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The conservation of natural ecosystems and biodiversity is of significant economic, environmental, and social importance. It helps create productive habitats and has an important impact on people's health.

Our goal is to preserve the diversity of natural biosystems in the regions where the Company operates and to ensure that they are treated carefully, so that their ability to self-repair is not threatened.

We act to preserve biodiversity based on the "prevention – reduction – restoration – compensation" principle.

At an early stage, an assessment of the impact of proposed environmental projects (an environmental impact assessment) is performed, during which background information about the state of ecosystems on the territory of proposed operations is collected (including the condition of valuable and specially protected species of flora and fauna). The data received are taken into account when selecting the site for production facilities; if necessary, alternative project implementation options are considered. The risk of harming biodiversity is assessed, and the environmental and related social and economic consequences of such harm are estimated.

The main measures for preserving biodiversity comprise: introducing fish and bird protection devices; compensating for damage to water biological resources; clearing small riverbeds, including in areas of underwater pipeline systems; rehabilitating oil-contaminated soils; and landscaping work and improvements to production bases. Specific activities are planned and implemented as part of the environmental safety programs of LUKOIL Group entities. PJSC LUKOIL implements a Biodiversity Preservation Program for the Company's facilities operating in the Russian Arctic Zone. Under this program, companies operating in the zone (LLC LUKOIL-West Siberia, LLC LUKOIL-Komi, and LLC Varandey Terminal) develop their own action plans to preserve biodiversity, including rare species of flora and fauna (indicator species).

The Program includes PJSC LUKOIL's principles and approach to preserving biodiversity as well as the requirements for the preparation of documents, impact assessment and development of measures to preserve biodiversity for the Company's offshore production assets in the Arctic zone of the Russian Federation. While developing the Program, the Company used the experience gained while developing fields on the Baltic and Caspian Sea shelf, where PJSC LUKOIL is investing heavily in environmental safety. The "zero discharge" principle is being implemented consistently, including other measures aimed at preserving and restoring the biodiversity of off-and onshore ecosystems. Standards and approaches to environmental safety used by the Company while developing offshore fields have proved to be efficient, and have been commended both by the Russian and international expert community.