Safety Case study. The Komi Republic Arctic biodiversity The Komi Republic Arctic biodiversity Oil and gas production in the Komi Republic is carried out by LUKOIL in territories populated by dark coniferous and subtundra forests, as well as in the tundra of the Nenets Autonomous Area. Consequently we are obliged to treat with care and seek to conserve local ecosystems. In 2018 documents related to the Company’s operations in the Komi Republic were approved as part of a corporate biodiversity preservation program in the Arctic Zone. Positive experience from the biodiversity preservation program implemented in Uzbekistan was taken into account, training sessions were held for staff and contractors, and the registration and logging of indicative species of Arctic fauna was introduced. A joint project with Russian environmental organizations to monitor indicator bird and animal species is being executed. In addition to the recording of Red Book species of ornithologic fauna, the appearance of other fauna species was also observed. Monitoring continued in 2019. Timan-Pechora oil and gas province Total area: 445.7 thousand sq. km. Arctic area: 275 thousand sq. km 126.7 thousand sq. km offshore Hydrocarbon reserves of 2.4 billion tonnes OF WHICH OIL ACCOUNTS FOR 60% Main subsoil users: LUKOIL, Rosneft, Gazprom, ZARUBEZHNEFT Dobycha-Kharyaga, and Pechoraneft, etc. Social partnership LUKOIL-Komi is a major mining enterprise in the North-Western Federal District and employer in the Komi Republic, and therefore actively participates in the activities of towns and villages in the Komi Republic. In 2019 the Company allocated over RUB 800 million to social activities, including under a cooperation agreement between the Government of the Komi Republic and PJSC LUKOIL. Employment Many residents of the Republic wish to work with LUKOIL-Komi, as it offers attractive social benefits and pay. LUKOIL Komi gives priority to local residents, and this is enshrined in cooperation agreements with the Government of the Republic. In 2019, 708 people were hired. The approach focuses on hiring young graduates from local professional educational institutions; 56 young employees were recruited in 2019. Jobs are allocated for the disabled: in 2019, the entity employed 24 disabled local residents, and eight jobs were financed under an agreement with the Usinsk City Organization of the Disabled. Construction of rural outpatient clinics LUKOIL provides support to help resolve social issues in the Republic. For example, residents of the Mutny Materik and Shchelyabozh villages sought our help to renovate rural outpatient clinics. When the results of a building inspection revealed that the current buildings could not be appropriately renovated, LUKOIL-Komi offered to build new modern social facilities, and the Government of the Komi Republic, represented by the Ministry of Health, supported the project. As a result of the joint project new outpatient clinics were equipped with wards for 24-hour patient stays and daytime hospital procedures, along with dental, physiotherapeutic treatment, and vaccination rooms. As charitable aid LUKOIL-Komi and the LUKOIL Charity Foundation bought medical equipment. The clinics are scheduled to open in 2020. Cooperation agreements The Cooperation Agreement with the Government of the Komi Republic provides for the financing of facilities and activities which are selected in negotiations with municipalities and the Ministry of Investment, Industry and Transport of the Komi Republic. We also respond to requests from municipalities to build social facilities. For example, the Yugdom Ice Palace in Usinsk, built with financial support from LUKOIL-Komi, hosts a regular hockey tournament with teams from other cities. The city administration requested the construction of a sports hall with stands for sports enthusiasts. As a result, together with the Government of the Komi Republic it was decided to build a second building at the Yugdom Ice Palace. The new building has a hall with 200 seats in which various sports can be played, including five team member football, volleyball, and basketball. There is also a hall for wrestling and judo.