LUKOIL CZECH SHAREHOLDERS THE NETHERLANDS

LUKOIL Czech Republic s.r.o. …
Kutvirtova 339/5, 150 00
Praha 5-Radlice

LUKOIL Accounting and Finance Europe s.r.o. (LAFE), based in Prague, the Czech Republic, was established as an accounting shared service center in August 2012. LAFE provides accounting services for LUKOIL Group organizations outside of the Russian Federation.
LUKOIL Accounting and Finance Europe s.r.o. (LAFE) was established in August 2012 in order to provide accounting services to LUKOIL group organizations.
We operate in the segment of shared services and we are member of ABSL, the leading organization representing the business services sector in the Czech Republic.
At the moment, LAFE employs more than 120 people based in Prague


1.4 Lukoil 1.4.1 Short profile of Lukoil The Russian company Lukoil is one of the world’s leading vertically integrated oil & gas companies. Most of the company’s exploration and production activity is located in Russia, and its main resource base is in Western Siberia. Lukoil is the second largest private oil company worldwide by proven hydrocarbon reserves, controlling around 1.3% of global oil reserves and 2.1% of global oil production. Lukoil is carrying out international exploration and production projects in Kazakhstan, Egypt, Azerbaijan, Uzbekistan, Saudi Arabia, Iran, Columbia, Venezuela and Iraq. By the end of 2004 Lukoil's sales network covered 17 countries of the world, including Russia, the CIS (Azerbaijan, Belarus, Georgia, Moldova, Ukraine), Europe (Bulgaria, Hungary, Cyprus, Latvia, Lithuania, Poland, Serbia, Romania, Czech Republic, Estonia) and the USA, and consisted of 199 tank farms and 5,405 filling stations. In 2004 Lukoil realised annual sales with a total value of US$ 11,727 million, resulting in a net profit of US$ 4,248 million.37 1.4.2 Financial involvement of UBS The following information was found on financial services provided by UBS to Lukoil: • In January 2001 Lukoil issued US$ 237.1 million of shares on the international capital market. The issuance was managed by UBS Warburg and Credit Suisse First Boston.38 • In November 2002 Lukoil issued US$ 350 million 3.5% five-year convertible bonds. The proceeds were was used to finance its bid in the privatisation of the Russian oil firm Slavneft. Bookrunners were Morgan Stanley (United States) and UBS Warburg.39 1.4.3 Controversial issues The following information was found on the involvement of Lukoil in issues which are controversial because of their consequences for the environment, local communities and/or human rights: • D6 (Kratsovskoje) in Lithuania: Lukoil plans to open and extract oil deposit from the D6 (Kratsovskoje) region offshore for the coast of Kaliningrad and Lithuania. 


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