generating records annual report 2014

Purchase Management

The Concern’s purchasing activities are regulated by Uniform Industry-Level Purchasing Standard (Regulations on Purchasing Activities) of Rosatom State Corporation, as approved by the resolution of Rosatom State Corporation Supervisory Council (the “UIPS”).

The UIPS regulates relations connected with purchases for the needs of Rosatom State Corporation and entities thereof so as to ensure efficient use of funds, open and transparent placement of orders, and the required level of safe operation of the nuclear energy sector and industry facilities.

Pursuant to Federal Law No. 223- FZ of July 18, 2011, «Purchasing of Products, Work, and Services by Specific Corporate Entities» and the UIPS, information on goods, work, or services to be purchased is published on the Internet on the official website of the government, and on the official website on purchasing in the nuclear sector; thus a wide range of bidders may join the procedure.

In order to reduce times of the processes and increase efficiency of purchases in 2014 the Concern regulated purchase processes, including those determining the procedure for interaction of structural subdivisions of the organization during competitive purchases, and areas of responsibility at all stages of purchase are additionally distributed and allocated.

In 2014 structural subdivisions of Rosenergoatom Concern OJSC and its branches conducted 11,913 purchase procedures totaling 118,319 mln rubles, VAT included.

Savings from competitive purchasing procedures totaled 5,811 mln rubles, VAT included (9.1%).

The share of the contracting agents from the «local suppliers» as a result of purchasing procedures totaled 18%, where «local suppliers» means suppliers on supply of goods, work, and services located at the are of location of Rosenergoatom Concern OJSC and its branches.

In 2014 the Concern’s purchase performance indicators were fulfilled in full.

The Concern’s purchasing objectives for 2015 are as follows: