Vladimir Putin Meets with President of Transneft Nikolay Tokarev

Vladimir Putin has held a working meeting with Chairman of the Management Board and President of Transneft Nikolay Tokarev.

V.Putin: Mr. Tokarev, Transneft plays a special part in the energy sector. How much does it provide practically?

N.Tokarev: 83% of all crude produced in Russia...

V.Putin: ... is transported over its system.

N.Tokarev: As well as 30% of all petroleum products.

V.Putin: In other words, this Company is absolutely unique in the entire energy sector.

N.Tokarev: Mr. President, talking about Transneft's assets, first and foremost, these are 123,000 specialists working in 64 regions of Russia, 67,000 kilometers of oil trunk pipelines, more than half a thousand oil pumping stations. Mind-boggling figures in themselves, to be sure.

The team works like a clock, steadily, and reliably, fulfilling all its oil transportation obligations in Russia and abroad. I’d say this has been possible due to the fact that 15 recent years have been the period of the Company’s most dynamic development — we've just changed significantly during this time. 

We’ve built 24,500 km of new trunk pipelines, of which 10,500 are large, serious projects: ESPO-1 and ESPO-2 [pipeline systems], Baltic Pipeline System-2, Kuyumba –Tayshet and Zapolyarye – Purpe – Samotlor [oil pipelines], the expansion of the petroleum products pipeline to Primorsk by 25 million tonnes of petroleum products — the whole of it required overall modernisation of all processes.

In my opinion, a very important advantage of all those transformations in the Company has been the fact that today there is no shortage of pumping capacity on almost any direction. If earlier oil companies had to rack their brains, beg clients on bended knees to buy their crude for export or for their undertakings, today, maybe, only the ESPO has some limitations: it is a premium direction, everyone wants to go there, and so it is fully loaded.

V. Putin: The Asian direction?

N.Tokarev: Yes, China and APR. Today, 50 million [tonnes of crude] are transported over the ESPO Stage II and 80 million — over Stage I; of this amount 30 [million] are transported to China, Mohe.

During this time, we’ve totally addressed the import substitution issues as regards the production of mainline pumps. We used to buy them in Ukraine, abroad, before. Now we are releasing the entire line-up at our plants in Chelyabinsk. The electric drives and motors for these pumps are produced at domestic plants which meet all requirements of our Company. Now we are cooperating with the railways to produce in-house traction motors for locomotives.

We earlier purchased drag-reducing agents from US-based companies, but now we produce them in Tatarstan at our plant. So, 29 import substitution positions that we included in our programme have now been fully implemented.

To say nothing about the fact that today’s new course is about digitalisation. In three years to come, we plan around RUB 30 billion to be invested in this particular area. Surely, this enables us to reach all of our planned targets and work in the way all our programmes envisage.

Our main objectives for 2022 are increasing the reliability of our oil pipelines and reducing the accident rate. It’s already about ten times lower than the world average, the median value in this area, but we’ll keep striving for zero. We’ve set this goal and have ample opportunities for reaching it.

This is why we have allocated RUB 175 billion of investment for 2022 into technical upgrading, revamping, and overhaul of our facilities. So far, everything unfolds as planned.

Of course, in addition to production activities, the Company pursues a solid social policy. We have our own non-state pension fund for our 31,000 retirees. Our average corporate retirement allowance is RUB 10,000. Then comes the housing policy, assistance to families with children, recreation and health resort services, medical insurance for specialists at the Company's expense, and surely a healthy lifestyle. We try to make it our top priority.

Charitable activity is another important priority for our Company. In three recent years, we have helped renovate 107 schools. As usual, these are schools in small towns and settlements. Repairing and equipping chemistry, physics, and math classes with essential instruments, computers, that is, everything needed to make tuition exciting and gripping.

We’ve put 55 medical institutions in order: this includes the construction of new HPs and the repairs in outpatient clinics. Mobile outpatient clinics are a new dynamically developing thrust right now. We help the regions acquire outpatient clinics based on heavy-duty vehicles. This means a full range of medical services, health examinations, and tests in most remote boroughs. Even here, in Central Russia, we helped Tula Region by purchasing two of these mobile units.

As for culture, we certainly focus on museums. We’ve long been lending a helping hand to the Moscow Kremlin Museums. We provide all necessary financing for restoration of the Assumption Cathedral in the Kremlin. Also the Tretyakov Art Gallery. And our subsidiaries are certainly doing the same work locally.