ANNUAL REPORT 2005 - Lukoil

The general meeting of shareholders on 24 June, 2004 decided to set remuneration for newly elected
Board directors at $125,000*. There are additional remunerations for carrying out the functions of
Chairman of the Board of Directors, Chairman of a Board Committee, as well as some other remunerations.
The decision of the AGM on 24 June, 2004, concerning size of remuneration and types of expenses,
which are recompensed to LUKOIL BoD members, remains valid until cancellation or change by a general
meeting of LUKOIL shareholders.
CORPORATE GOVERNANCE
The general meeting of shareholders on 28 June, 2005, decided to keep the level of remuneration
to members of the BoD and Audit Commission, which was decided by the LUKOIL AGM on 24
June, 2004.
The BoD on 19 July, 2005, determined main conditions of contracts with members of the
Management Committee. These conditions envisage remuneration for members of the Management
Company equal to their basic monthly salary. This payment is subject to achievement of key corporate
targets in the reporting period.
CORPORATE GOVERNANCE AND INFORMATIONAL OPENNESS
Corporate Governance
LUKOIL's system of corporate governance is based on respect for the rights and lawful interests of
all categories of owners and shareholders. Its purposes are to reduce investment risk, make the
Company more attractive for investment, reduce costs of own and borrowed capital, and increase
value of the Company.
Informational Openness
Since receiving a full listing on the London Stock Exchange in 2002 the Company has set up and successfully
operates a system of corporate information disclosure for the investment community. The
Company's policy of informational openness and quality of information disclosure fully comply with
internationally accepted standards and with standards of the LSE.
LUKOIL's information policy includes:
publication of quarterly audited financial accounts under US GAAP;
annual disclosure of the results of international audits of Company hydrocarbon reserves;
conference calls and internet broadcasts for the investment community following publication of
financial results and other important corporate events;
organization of trips for representatives of the investment community to regions where the
Company has industrial activities;
* The remuneration is calculated using the rouble equivalent of $1 at the Russian Central Bank exchange rate on the date of the AGM, at
which payment of the remuneration is decided.
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