Procurement
GRI 204‑1, 408‑1, 409‑1, MED 8, 9, SPBC 65, 66
Key 2025 results
As part of procurement activities, Group companies introduce uniform supplier assessment, selection and relations management procedures to ensure transparency, equal terms and no conflicts of interest. Suppliers have access to information on selection criteria and cooperation principles, while the Group acknowledges their right to keep the provided information confidential.
Procurement documents set forth requirements for sufficient human resources with relevant qualifications, including education and experience, eliminating the risk of cooperation with companies using child or forced labour. At the precontractual stage the security function checks potential suppliers and contractors to minimise potential human rights violations across the supply chain.
FESCO Group conducts its procurement activities in accordance with Rosatom’s Unified Industry Procurement Standard, as well as Federal Law No. 223‑FZ On Procurement of Goods, Works, and Services by Certain Types of Legal Entities dated 18 July 2011.
Key FESCO Group’s documents related to procurement:
- Supplier Code of Conduct of FESCO and its Controlled Entities;
- Unified Industry Procurement Standard of Rosatom State Corporation for FESCO and its Subsidiaries;
- Regulations on Procurement of Goods, Works, and Services for the Needs of VMTP and its Subsidiaries;
- Unified FESCO Service Centre Procurement Standard for other Group companies.
Basic principles in organising and conducting procurement
Openness: information transparency in procurement.
Efficiency: ensuring targeted, economically justified, and efficient spending on the procurement of goods, works, and services (taking into account life cycle costs) and implementation of measures aimed at reducing the costs of FESCO Group companies.
Competitiveness: equality, fairness, non‑discrimination, and no unreasonable restrictions on procurement participants, prevention of corrupt practices and abuse in the procurement process.
Justification: compliance with all legal requirements, collective decision-making with proper documentation, and prohibition of unquantifiable participant requirements that would restrict access to procurement.
Timeliness: implementation of procurement processes to provide FESCO Group companies with goods, works, and services in a timely manner and to inform suppliers in advance of planned procurements.
Procurement in 2024 and 2025
In 2025, the Group’s procurement totalled RUB 214 billion, up 5.5% YoY, with the number of procurement procedures down 37%, from 10.4 thousand to 6.6 thousand due to larger lots and long‑term contracts making the process more efficient.
| Activity | Procurement procedures | Amount, RUB million | ||
|---|---|---|---|---|
| 2024 | 2025 | 2024 | 2025 | |
| Investing activities | 575 | 492 | 10,417.85 | 5,889.87 |
| Day‑to‑day operations | 9,814 | 6,050 | 192,141.31 | 174,038.67 |
| Financial operations | – | 8 | – | 33,685.38 |
| Total | 10,389 | 6,550 | 202,559.15 | 213,613.91 |
Support for small and medium‑sized enterprises
GRI 204‑1
FESCO pays special attention to supporting small and medium‑sized enterprises (SMEs). In 2025, it concluded over 4 thousand contracts worth more than RUB 41 billion with SMEs, enabling Group companies whose procurement activities are governed by Federal Law No. 223‑FZ to comply with the requirements for procurement from SMEs (20% and 25%) established by Russian Government’s Resolution No. 1352 dated 11 November 2014:
- 87.8% – share of domestic goods, works and services in total procurement in 2025;
- 22.0% – share of SMEs in total procurement from Russian suppliers in 2025.
Supplier Code
GRI 2‑25, 308‑2, 408‑1, 409‑1, 414‑2
In 2025, to promote sustainability practices across the supply chain, the Company adopted Supplier Code of Conduct of FESCO and its Controlled Entities.
Joining the Code is voluntary and formalised, with self‑assessment required. The supplier fills in a sustainability questionnaire and sends it to the Company within 12 months from joining the Code. On top of that, the Company expects the supplier to introduce the Code’s provisions into their own supply chains.
The Supplier Code requires partners to show responsible attitude in the following areas:
- environmental safety, adoption of relevant policies and practices, taking into account environmental and climate risks, efficient use of resources, energy saving;
- compliance with labour protection, industrial and fire safety requirements, preventing incidents and occupational diseases, fostering safety culture;
- control of quality and safety of products, works and services;
- providing decent working conditions, respect for human rights, non‑discrimination;
- social responsibility and support of local communities;
- compliance with business ethics and fair competition standards, combatting corruption and conflicts of interest;
- maintaining an open dialogue with stakeholders and information disclosure.
Stakeholders can send questions or messages related to compliance with the Code principles via zakupki@fesco.com. The Group reserves the right to monitor such compliance by conducting regular surveys of current and potential partners.
