Under complex economic conditions, Imperial proved its financial stability and reliability in playing a significant role in a number of projects such as the development of the Timan-Pechora oil and gas province, financing of the Caspian Pipeline Consortium and back-up of financial transactions carried out by oil partnerships set up by Gazprom and LUKOIL.

In this light Gazprom and LUKOIL have confirmed their willingness to continue cooperation with Imperial and, jointly with other shareholders, decided to increase significantly the bank's capital by stepping up their equities.

Since Imperial has been chosen by LUKOIL as the bank where cash flows from domestic and foreign operations accumulated, it was decided that LUKOIL’s and its partners’ equity will exceed 50%. This step will undergo a registration with the state bodies. The share of oil transactions within the total number of the bank’s operations will increase. The bank's management structure will be reorganized and an expert analysis board and an oil and gas investment division will be set up.

LUKOIL will also restructure its foreign operations and concentrate cash flows in the East-West United Bank (Luxembourg) where Imperial owns 49% of the capital. The East-West United Bank management will be asked to react adequately to the changes in the structure of the Imperial's capital, upgrade personnel skills and invite leading financiers in the oil industry to serve on the top management bodies of the bank.

Gazprom and LUKOIL are confident that the changes they plan to take in Imperial will be mutually beneficial and contribute significantly to the role played by Imperial as a reliable element in the country's banking system and economy in general.

Press Centre  OAO "LUKOIL"
phone.: (095)927-1677,  fax: (095)927-1653,
E-mail: pr@lukoil.com