‘C’ and ‘D’, and other ones. These plans do not indicate the weakness of the company, but on the contrary, they show the company’s strength and sustainability, its ability to adapt to a changing world.
We are well aware that any plan is aimed at maintaining our obligations to our partners, as well as our obligations under our investment projects, including the environmental ones, and, of course, at least maintaining a high level of social responsibility - I mean, our social programs.
Any of these plans are aimed at preserving a highly-qualified and professional staff, not cutting social programs and maintaining the existing standard of wages.
The forum discussed new vectors for the development of state support for investment projects in the Arctic. Without exaggeration, a grandiose renovation program for Norilsk is underway now. But I would like to understand: Norilsk Nickel will build new houses and social facilities, what will be next?
A. G.: I agree, just new houses are not sufficient. That is why we are not only building and will be building the houses until 2035 and, I think, beyond; we pay special attention to improving the social infrastructure. First of all, this includes the construction of various facilities to serve the needs of the population. For example, in terms of safety, this includes the construction and equipping of a fire station considered one of the best in the Arctic zone of the Russian Federation.
Of course, we understand that new houses are practically useless without environmental care, so we are implementing the Sulfur Program aimed at reducing air emissions by 45 percent compared to the 2015-year’s level. And in September-October, we will start commissioning work at the facility. 
That is, we are talking about new houses and about new ecology, as well as about maintaining the high level of social policy that is now used in Norilsk and Monchegorsk.
It is no secret that the company is represented in different regions of Russia; what successes does Norilsk Nickel currently achieved in the development of the areas of its presence and what mechanisms does the company use together with government agencies to solve these problems?
A. G.: I will probably focus on one - and the most interesting - mechanism. It is used not only by Nornickel but also by other companies - this is the creation of development institutions. These are the Norilsk Development Agency in the Krasnoyarsk Territory and the Monchegorsk Development Agency in the Murmansk Region. These development institutions are the organizations created by the municipality, Nornickel and the Vladimir Olegovich Potanin’s Charitable Foundation.
These development institutions serve as a kind of a laboratory where the most promissing ideas are tested. For example, the Norilsk Development Agency addresses the issue relating not only to the public spaces of the city, not only to its “appearance” and architectural projects, but also includes its projects, for example, Arctic tourism and various gastronomic programs. The spectrum of activities is very wide.
Norilsk Nickel announces the implementation of the FPIC procedure - a free, prior and informed consent of representatives of the indigenous minorities of the North - to their resettlement. Could you tell us more about this program? And what exactly the ‘awareness’ or ‘being informed’ mean?
A. G.: The FPIC is a procedure that is not yet provided for by Russian legislation. It is stipulated by the orders of the Ministry for the Development of the Far East and the Arctic and the United Nations’ principles. Therefore, we can say that the FPIC is the Norilsk Nickel company’s good will.
When we come to the area where the indigenous minorities of the North live, we must behave in a civilized manner.
We start with due diligence - with expertise. We find out how the company’s activities can affect the lifestyle of indigenous peoples. Three documents are created. The first is the assessment of possible harm. The second is an assessment of possible compensation. The third is the possibility of the harm minimization.
On the basis of all this, an action plan for the sustainable development of the area is worked out that is submitted to the representatives of indigenous minorities and they approve this plan together with us. The mechanism is simple, honest and absolutely transparent.