Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

13 Sep 2011



PSD disclosed:

12 Jan 2012

Translated version of this PSD: Russian

Project Description

The EBRD is acquiring a minority equity stake of ca. 15% in OJSC Katren (the “Company”), one of the largest distributors of pharmaceutical products in CIS.

The investment will be used to

(i) finance the Company’s supply chain optimization programme in Russia
(ii) strengthen the equity base by supporting balance sheet restructuring of the Company’s subsidiary in Kazakhstan
(iii) fund acquisitions in the pharmaceutical distribution sector in other CIS and CEE markets as well as in the pharmacy retail sector in Russia.

Transition Impact

Transition impact potential will derive from:

(i) Setting standards for corporate governance and business conduct.
(ii) Demonstration of restructuring. The Company’s investment programme is aimed at elimination of bottlenecks, process optimisation and productivity improvements in its warehouses and improvements in the working capital management.

The Client

OJSC Katren is a holding vehicle incorporated in Russia for the pharmaceutical distributors in Russia, Ukraine, Kazakhstan and Belarus and a retail pharmacy chain in Russia.

EBRD Finance

Equity: ca. 15% of capital and voting rights after completion.

Project Cost


Environmental Impact

Categorised B. Environmental and social (E&S) issues associated with pharmaceuticals distribution and pharmacies operations are site specific and can be mitigated through introduction of specific improvements and management practices. The Environmental and Social Due Diligence (ESDD) showed compliance with Russian environmental legislation and confirmed that Katren has an adequate institutional capacity and management culture to implement the Bank’s PRs.

The current operations as well as investment programme are not associated with any major environmental impacts as the Company has no production activities, being involved only in storage and distribution of ready pharmaceuticals. Key sources of air pollution are related to use of road transport for deliveries to Clients and own pharmacies and combustion emissions from gas boilers. The Company has good waste minimisation and recycling practices.

The social issues are mainly related to maintaining the existing high level of occupational health and safety (OHS), labour conditions, as well as pharmacovigilance of the products ensuring their safety for consumers and appropriate recall mechanism. With almost 3,000 employees, Human Resources management is considered to be adequate. OHS risks are low-medium as the processes are highly automated with some minor manual work involved.

To ensure the implementation of adequate mitigation measures an Environmental and Social Action Plan (ESAP) has been agreed with the Client. Among improvements the ESAP includes the following provisions:

  • implementation of a formal environmental management system;
  • development of grievances mechanisms for workers and general public;
  • health and safety risk assessment of all positions and relevant OHS training of the staff;
  • Road and site traffic safety measures;
  • formalisation of product recall mechanism to improve communication with the public;
  • regular information disclosure on environmental, health and safety and social issues.

The Company will provide the Bank with Annual Environmental and Social Reports (AESR) and notify on any material accidents or incidents. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PR’s through reviewing the Client reporting and undertake periodic monitoring visits.

Technical Cooperation


Company Contact

Irina Coy, CFO of OJSC Katren
Tel: +7 (495) 7750901
E-mail: CoyIP@mso.katren.ru


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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