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Support for Orphanages and Children's Educational Institutions

The Company views child support as its top priority that is inherent in all of its corporate programs: charity, sponsorship, sports and culture promotion programs. It goes without saying that social investment into the generations to come is justified. The Company seeks to employ a balanced approach by supporting both children who found themselves in underprivileged conditions, and those from problem — free homes, helping them develop their inborn abilities and talents (as part of its Social and Cultural Projects Competition).

The goal behind the Orphanage and Boarding School Support Program is to help their leavers get education, improve their health, choose a profession and find their place in life.

For 10 years the LUKOIL Charity Fund has been awarding personal LUKOIL scholarships to the leavers of the company — sponsored foster homes, who are now students of higher and secondary educational institutions. In 2013 scholarships were awarded to 36 orphanage leavers, 45 in 2014. For example, in Nizhny Novgorod Region leavers of the company — sponsored orphanages get their degrees from the Kstovo Petroleum Technical School, pay regular visits to the Company’s refinery where they get to know the production processes and acquire hands — on expertise. Subsequently, if they wish to do so, they can get their employment with one of the Company’s enterprises. The LUKOIL Charity Fund has been annually purchasing New Year presents and delivering them to the company — sponsored orphanages.

In Perm a contest entitled “World as Seen by Kids” is held, which is a continuation of the “We have found our Talents” launched by the Fund back in 2010 in Nizhny Novgorod Oblast. Between 2012 and 2013 a total number of contestants was 154, of which 13 children became winners. That is the way to put in practice the crucial principle of social investment, to disseminate successful models and projects in the Russian regions.

There are ongoing children’s education projects carried out jointly with cultural institutions. The Company has been actively developing its partnership project entitled “Innovative Multimedia Lecture Hall and New Generation Learning Programs” based on the Aesthetic Education Center “Museion” of the Pushkin State Museum of Fine Arts that was launched in 2014. In the same year the LUKOIL Charity Fund purchased and handed over to the Astrakhan — based P.M. Dogadin Art Gallery 50 sets of the multimedia learning program entitled “How to Look at a Painting”. Such projects add to the appeal of the education process from the teenager’s perspective.

In 2014 the LUKOIL Charity Fund started a new project designed to support the children’s art schools in Astrakhan Oblast. In conjunction with the Ministry of Culture and Tourism of the region, the Fund selected four children’s art schools, for which the Fund purchased musical instruments. The objective of the project is to improve the quality of training for the young Astrakhan musicians.

In Perm Krai a traditional event entitled “Oilmen for Rural Libraries” is held, as part of which in 2014 the Perm Branch of the LUKOIL Charity Fund purchased study books and encyclopedias, as well as computer equipment for 51 rural libraries.

Of particular concern to the LUKOIL Charity Fund are children who need of medical assistance. Over the past 10 years, the Fund has been implementing its project “A Book for Every Blind Child”, being a part of a larger UN program entitled “Illustrated Books for Small Blind Children”. In 2013, such books were supplied to special child care institutions in Volograd Oblast, and in 2014 to those in Nizhny Novgorod, Kstovo, Vladimir and Arkhangelsk.