LUKOIL’S ACTIONS DRIVEN BY THE COVID-19 PANDEMIC

During the preparation of this Report in March 2020, the COVID-19 pandemic was already beginning to spread globally affecting many countries, including Russia.

Shortly after the first notifications regarding the growing threat of large-scale infection, LUKOIL took measures to protect the health of its employees by preventing further contagion. For immediate response and coordination, PJSC LUKOIL and all Group entities created command centers which were put in charge of daily monitoring and situation awareness.

From the very start of the pandemic, enhanced sanitary protection measures were implemented across offices and enterprises. These included frequent cleaning and anti-bacterial ultraviolet light treatment of premises, as well as disinfection of work spaces. Employees were provided with masks; antiseptic dispensers were installed in premises; and ongoing monitoring of body temperature and the state of employees’ health were introduced.

We canceled all business trips to foreign countries and minimized movements of our employees across Russia’s regions. Production companies in Russia, Uzbekistan and Iraq extended the term of rotation shifts up to three months (a portion of specialists involved in the West Qurna-2 project had returned home before the active stage of the pandemic began). At distant production facilities, the Company arranged for the transportation of employees to local healthcare centers when required.

Because of the ongoing nature of their operations, all of the Company’s plants continued functioning. For those who remained at their workplaces, conditions to secure physical distancing to the maximum extent possible were created; the number of production personnel working in shifts was reduced; and schedules of office-wide on-call duty were introduced. To protect fuel station operators, protective shields were installed at all sites.

Over 20 thousand employees began working from home. For many of them, it was a good opportunity to apply the wide variety of corporate digital tools and services in practice. To facilitate the transition and adaptation to the new conditions, the AR LUKOIL mobile application was developed and integrated on a tight deadline to raise the awareness of the tools available and to train employees both in Russia and abroad. In April alone, 14 webinars devoted to methods of arranging work from home, time management, psychological resilience during the lockdown period and other topics were held, and employees experiencing unusual stress were given the opportunity to obtain the advice of psychologists remotely.

To unite and consolidate all employees, a special “MYVMESTE” (“We are in this together”) channel was created, and virtual hobby clubs were launched. Several corporate activities have now moved to the virtual space (such as the competition for young professionals). For families with children, we tried to assist with one of the most difficult issues during the lockdown period — how to keep children occupied. Jointly with the Higher School of Economics, we elaborated an online project “HSE for Kids” children’s camp which includes educational, entertainment and sports activities.

We also assisted countries and Russia’s regions where our entities operate. This support program was deployed in 22 constituent entities of the Russian Federation and in 12 foreign countries.

Protective equipment and disinfection means were purchased for healthcare facilities, and fuel was provided for medical transport at no cost in the Astrakhan, Volgograd, Kirov, Saratov, Sverdlovsk, Tyumen, Chelyabinsk, Orenburg and Samara regions, as well as in the republics of Tatarstan, Bashkortostan, Karelia, Udmurtia and in the KhantyMansi Autonomous Area — Yugra. In the Khanty-Mansi Autonomous Area — Yugra, we also remitted cash funds to the Regional Development Fund to combat the spread of infection. The Kogalym plant producing chemical reagents partially repurposed its output to manufacture disinfectants which were distributed across the region.

In the Komi Republic, LUKOIL-Komi helped streamline and increase the production of personal protective equipment for healthcare professionals (100 thousand masks and 1.5 thousand protective suits). Help was also supplied to the Department of Infectious Diseases of the Usinsk Central Hospital in the form of oxygen and compressed air and a Wi-Fi network development. During the most acute period of the pandemic, LUKOIL’s gas stations provided free fuel to ambulances from 18 healthcare facilities. The veterans of the Great Patriotic War and disabled people were given special care and financial support. President of PJSC LUKOIL transferred his personal funds to the Republic to help local bodies and individuals address the most pressing challenges.

In the Perm Territory, LUKOIL-PERM arranged for 3 meals per day free-ofcharge to be delivered to the workplaces of the medical staff of the Perm Territorial Clinical Infectious Hospital. Over 400 sets of protective equipment and portable radio sets to facilitate communication between specialists of the infectious department and those of other departments were handed over to medical professionals. Fuel was provided at no cost to volunteer organizations and needy multi-member families.

In foreign countries (Azerbaijan, Bulgaria, Iraq, Moldova, Mexico, Romania, Serbia, Turkey, Croatia and Uzbekistan), the Company transferred much needed equipment, protective suits and disinfectants to local healthcare facilities and provided fuel free-of-charge to medical teams. At the Company’s gas stations, medical professionals were served coffee free of charge. Support was also rendered to medical scientific institutes to assist in research aimed at discovering ways to combat the novel virus. In Italy, we arranged to send supplies of specialized equipment to intensive care units at local hospitals. In the United Arab Emirates (UAE) LUKOIL paid for the accommodations of Russians who were unable to return home because air travel was suspended.

The above measures do not represent by any means an exhaustive list of measures actually taken by LUKOIL entities, our charity fund and President of PJSC LUKOIL V.Yu. Alekperov. We will continue providing help as required to countries and regions where we operate, thus further consolidating the ties between LUKOIL and the local communities and combining our efforts. More detailed information will be presented in future Reports.

We are confident that the experience of overcoming the pandemic will help strengthen the Company’s response to such events in the future. Safeguarding people’s health and making it possible to restore a safe work environment at our production sites are LUKOIL’s top priorities.