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Nikolay Pilipenko<br />
Audit Committee<br />
Q. What do you see as a key issue for the Board over the next twelve months?<br />
A. In <strong>2011</strong> we made two important decisions that will prove decisive for<br />
the Group’s development in the coming years. The first of these – the<br />
purchase of natural gas assets in Western Siberia – is another key step<br />
in our strategy to build a vertically integrated company with its own<br />
resource base. The second, which is the acquisition of production assets<br />
in Belgium, will strengthen the Company’s long-term position on the<br />
European fertilizer market.<br />
Both of these transactions have significant value-building potential.<br />
The realisation of this potential will, to a large extent, depend on our ability<br />
to quickly and seamlessly integrate them within the existing business<br />
model. This will require flexibility from our processes, information systems,<br />
and corporate governance practices to adapt while retaining their core<br />
principles. I believe a key task for us in 2012 will be to ensure that<br />
information flows remain accurate, comprehensive, and timely during<br />
the consolidation phase. The need to establish effective communication<br />
channels and methods which will allow us to react quickly to changes<br />
and challenges within the competitive landscape will be crucial. The<br />
preservation of sound corporate governance practices will be essential<br />
at this stage of EuroChem’s development. These should help the Company<br />
evolve, while maintaining and promoting transparency, accountability,<br />
and responsibility.<br />
Dmitry Strezhnev<br />
CEO<br />
Q. What is expected of EuroChem directors?<br />
A. EuroChem directors are ultimately responsible for the Company’s<br />
governance and are required to operate with due diligence and discipline<br />
across the business. Naturally, all directors are expected to display<br />
effective leadership and be accountable for their actions. It is important<br />
that trust is nurtured and earned through managing the business in<br />
a responsible and sustainable way.<br />
The Board has a clear and defined direction for the strategic and organic<br />
development and progress of the business. We rely on our non-executive<br />
directors to help us ensure the Company meets the expectations of the<br />
investment community and we are committed to the highest standards<br />
of corporate governance and robust compliance practices.<br />
It is important that we embed a culture of openness and transparency<br />
and that our non-executive directors play an integral part in our continuous<br />
drive to improve and raise the standards by which we conduct, monitor,<br />
and grow the business to achieve our vision now and in the future.<br />
Annual Report and Accounts <strong>2011</strong> EuroChem 69<br />
Corporate governance
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