OJSC MMC Norilsk Nickel announced that in 2012 the Company fulfilled its obligations with respect to the long term target program Relocation of Norilsk and Dudinka citizens to regions of the Russian Federation with more favorable natural climatic conditions in 2011-2020 in full and in due time.
The relocation of citizens entitled to benefits from the northern part of Krasnoyarsk region was discussed between the authorities and the Company’s management in 2010 during Vladimir Putin's visit to Norilsk.
The existing government programs were lagging behind the growing needs of Norilsk and Dudinka residents. As a result, by mid-2010 the number of families registered for relocation exceeded 11 thousand. This situation caused grave concerns on the part of the local and federal authorities. The discussions resulted in signing a quadripartite agreement with respect to Program implementation between the Ministry of Regional Development of the Russian Federation, the Krasnoyarsk Territory, the municipality of the city of Norilsk and MMC Norilsk Nickel.
On October 26, 2010 the Program was approved by the government of the Krasnoyarsk Territory.
In accordance with the document, it is planned to relocate 11265 families form Norilsk and Dudinka to regions with more favorable climate conditions between 2011 and 2020.
The financing requirements are set at RUB 17.7 billion (1.77 billion per annum). RUB 8.3 billion will be provided by MMC Norilsk Nickel, RUB 8.3 billion will be provided form the budget of Russian Federation and RUB 1.1 billion will be provided from the consolidated budget of Krasnoyarsk region.
In 2011-2012 the Company has met all of its obligations, associated with implementation of the program in full and on time. In accordance with the plan, in May 2011, within the scope of its obligations, the company transferred RUB 830 million. Into the budget of Krasnoyarsk region. Additionally, in December 2011 the Company has transferred extra RUB 351 million in December. In 2012, RUB 830 million was transferred on October 17.
