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SUSTAINABILITY REPORT40,000, which means that the Company employs one person out of fourin that region. They value the opportunity offered by the Company asthe number of other employment choices in the region is limited.Industry in the Komi Republic is also largely based on fuel and naturalresources: over half of the total industrial output is from thatIndigenous ethnic minoritiesA specific feature of the Company's work in Siberia and the FarNorth is that its operations may have a significant influence on thelives of indigenous ethnic minorities. Any growth in oil and gas productionmeans that their vital interests--such as reindeer breeding,fishing and hunting--will be affected by the active extraction ofresources. Changes in the traditional lifestyle create social andeconomic problems for those ethnic groups. LUKOIL's approachto this concern is to shift gradually from charity to techniquesbased primarily on economic partnership.The Company develops and runs special programmes for workingwith owners of ancestral plots. An agreement "On MutualCooperation for the Social and Economic Development ofIndigenous Settlements" and economic treaties with heads ofancestral plots in the Khanty-Mansi Autonomous Okrug, includethe following commitments accepted by LUKOIL-Zapadnaya Sibir:Construction of cottages and providing people with good qualityhousing;Payment of compensation for the use of land plots (compensationcan be monetary or in-kind: snowmobiles, boats, chainsaws, hunting and fishing gear, and fuel and lubricating oils).In the Nenets Autonomous Okrug, the Company together with theYasavey Nenets Association runs social assistance programmesand a project to increase production in traditional crafts and reindeerbreeding. (The programmes include purchasing reindeer andveterinary supplies, fuel and spare parts.) The most significantproject called Red Igloo (Krasny Tschum) provides assistance andhealth checkups to reindeer breeders in the Kanino tundra, conductsReindeer Days, supports the Nenets community and runspublication programmes.20