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Management Approach

NOVATEK is building a sustainable and transparent supply chain by consistently embedding sustainability into its strategic and operational activities.

Procurement is a strategic element of the Company’s supply chain management system. The Company annually procures large quantities of goods and services and engages many contractors.

Our uniform procurement policies and principles are shared throughout NOVATEK, its subsidiaries and joint ventures.

NOVATEK’s key priority in supply chain management is operational continuity, so the Company seeks to ensure best value for money, requiring its suppliers to deliver high-quality goods, works and services on time. The Company strives to localize production as much as possible.

The key documents governing the Company’s procurement activities are PAO NOVATEK’s Procurement Policy and the Regulations on Procurement of Materials, Equipment, Works, and Services for PAO NOVATEK.

The Company is guided by the following key procurement principles:

  • equal treatment, non-discrimination, and respect for competition among bidders;
  • information transparency;
  • long-term relationships with key partners;
  • support for local suppliers;
  • localization of production and reduction of dependence on imported technologies; and
  • promotion of responsible business practices among participants across the supply chain.

Aiming at the implementation of the highest ethical standards and open and fair business principles, PAO NOVATEK has in place the Supplier Code of Conduct. The Code sets forth the Company’s expectations as to how its counterparties should act to observe the human rights and business ethics, safeguard occupational health and safety and environmental protection principles; and ensure employee relation best practices.