JANUARY 27, 1998. - LUKOIL President Vagit Alekperov and UNEXIM Bank head Vladimir Potanin met on January 26 in Moscow and discussed the state of the oil and petroleum product market after the fall in world oil prices.

Among other things they recognized that oil exports with the current tax system have become absolutely unprofitable following the drop in world prices from $20 to $13 for a barrel.

Alekperov and Potanin also discussed the privatization terms of Rosneft company. As the LUKOIL press service has stated the new terms of the competition implying the sale of 50%+1 shares do not satisfy the sides to the consortium Gazprom-LUKOIL-Shell.

Potanin as a representative of the consortium Sidanko-British Petroleum agreed that the initially announced sale of a 75%+1 share stake was preferable and more effective.

Alekperov's meeting with head of Rosprom-Yukos group did not take place due to the illness of Mikhail Khodorkovsky.

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