20 August, 1998 - LUKOIL has been meeting and will continue to meet all its financial liabilities despite the Russian government's recommendation to suspend repayment of loans.

The company will ensure timely coupon payments on convertible bonds issued by its affiliated Dutch company LUKINTER FINANCE B.V. in May 1997 and October 1997 due in 2002 and 2003, respectively. A coupon payment reserve has been set up and is being serviced by one of the most reliable international financial institutions. The first coupon payments on the bonds were accurately made in early May 1998.

"We have been paying and we will continue to pay," LUKOIL President Vagit Alekperov commented on a recent joint statement by the Russian government and the Central Bank. "LUKOIL has enough funds and never misses the deadline. That is why we do not consider the statement by the Russian government and the Central Bank on suspension of payments as a permission to freeze payments for 90 days."

 

 

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