MMK significantly increases spending on social programmes in H1 2020
Additionally, MMK itself contributed some 80% of the total expenditure, totalling RUB 1.16 bln – an increase of 54% compared with the first 6 months of 2019.
In H1 2020, MMK Group allocated funds for the protection of employee health, healthcare programmes and preventive treatment (RUB 218.6 mln); compensating employee healthcare expenses (RUB 100.4 mln); organising recreation for children (RUB 27.3 mln); promoting healthy living, sport and exercise (RUB 65 mln); social support for pensioners, disabled persons and others in need of help (RUB 240 mln). During the pandemic, lonely older people, people with disabilities and people on low incomes are in an especially vulnerable position. Recognising this, since April MMK has supported “We Stand Together” – a philanthropic programme run jointly with the Magnitogorsk city government, launched at MMK’s initiative. Initially, the programme was directed at helping pensioners living alone. MMK’s Chairman of the Board Victor Rashnikov decided to expand the programme, and currently it provides assistance to other citizens on low incomes and in need of aid. All of the programme’s participants, more than 25 thousand people, receive a specially made and certified package consisting of foodstuffs and personal protective equipment delivered to their home address.
Other areas of MMK Group’s social support funding in H1 2020 included stimulating fertility rates, supporting maternity and large families (RUB 39 mln allocated), organisation of cultural events and supporting cultural centres (RUB 55.6 mln), provision of hot meals for plant employees (RUB 28.4 mln), and housing, youth, and educational programmes and other voluntary social commitments (RUB 67.7 mln).
A significant share of the Company’s social expenditure in H1 2020 concerned charity. In H1 2020, MMK Group’s spending in this sphere totalled RUB 633.8 mln, of which around 580 mln was contributed by the parent company. In the light of the pandemic, MMK Chairman of the Board Victor Rashnikov decided to donate RUB 500 mln to support preventative and socially oriented activities in Magnitogorsk. This included obtaining essential equipment for medical facilities, extra payments to medical personnel working in high-risk environments, and purchasing computer devices for young teachers and children from low-income families of Magnitogorsk. Magnitogorsk’s kindergartens have received germicidal irradiators. The city’s orphanages and group homes have received contactless thermometers.
All in all, MMK Group’s investments in philanthropy and social programmes in H1 2020 totalled RUB 1,475.9 mln, including RUB 1,160 mln contributed by MMK itself. MMK’s large-scale, systematic investment in the development of human capital, social partnership, philanthropy and social infrastructure lays a solid foundation for stable development of the city and the region.