<strong>ANNUAL</strong> <strong>REPORT</strong>, <strong>2005</strong> Total depositary receipts issued on LUKOIL common shares at the end of <strong>2005</strong> were equivalent to 547 million shares (64.3% of authorized capital). Increase of Company efficiency and improvement of its corporate governance led to steady growth of investor interest in LUKOIL securities through <strong>2005</strong>. Turnover of shares and ADRs in the fourth quarter of <strong>2005</strong> on main trading floors (the MICEX and the LSE) was $19.47 billion, which is 130% more LUKOIL Share Price on the RTS Exchange (<strong>2005</strong>), $ 65 60 55 50 45 40 35 30 25 20 01/01/05 +95.7% 03/01/05 05/01/05 07/01/05 09/01/05 11/01/05 12/31/05 LUKOIL Share Price and RTS Index (2004–<strong>2005</strong>), % 290 240 190 140 90 01/01/04 05/01/04 09/01/04 01/01/05 05/01/05 09/01/05 12/31/05 RTS LUKOIL LUKOIL Share Price, Bloomberg Oils Index and RTS Index (<strong>2005</strong>), % 210 190 170 150 130 110 90 01/01/05 03/01/05 05/01/05 07/01/05 09/01/05 11/01/05 12/31/05 RTS LUKOIL Bloomberg Oils 80
than in the first quarter of the year. The rise was not only due to growth in market value of Company shares, but also to increase in the number of shares traded. It should be noted that the volume of LUKOIL securities trading, measured in numbers of shares and ADRs, was 116% greater in the fourth quarter than in the first quarter on the MICEX (which trades shares), but 13% less on the LSE (which trades ADRs). Main <strong>Lukoil</strong> shareholders (stakes larger than 1%) CORPORATE GOVERNANCE Number of shares on 1 January, <strong>2005</strong> % of total shares on 1 January, <strong>2005</strong> Number of shares on 1 January, 2006 % of total shares on 1 January, 2006 ING Bank (Eurasia)*, of which: 535,975,699 63.01% 552,427,066 64.95% Capital Group** 26,025,136 3.06% 12,662,836 1.49% Springtime Holdings Limited 20,328,000 2.39% 72,122,000 8.48% SDK Garant* 87,986,591 10.34% 83,105,166 9.77% DK URALSIB* 69,560,926 8.18% 74,802,000 8.79% KB Citibank*, of which: 66,322,006 7.80% 68,313,541 8.03% Springtime Holdings Limited 64,638,729 7.60% 64,638,729 7.60% National Depository Center* 22,056,584 2.59% 14,736,859 1.73% Depository-Clearing Company* 17,982,613 2.11% 19,159,472 2.25% * Nominee **Data pursuant to SEC forms N-CSR and N-Q and also based on information published by Fund companies BOARD OF DIRECTORS AND MANAGEMENT COMMITTEE Board of Directors Valery Grayfer Chairman of the LUKOIL Board of Directors, CEO of RITEK Born 1929 Graduated in 1952 from Moscow's Gubkin Oil Institute. Doctoral Candidate in Technical Sciences. Awarded five orders, four medals, and a diploma of the Supreme Soviet of the Tatar ASSR. Deputy to the USSR Oil Industry Minister from 1985, Head of the Tyumen Main Office for the Oil & Gas Industry. From 1992, CEO of the Russian Innovative Fuel and Energy Company (RITEK). Chairman of the Board of Directors of LUKOIL from 2000. Professor of the Gubkin Russian State Oil & Gas University, Lenin Prize Winner and Russian Government Prize Winner. Vagit Alekperov Chairman of the LUKOIL Management Committee President of LUKOIL Born 1950 Graduated in 1974 from the Azizbekov Institute of Oil and Chemistry in Azerbaijan. Doctor of Economics, current Member of the Russian Academy of Natural Sciences. Awarded four orders and eight medals. Worked from 1968 in the oil industry in Azerbaijan and Western Siberia. From 1987 to 1990 CEO of Kogalymneftegaz (oil production company), a division of Glavtyumenneftegaz within the Ministry of the Oil & Gas Industry of the USSR. From 1990 to 1991, Deputy, then First Deputy to the USSR Oil & Gas Industry Minister. From 1992 to 1993 President of Langepasuraykogalymneft (oil production group). Chairman of the Board of Directors of LUKOIL from 1993 to 2000. President of LUKOIL from 1993. 81
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ANNUAL REPORT 2005
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ANNUAL REPORT, 2005 ADDRESS TO SHAR
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ANNUAL REPORT, 2005 LUKOIL signific
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LUKOIL IS ONE OF THE MAJOR INTERNAT
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The Company buys 15 filling station
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August The first stage of a coke ca
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LUKOIL completes eradication of the
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289 filling stations and 132 diesel
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ANNUAL REPORT, 2005 LUKOIL is reali
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ANNUAL REPORT, 2005 GEOLOGICAL EXPL
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FINANCIAL ACCOUNTS CRITICAL ACCOUNT
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FINANCIAL ACCOUNTS CONSOLIDATED FIN
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FINANCIAL ACCOUNTS OAO LUKOIL Conso
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FINANCIAL ACCOUNTS OAO LUKOIL Conso
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FINANCIAL ACCOUNTS OAO LUKOIL Notes
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FINANCIAL ACCOUNTS Property, plant
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FINANCIAL ACCOUNTS found a sufficie
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FINANCIAL ACCOUNTS Investments in "
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FINANCIAL ACCOUNTS members of the G
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FINANCIAL ACCOUNTS Russian ruble bo
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FINANCIAL ACCOUNTS The following ta
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FINANCIAL ACCOUNTS The real returns
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FINANCIAL ACCOUNTS The Company's ne
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FINANCIAL ACCOUNTS In January 2005,
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FINANCIAL ACCOUNTS Environmental li
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FINANCIAL ACCOUNTS NOTE 22. COMPENS
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FINANCIAL ACCOUNTS Geographical seg
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FINANCIAL ACCOUNTS OAO LUKOIL Suppl
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FINANCIAL ACCOUNTS III. Results of
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FINANCIAL ACCOUNTS Estimated net pr
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FINANCIAL ACCOUNTS develop and prod
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FINANCIAL ACCOUNTS Group's share in
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FINANCIAL ACCOUNTS and the Governme
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FINANCIAL ACCOUNTS A corporate hold
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ANNUAL REPORT, 2005 REFERENCE INFOR