PRESS RELEASE

Tuesday, January 22, 2002

The meeting between the Bulgarian Deputy Prime Minister, economics minister Nikolai Vasiliev and LUKOIL’s President Vagit Alekperov was held today in Moscow.

The parties discussed current Company’s activities in Bulgaria and future cooperation projects.

Bulgarian Deputy Prime Minister positively assessed Company’s activity in Bulgaria and underlined that LUKOIL-Neftochim Bourgas refinery makes visible contribution to the country’s economy providing significant tax payments and working places for thousands of employees.

The possible Company’s involvement in Bulgarian power generation and gas business was discussed on the meeting as well as Company’s role in the Bourgas-Alexandropoulos pipeline construction project.

The implementation of this project would require closer cooperation between Bulgaria, Russia, Greece and fuel suppliers and consumers, - Vagit Alekperov stressed.

The parties agreed to keep on further cooperation in order to develop the markets of the Balkan region.