Key stakeholder groups

Regulatory authorities. The Company operates in several countries with significant variance in legislation. LUKOIL participates in the work of official bodies and expert panels that discuss issues and draft laws pertaining to the oil and gas industry. In particular, the Company is a member of the National Council for Professional Qualifications under the President of Russia. G4-24

Shareholders and investors. LUKOIL’s investors are Russian and foreign organizations and persons with various investment strategies. The Company seeks to continually increase transparency, in particular, by publishing information beyond what is required by law. Information requests from investors are processed and responded to promptly on a continuing basis.

Given the growing importance of sustainable development to the investment community, in 2016, this issue was highlighted in order to improve the effectiveness of our communication. During the reporting period, responses to information requests were provided, while meetings and conference calls regarding sustainable development were held with analysts from investment funds and specialized analytical firms.

Personnel and trade unions. Social partnership forms the basis for the Company’s relationship with employees and trade unions. LUKOIL’s social strategy seeks to maintain jobs and a positive working environment, and to promote stability in the labor market in the regions where it maintains a presence. The Company has developed tried-and-tested tools of social partnerships in the form of a three-level system of agreements between the employer, trade unions and employees. A key social partner of the Company is the International Association of Trade Union Organizations of PJSC LUKOIL (IATUO).

Product consumers. Consumers of the Company’s products include organizations active in various economic spheres and private individuals. LUKOIL follows the Improve What You Produce strategy, which has provided new, quality products and services for customers. The Company adopted the concept of the “customer-oriente d filling station”, within the framework of which, a mechanism for studying consumers’ opinions was introduced and measures taken to increase their attractiveness and ability to deliver customer satisfaction.

The LUKOIL Hotline Hotline: 8-800-1000-911 is in place to build trust with customers and to receive their feedback . A unified center receives and processes customer requests from all over Russia. Customers can, in real time, receive information on the cost of fuel and products at each Russian LUKOIL filling station, or submit their complaints and requests. The Mystery Client program is also in place to improve service at filling stations.

A number of subsidiaries monitor customer satisfaction. For instance, OOO LUKOIL-AERO scored 9.10 points out of 10 according to customer satisfaction monitoring The following indicators are monitored: delivery discipline; aviation fuel quality; aircraft fuel supply quality; price; time to respond to information requests on aviation fuel and aircraft fuel supply. in 2015. G4-PR5

Local communities. Social investment programs are implemented with continuous contact with stakeholders to achieve a balance of interests; meetings are held with grantees, partners, local municipal and public organizations. Considerable attention is devoted to relations with the environmental community and local residents in the regions where LUKOIL maintains a presence regarding environmental protection. LUKOIL is broadening its channels for stakeholder engagement. For instance, in 2015, LUKOIL-Komi set up a round-the-clock environmental hotline. There has also been long-term cooperation with a number of public organizations.

The Company also participates in, organizes and sponsors forums, specialized and regional conferences, roundtable discussions and other events. Among other things, LUKOIL acts as a permanent sponsor of major economic forums in St. Petersburg and Sochi, large-scale sports events, theater performances, exhibitions, road tours and other events of national significance.

On top