Supply chain and procurement

Supply chain

Procurement

PhosAgro places special emphasis on making its procurement activities transparent and ensuring fair competition and equal conditions for all suppliers of equipment, materials and services. We seek to build strong, trustful and mutually beneficial relationships with our partners in compliance with the applicable laws, regulations, industry standards, contractual and other obligations.

Procurement principles

As set out in the relevant policy of Apatit, the Company’s procurement activities rely on the following principles:

• Be legitimate, competitive, and transparent
• Factor in the requirements for specifications, quality, customer service, delivery terms, reliability, eco-friendliness and total cost of ownership, along with legal and social matters pertaining to the equipment and materials sourced
• Use the best-fitting, sustainable business solutions
• Protect the Company’s reputation
• Comply with the Company’s existing procedures and best practices

Committed to fighting corruption, PhosAgro adheres to the Anti-Corruption Charter of the Russian Business. We are making reasonable efforts to minimise risks of doing business with partners that might be involved in fraud and/or corruption.

In furtherance of our Anti-Corruption Policy, we establish and maintain business relationships with companies that operate in a bona fide manner, care about their own reputation, show commitment to high ethical standards, combat corruption, and take part in joint anti-corruption initiatives in accordance with article 13.3 of the Federal Law On Combating Corruption.

In line with the Company's approved Code of Ethics published at www.phosagro.com, the Company may refuse to cooperate with suppliers or business partners discriminating their own or subcontractors’ employees or using forced labour.

Procurement methods

Corporate procurement is a competitive process, with a dedicated commission put in charge of organising tenders for equipment, materials, petroleum products and services. For this purpose, the Group uses an online bidding platform, which meets all applicable requirements set by the Russian laws. We arrange for and hold tenders with a view to achieving a greater procurement efficiency and transparency, creating a level playing field for all prospective contractors, setting uniform requirements, and ensuring fair bid evaluation.