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SUSTAINABILITY REPORTprovided to agriculture and forestry enterprises at discount rates andwith a late-payment option.The results of this cooperation in several main categories are illustratedby the following examples.SUPPORTING HEALTHCARE INSTITUTIONSThe level and quality of healthcare is an important issue in Russia: thestate of free healthcare delivery in some regions needs improvement.The system of paid medical services is not uniformly developed; thequality of these services is inconsistent, and there is little accessto them for the ordinary consumer.The Company promotes the development of medical services in theregions of its operation. Cooperation with healthcare institutions opento the public is based on contracts that allow all LUKOIL employeesregardless of their location to receive medical assistance. These contractsalso provide healthcare institutions with a source of stable additionalfunding for renovation of buildings, purchase of medication andequipment, and higher earnings for doctors. In addition, access to theCompany's own sanatoria and health resorts, which were formerlyrestricted to LUKOIL employees, has been extended to local residents.New healthcare institutions are being built with the Company's help.In 2004 wellness centres were built in Zhirnovsk and Kotovo(Volgograd Oblast). LUKOIL enterprises in Volgograd combined theirefforts to carry out a major renovation of the main building of theChildren's Hospital #21 for Infectious Diseases.The Company pays special attention to children's healthcare. In 2004the LUKOIL Charity Foundation contributed to the reconstruction of theStavropol Kray Maternity Home. Volgograd subsidiaries of theCompany provided up-to-date equipment for the Volgograd OblastChildren's Hospital and also donated to the Hospital an intensive careambulance for newborns, which was built in Germany for that purpose.Modern medical equipment for heart surgery on babies with cardiacmalformations was purchased for the Volgograd Oblast CardiologyCentre. The Kstovo District Hospital received help with major renovationsto its Children's Department.32
SOCIAL AND ECONOMIC PARTNERSHIPWITH REGIONAL AND MUNICIPAL GOVERNMENTSURBAN DEVELOPMENT AND ECOLOGICAL IMPROVEMENTNumerous surveys show that city dwellers in almost every Russianregion believe that urban development is a primary goal. For that reasonthe Company is very responsive to development expectations indiscussions of its regional Agreements.In a telephone survey that was part of a live show by the Volga TVcompany, the people of Nizhny Novgorod expressed their opinionthat LUKOIL's charitable contribution should be used for lightingBolshaya Pokrovsksya Street, and the Company acted on thisrequest.Medical centres and hospitals receivinghelp from LUKOIL:Research Centre of Obstetrics,Gynaecology and Perinatology, MoscowHaematology Research Centre, MoscowCentral Research X-Ray and RadiologyCentreSixth Central Military Hospital, MoscowRussian Research and IndustrialCardiology Complex, MoscowLeningrad Oblast HospitalThe 45th birthday of the town of Kstovo, Nizhny Novgorod Oblast, wasthe occasion for reconstructing a children's park and for refurbishingsports grounds in various sections of the town.For its City Day, LUKOIL reconstructed Engels Boulevard for the city ofVolgograd.In Kotovo, the Company built a health and wellness complex with a swimmingpool, a stadium, and also renovated the town's central district.In Zhirnovsk, LUKOIL refurbished the town park including its rides,sports grounds and an open-air cinema.In Frolovo, Volgograd Oblast, the Company installed street lighting, renovatedthe House of Culture and the central square, and repaired thefacades of apartment buildings.An example of the Company's contribution to the environment is theplanting of trees in West Siberian towns. Together with the administrationof Kogalym, OOO LUKOIL-Zapadnaya Sibir planted 65,000 trees in 2003and an additional 10,310 in 2004. Planting will continue through 2008.AN INNOVATIVE APPROACH: DEVELOPMENT OF THE LABOURMARKET AND SELF-EMPLOYMENTLong-standing cooperation between LUKOIL and the Perm Oblastadministration has demonstrated that the most effective model for33
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