External social policy priorities

External social program management system

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.

In Russia we implement joint projects with local authorities and social organizations to build and renovate kindergartens, schools, sports facilities, medical centers, hospitals, cultural institutions, and other socially significant facilities.

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 in nature, and financed both by the LUKOIL Charity Fund (hereinafter, the LUKOIL CF or the Fund) and directly by LUKOIL Group entities.

The most well-known branded program is the Social and Cultural Projects Competition, held by the LUKOIL CF in partnership with LUKOIL Group entities. In 2019 the competition was held abroad for the first time in Romania. The decision to expand the competition boundaries was made in response to requests from local residents during dialogue sessions. The Company has held dialogue sessions in the cities of Prahov and Bucharest in Romania twice a year over the past few years.

Our corporate programs are generally targeted and build on regional expertise and human potential.

In 2019 PJSC LUKOIL won the IPRA Golden World Awards for Excellence in two categories: Best Campaign for Community Engagement and Best Campaign for Promoting Travel and Tourism, for its projects to develop Kogalym as a tourism center in the West Siberian oil and gas producing region.

LUKOIL was also declared one of the winners in a contest for the best socially responsible oil and gas company of 2019, and received diplomas for promoting charity activities among citizens and organizations.

In 2019 LUKOIL Group external social support expenses amounted to

rub9.2 billion,

including charity social projects and events under 31 cooperation agreements with constituent entities of the Russian Federation.