External social policy priorities

External social program management system
Elements of the management system
Corporate documents
PRINCIPLES

The Company’s social responsibility principles are defined as follows: continuity of business; economic feasibility; control over the performance of obligations and public reporting. The Company’s charity and sponsorship priorities and the mechanisms for their implementation and assessment have also been established

The Social Code of PJSC LUKOIL, approved by the PJSC LUKOIL Board of Directors, Minutes No.16 dated October 24, 2017

PRIORITIES

Environmental protection, the development of science and education, the preservation of national and cultural identities, and sponsoring culture and sports and supporting socially vulnerable groups

Interaction with the regions where we operate and with local communities

PJSC LUKOIL’s external social policy is executed using the following mechanisms:

  • social and economic cooperation agreements with constituent entities of the Russian Federation
  • Social and Cultural Projects Сompetition
  • charity projects and programs
  • support for the indigenous minorities of the North
  • corporate volunteering
  • sponsorship
PJSC LUKOIL’s Policy on Interactions with Subsidiaries on Key Lines of Activities of the Public Relations Department approved by the Minutes of the Management Committee of PJSC LUKOIL dated December 23, 2019
ASSESSMENT OF PROJECTS

The main criterion for selecting projects we will support is their potential contribution to resolving local issues.

Our methods of assessing the efficacy of implemented projects include:

  • meetings with stakeholders to discuss the effective implementation of cooperation agreements
  • regular monitoring of the social and economic situation in Russian regions
  • meetings with residents of Russian regions (roundtables, dialogue sessions, conferences)

Our actions

We recognize the importance of regularly interacting with the residents of the Russian regions where LUKOIL entities operate. Our external social policy focuses on the interests of territories and local communities, and is based on the principles of constructive cooperation and responsible partnership.

Thanks to its state-of-the-art production facilities and stable employment, the Company is a big employer and taxpayer and contributes to maintaining a stable social and economic situation in most Russian regions where the Group’s entities operate.

The Company’s tax payments to budgets of all levels in 2020 amounted to RUB 782.7 billion, including about RUB 71 billion to the consolidated budgets of the constituent entities of the Russian FederationExcluding excise taxes on petroleum products (motor and straight-run gasoline, diesel fuel, motor oils), which are distributed among the budgets of the constituent entities of the Russian Federation at the Treasury level..

Even amid challenging conditions caused by the pandemic and economic downturn, the Company succeeded in implementing its production plans and investment program, ensured steady operation of its industrial facilities, the output of petroleum products, and timely payment of taxes and other payments to all levels of the budget. There were no staff layoffs despite volume drop-offs under the OPEC+ agreement and severe restrictions as part of the anti-COVID-19 measures.

There is an oriental wisdom: friendship doubles joy and halves grief. Fortunately, Yugra has a friend who operates according to this rule, — and this is LUKOIL Company. Our collaboration is not a game, predictable mechanisms are in place. We highly value this kind of collaboration.”
Natalia Komarova Governor of the Khanty-Mansi Autonomous Area — Yugra

Our charity programs are focused on improving the social climate and quality of life of the population, our employees and their family members and embody the Company’s response to pressing social issues. Our social priorities have remained unchanged for over a quarter of a century, and are the same for all the regions and countries where LUKOIL Group entities operate. Many programs and regional projects are long-term and are financed by the LUKOIL Charity Fund (the LUKOIL CF or the Fund) and directly by LUKOIL Group entities.

Social projects make it possible to build and renovate kindergartens, schools, sports facilities, medical centers, hospitals, cultural institutions, and other socially significant facilities. In 2020, due to the COVID-19 pandemic, we had to cancel mass events that were supposed to take place as part of several projects and adjust other plans: some events were rescheduled and some were held using other formats.

Together we have conducted numerous projects: we have built new schools and kindergartens, build and repaired health centers, improved gardens and parks. Having signed the agreement, we are confident our collaboration will continue. This is important for us: we have 300th anniversary of Perm ahead with many large events planned, and we will continue conducting projects in territories, for instance, on the development of rural culture centers.”
Dmitry Makhonin Governor of the Perm Territory
In 2020, LUKOIL Group external social support expenses amounted to RUB 8.4 billion, including charity social projects and events under 29 cooperation agreements with constituent entities of the Russian Federation. Concurrently, significant funds were allocated to protect people from the COVID-19 pandemic.

Regional support in the fight against COVID-19

Since the outbreak of the coronavirus pandemic, LUKOIL has been providing support both in Russian regions and abroad to treat patients and fight the spread of the disease. The Company donated about RUB 1 billion to 25 Russian regions and 14 foreign countries.

The primary areas of assistance are:

  • procurement of essential equipment for medical institutions (artificial lungs ventilation machines, oxygen tanks, and compressors for intensive and resuscitation medical care for patients with severe cases of infection, CT scanners, X-ray machines, ECG recorders, and others);
  • construction, repair, and re-outfitting of medical facilities (the hospital for infectious diseases in the Saratov region, the multifunctional laboratory in Kogalym, among others);
  • procurement of personal protective equipment (masks, protective clothing for medical workers, sanitizers, etc.);
  • supplying fuel to medical institutions and volunteers;
  • purchasing food packages for elder citizens and e-learning tablets for students from low-income families.

LUKOIL volunteers assisted the elderly across different regions and handed out medical masks to the local population.

LUKOIL made a major contribution to the fight against the pandemic through its in-house production of antiseptics and disinfectants. The Kogalym Chemical Reagent Plant produced and delivered more than 820 tonnes of disinfectants to Yugra entities. LLK-International also launched the production of modern antiseptics for individual and industrial use, effectively preventing the spread of a wide range of viruses, including COVID-19.

In Iraq, we supplied equipment, sanitizers, and supplies to medical facilities and hospitals in the districts of Ezzeddine Salim, Qurna, and Madeina.

Regular areas of support

SUPPORT FOR ORPHANED CHILDREN, DISABLED PERSONS
Areas of external social policy

We support public institutions that look after orphaned and abandoned children, as well as the children themselves. Our programs promote children’s personal development, improve their health, and help them prepare for adult life.

By supporting disabled people, we not only provide them with financial assistance, but also help them master new life skills.

The Company provides special concern and caring to World War II veterans working in the oil industry. Every year, on the eve of Victory Day, they receive monetary aid and gifts. The Company also supports the families of military servicemen who died in local conflicts.


Selected social policy initiatives

We partner with public agencies and foundations that provide support to children, including those with disabilities. For example, the Children with Cerebral Palsy Support Foundation received custom-made wheelchairs for children in Kogalym, Langepas, Urai, Pokachi, Novgorod, Pskov, Budennovsk, in the Komi republic, and in the republic of Udmurtia. The Yamine Charity Foundation (the Khanty-Mansi Autonomous Area — Yugra), with the Company’s support, organized diagnostics, and medical treatment for 140 children with disabilities as well as rehabilitation and correctional therapy in specialized centers nationwide.

The “Museum without Borders” project (Pokachi, Khanty-Mansi Autonomous Area — Yugra) helped to create a barrier-free environment for children and adults with disabilities: a ramp with a call button and a sensory information booth with development and educational games were built. Information on the Yugra wildlife and culture of indigenous people and the art of Yugra artists have been included in special education programs. Cognitive aids were purchased, and sensory maps were prepared to facilitate the museum experience for visitors with disabilities.

In Uzbekistan, families with disabled children from the Dekhkanabad district of Kashkadarya province, low-income families, and people with disabilities received charitable assistance during the lockdown following the request from the Khokimiyat of Alat district of Bukhara province.

We also provided support to charitable foundations that addressed the spread of the coronavirus infection (Mehr va Shavkat, Kashkadarya and Syrdarya branches of the Soglom Avlod Uchun charitable foundation).

We are grateful to LUKOIL Company and LUKOIL Charity Foundation for sensitive and careful attitude towards our establishment and the children. Annually, they provide substantial support, and never refuse to help solve our problems. For example, this year the Company assisted us in carrying out full repair of girls’ bedroom. Many thanks for your contribution!”
Irina Chelysheva Director of “Alyi Parus” social shelter (Nizhny Novgorod Region)
Educational programs
Areas of external social policy

We believe that our programs for the younger generation and young oil industry specialists will make a valuable contribution to the future well-being of society. The Company is working with oil industry higher and secondary educational institutions to ensure that the educational process is organized in accordance with the highest standards. The institutions use financial support from the Company to create research centers, laboratories, and academic departments; purchase equipment; and publish new textbooks and collections of articles about the oil and gas industry.


Selected social policy initiatives

In 2020, we also continued to support traditional education programs. Since 2000 we have been sponsoring high-potential students, young teachers, and job training instructors by providing individual scholarships and grants. In 2020, the scholarship program covered 14 higher education institutions and three colleges, and the grant program covered one high school, eight higher education institutions, and four colleges. LUKOIL Group entities also support educational initiatives in regions where they operate and implement programs that have wide coverage.

In 2020, LUKOIL became the key partner of the “I am a Rescuer!” educational event for schoolchildren to mark the 30th anniversary of the EMERCOM of Russia. According to the preliminary reports on the competition, 12 children spent a day with an emergency response worker and received letters of recommendation for admission to the Academy of State Fire-Fighting Service of EMERCOM of Russia.

The Company also completed a large-scale project for the construction of “Neftegrad” interactive playgrounds for children. These playgrounds help educate children about the oil and gas industry in the form of interactive games.

The “Universe and Us” project (Urai, Khanty-Mansi Autonomous Area-Yugra, Youth and Supplementary Education Center) organized field trips to schools using a mobile planetarium and astronomy equipment.

In 2020, robotics classes were opened in Bukhara and Karshi (Uzbekistan). The project was implemented by the Innovation, Technology and Strategy Center under the Ministry of Education of the Republic of Uzbekistan with the support of the LUKOIL Uzbekistan Operating Company. Two pilot robotics classes were opened at secondary schools and fitted with the latest equipment. Children will learn programming, mathematics, physics, and algorithmic fundamentals, which will later help them decide on their future education and career.

Sponsorship programs for students and teachers of higher and secondary education organizations in Russia
2018 2019 2020
Student scholarships
Number of scholarship holders, people 190 195 196
Level of financing, RUB million 5.9 6.2 6.4
Grants to teachers
Number of teachers, people 79 79 86
Financing amount, RUB million 9.0 9.2 10.2
My four-years old son Sasha is enrolling in the new kindergarten; we live in this district on Lugovaya street. We have been waiting for the place watching the construction works. In our village children have long been waiting for their turn, a kindergarten was essential! For now kindergarten placement issue has been solved for many parents”.
Natalia Ageldina young mother, resident of the village of Ust-Tzilma (the Komi Republic)
We are grateful to LUKOIL Company for their assistance in the construction of a school building; no doubts it will become a point of attraction for many boys and girls from the village of Khatanga. The new site is really necessary for the villagers, 173 people have already applied for extra-curricular workshops”.
Evgeniy Vershinin Head of Taimyr Dolgano-Nenets Municipal District of the Krasnoyarsk Territory
Supporting healthcare institutions
Areas of external social policy

The Company has for many years supported a number of large specialized medical centers and regional hospitals, out-patient clinics, and first aid stations, as well as improving medical services in the regions of operation. Most of the spending in 2020 has been directed at protecting the population during the coronavirus pandemic.


Selected social policy initiatives

Our main efforts in 2020 were focused on providing support to healthcare institutions across Russia and abroad (see above for details).

Most of the funding was used to purchase medical equipment, including artificial lung-ventilation machines, drugs, protective clothing for medical personnel, sanitizers, and other PPE, as well as to re-equip medical institutions. A total of over 70 hospitals and medical centers received support, and over 281 million rubles were spent on equipment.

At the same time, we continued to support projects of social organizations.

MERCY SHIPS CARGO DAY Project LITASCO SA / EIGER SHIPPING SA have participated in the fund raising for this sustainable Swiss non-profit Association project. For the first time ever, the global shipping and trading community has worked together during Mercy Ships Cargo Day to raise support for Mercy Ships, an NGO operating the world’s largest private hospital ship, serving in the poorest countries in the world as ranked by the United Nations Human Development Index.

In Uzbekistan, LUKOIL has funded an insurance program covering accidents and infectious diseases for about 1 thousand children from six boarding schools and orphanages.

Environmental projects
Areas of external social policy

Environmental campaigns have been held at LUKOIL Group entities throughout the Company’s existence. They are a part of our corporate culture deeply cherished by our employees. Traditionally, as part of these campaigns, our employees and partners plant trees and flowers, clean up natural areas and remove litter from riverbanks and rivers.


Selected social policy initiatives

The Wings of the Arctic Federation of General and Ultra-Light Aviation (Salekhard, Yamal-Nenets Autonomous Area) received support for the upkeep of aircraft used to patrol the forest land to locate hot spots and flood areas.

Supported by LUKOIL Group entities, a Trail to Yegoshihya, a loop eco-trail in the historical center of Perm, was completed in 2020 in the Perm Territory. The route is used for adventure games, educational tours for schoolchildren, and birdwatching.

Social and Cultural Projects Competition
Areas of external social policy

The Social and Cultural Projects Competition has been organized by LUKOIL CF in partnership with LUKOIL Group entities since 2002 and is the most well-known corporate program. Its main goal is to support initiatives from local citizens and entities to help resolve issues that impact local areas, and to facilitate conditions that will increase the number of active citizens capable of implementing worthwhile social ideas. The Competition considers entries in three main categories: “Environment”, “Spirituality and Culture”, and “Sports”. One more category was introduced in 2020 in addition to the traditional ones — “The Great Deed”, commemorating the 75th anniversary of the victory in World War II.


Selected projects that were financed in 2020
Improving the social climate in Russian regions

The Happiness Factory project made it possible to complete the construction and furnishing of the blacksmith shop recreated using the old designs in the Krasnoye Estate in Chernushinsky District of the Perm Territory. Improvements were also made to the adjoining territory. The blacksmith shop integrated perfectly into the tourist route that takes pilgrims to St. Nicholas Nunnery. The shop is open to everyone, and excursions and masterclasses are held for social groups.

Environmental improvement

During the implementation of The Kindness Journey project (organized by the District Community Center in the village of Ust-Tsilma and Ust-Tsilma Administration district in the Komi Republic), the funding was used to improve and landscape the territory of the Ust-Tsilma Cultural Center, including the sidewalks. The area is designed to host environmental activities, which will pave the way for the ecological education of the public.

The Romanian project to establish a Cultural Center for Human Impact on Nature and Environmental Education in Cheia, Prahova County, received support as part of the Social and Cultural Projects Competition. The center was opened at the Museum of Rocks in Cheia, a branch of the Prahova Regional Museum of Natural History. Practical fieldwork was carried out during the pandemic to study the habitat and biodiversity of the Cheia-Menechu area jointly with the Menechu Forestry Service in compliance with all the prescribed precautions. The research identified valuable areas and elements of natural heritage less known to the public, such as the spruce nursery, the Caucasian spruce, the Centennial Spruce Reserve, and areas of virgin and quasi-virgin forests. This work will help the Prahova County Museum of Natural Sciences and the Menechu Forestry to map out forests of high natural value as well as essential elements of flora and fauna in the region.

Social and Cultural Projects Competition Results
Company’s support covers many issues relevant to families raising many children, and also the ones with disabled children, for instance. The projects contest facilitates the restoration of historic and cultural heritage, strengthening volunteer movements. 100 social welfare institutions have become grant holders. There have been 493 projects implemented in this area. A number of project practices have been rolled-out across the whole republic.”
Elmira Zaripova Minister of Labor, Employment and Social Policy of the Republic of Tatarstan
Cultural heritage preservation programs
Areas of external social policy

The Company is committed to fostering conditions that preserve national and cultural traditions and crafts in regions of operation, and supports various types of art, especially classical, as well as the territories where cultural monuments are located, including those representing valuable or particularly vulnerable cultural heritage sites. Numerous projects to preserve cultural heritage have been implemented.

This program is aimed at developing Russian culture, promoting spirituality, and preserving national values. For many years we have supported museums, theaters, performance groups, and festivals. We take part in organizing exhibitions and concert tours, restoring cultural heritage sites, and repairing cultural and art centers in Russian regions.


Selected social policy initiatives

The Company has traditionally supported numerous cultural events: in the Moscow Kremlin Museums — the exhibitions “Carl Fabergé and Feodor Rückert. Masterpieces of Russian enamel,” “Alexander Benois. On the 150th Anniversary of the Artist’s Birth,” “Collection of V. Kokorev”; at the State Historical Museum — “Fyodor Rokotov. Collection of the Historical Museum” exhibition; at the Tretyakov Gallery - “Maria Yakunchikova. On the 150th Anniversary of the Artist’s Birth”; at the Vyatka Art Museum. V.M. Vasnetsov and A.M. Vasnetsov — the “Magic Bolshoi” exhibition; at the P.M. Dogadin Astrakhan State Art Gallery — “Outstanding artists in the collection of the Nizhny Novgorod State Art Museum.”

The cultural and exhibition center of the Russian Museum was opened with the Company’s support. Its first exposition was a collection of paintings by Vasily Kokorev, a prominent patron and businessman of the 19th century, which included about 50 works by Karl Bryullov, Alexey Venetsianov, Vasily Tropinin, and others. There are plans to open a Museum and Exhibition Center in Kogalym — a branch of the Russian Museum, similar to the previously opened branch of the Maly Theater. Kogalym is becoming the true cultural center of Ugra.

The Tchaikovsky Symphony Orchestra, The Moscow State Tchaikovsky Conservatory, and other companies also received support. A project was also organized with the Novaya Opera soloists V. Ladyuk and A. Tatarintsev to give “Our Favorite Melodies” benefit concerts in Volgograd and Kotovo. In addition to the above-mentioned projects, the Company also supported cultural centers and performance groups in various towns and villages across Russia.

Since 2000, LITASCO has been proud to partner with the Geneva Chamber Orchestra, renowned for its unique sound, based on a historical interpretation of works in classical and baroque styles. Together with the Geneva Chamber Orchestra LITASCO is participating in extraordinary musical events such as the now traditional Geneva Christmas Concerts.

Supporting sports teams and events
Areas of external social policy

LUKOIL’s sports program is geared towards promoting healthy lifestyles and sports. We help both professional and amateur teams, support the Olympic movement, and organize corporate wellness programs. Special emphasis is placed on the development of children’s sports. All sports projects are operated by the LUKOIL Sports Club. We continuously support the following sports: soccer, racing, basketball, competitive skiing, water polo, handball. The Company also assists in organizing various competitions and city sports festivals.


Selected social policy initiatives

Thanks to the Company’s support, Russian car racers (Lukoil Racing Team), FC Spartak, the national skiing team, United Basketball League athletes, and numerous regional teams have recorded impressive victories in various sports. All professional clubs supported by LUKOIL develop children sports.

In addition, the Company supports the development of youth soccer at the international level (Children’s Champions Cup, Lukoil Cup; Children’s Soccer league). Attention is also paid to sports veterans — LUKOIL is a founder of the Russian Olympians Foundation.

The initiatives of the LUKOIL Sport Club are intended for young athletes, amateur and professional athletes, and disabled people.

Children’s tournaments were held with LUKOIL’s support in 2020, including: handball tournament among schoolchildren (Astrakhan Region), traditional ballroom dancing tournament Dancing Metelitsa (Nizhny Novgorod Region), Usinsk Football League (Komi Republic), first city tournament in adaptive equestrian sports for athletes with disabilities (Nizhny Novgorod), district and city competitions and figure skating championships in the Yamal-Nenets Autonomous Area.

“Refueling through Sport” grant. This nationwide charity project is aimed at sponsoring athletes between six and fourteen years of age. In addition to monetary prizes, winners receive sportswear and train under the guidance of Olympic champions. Every year from 10 to 15 winners are selected.

Since 2018, the Company has been building a running community. The corporate LUKOIL TRIATHLON TEAM, as well as the LUKOIL RUNNING CLUB, established in 2020, bring together running enthusiasts among the Company’s employees in Russia and abroad.

In 2020, the Urai Arena sports complex was opened in the Khanty-Mansi Autonomous Area-Yugra with an area of about 2 thousand square meters, built entirely with the Company’s charitable donations. The complex was designed in accordance with international standards and features a hockey field, a gym, and other facilities. The sports complex “OLYMP” was reconstructed in Kogalym; it will accommodate students of the wrestling and sambo clubs.

The Key to Start project (Urai, Khanty-Mansi Autonomous Area—Yugra) equipped a training facility for rocket and aeromodelling classes, which helped encourage more children to participate in technical sports. Ten club trainees have won first and second places in the open city and regional competitions.

In Perm, a tourist trail around Yugovskoye Pond was equipped for hiking, biking, nordic walking, and school physical education classes.

The project of the Kogalym Municipal Paralympic Sports Federation encouraged children and adults with disabilities to take regular table tennis lessons.

More details on the activities of LUKOIL Sports Club can be found on the Company website

and in social networks

Children’s Champions Cup, Lukoil Cup

Children’s Soccer league

Corporate volunteering

The practice of volunteering in campaigns and events for the benefit of the residents of cities and villages has long been part of LUKOIL’s corporate culture. Our young employees organize their own volunteer projects and participate in local initiatives. Despite the large variety of campaigns, our volunteers from all regions where LUKOIL operates have shared priorities. These include the following types of support and social participation:

  • Support for war and oil industry veterans: visiting the elderly, helping them around the house, and giving them gifts.
  • Care for children — visits to orphanages and patronage of child welfare institutions, organizing related events and campaigns.
  • Environmental campaigns — cleaning up natural sites, planting trees in cities.
  • Sporting events — bicycle rides, races, relays, rafting, hiking, etc.
  • Charity fairs and city festivals to encourage residents of cities and villages to provide charitable aid to their neighbors.

Social entrepreneurship

The “More Than Just a Purchase” projectLUKOIL cooperates with the “Our Future” Foundation only as part of the “More Than Just a Purchase” project. PJSC LUKOIL has no involvement in the design and implementation of the Foundation’s programs. is a unique joint initiative between LUKOIL Group Russian entities supplying oil products and the “Our Future” Foundation of Regional Social Programs Our Future Foundation was created on the initiative and using private funds of the President of PJSC LUKOIL, V. Alekperov (http://www.nb-fund.ru/). . Its purpose is to support social entrepreneursSocial entrepreneurship refers to a special type of activity aimed at resolving or mitigating social issues using income from economic activities. Both small businesses and social non-profit organizations can be social entrepreneurs. who get the opportunity to sell their products at the Company’s filling stations. Buying project-branded goods help provide jobs for people with disabilities, retirees, and other socially vulnerable groups. The project remained active during the pandemic. In 2020, 15 new social entrepreneurs started offering their products at LUKOIL’s filling stations.

As of December 31, 2020, 122 suppliers were participating in the project (107 in 2019). This is the largest network of operating social entrepreneurs in Russia who are also represented online.

In light of the challenging economic situation faced by many businesses, including social entrepreneurs, due to the spread of the coronavirus infection, the Our Future Foundation allocated RUB 11.6 million to support social entrepreneurs during the pandemic.

More details about the project can be found on the website