LUKOIL STEPS UP RETAIL SALES IN NORTH WESTERN DISTRICT

Thursday, December 23, 2004

Vagit Alekperov, President of OAO LUKOIL, and Sergey Kuznetsov, Vice-President of BALT-TRADE Fuel Company, signed an agreement yesterday, stipulating an acquisition of BALT-TRADE’s 37 filling stations in Saint-Petersburg and Leningrad region by LUKOIL.

As a result, LUKOIL has brought the number of its own stations in the region up to 79.

Among the filling stations acquired by LUKOIL is Europe’s largest site numbering 18 dispensers. The station is located on Primorsky Highway in Leningrad region.

“This transaction is a clear evidence of our intention to become a major retail player in Saint-Petersburg and Leningrad region. The deal is a part of the Company’s plan to develop its retail network in the North Western Federal District of Russia,”- Vagit Alekperov, President of OAO LUKOIL, said.