System Capital Management is a Partner of Donbass Investment Summit

SCM regards participation of business in development of the regions of operations as one of essential areas of corporate social responsibility. We are confident that the growth of every region guarantees development of whole Ukraine.

To implement the policy of the Group, SCM developed and is realizing the action plan. One of its important areas includes supporting the projects that aim to improve investment appeal of the regions of presence.

The first Donbass Investment Summit organized by Deloitte, Ernst & Young and Altera Finance with support of Oblast Council, Donetsk Regional State Administration and Donetsk City Council will become one of such projects.

The Summit will showcase investment potential of Donetsk region as one of the most rapidly developing industrial regions in Ukraine to the international investors; discuss the most attractive investment areas and working conditions of the foreign companies in the region; describe various sectors of the economy available in the region for potential investors and ensure their acquaintance with the largest investors already operating in Donetsk Oblast.

The Summit will present the biggest investment projects of the region (over 100 projects).

The three-day event will be held in Donetsk on 29-31 October, 2008. Over 400 representatives of Ukrainian and international businesses, investor community, politicians and governments, and mass media are expected to participate in the Summit. The Ukrainian-Polish Investment Forum will be held during the Summit and attended by the President of Ukraine Victor Yushchenko and the President of Poland Lech Kaczyński.

Being one of the biggest companies in Ukraine and a professional investor, SCM highly evaluates the excellent investment opportunities available in Donbass and supports the initiative of the Oblast Council to hold the Summit.

Pavlogradugol Invests in Town Public Services Sector

An essential element of the CSR of a big business is being a partner with local communities. SCM Group enterprises give jobs and a stable income to inhabitants of Ukrainian cities and regions as well as are committed to creating comfortable living conditions for employees and their families.

Pavlogradugol is a leading mining association in Ukraine controlled by DTEK Corporation. It cooperates closely with the city authorities in Pavlograd and adjacent towns of miners. Providing support to the local public utilities sector is an element of such cooperation.

Once it aligned it’s initiatives to the towns’ technical development strategies, the enterprise’s management decided to help them prepare for autumn and winter and improve the facilities and infrastructure of their public utilities companies.

The first half of 2007 saw Pavlogradugol transfer funds to the amount of UAH 400,000 to the Pavlograd City government to acquire vehicles. Also, special-purpose vehicles – an excavator, a tractor, and a car lift – totalling UAH 450,000 were handed over to the local community of Pershotravnevsk.

New vehicles made the public utility companies more efficient, helped improve the sanitary situation in the towns, and made the lives of the company’s employees and all the inhabitants in those towns more comfortable.

Pavlogradugol is going to further develop its cooperation with city councils and provide support to local communities in cities where its mine enterprises are located.

Sarmat Cares for the Cleanness of Ukrainian Cities

The quality of life of employees and their families directly affects the availability of the workforce for the enterprise, and the desire of people to work and live in the city.

Proceeding from this principle, which lies at the core of SCM Group policy on cooperation with local authorities, Sarmat Group initiated a program called ‘Sarmat –For Cleanness in our City’ in 2006.

The program launch was preceded by consultations with local authorities that determined the project’s focus – cleaning up city territories – and its importance for local communities.

Employees of the Group and local citizens carried out clean-up activities in city parks and areas adjacent to the plants in five cities where Sarmat Group is present, namely Donetsk, Lugansk, Dnepropetrovsk, Poltava, and Simferopol. They laid out flower beds, planted trees, and painted fences and benches.

Employees of Sarmat Group, the management of the individual companies and the Group, representatives of System Capital Management – the shareholder of Sarmat Group – local citizens, and city council executives partook in the clean-ups. Over 2,000 people participated in the projects.

The program was successfully realized thanks to the cooperation of the local authorities and their improved relations with Sarmat Group. Given the program’s effectiveness, Sarmat Group intends to carry out such events annually.