The Board of Directors of JSC Rosseti approved a new edition of the Anti-Corruption Policy of Rosseti and its subsidiaries.

"Large-scale legislative changes in the regulation of anti-corruption activities of organizations and organizational and structural changes in the electric sector of the country have led to the need for a single strategic document in the field of anti-corruption,” says Victoria Nikiforova, Director of Corporate and Anti-Corruption Compliance Department of Rosseti. “In order for JSC Rosseti to be able to fulfil its assigned task of Strategic grid development of the Russian Federation by coordinating the functions of all grids in Russia in the field of anti-corruption policy and transparency of financial and economic activities, a single vertically-integrated system for combating corruption in Rosseti and its subsidiaries and affiliates has been adopted.”

This system includes the Anti-Corruption policy of Rosseti and its subsidiaries (hereinafter - Anti-Corruption policy), the mechanism for its implementation, the procedures for the control and prevention measures to combat corruption in JSC Rosseti and its subsidiaries, the general functions and powers of the organizational units to prevent and fight against corruption, and a number of key anti-corruption standards.

The experience with applying anti-corruption measures and monitoring the Russian anti-corruption legislation, as well as the efficiency of Rosseti's implementation of anti-corruption standards and procedures have led to the need for systemic changes in the regulation of electric grid complex organizations in the area of preventing and combating corruption, and prevention of other related offenses.

So, the Guidelines for the development and adoption of measures on prevention and anti-corruption by organizations developed by the Russian Ministry of Labour were taken into account. The Official Interpretation Act, approved on November 08, 2013 (edit. April 16, 2014), reveals the preventive measures necessary for the execution by organizations and is referred to in Article 13.3 of the Federal Law of 25.12.2008 ¹ 273-FZ "On Combating Corruption "(hereinafter - the Law on Anti-Corruption).

By Decree of the President of the Russian Federation dated 11.04.2014 No. 226, organizations are required to comply with the execution of laws and administrative decisions in the field of anti-corruption and the National Anti-Corruption Plan for 2014 – 2015 has also been approved. The latter defines the main task of implementing the requirements of Article 13.3 of the Law on Combating Corruption concerning the responsibilities of organizations - and, therefore, of Rosseti, its subsidiaries and associates - to take measures to prevent and combat corruption. It provides for the formation of the system of state control over the implementation of anti-corruption policies in the private sector. This work involved the Russian Ministry of Labour, and other federal executive authorities, including law enforcement, participating in legislative activities and exercising supervisory functions in the field of anti-corruption.

Anti-Corruption policies in the new edition define the basic measures, objectives, principles and activities in the field of preventing and combating corruption. Among the tasks are the implementation of the requirements of Article 13.3. of the Law on Anti-Corruption, the formation of a uniform understanding of the position of the company and its subsidiaries on the rejection of corruption, establishment of an effective legal mechanism to prevent corruption and other offenses in the electric grid companies, minimization of the risk of employee involvement in corrupt activities, the formation of an anti-corruption corporate consciousness, etc.

A united Anti-Corruption policy of the electric grid complex provides for the implementation of specific measures to prevent and fight against corruption, among which, in accordance with the legislative changes is the definition of the units responsible for the prevention of corruption offenses and combating corruption, the development and introduction of standards and procedures designed to ensure fair work; adoption of a code of ethics and official conduct of employees; identification and resolution of conflicts of interest; interaction with state bodies exercising oversight functions and cooperation with law enforcement authorities in combating corruption; establishment of employee duties related to the prevention and combating corruption, the specification of responsibility, and a number of other provisions.

"The new version of the Anti-Corruption policy takes into account the requirements of all legislation and administrative decisions in the field of anti-corruption, reducing the possibility of corrupt behaviour, and ensures the reduction of corruption,” says Victoria Nikiforova, Director of Corporate and Anti-Corruption Compliance Department of Rosseti. “In all the subsidiaries of the Rosseti Group, common rules, standards, and principles will be introduced aimed at the prevention, detection, and suppression of corruption, and also to minimize reputational and corruption risks they will be subject to regular monitoring of the effectiveness of their implementation, compliance with the requirements of Article 13.3 of the Law on Anti-Corruption, and will continue to work with the authorities to improve the current regulatory framework under state control over the implementation of anti-corruption policies in the electric complex."