LUKOIL IS RUSSIAN RETAIL MARKET LEADER

Friday, July 14, 2006

Today OOO InfoTEK-Konsalt, one of Russia’s leading consulting companies in the oil and gas sector, has declared LUKOIL a leader of the Russian retail market among oil companies of the Russian Federation summarizing the results of 2005.

Research done by InfoTEK-Konsalt suggested LUKOIL had the largest number of filling stations in the Russian Federation (more than 1,500, without franchising), conducted efficient refinery upgrading, and produced motor fuels with improved performance and environmental properties.

LUKOIL produces diesel fuel under Euro-4 standard and gasoline under Euro-3 standard. In April 2006 the Company introduced gasoline branded «EKTO-95» and «EKTO-92» (environmentally friendly fuel) with properties complying with Euro-3 standards and exceeding requirements defined by the state standards. To improve performance properties, a multipurpose additives package is injected into EKTO gasolines which helps improve detergent, anticorrosion and other properties.

Application of EKTO motor fuels provides for safer operation of cars due to improved fuel combustion, increase of reliability and engine life, increase of motor oil life, noise reduction and lower engine vibration, decrease of wear-out of fuel injection system components, prevention of coke formation in the injector. Besides, it closes out premature failure of onboard diagnostics systems. Improved environmental properties of new EKTO motor fuels provide for significant decline in the release of carcinogenic emissions, sulfur compounds, nitrogen and other hazardous substances.