Creating long-term value for a wide range of stakeholders is a vital part of our business. Achieving a high level of economic performance allows us to invest in social and economic development as well as to improve the quality of life for local communities. We seek to support the development of the regions where we are present by paying taxes, creating jobs and supporting charitable organisations. How we as a company create wealth for our stakeholders is reflected in the following table.
Direct economic value generated, distributed and retained in 2018 (RUB mln) 
Direct economic value generated
Economic value distributed
Total cost of sales (excluding Employee benefit expense)
Total selling, marketing and administrative expenses
Employee benefit expense
Payments to the providers of capital
Payments to the government
Economic value retained
We believe that it is vital to create value for society not only through financial operations but also from direct cooperation with charitable organisations. We are committed to investing in the social sphere to improve the living conditions of local communities. We actively help ill children and the elderly, support cultural, spiritual and educational activities and sponsor sports programmes, among other initiatives. Adhering to the principles of sustainable development is an integral part of our business philosophy and is key to achieving our broader goals.
The key areas of Globaltrans’ charitable activities
- Support of vulnerable groups
- Support of healthcare
- Support of sports
- Support of culture
- Support of education
In 2018 Globaltrans contributed to various charitable projects.
Drawing public attention to the issue of child healthcare is an important part of our charitable focus. As part of this, in 2018, GTI Management and New Forwarding Company continued their support of the Life Line Fund, which assists children with life-threatening illnesses.
We also regularly support organisations that work with vulnerable social groups such as orphans, people with disabilities, veterans and pensioners. We undertook the following initiatives in this area during 2018:
- GTI Management financed the building and facility improvement of the veterans’ organisation in St. Petersburg;
- As part of its cooperation with Moscow’s public organisation to support war veterans, New Forwarding Company contributed to the museum exhibition honouring the 150th anniversary of the Military communications service.
The preservation and promotion of cultural heritage is another key area of activity for our companies. In line with this, over the course of 2018, New Forwarding Company provided support to the Ekaterinburg Artistic Fund while BaltTransServis gave funding to the International Charitable Fund “Constantine”. Both of these funds use donations to restore monuments and promote Russian culture.
Additionally, we play an active role in improving the quality of education. In 2018, our subsidiary BaltTransServis supported various educational initiatives, for instance “The Gaidar Foundation” that supports projects in the fields of science, culture and education and provides support for the implementation of projects and events for both communities and organisations.
Finally, as part of its commitment to support the development of sports, New Forwarding Company made charitable donations to the Fencing Federation of Russia in 2018.
 Information in the table is derived from the Consolidated Management Report and Consolidated Financial Statements for the year ended 31 December 2018.
 Direct economic value generated includes “Revenue”.
 Payments to providers of capital include “Interest paid”, “Dividends paid to owners of the Company” and “Dividends paid to non-controlling interests in subsidiaries”.
 Payments to government include “Tax paid” and “Taxes (other than income tax and value added taxes)”. The Company also pays Russian Value Added Tax (“VAT”). VAT related to sales and purchases is recognised in the balance sheet on a gross basis and disclosed separately as an asset and liability. Purchases of property, plant and equipment are shown net of VAT. Related input VAT is included in movement in changes of working capital, within trade and other receivables.