НАК „НАФТОГАЗ УКРАЇНИ“. Річний звіт англійською (2017 рік) - 18

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

277

276

Significance

Significant aspects include 

important issues which concern 

the company's economic, 

ecological and social impact. 

Naftogaz identifies and takes into 

account the internal and external 

manifestations of significant 

aspects. 

Significant aspects are identified 

primarily via a process of 

continuous interaction with 

Naftogaz stakeholders, both 

internal and external. Identified 

aspects are assessed for their 

significance for the company's 

operations and its impact. For 

the assessment and prioritizing 

of the aspects the following 

mechanisms are used:

•  Analysis of the company's

external information field;

•  Analisis of annual reports

and reports in the area of 

sustainable development of 

peer companies in Ukraine and 

abroad; 

•  Questioning of the internal

structural subdivisions and 

Naftogaz subsidiary companies;

•  Consultations with the

representatives of the 

company's top management;

•  Analysis of international

standards, agreements, 

resolutions in the area of 

sustainable development e.g. 

SDG (Sustainable Development 

Goals).

Along with the formation of 

the list of significant aspects 

(the report coverage areas) the 

company determines limits of 

coverage – the list of structural 

and organizational units 

(subsidiary companies, joint 

ventures), the performance results 

of which will be presented in the 

report. 

The company regularly (once a 

year) revises the list of significant 

aspects for inclusion in the 

following annual report.

The table below shows the 

significant aspects identified in 

the course of preparation of the 

report for 2017, and the limits of 

their coverage.

Completeness

Finally, during the preparation 

of the annual Naftogaz report 

we adhere to the principle 

of completeness according 

to which information on 

significant aspects and 

indicators should be adequate 

to represent the company's 

impact on the economy, the 

environment and society, and 

provide stakeholders with the 

possibility to assess the group's 

performance for the reporting 

year. In order to comply with this 

principle, the company takes 

into account three main criteria: 

•  Coverage which provides for

the inclusion in the report 

of the topics and issues that 

adequately reflect significant 

aspects of the company's 

impact on the economy, the 

environment and society. 

•  Limits determined for each

significant aspect.

•  The time frame of the report.

This report represents the 

performance results for the 

2017 calendar year. However, 

where necessary, the report 

also reflects events which took 

place in prior periods, or after 

the expiry of the reporting 

period.

  Material GRI topics and boundaries

Category

Topic

Boundaries

Economic

Economic performance

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Indirect economic impacts

The information on the topic in the report is disclosed 
for such companies as Ukrgazvydobuvannya, Ukrnafta, 
Ukrtransgaz and Ukrtransnafta

Procurement practices

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Environment

Energy

The information on the topic in the report is disclosed 
for such companies as Ukrgazvydobuvannya, Ukrnafta, 
Ukrtransgaz and Ukrtransnafta

Water

The information on the topic in the report is disclosed 
for such companies as Ukrgazvydobuvannya, Ukrnafta, 
Ukrtransgaz and Ukrtransnafta

Biodiversity

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Emissions

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Effluents and waste

The information on the topic in the report is disclosed 
for such companies as Ukrgazvydobuvannya, Ukrnafta, 
Ukrtransgaz and Ukrtransnafta

Environmental compliance

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Social

Employment

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Labor management relations

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Occupational health and safety

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Training and education

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Diversity and equal opportunity

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Non discrimination

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Child labor

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Forced or compulsory labor

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

Local communities

The information on the topic in the report is disclosed to 
all companies of Naftogaz group

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

279

278

COMPANY DISCLOSURES 

REQUIRED BY LAW

№ The information to be disclosed by the company 

as required by law 

Brief description 

Regulatory basis for 

disclosure

Reference source

1 Regarding the use of a company’s funds 

from economic operations (to be published 
annually, no later than January 31 of the year 
following the reporting year):
•  the amount of payments under the 

contracts in the reporting period – by goods, 
works and services;

•  information on the contracts concluded 

during the reporting period, the total value 
of which exceeds UAH 1 million (the subject 
matter of the contract, the contractor, the 
value of the contract, the price per unit (if 
any), the term of the contract);

•  information on the status of implementation 

of the contracts concluded in the previous 
reporting periods and still in process of 
implementation, the total cost of which 
exceeds UAH 1 million (subject matter of 
the contract, the contractor, the value of 
the contract, the price per unit (if any), 
the total amount of payments under the 
contract in the reporting period, the claims 
and penalties that arose as a result of the 
implementation of the contract (if any), the 
acts of execution of the contract (acts of 
services provided, acceptance-transmission 
acts, acts of works performed), if available).

Information about the 
use of a company’s 
funds from economic 
operations, including 
the amount of 
payments under the 
current contracts; 
information on the 
concluded contracts, 
whose total value 
exceeds UAH 1 million 
(including the price); 
information on the 
state of execution of 
the contracts, whose 
total value exceeds 
UAH 1 million (including 
the price).

Law of Ukraine «On 
Openness of Use of 
Public Funds» dated 
11.02.15, No. 183-VII.

https://spending.
gov.ua/edata

2 Regarding the procurement:

•  announcement of the procurement 

procedure and tender documentation;

•  changes to tender documentation and 

clarifications to it (if any);

•  announcements with the details of the 

concluded framework agreement (in case of 
procurement under framework agreements);

•  protocol of tender offers review;
•  notification of intention to conclude a 

purchase agreement;

•  information on the rejection of the tender 

offer submitted by the purchase agreement 
counterpart;

•  purchase agreement;
•  notice of amendments to the agreement;
•  report on the agreement performance;
•  report on concluded agreements.

Information on the 
procurement, including 
information on the 
announcement 
and conduct of the 
procurement procedure, 
determination of the 
winner or the rejection 
of the offer, the 
concluded procurement 
agreements, notification 
of changes to them 
and the reports on their 
implementation.

Law of Ukraine 
«On Public 
Procurement».

https://prozorro.
gov.ua/; http://
www.naftogaz.
com

№ The information to be disclosed by the company 

as required by law 

Brief description 

Regulatory basis for 

disclosure

Reference source

3 Regarding the conditions for the natural 

gas supply:
•  the current edition of the Rules for the 

natural gas supply and the Contract for 
the natural gas supply to consumers;

•  prices for natural gas, payment terms 

and conditions for the used natural gas;

•  general terms of supply, rights and 

responsibilities of supplier and 
consumer, regulations guiding 
relations between the supplier and 
the consumer, available means of 
settlement agreement with the 
supplier, framework contracts for the 
supply of natural gas to domestic 
households (in case of intention to 
supply natural gas to households) 
approved by NCREU;

•  the procedure for resolving disputes by 

the supplier and contact information 
of the licensee’s units responsible for 
resolving disputes (telephones, e-mail, 
working hours, address, full name of 
the responsible employees, etc.);

•  information on the minimum standards 

and requirements to the quality of 
natural gas supply services, the amount 
of compensation and the procedure for 
providing them (before March 1 of the 
year following the reporting year);

•  information on compliance with the 

minimum standards and requirements 
to the quality of natural gas 
supply services and the amount of 
compensation paid for non-compliance 
with these standards (annually before 
March 1 of the year following the 
reporting year);

•  quality of natural gas supplied to 

consumers;

•  the fee for gas;
•  debts of debtor enterprises;
•  payments for gas;
•  volumes of gas use;
•  subsidies and benefits;
•  energy saving measures.

Information on the 
terms of natural gas 
supply, including:
•  prices for natural gas, 

payment terms;

•  terms of supply, 

responsibilities of the 
supplier;

•  forms of contract for 

natural gas supply 
which are offered to 
consumers;

•  debt;
•  gas payments.

Law of Ukraine «On 
the peculiarities 
of access to 
information in the 
areas related to 
electricity, natural 
gas, heat supply, 
centralized hot 
water supply, 
centralized drinking 
water supply and 
sewage» dated 
December 10, 
2015, No. 887-VIII; 
licensing conditions 
for conducting 
natural gas supply 
business; minimum 
standards and 
requirements for 
customer service 
quality and natural 
gas supply. 

http://www.
naftogaz.com

4 Regarding the remuneration of the 

supervisory board members and the board 

members.

Data on the 
fees paid to the 
supervisory board 
members and the 
company’s board 
members.

Economic Code of 
Ukraine.

Annual 
Report of the 
company, 
which is 
published on 
its official web-
site.

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

281

280

№ The information to be disclosed by the company 

as required by law 

Brief description 

Regulatory basis for 

disclosure

Reference source

5 Regarding data sets that are subject to 

public disclosure in the form of open data:
•  information on the volumes of gas 

consumption in Ukraine;

•  volume of petroleum products imports/exports 

(by destination, volume and customs value);

•  volume of natural gas imports/exports (by 

destination, volume and customs value);

•  volume of oil and petroleum products 

transshipment in ports (according to the 
Administration of seaports);

•  volume of exploration and operational 

drilling by oil and gas companies;

•  payments for natural gas supplied by the 

National Joint-Stock Company Naftogaz 
of Ukraine (by categories of consumers, by 
regions);

•  oil transmission via oil pipelines (according to 

the operational data of PJSC Ukrtransnafta, by 
destination–transit, domestic consumption);

•  oil transmission via oil pipelines (operational 

data, by destination–transit, domestic 
consumption).

General information 
on natural gas 
consumption, natural 
gas imports/exports, 
oil transportation, 
payments for natural 
gas.

Law of Ukraine «On 
access to public 
information»; 
Regulation on data 
sets that are subject 
to disclosure in the 
form of open data.

http://data.gov.
ua/

6 General information on the company’s 

operations:
•  objectives of the company and their 

respective status;

•  quarterly and annual financial statements 

(including consolidated) of the company 
for the last three years, including (if any) 
expenditures for non-commercial purposes of 
the state policy and sources of their financing;

•  auditor’s conclusions on the annual financial 

statements (including consolidated ones) of 
the company for the last three years;

•  the corporate charter of the company in the 

current edition, as well as earlier versions;

•  ownership structure of the company;
•  biographical information (including 

professional profile) of the head and the 
members of the company’s executive body 
(in view of requirements of the legislation on 
personal data protection);

•  biographical information (including 

professional profile) of the supervisory board 
members (if established) of a company (in 
view of the requirements of the legislation 
on personal data protection), the principles 
of their selection, their membership in 
the supervisory boards of other entities, 
indicating the independent members of the 
supervisory board;

General information 
about the company’s 
operations:
•  current corporate 

charter;

•  financial statements; 

auditor’s conclusions 
on the annual 
statements;

•  ownership structure 

of the company;

•  biographies of 

board members and 
supervisory board 
members;

•  reports of supervisory 

board and board of 
the company;

•  structure, principles 

of formation and 
remuneration of 
the chairperson and 
the members of the 
executive body and 
the members of the 
supervisory board of 
the company;

•  notice of the general 

meeting;

Economic Code 
of Ukraine; Law of 
Ukraine «On Joint 
Stock Companies»; 
Law of Ukraine «On 
Accounting and 
Financial Reporting 
in Ukraine»; 
Procedure for 
the disclosure of 
information on the 
operations of state 
unitary enterprises 
and companies, 
with more than 
50 percent of the 
shares (shares) in the 
authorized capital 
of which is owned 
by the state, and 
companies with 50 
or more percent of 
shares (shares) of 
which belong to the 
companies, 100% 
owned by the state.

http://www.
naftogaz.com

№ The information to be disclosed by the company 

as required by law 

Brief description 

Regulatory basis for 

disclosure

Reference source

•  annual reports of the supervisory board 

and the executive body of the company;- 
structure, principles of formation and the 
remuneration of the chairperson and the 
members of the executive body and the 
members of the supervisory board of the 
company, including compensation packages 
and additional benefits they receive (or 
entitles to receive) during the execution of 
the official duties and when they resign;

•  notice of the general meeting, minutes of 

the general meeting;

•  draft decisions on issues included in the 

general meeting agenda, prepared by the 
supervisory board;

•  notice of the replacement of the supervisory 

board member;

•  notice on the acquisition of shares of a 

public joint stock company as a result of 
acquiring a controlling stake or significant 
controlling stake of shares.

•  minutes of the 

general meeting.

http://www.
naftogaz.com

7 Regarding securities:

•  prospectus, certificate of registration of 

shares issue and other securities of the 
company, annual information about the 
issuer.

Certificates on stock 
issues, prospectuses.

Law of Ukraine «On 
Securities and the 
Stock Market»; Law 
of Ukraine «On Joint 
Stock Companies»; 
Regulation on 
Disclosure of 
Information by 
Securities Issuers.

https://
stockmarket.gov.
ua/

8 Regarding the company as a “last hope” 

supplier:
•  the «last hope» supplier’s annual report on 

economic activities;

•  information on the number of customers of 

the «last hope» supplier, the total amount 
of the supplied natural gas and the average 
duration of supplying;

•  the cost of natural gas for consumers and 

the version of the «last hope» natural gas 
supplier’s contract, which should correspond 
to the framework contract, and clarification 
on its conclusion.

The Last Hope Supplier 
Report.

Law of Ukraine «On 
the Natural Gas 
Market»; Rules for 
supplying natural 
gas.

http://www.
naftogaz.com

In addition, the resolution of the company’s supervisory board of 19–22 September 2016 approved the Transparency and Disclosure Policy 

developed in accordance with the Principles of Corporate Governance for State Enterprises as defined by the Organization for Economic 

Cooperation and Development (OECD). Thus, the company shall voluntarily disclose:

•  actions and events that have a significant impact on the operating income or assets of Naftogaz group;
•  decisions or events that, according to management, have or may have a significant impact on the implementation of any of the 

key areas of the strategy of the holding company or any of the group’s enterprises;

•  changes in the composition of the board of the company or the enterprises of Naftogaz group;
•  other essential information about the operations of the company or the enterprises of Naftogaz group.

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

283

282

BCS – booster compressor stations, which 

maintain the pressure necessary for production 

at the final stage of field development

BP – British Petroleum, a transnational oil and 

gas, petrochemical and coal corporation 

CABINET OF MINISTERS – The Cabinet of 

Ministers of Ukraine 

COMPANY – Naftogaz 

CRIMEA – The Autonomous Republic of Crimea, 

a region of Ukraine currently occupied by the 

Russian Federation 

DHC – district heating company 

(same as “teplokommunenergo”) 

DSNS, SESU – State Emergency Service of 

Ukraine 

EBRD – European Bank for Reconstruction 

and Development 

EC – the European Commission 

EIB – European Investment Bank 

EFET – European Federation of Energy Traders

EGPC – Egyptian General Petroleum 

Corporation 

ENERGY MINISTRY – the Ministry of Energy 

and the Coal Industry of Ukraine 

EU – the European Union 

EUSTREAM – Slovak gas transmission system 

operator

GAS – natural gas, unless stated otherwise 

Gas trunk pipelines –a single-line system 

feeding into the common system of gas 

pipelines, through which gas is transmitted from 

the production site to consumers

GAZPROM – Public Joint Stock Company 

Gazprom, a Russian energy company

GDS – gas distribution station

GMS – gas measuring station 

GROUP – a group of companies that 

consists of NJSC Naftogaz of Ukraine, 

PJSC Ukrgazvydobuvannya, PJSC Ukrtransgaz, 

JSC Ukrtransnafta, SC Gas of Ukraine, 

SE Uktavtogaz, PJSC Chornomornaftogaz, 

OJSC Kirovohradgaz, SE Zakordonnaftogaz, 

PJSC Ukrspetstransgaz, Naftogaz Overseas SA, 

SE Vuhlesyntez Ukraine, SE Ukrnaftogazkomplekt, 

SE Naukanaftogaz, SE Naftogazobsluhovuvannya, 

SE LIKVO, SE Naftogazbezpeka, SE Budivelnyk, 

PJSC Ukrnafta

GTS – gas transportation system 

HF – hydraulic fracturing

IBRD – International Bank for Reconstruction 

and Development

IFRS – International Financial Reporting Standards 

IMF – International Monetary Fund, a special 

UNO agency

LNG-TERMINAL – a liquefaction terminal, receiving 

and regasification of liquefied natural gas 

LPG – liquefied petroleum gas

MHE – municipal heat generating entities

NAFTOGAZ OVERSEAS S.A. – акціонерна компанія 

Naftogaz Overseas (Швейцарія) 

NCREU (NEURC) – National Commission for 

Regulation of Energy and Utilities 

NOPLAT – adjusted operating result net of income 

taxes

OECD – Organization for Economic Co-operation 

and Development 

OJSC KIROVOHRADGAZ,  

KIROVOHRADGAZ (KirGaz) – Open Joint Stock 

Company Kirovohradgaz, a regional gas distribution 

and supply company 

TERMS AND ABBREVIATIONS

PJSC CHORNOMORNAFTOGAZ,  

CHORNOMORNAFTOGAZ (CNG) – Public Joint 

Stock Company Chornomornaftogaz

PJSC UKRAVTOGAZ, UKRAVTOGAZ (UAG) – Public 

Joint Stock Company Ukravtogaz

PJSC UKRGAZVYDOBUVANNYA, 

Ukrgazvydobuvannya (UGV) – Public Joint Stock 

Company Ukrgazvydobuvannya

PJSC UKRNAFTA, UKRNAFTA (UN) – Public Joint 

Stock Company Ukrnafta

PJSC UKRSPETSTRANSGAZ, 

UKRSPETSTRANSGAZ – Public Joint Stock Company 

Ukrspetstransgaz

PJSC UKRTRANSGAZ, UKRTRANSGAZ (UTG) – 

Public Joint Stock Company Ukrtransgaz

PJSC UKRTRANSNAFTA, UKRTRANSNAFTA (UTN) – 

Public Joint Stock Company Ukrtransnafta

PSO – public service obligations

PWC, PRICEWATERHOUSECOOPERS – international 

audit consultancy 

ROIC – Return on Invested Capital. ROIC is 

calculated as NOPLAT for the respective year 

divided by invested capital, which was determined 

as a sum of invested capital in fixed assets and net 

working capital as of the end of the year

RSC – regional gas supply companies 

RUSSIA – the Russian Federation

SE VUHLESYNTEZGAZ, VUHLESYNTEZGAZ – 

Subsidiary enterprise of the National Joint Stock 

Company Naftogaz of Ukraine Vuhlesyntezgaz

STATE COMPANY GAS OF UKRAINE,  

GAS OF UKRAINE – a subsidiary of the National 

Joint Stock Company Naftogaz of Ukraine

STATE ENTERPRISE ZAKORDONNAFTOGAZ, 

ZAKORDONNAFTOGAZ – a subsidiary of 

NJSC Naftogaz of Ukraine 

SUBSIDIARIES – subsidiary companies of the 

National Joint Stock Company Naftogaz of Ukraine 

TEPLOKOMUNNENERGO – enterprises, producing 

heat and energy, district heating comanies

UGS – underground gas storage 

UNBUNDLING – separation of gas transmission from 

gas supply and production 

URENGOY-POMARY-UZHHOROD GAS  

PIPELINE (UPU) – the gas export route connecting 

the Urengoy gas field and northern gas fields of 

Western Siberia to Uzhhorod at the western border 

of Ukraine

USD – United States Dollar

WO – workover operations

WORLD BANK – the organization that provides 

assistance for development. It comprises two 

institutions: the International Bank for Reconstruction 

and Development (IBRD), and the International 

Development Association (IDA)

Type and name of the joint-stock companies 

in which 100% shares are owned by National 

Joint Stock Company “Naftogaz of Ukraine” 

were changed on 21�05�18 in accordance 

with their Charters:

Full name 

Abbreviated name

Joint Stock Company 
Ukrtransgaz

JSC Ukrtransgaz

Joint Stock Company 
Ukrgazvydobuvannya

JSC Ukrgazvydobuvannya

Joint Stock Company 
Ukrtransnafta

JSC Ukrtransnafta

Joint Stock Company 
Ukrspeсtransgaz

JSC Ukrspeсtransgaz

Joint Stock Company  
«National Joint 
Stock Company 
«Chornomornaftogaz»

National Joint 
Stock Company 
«Chornomornaftogaz»

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

285

284

MATERIAL TOPICS UNDER  

GRI STANDARD 

Material  

topic

Disclosure 

number

Disclosure  

name

Page 

number

Report section  

and comments

General Disclosures

Organizational 
profile

102-1

Name of the organization

214

NJSC “Naftogaz of Ukraine” (Naftogaz group)

102-2

Activities, brands, products, and services

62

Our performance 

102-3

Location of headquarters

291

Additional information 

102-4

Location of operations

62

Our performance 

102-5

Ownership and legal form

201

Financial statements

102-6

Markets served

62 
202

Our performance 
Financial statements

102­7

Scale of the organization

62 
202 
162

Our performance 
Financial statements
Human resources

102-8

Information on employees and other workers

162 

Human resources
Indicator has been partially disclosed 
There were no significant variations in 
employment numbers

102-9

Supply chain

138

Procurements by Naftogaz group 
companies in 2017 

102-10

Significant changes to the organization and its 
supply chain

There were no significant changes during 
the reporting period

102-11

Precautionary Principle or approach

157 
190 
170 
185

Risk management at the Naftogaz group
Ecology and environment protection
Company occupational and safety policy
Energy efficiency

102­12

External initiatives

162

In the reporting period, the company 
did not subscribe to any economic, 
environmental and social charters, 
principles, or other initiatives

102­13

Membership of associations

The company is a member of such 
organization:
• International gas union
• European energy forum
• Eurogas
• EFETnet

Strategy

102-14

Statement from the most senior decision­
maker

9

Address of CEO Andriy Kobolyev

Ethics and 
integrity

102-16

Values, principles, standards, and norms of 
behavior

162

Code of Ethics 
(http://www.naftogaz.com/files/HR/
Naftogaz-Kode-Ethics.pdf)

Material  

topic

Disclosure 

number

Disclosure  

name

Page 

number

Report section  

and comments

Governance

102-18

Governance structure

146 
154 
144

Supervisory board report 
Executive board structure and 
remuneration 
Corporate governance 

Stakeholder 
engagement

102-40

List of stakeholder groups

284

Material topics under  
GRI Standard 

102-41

Collective bargaining agreements

162

All employees are covered by collective 
bargaining agreement

102-42

Identifying and selecting stakeholders

284 
 
 

Material topics under  
GRI Standard 

Naftogaz Annual report 2015, Stakeholder 
relations 

Code of corporate ethics  
(http://www.naftogaz.com/files/HR/
Naftogaz-Kode-Ethics.pdf)

Procedure for Interacting with 
Stakeholders (http://www.naftogaz.
com/files/official_documents/
Procedure_for_Interaction_with_
Stakeholders_UA.pdf)

102-43

Approach to stakeholder engagement

284

Material topics under  
GRI Standard 

Naftogaz Annual report 2015, Stakeholder 
relations 

Code of corporate ethics (http://www.
naftogaz.com/files/HR/Naftogaz-Kode-
Ethics.pdf)

Procedure for Interacting with 
Stakeholders (http://www.naftogaz.
com/files/official_documents/
Procedure_for_Interaction_with_
Stakeholders_UA.pdf)

102-44

Key topics and concerns raised

284

Material topics under  
GRI Standard 

Naftogaz Annual report 2015, Stakeholder 
relations 

Code of corporate ethics (http://www.
naftogaz.com/files/HR/Naftogaz­Kode­
Ethics.pdf)

Procedure for Interacting with Stakeholders 
(http://www.naftogaz.
com/files/official_documents/
Procedure_for_Interaction_with_
Stakeholders_UA.pdf)

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

287

286

Material  

topic

Disclosure 

number

Disclosure  

name

Page 

number

Report section  

and comments

Reporting 
practice

102-46

Entities included in the consolidated financial 
statements

202

Financial statements

102­47

Defining report content and topic Boundaries

284

Material topics under  
GRI Standard 

102­48

List of material topics

284

Material topics under  
GRI Standard 

102-49

Restatements of information

There were no restatements of 
information provided in previous reports

102-50

Changes in reporting

There were no significant changes from 
previous reporting periods

Reporting period

2017 calendar year

102-51

Date of most recent report

June 6, 2017 

102-52

Reporting cycle

Annual reporting

102-53

Contact point for questions regarding the 
report

Aliona Osmolovska
Head of Corporate Communications
Tel:+380 44 586 3579
M:+380 63 555 5538
press@naftogaz.com
6 B. Khmelnytskoho Str.,
Kyiv 01601 Ukraine
www.naftogaz.com
www.naftogaz­europe.com

102-54

Claims of reporting in accordance with the 
GRI Standards

This report was prepared in accordance 
with GRI Standard, “Core” level

102-55

GRI content index

GRI content index

102-56

External assurance

This report has not been independently 
verified

Specific disclosures

Economic

Economic 
performance

Disclosures on management approach

62

Our performance 

201-1

Direct economic value generated and 
distributed

62

Our performance 

201-4

Financial assistance received from 
government

Indirect 
economic 
impacts

Disclosures on management approach

177

Contribution to the social development of 
local communities

203-1

Infrastructure investments and services 
supported

177

Contribution to the social development of 
local communities  
Indicator has been partially disclosed

Procurement 
practices

Disclosures on management approach

138

Procurements by Naftogaz group 
companies in 2017

Proportion of spending on local suppliers

138

Procurements by Naftogaz group 
companies in 2017

Material  

topic

Disclosure 

number

Disclosure  

name

Page 

number

Report section  

and comments

Environment

Energy

Disclosures on management approach

185

Energy efficiency

302-1

Energy consumption within the organization

Energy efficiency  
 
Naftogaz uses standards, methodologies 
and assumptions, which are governed by 
regulations of Ukraine in energy saving 
and energy efficiency

302-4

Reduction of energy consumption

185

Energy efficiency  

Fuel and energy savings were calculated 
relative to planned targets

Water

Disclosures on management approach

190

Ecology and environment protection

303-1

Water withdrawal by source

190

Ecology and environment protection

303-3

Water recycled and reused

190

Ecology and environment protection 
Indicator has been partially disclosed

Biodiversity

Disclosures on management approach

190

Ecology and environment protection

304-2

Significant impacts of activities, products, 
and services on biodiversity

190

Ecology and environment protection 
Indicator has been partially disclosed

Emissions

Disclosures on management approach

190

Ecology and environment protection

305-1

Direct (Scope 1) GHG emissions

190

Ecology and environment protection 

GHG emission in CO2­equavalent was 
calculated based on Global warming 
potential coefficients, IPCC Second 
Assessment Report (100­years period)

305-4

GHG emissions intensity

190

Ecology and environment protection 
Indicator has been partially disclosed

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), 
and other significant air emissions

190

Ecology and environment protection 

Effluents and 
waste

Disclosures on management approach

190

Ecology and environment protection 

306-1

Water discharge by quality and destination

190

Ecology and environment protection 
Indicator has been partially disclosed

306-2

Waste by type and disposal method

190

Ecology and environment protection 

Environmental 
compliance

Disclosures on management approach

190

Ecology and environment protection 

Non-compliance with environmental laws and 
regulations

190

Ecology and environment protection 

Social

Employment

Disclosures on management approach

162

Human resources 

401-1

New employee hires and employee turnover

162

Human resources 
Indicator has been partially disclosed

401-2

Benefits provided to full-time employees that 
are not provided to temporary or part-time 
employees

162

Human resources 

ADDITIONAL INFORMATION

ANNUAL REPORT 2017

289

288

Material  

topic

Disclosure 

number

Disclosure  

name

Page 

number

Report section  

and comments

Labor 
management 
relations

Disclosures on management approach

162

Human resources 

402-1

Minimum notice periods regarding 
operational changes

In accordance with the current 
legislation of Ukraine ­ 2 months; 
enshrined in collective agreements

Occupational 
health and 
safety

Disclosures on management approach

170

Company occupational and safety policy

403-2

Types of injury and rates of injury, 
occupational diseases, lost days, and 
absenteeism, and number of work-related 
fatalities

170

Company occupational and safety policy

Indicator has been partially disclosed

403-4

Health and safety topics covered in formal 
agreements with trade unions

Health and safety topics covered in 
separate section of collective bargaining 
agreement

Training and 
education

Disclosures on management approach

162

Human resources 

404-2

Programs for upgrading employee skills and 
transition assistance programs

162

Human resources 
Indicator has been partially disclosed

Diversity 
and equal 
opportunity

Disclosures on management approach

162

Human resources 

405-1

Diversity of governance bodies and 
employees

162

Human resources 

Non 
discrimination

Disclosures on management approach

162

Human resources 

406-1

Incidents of discrimination and corrective 
actions taken

During reporting period, the company 
recorded no cases of discrimination

Child labor

Disclosures on management approach

162

Human resources 

408-1

Operations and suppliers at significant risk 
for incidents of child labor

Not relevant. Child and forced labour 
are prohibited by any applicable laws 
or regulations of Ukraine. The company 
does not operate in countries where 
there is a high risk of human rights 
violations, including use of child labour

Forced or 
compulsory 
labor

Disclosures on management approach

162

Human resources 

Operations and suppliers at significant risk 
for incidents of forced or compulsory labor

Not relevant. Child and forced labour 
are prohibited by any applicable laws 
or regulations of Ukraine. The company 
does not operate in countries where 
there is a high risk of human rights 
violations, including use of child labour

Local 
communities

Disclosures on management approach

177

Contribution to the social development of 
local communities

413-1

Operations with local community 
engagement, impact assessments, and 
development programs

177

Contribution to the social development of 
local communities 
Indicator has been partially disclosed

Naftogaz of Ukraine 

6 B. Khmelnytskoho St, Kyiv 01601 Ukraine 

Т. +380 (44) 586-33-30; 39-63; 32-83 

ngu@naftogaz.com , press@naftogaz.com 

www.naftogaz.com, www.naftogaz-europe.com 

https://www.facebook.com/NaftogazUA 

https://twitter.com/naftogazukraine

Ukrgazvydobuvannya

26/28 Kudryavska St, Kyiv 04053 Ukraine

Т. +380 (44) 272-31-15, fax: +380 (44) 461-29-94

press@gasdob.com.ua

www.ugv.com.ua

Ukrnafta

3-5 Nestorivskyy Provulok, Kyiv 04053 Ukraine

Т. +380 (44) 506 1199, fax: +380 (44) 503 0389

info@ukrnafta.com 

www.ukrnafta.com

Chornomornaftogaz

1 Sholudenka St, Kyiv 04116 Ukraine

Т. +380 (44) 537-05-56

chernomornaftogas@ukr.net

Ukrtransgaz 

9/1 Klovskyy Uzviz, Kyiv 01021 Ukraine 

Т. +380 (44) 254-34-38 

presa@utg.ua 

www.utg.ua

Ukrtransnafta

32/2 Moskovska St, Kyiv 01010 Ukraine 

Т. +380 (44) 201-57-01/76, fax: +380 (44) 201-57-78

office@ukrtransnafta.com 

www.ukrtransnafta.com

Gas of Ukraine

1 Sholudenka St, Kyiv 04116 Ukraine

Т. +380 (44) 537-05-38, fax: +380 (44) 537-05-74 

melnik@gasukraine.com.ua 

www.gasukraine.com.ua

Ukravtogaz

2 Hryhorovycha-Barskoho St, Kyiv 03134 Ukraine

Т. +380 (44) 291-28-11/78

main@ukravtogaz.com

www.ukravtogaz.com 

Ukrspetstransgaz

3 Promyslova St, Dolyna 03477 Ukraine 

Т. +380 (3477) 2-53-10/11 

trgaz@ustg.com.ua 

www.ustg.com.ua

Naukanaftogaz

8 Kyivska St, Kyiv Oblast, Vyshneve 08132 Ukraine

Т. +380 (44) 391-74-01, факс: +380 (44) 496-64-18

info@naukanaftogaz.com

www.naukanaftogaz.com

LLC Gas supply company “Naftogaz of Ukraine”

1 Sholudenka St, Kyiv 04116 Ukraine

Т. +380 (44) 537-05-63; 05-54 

info@naftogazpostach.com

www.naftogazpostach.com

Zakordonnaftogaz

72 Velyka Vasylkivska St, Kyiv 03150 Ukraine

Т. +380 (44) 237-64-65

office@nopc.org.ua

CONTACTS

Naftogaz offices abroad

Office in the Arab Republic of Egypt

3 A St 259, New Maadi Cairo 11311 Egypt 

Т. +201 272 47 77 72, +201 220 88 57 76 

infoEG@naftogaz.com 

www.naftogaz.com, 

www.naftogaz-europe.com/en

Office in the Kingdom of Belgium

40 Rue Breydel, Brussels 1040 Belgium 

Т. +32 2 235-86-45/44

infoEU@naftogaz.com 

www.naftogaz.com, www.naftogaz.eu

Office in the Russian Federation

24 Academyka Pilyugina St, Moscow 117393 Russia 

Т. +7 495-747-59-14 

infoRU@naftogaz.com 

www.naftogaz.com, www.naftogaz-europe.com/ru

Office in Hungary

Népfürdő u. 22/B. 12. em. Budapest 1138 Hungary 

Т. +36 1 791 02-56/57 

infoHU@naftogaz.com 

www.naftogaz.com, www.naftogaz.hu 

Office in Turkmenistan

 ş.Aşgabat, Arçabil şaýoly, Biznes-Merkezi “ABC” 

Т. +99 312 48 01-86; 03-10 

infoTN@naftogaz.com 

www.naftogaz.com, www.naftogaz-europe.com 

Naftogaz Trading Europe SA

rue Dr-Alfred-Vincent 16, c/o SYNERGIX S.A., 

Succursale de Geneva, 1201 Geneva, Switzerland 

Т. +41 22 735 38-05/07 

infoCH@naftogaz.com 

www.naftogaz.com

Nord Stream 2

55

bcm

via Ukraine

146

bcm

Nord Stream

55

bcm

16

bcm

Blue Stream

39

bcm

Yamal – Europe

36

bcm

OPAL

55

bcm

EUGAL

32

bcm

Turkish Stream

Traditional route

TRANSIT OF RUSSIAN GAS

TO EUROPE

Nord Stream 

Traditional route via Ukraine

Nord Stream 2

Yamal – Europe

OPAL

EUGAL

Turkish Stream

Blue Stream

Gas imports 2017 (%)

80+
60 to 79
40 to 59
20 to 39
0 to 19

Germany 

Poland

Sweden

Lithuania 

Latvia

Estonia

Russia

Czech 

Republic

Belarus

Norway

Austria

Hungary

Serbia

Italy

Romania

Bulgaria

Greece

Turkey

Ukraine

France

UK

Denmark

Finland

Belgium

NL

Slovakia

Moldo

va

Spain