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Engagement with the indigenous small-numbered peoples of the North


Over many years LUKOIL has been conducting its production operations in West Siberia and Timan-Pechora Region in full accordance with the highest health, safety and environment standards. LUKOIL places a great emphasis on cooperation with the indigenous small-numbered peoples of the North (hereinafter referred to as indigenous peoples) in KhMAO-Yugra, YaNAO, NAO and Krasnoyarsk region – LUKOIL takes an active part in the preservation of the indigenous culture, traditions and distinctiveness.

As a corporate citizen for a number of years LUKOIL fulfills numerous obligations within following mechanisms:

  • cooperation agreements between LUKOIL and the authorities in the regions;

  • agreements with the leaders of the territories of traditional management of the natural environment;

  • agreements on social and economic development with reindeer farms;

  • cooperation with non-governmental organizations;

  • LUKOIL's social and cultural projects competition.

Every LUKOIL's business unit operating in the above mentioned regions is guided by the rules of conduct approved for the Company's personnel and contractors working in the habitats of the indigenous minorities.

Key priorities of future interaction between LUKOIL and the indigenous peoples of the North:

  • Preservation of the traditional way of living of the indigenous peoples in the territories of operational activity;

  • Development of multilateral and comprehensive dialogue involving authorities and NGOs;

  • Further research of indigenous peoples issues and joining forces for problem solving;

  • Full compliance with the legislative acts and standards concerning the indigenous peoples;

  • Further improvement of environmental safety.

Through the cooperation agreements with regional governments, funds go to large scale projects – to help housing construction, to build social facilities in indigenous settings, to support education and medical care institutions. Total funding within these agreements amounts to 2 bn RUB in 2019 alone. Part of this money is allocated to support indigenous peoples.

In 2019 in KhMAO-Yugra LUKOIL signed 360 economic agreements with the territories of traditional management of the natural environment. These territories are home to 1 329 people. А total of 336.1 mln RUB were provided for the support of indigenous peoples through these economic agreements.

These funds are allocated for direct compensations, air and road transportation, construction materials and tools, transport vehicles (boats, snowmobiles etc.), medical care and education.

The average support per family member in 2019 amounted to 252 900 RUB.

LUKOIL support to indigenous peoples in YaNAO and Krasnoyarsk region is mainly provided through cooperation with the regional authorities. The company participates in long-term programs aimed at the development of local infrastructure and agriculture as well as at the preservation of local traditions, languages and culture.

Company's engagement with the indigenous peoples of NAO relies on cooperation with the region's authorities and reindeer farms.

From 2007 to 2019, LUKOIL allocated a total of RUB 290 million under social and economic agreements to develop agriculture and prodaction cooperatives which share territory with the company's operations sites.

Over many years LUKOIL has been actively involved in the implementation and development of the region's crucial projects - a grand-scale snowmobile race for the Cup of USSR and Russia Hero Artur Chilingarov and unique medical and social project "The Red Tent".

Kogalym has been hosting the Reindeer Breeder's Day since 2007, which is an event that brings together reindeer breeders from all over KhMAO-Yugra and YaNAO. The event includes the following competitions: reindeer racing, national wrestling, sledge jump, fights on the log, lasso throwing on herder poles.

Agreement on cooperation between the Federal Agency on Nationality Affairs and PJSC "LUKOIL" in respect of economic, social and culture development of the indigenous small-numbered peoples of the North living in the Company's operations areas has been in force since 2017. The document provides for development and expansion of the best practices in the area of social and business cooperation of industrial companies and representatives of the indigenous small-numbered peoples of the North.

All-Russia cultural and educational project "Arctic Talents. Children" is being implemented as part of cooperation and with the Company's support. Innovation project for preservation of traditional culture including national languages for children of indigenous small-numbered peoples of the North. The Company supported arrangement of a three-day visit of the winners to Moscow in December of 2019. The program included observation tour of Moscow, including a visit to Neft (Oil) Interactive Training Centre, exhibition pavilion, attendance of the meeting of the Council of Federation of the Federal Assembly of the Russian Federation chaired by V.I. Matvienko and award ceremony for the winners of the "Arctic Talents. Children" project held in the Council of Federation. During event, the Company received a recognition letter from the Federal Agency on Nationality Affairs for "Contribution to strengthening nationwide peace and conciliation". The letter was granted at the Council of Federation after the award ceremony for the winners of the "Arctic Talents. Children" innovation project.

LUKOIL  has been a member of the Russian delegation led by the Head of Federal Agency on Nationality Affairs of Russia within United Nations Permanent Forum on Indigenous Issues in New York every year  starting 2017. The Company shares its experience in implementation of social projects aimed at support of the indigenous small-numbered peoples of the North.

In August the Company acted as a partner of the 10th North Caucasus Youth Forum "Mashuk-2019". Representatives of LUKOIL Group companies operating in the South and North Caucasus federal regions addressed educational cases.

Preservation of languages was the key cooperation point for LUKOIL in 2019. LUKOIL became a member of the Steering committee for International Year of Languages of Indigenous Peoples in Russia in 2019. In January the Company contributed and was on the Russian delegation to the official opening of the International Year of Languages of Indigenous Peoples 2019 at the UNESCO venue in Paris. 

In March Lukoil was a partner of the International Forum "Year of Languages of Indigenous Peoples in Russia" in Khanty-Mansiysk. It was a high-level event and became a milestone for the Russian and foreign experts. Within the framework of International Forum for the Year of Languages of Indigenous Peoples in Russia held on March 21, 2019 in Khanty-Mansiysk the three-party Agreement on Cooperation in economic, social and culture development of indigenous small-numbered peoples was signed between the Federal Agency on Nationality Affairs, the Charity Fund in support of indigenous small-numbered peoples of the North, Siberia and Far East and PJSC "LUKOIL".

LUKOIL continuously funds the largest festival in the region – the snowmobile race for the Cup of USSR and Russia Hero Artur Chilingarov.

Back in the 1970s NAO was the first testing ground for the Buran snowmobiles. It is back then in the 70s that they starting hosting snowmobile races. Today they've evolved into All-Russian snowmobile races, an event that is very much loved by the indigenous peoples.

The Red Chum ("Naryana mya" in the Nenets language) is a unique social&healthcare project implemented by LUKOIL and the NAO administration. It is a continuation of the "red tents" created in the late 20's of the XXth century, which in 1975 had ceased to exist.

In 2002 the project was revived with support by LUKOIL. Every year a professional medical crew sets off to tundra by helicopter to conduct medical check-ups and provide primary healthcare to nomadic herders. Doctors also train medical assistants, a must in every reindeer-breeding brigade, so that they can provide emergency help. That's especially relevant in NAO where most indigenous settlements do not have road transport connection to the cities.

In 2019 the "Red Tent" project turns 89. Between 2008 and 2019 over seven thousand individuals got medical checkups. The funding provided by LUKOIL under the joint "Red Tent" project between 2008 and 2019 totaled to 20.5 mln. RUR.