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SUSTAINABILITY REPORTsocial partnership stresses a joint determination of social policy prioritiesand also the beneficial effects of the Company's long-term participation.The Company's presence in Perm Oblast has some unique featuresbecause its enterprises are located in twelve out of theregion's eighteen historic settlements 4 . Only Moscow andLeningrad oblasts are ahead of the Perm region in the number ofsuch settlements. Most of them are agricultural districts witha specific structure in the labour force. Representatives of theregional administration and of OOO LUKOIL-Perm analyzed the situationand decided that the quality of life in those areas could beimproved through development of folk crafts and peasant households.The programme "Supporting Folk Trades and Crafts" wasdesigned with this goal.Oil producers do not directly subsidize the craftsmen but insteadencourage the development of various artistic approaches and helpthem earn a living A project-based approach is used. Craftsmenmust prepare applications and bid for funding (funding for the programmeis a separate line in the corporate social project competitionbudget). Funding is then provided to the most professionalprojects that have a real chance to go forward on a "firm footing"and possibly turn into a small family business. One project fundedwithin this programme resulted in the opening of a folk craftsschool in the village of Bolshaya Pashnya, and another helpedestablish a folk crafts salon in the Cherdyn district. The creation ofthe Peasant World exposition in the Ilyinsky Museum of LocalHistory is also a result of a project implemented by a grantee.In addition, the premises of a former Land School in the villageof Ashap were rebuilt, and the Orda Art School opened a branchthere.To help make the projects truly sustainable, folk craftsmen areinvited to seminars on design, effective distribution channels, marketingand organisation of new production. Exhibits of their crafts4Historic settlements are urban or rural settlements where objects of importance to thecultural heritage are located: monuments, architectural ensembles, historic sights andother cultural objects created in the past and which have archeological, historical, architectural,urban-planning, esthetic, scholarly or socio-cultural value and are important forthe preservation of unique qualities of the peoples of Russia and their contribution to theworld civilization.34