LUKOIL AND SEVERSTAL-AUTO SIGN STRATEGIC COOPERATION AGREEMENT

Wednesday, January 16, 2008

Mr. Vagit Alekperov, President of OAO LUKOIL, and Vadim Shvetsov, General Director of OAO Severstal-Auto, have signed a strategic cooperation agreement.

The Agreement outlines the following cooperation areas between the Parties:

- delivery of LUKOIL branded oils to ensure fault-free operation of Severstal-Auto production facilities;

- delivery of LUKOIL branded oils for the first fillup of cars produced by OAO Severstal-Auto and to OAO Severstal-Auto service centers for aftersales maintenance;

- joint elaboration and introduction of motor oil import substitution programs for LUKOIL branded products certified and approved by foreign car makers;

- engagement of scientists working with OAO LUKOIL and its subsidiaries to develop modern oils and other oil and gas products for OAO Severstal-Auto;

- cooperation on marketing programs;

- delivery of gasoline and diesel fuel, other oil and gas products by OAO LUKOIL subsidiaries to OAO Severstal-Auto production facilities;

- joint development of infrastructure facilities designed for car maintenance.

The Agreement shall remain in force for five years.

‘The Cooperation Agreement signed between OAO LUKOIL and OAO Severstal-Auto fits well with the cooperation development program between our Company and Russia’s leading car manufacturers. Such cooperation will not only ensure smooth supply of motor oils and fuels but will also help introduce new products compliant with the international standards’, Mr. Alekperov said.

LUKOIL has already signed cooperation agreements with GAZ Group, ОАО AVTOVAZ, OАО AGROMASHHOLDING, OAO KAMAZ and a number of other major oil consumers in Russia. In addition to that, LUKOIL and Toyota Motor Manufacturing Russia had signed an agreement on delivering motor fuel for the first fillup at the assembly line.