Russia's LUKoil oil company intends to significantly cut down on its exports of petroleum products. According to the company's press service, the exports of A-76 gasoline will be cut by nearly 50,000 tonnes, that of diesel fuel by 100,000 tonnes as compared with May 2002 figures. In the meantime, in July, the company will increase the production of high-octane gasoline by 50% on the month. The press service says the redistribution of the volumes in favour of domestic sales plus the stabilisation of prices will serve to fully satisfy home demand.
LUKoil's flexible policies directly affect the prices of petroleum products. Sometimes, in consideration of local conditions, the company sets prices paid by storage and supply companies lower than those paid by large wholesalers. Besides, following the agreements LUKoil signs with regional authorities, the company establishes privileged pricing schemes to support agricultural producers.
The oil company was registered in 1993. Its statutory capital of about USD 686,000 is divided into 850,563,255 common shares. The company accounts for 24% of all oil and 18% of oil petroleum derivatives produced in the Russian Federation. Its clear profits in the year 2000, according to the GGAP USA standard, amounted to USD 3.312 billion.