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Support for Orphanages and Educational Establishments for Children

The Company views child support as its top priority that is reflected in all of its current programs: charity, sponsorship programs, children and youth sports and cultural promotion programs. Social investments into human capital seem to be the most relevant given the current conditions. The Company is seeking to use a balanced approach by supporting both the children who are less privileged compared to their peers due to the unfavorable family environment or due to some physical or mental challenges, and those from problem-free homes, helping them develop their inborn abilities and talents.


The Company has been sponsoring a number of orphanages in Western Siberia, the Komi Republic, Volgograd, Astrakhan, Leningrad, Kirov, Vologda, Saratov, Kaliningrad Oblasts, Perm Krai and other regions for more than 20 years now. It is through this program that children from over 70 orphanages and foster homes receive support from the Company, its subsidiaries and the LUKOIL Charity Fund. The Company helps their graduates receive education, improve their overall health, choose a profession and find their place in life. Given the children's limited opportunities due to lack of parental care, not only does the Company allocate funds to maintain the facilities of specialized child care institutions, but also seeks to become directly involved in the childrens lives, by ensuring that they adjust to the social environments in which they will find themselves after they leave their orphanage or foster home
.


The LUKOIL Charity Fund sponsors annual summer holidays at the Black Sea coast for orphanage and foster children from St. Petersburg, Kirov, Kstovo, Ishim, Nizhny Novgorod, Rostov-on-Don, Perm Krai, the Astrakhan and Volgograd Oblasts. In addition, children from foster homes take educational tourist trips across the country and all children receive New Year's presents.

Through its involvement the Company does its best to ease the lives of children who were deprived of parental care. Not only does implementation of charity programs help improve the quality of their lives, but it also paves the way for a full-fledged independent life and a wise choice of the profession. Most graduates from specialized child care institutions continue their education in secondary and higher education institutions.


Since 2006, the LUKOIL Charity Fund has offered personal LUKOIL scholarships to the graduates of the sponsored foster homes who study in higher and secondary educational institutions. Fifty-one graduates earned such scholarships in 2012.


In 2008, the LUKOIL Charity Fund and LUKOIL Groups organizations operating in the Astrakhan Oblast implemented a project focusing on the formation of the young talent pool among orphanage residents and children from economically disadvantaged families in the Oblast. A large business project launched in the region revealed a severe shortage of technicians and engineers. To address this problem, best orphanage residents and children from economically disadvantaged families were provided an opportunity to attend specialized secondary and higher education institutions. Today the Astrakhan Polytechnic College and the Volga-Caspian Fishery Complex provide training to more than 20 such individuals. The fund is covering all education and accommodation costs. After graduation, some of them plan to be employed by OAO LUKOILs enterprises operating in the region. One of the graduates was indeed employed by the Company in 2012.


In the Nizhny Novgorod Oblast the Company provides assistance to the Kstovo Petroleum Vocational School which, without limitation, provides training to the patronized orphanage residents, thus implementing its integrated program of social adaptation of children who have found themselves in a stressful life situation. The schools students make regular visits to LUKOIL-Nizhegorodnefteorgsintez refinery where they get to know firsthand how the enterprise is run and acquire hands-on expertise by talking to experts there
.


Another example of occupational guidance is the Companys cooperation with the Komi Republics unique A.A. Katolikov Foster Home No. 1. This foster home is distinguished within the region for its scientific experimental agricultural farm which helps the children acquire a profession and prepare for living on their own. The children acquire both theoretical and hands-on knowledge: the foster home has a large farm on site, greenhouses, a poultry farm and a cedar forest planted by the children.


The Company provides an active support to orphanages and foster homes in the traditional area of LUKOILs oil production operations, such as West Siberia. For over 15 years support has been provided to the Belchonok (Little Squirrel) Aid Center for children left without parental care and the Ishim Orphanage that was awarded the status of a family care orphanage back in the early 90s. The everyday life of these children is like in a family: each apartment with kitchens, bedrooms and lounges is occupied by a family of 10-12 children and a teacher.


Child support programs place a lot of emphasis on the problems of children with disabilities. Since 1993, the Company has been supporting a unique West Siberian rehabilitation center called Anastasia for physically challenged children and adolescents. It was awarded the status of a regional research platform for innovation. The work resulted in the creation of an optimal rehabilitation center and the development of proposals to improve the regulatory framework for the services provided to physically-challenged children by three governmental agencies (education, healthcare, and social security). To meet the Center's needs the Company purchases state-of-the-art and sometimes unique equipment that helps improve the health of children with respiratory and vegetovascular diseases and pays for the treatment of hearing and speech-impaired children. Perm Krais institutions supported by the Company include the Childrens Public Organization for Persons Disabled Since Childhood and the Kungur Public Organization of Disabled Children and Orphans called Dobrotoliubiye (Philokalia). 



Over the past few years, the project called A Book for Every Blind Child has been implemented as part of the larger program entitled Illustrated Books for Little Blind Children. In the opinion of medical specialists, embossed books play an important role in making children familiar with the surrounding world. They introduce the little ones to the childrens literary classics, help children visualize the outside world, acquire the necessary knowledge and promote balanced personality development. Over this period of time the Charity Fund gave more than 65 illustrated editions to specialized child care institutions in the Republic of Komi, Volgograd, Astrakhan, Rostov-on-Don, Kaliningrad, Vologda, Nizhny Novgorod Oblasts, Perm Krai, Saint Petersburg, Kogalym, Langepas and Urai. One hundred and sixteen illustrated copies of Perception Atlases were given to specialized childcare institutions in the Republic of Komi in 2012. 


Not only does the Company take care of the health, welfare and social development of orphans and disabled children, but it also places a strong focus on the cultural and spiritual education of the younger generation of Russian citizens. The Company has come up with a good tradition of combining tourist trips with educational and development activities. For example, LUKOIL organized educational activities and tours for orphanage and social shelter residents coinciding with mobile art exhibitions arranged by the Moscow Kremlin Museums. Such art exhibitions were held in Perm, Nizhny Novgorod, Volgograd and Kazan. The exhibitions included lectures and sightseeing activities under the supervision of teachers employed by the Moscow Kremlin Museums. After the introductory lecture and sightseeing activities the We Draw the Kremlin artistic contest was held, and the winners were invited to visit Moscow. Their works were displayed at the childrens art exhibition in the halls of the Armory and the Moscow Kremlin Museums.




In 2012, the LUKOIL Charity Fund and the Nizhny Novgorod Art Museum began implementing the We've Found Talents arts and educational project intended to help talented foster children aged 13 to 16 discover and develop their talents. The boys and girls have mastered the basic knowledge and skills in the disciplines of sketching/drawing, painting, and composition, and learned the basics of fine art and its history. A similar project named the World through the Childrens Eyes was initiated in Perm in 2012.


The Company helped establish the Museyon Aesthetic Education Center for Children and Youth under the auspices of the Pushkin State Museum of Fine Arts and donated it computer equipment.  Over the last two years, the Company has been providing support to the project Innovative Multimedia Lecture Hall and Center-based New Generation Learning Programs.


The Company is very mindful of the young generations moral education, offering assistance to the first educational institution of enlightenment in Urai and an Orthodox Public School in Perm
.


 

In recent years, the Charity Fund has arranged a multimedia festival entitled the Living Word in the village of Bolshoye Boldino of the Nizhny Novgorod Oblast to provide career guidance and promote the socialization of foster children jointly with LUKOIL Group enterprises in the Nizhny Novgorod Oblast and the Praktika Center. From 2011 to 2012, around 50 children from the Nizhny Novgorod and Kirov Oblasts took part in the festival. Upon its completion, the children get a certificate that grants them the right to attend classes in the Praktika School of Young Reporters, video cameras and a textbook, in other words, a pass to a professional life.

 

The Company allocated funds to the Nadezhda foster home in Kirov, which funded construction of the Avtogorodok (Car Town) designed to promote traffic safety for children. The festive opening ceremony on May 22, 2012 was attended by Pavel Astakhov, Children's Rights Commissioner for the President of the Russian Federation, Alexander Galitskikh, Chairman of the Kirov Oblast Government, and the management team of the LUKOIL Charity Fund. The Avtogorodok, containing elements of traffic signs, simulates real traffic conditions and is equipped with childrens battery-operated cars, road signs, traffic lights and the necessary roadside infrastructure (garage, cafe, filling station). Now the children can study safe traffic rules in realistic conditions. 


In Perm Krai, the Charity Fund and the Companys subsidiaries initiated ecological and humanitarian campaigns for children, which has already become a tradition and attracts a great number of volunteers. 


As part of the ecological campaigns for children, Children and LUKOIL for the Environment and City of Oilmen - City of Flowers, more than 5,000 tons of fertile soil was brought to Perm Krai cities and settlements to create new flowerbeds and flower gardens. More than 280,000 flowers and 570 trees and shrubs were planted, nearly 1,500 new flowerbeds were created, 88 playgrounds and sports grounds were landscaped, 27 parks and yards, embankments of water bodies were cleared of rubbish, and flowers were planted near 18 memorials, 9 churches, and 5 museums; around 300 tourist sites were also beautified. As part of the activities of summer school camps, eco trainings were arranged for children dedicated to the ecological issues of preservation of the unique local nature
.


As part of the initiative Drive Cautiously Children Around!, 17,000 first-graders from Perm Krai received such presents as schoolbags, the ABCs of traffic regulations, light-reflecting baseball caps and other school supplies from the oil professionals. School buses were donated to twelve schools of Perm Krai. More than 3,500 school children had the opportunity to make use of modern, comfortable and safe vehicles. According to the Regional Safe Traffic Agency, a 9-percent drop in the injury rate among children was registered throughout the territories covered by the campaign.


Thus, children who live in the areas of the Companys presence are in one way or another engaged in our social investment programs. We seek to adjust them to modern life and get them personally involved in the Companys social activities
.



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