Obligations under collective agreements

In 2015 and 2016, the Company fulfilled its obligations set forth in collective agreements and agreements with trade union organizations and local regulations on social support, and continued its corporate social programs.

All employees are entitled to social benefits, irrespective of their trade union membership or availability of a trade union at the company
Social payments under collective agreements at LUKOIL Group’s Russian entities
Indicators 2015 2016
Expenses to provide social support to employees, their families, and retirees, total, million RUB including the following programs: 9,637.9 10,201.7
Healthcare, including VMI 1,317.0 1,503.5
Social support to women and families with children 371.7 358.7
Employee recreation and health improvement 3,609.6 3,921.5
Assistance to employees in housing purchases 129.0 131.6
Social support to retirees 257.4 264.3
Other social benefits 3,953.2 4,022.1
Maintenance of social infrastructure facilities 1,262.3 1,246.8

The Company respects the rights of its employees to receive temporary disability allowances and is committed to making all payments on time and in full. The Group’s Russian entities have social insurance committees responsible for overseeing the timely and proper allocation and payment of temporary disability allowances; verifying the Company’s determination of an employee’s right to receive temporary disability allowance, refusal to provide the same, or a decision to provide a reduced allowance; review disputes that arise between the employer and employees related to temporary disability allowances.

Social payments under collective agreements at LUKOIL Group’s foreign entities
Indicators 2015 2016
Expenses to provide social support to employees, their families, and retirees, total, million USD including the following programs: 205.8 145.3
Healthcare, including VMI 17.4 15.8
Compensation of housing rental rates 74.3 40.6
Schooling and kindergarten fees 15.1 14.6
Employee vacations and health improvement 16.7 16.6
Life/accident insurance 8.3 5.0
Coverage of expenses to travel to and from work 1.2 4.9
Employer-provided meals 6.2 5.5
Other social benefits 66.6 42.3
Maintenance of social infrastructure facilities 0.8 0.7
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