Moscow, 17 April 2013. In 2012, SIBUR productions facilities achieved a 22% year-on-year reduction in sanitary waste generation, a 5% reduction in waste water discharge, and a 3% reduction in air pollution.

SIBUR’s key environmental mission is to help oil and gas companies to reduce air pollution by the processing of associated petroleum gas (APG) extracted alongside with oil. In 2012, SIBUR production facilities increased APG processing by almost 4% year-on-year, reaching 18.7 billion cubic metres. Industry experts estimate for every 1 mln cubic metersof APG flared more than 300 tonnes of polluting substances are emitted into the atmosphere, including nitrogen oxides, soot, carbon monoxide, etc. Therefore, in 2012 SIBUR’s APG processing helped prevent emission of over 5 mln tonnes of polluting substances.

Total investment in environmental protection in 2012 under the corporate Dedicated Environmental Programmes reached RUB2.234 bln with the Company’s payments for the environmental impact reduced to .28.2mln (down by RUB7 mln).

The Company achieved a significant reduction in the volumes of certain sanitary wastes by converting them into semi-finished products at SIBUR-PETF and Tobolsk-Neftekhim, reducing the amount of sludge at SIBUR-Khimprom, lowering volumes of spent catalyst and sediment at Togliattikauchuk. Reconstruction of the water supply system at the Novokuibyshevsk site of BIAXPLEN reduced technological water losses at Belozerny GPP and optimisation of flares at Nyagangazpererabotka and Tomskneftekhim also contributed to the overall waste reduction.

In H1 2012, some SIBUR facilities including SiburTyumenGas, Tomskneftekhim and Uralorgsintez undertook an ISO 14001:2004 audit of the Corporate Environmental Management System (CEMS). The audit team of Bureau Veritas Certification Rus, an independent certification authority, noted the high level of environmental comittement both in the production processes and in everyday life, the well-targeted allocation of resources to carry out environment protection activities, the large-scale technical modernisation programme aimed inter alia at a strong improvement in the ecological indicators, and the energy-saving programme implemented with successful results.

Over 6,000 Company employees were trained to be able to further develop and improve the CEMS. The audit confirmed CEMS compliance with ISO 14001:2004.

Throughout 2012 SIBUR continued its corporate philanthropy programme Business for the Environment aimed at supporting environmental initiatives and promoting environmental awareness in the regions where the Company operates. During the year the Company supported 44 environmental initiatives, including the organization of 10 environmental competitions involving over 2,000 children and publishing three booklets on environmental topics. In three cities we helped establish cycle paths and parking racks, plant over 12,000 trees and shrubs, and remove more than 20 tonnes of litter. The programme involved 18,500 people including over 2,000 Company employees. These projects were co-partnered by Green Cross, the Russian Ecological Congress, All-Russian Society for the Protection of Nature, WWF and other non-profit environmental groups. The programme’s 2012 budget stood at RUB20 mln, and we aim to further develop the programme

In 2012 SIBUR held its “Third International Ideas Competition”, with “Innovative Solutions of Environmental Problems” as one of the categories. The Company will consider implementing the winners’ solutions.