LUKoil is Russia's largest vertically integrated oil company and appears to be the most aggressive and far-sighted company within the Russian oil industry. During the 1997 Annual Shareholder's meeting, company officials stressed growth, with emphasis on international markets. LUKoil is also looking to expand its downstream facilities, primarily through acquisitions.

The US company Atlantic Richfield owns 8% of LUKoil and has an 18 year, $5.2 billion project with the Russian oil giant. Overall, LUKoil possesses solid financial character. First quarter 1997 results were better than expected. LUKoil was awarded a BB- rating by Standard & Poor's and plans to issue convertible bonds in the fall of 1997. Furthermore, LUKoil was recently included in the list of most promising emerging market stocks in Business Week magazine.

As one of Russia's premier "Blue Chips", LUKoil is one of the most liquid and actively traded stocks on both the Russian Tradind System (RTS) and the corporate securities department of MICEX. In addition, LUKoil ADRs are traded on America's NASDAQ exchange.

LUKoil's price doubled during the first six months of 1997.