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Federal and regional risks

The table demonstrates the evaluation of risk importance and its dynamics, with due regard to existing risk passports and expertise according to the following scales:

Importance scale
Critical
Significant
Moderate
Risk importance dynamics
Increase of risk importance
Importance remains unchanged  
Decrease of risk importance

Risk type

Risk description

Measures minimizing the risk consequences

Evaluation of risk importance and its dynamics

Risks related to political and economic situation in the country and region

Federal and regional risks are mainly determined by global macro-economical factors occurring on global level, in Russia and its regions. Primarily, it is EU sanctions against Russia that appear on the federal scale via several macroeconomic factors (unstable currency rates, limitation of imported materials and equipment, etc.). Regional risks appear when a regional regulator ignores a part of reasonable expenses recited by the Company for inclusion into a tariff. This fact may have a strong impact on the implementation of the investment program.

  1. We take measures related to the substitution of imported materials and equipment, expand access of small and medium businesses to procurements arranged according to the Federal Act on procurements of goods, works and services by legal entities.
  2. In case political and economical situation in Russia or any constituent part of it undermining our operations is upset, the Company intends to take anti-crisis measures to reduce negative effects as much as possible (cost-cutting, decreased investment plans, reduced debt financing of operations, well-balanced financial policy).
  3. Cooperation with state bodies and other interested entities to smoothen the risks.

Risks related to federal or regional geography specificity

Danger of losses incurred due to bad weather conditions.

Activities related to the preparation of networks to autumn-winter operations, each branch undergoes certification to see whether it is ready for autumn-winter operations.

 

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