The Company’s social policy is aimed at work-efficiency enhancement and the establishment employee social conditions and work-group stability.

An efficient social system is able to attract qualified experts, reduces staff turnover, invigorates the corporate spirit and serves as the basis for successful Company operations.

The basic social principles applied to all of the Company's subsidiaries, including LUKOIL Overseas, are listed in the LUKOIL Oil Company Social Code as adopted in 2002. This is a comprehensive document that sets forth the Company's position and responsibilities with respect to ethical and social awareness. The Code maintains the basic principles and rights in the area of labor, international labor norms, labor laws of the Russian Federation and the countries of LUKOIL activity. Moreover, for a number of positions, the Company sets more proficient social goals.

The main aims of the LUKOIL Overseas social policy are:

• Corporate insurance and social support
• Voluntary health insurance
• Industrial accident insurance
• Non-goverment retirement package

One of the main aims of the Holding's development is employee professional training. The level of personnel qualification is one of the most important factors in increasing the Company's stock value, therefore investment in training is just as important as investment in other resources. The main task in this field is to specify training approaches that shall assist in achieving the maximum results from this investment.

In accordance with LUKOIL Overseas Holding Ltd. strategy, maintaining a high level of professionalism within top management and introducing international experience into the Holding's operations are of the atmost importance.

These goals are implemented through both the system of professional training and work within the staff employee reserve.

By allocating significant funds to social programs, Company management intends to provide for employee work efficiency, the reinforcement of professional teamwork and to maintain a reputation as the best employer on the labor market.