Quote of the Issue

Publication of LUKOIL Lubricants Company August 2012 (LLK-International)

Рage 2 Quote of the Issue: The volume of LUKOIL’s ready-made lubes is expected to grow fivefold over the next seven years as the Company steps up its presence on the markets of Europe, the Middle East, and Central Asia.

In this Issue:

International expansion We are producing and introducing LUKOIL MOTO new lubes – is a key LLK’s target the key products for the Europe European quality for small engines

CONTENTS

2 STRATEGY International expansion is a key LLK’s target 2 4 BUSINESS DEVELOPMENT Alexey Strelchenko: "One of the secrets of the Company's success is its top-notch and comprehensive service"

6 PRODUCT Michael Weis: "We are producing and introducing the key products for the European market" 4 8 PRODUCT LUKOIL MOTO new lubes – European quality for small engines

9 PARTNERSHIP Armin Bolch: "We are strategic partners of global OEMs"

11 NEWS 8

«МАСЛА@ЛУКОЙЛ» # 1 August 2012 "Масла@ЛУКОЙЛ" is a publication of LLK-International Publisher: RPI Address: LLK-International, 6 Malaya Yakimanka, Moscow 119180 Phone: +7 (495) 980 39 12 e-mail: [email protected] Press run: 2 000 экз.

The magazine is registered by the Federal Service for Media Law Compliance and Cultural Heritage. Registration certificate ПИ №ФС77-28009

1 International expansion is a key

STRATEGY LLK’s target

OOO LLK International (LLK) continues to expand actively on the international lubricant market. The volume of LUKOIL’s ready-made lubes is expected to grow fivefold over the next seven years as the Company steps up its presence on the markets of Europe, the Middle East, and Central Asia.

he sale of ready-made lubes, the Czech Republic, Hungary, Serbia, LUKOIL Group, is one the Company’s Twhich are manufactured Montenegro, Greece, Bulgaria, top priority foreign markets. abroad, is sourced through three of Moldova, Ukraine, and Bosnia and Similar to the system built in Russia, LLK International’s main production Herzegovina. in Turkey the Company combines di- and commercial centers, in Finland, However, the most tangible success rect sales to large end consumers Romania, and Turkey. The Teboil lube was achieved at the Turkish division with sales through dealer networks. oil blending plant (LOBP) in Finland is of the Company, LLK Eurasia. Since After winning tenders, LUKOIL be- the supply hub for Scandinavia and 2009, when LLK International took gan to deliver lubricants to leading Northern Europe. Several types of lu- control over the production and pack- branches of industry. These include bricants from this plant are also deliv- aging plant for Akpet motor oils, the Izulas (municipal subway) and TCDD ered to Russia and Kazakhstan. The plant’s output has more than tripled, ex- (railroads) in the transport sector Company’s ready-made lubes, which ports have doubled, and deliveries to and such companies as Tki Ҫli, CSR, are manufactured in the Romanian the domestic market have quadrupled. Eldemir, Bektaslar Gubrecilik in the Petrotel refinery, are geared towards Turkey, with a population exceeding Eastern Europe. The main consumers 73 million people and in geographical THIS YEAR LUKOIL ENTERED THE LUBES of lubes from this plant are located in proximity to the raw material sources of MARKET OF BANGLADESH

2 coal mining industry and ilken Enerji in the power industry. LLK Eurasia is virtually the sole provider of lubes; deliveries are also underway to Tülomsaş, a Turkish manufacturer of locomotives. The acquisition of a LOBP in Turkey has enabled the Company to promote LUKOIL’s lubes not only on the Turkish market but also in a number of Middle East countries and in North Africa. Iraq, with a population of over 30 million, is second on the Company’s list of priorities in this region. LUKOIL’s products first made their appearance here in 2009, and it plans to capture a 4% market share in 2012. Further expansion of the Company’s geographical supply range occurred in April 2012 when LUKOIL took steps to enter the lube business in THE COMPANY’S NEXT TARGET FOR READY-MADE LUBES WILL BE THE RAPIDLY EXPANDING Bangladesh. COUNTRIES OF SOUTHEAST ASIA AND NEIGHBORING CHINA The Company’s expansion of its geographical range of marine oil supplies has also been a major achievement from Russia last year, which is 30,000 ity. The first batch of LUKOIL’s lubes over the past three years. At pre- tons more than in 2010). China pro- was shipped to Chinese custom- sent the supply network of LLK Marine duces 8.3 million tons of lubricants. ers in May 2012. At the end of the covers about 600 ports in 62 coun- Demand for lubricants has risen 7% month, the Dealer Commission of LLK tries around the world. It should also on the Chinese market over the past International approved official dis- be noted that LUKOIL Navigo’s lubes decade. Last year, the demand for lu- tributors in China and neighboring are a product in the premium seg- bricants stood at 7.1 million tons, up Mongolia. ment and are positioned in the same from 6.8 million tons in 2010, largely International expansion and astute price band as that of world leaders. In due to rapid growth of the automotive positioning of the lube business on 2011 alone, LLK Marine won the first- industry. Cars exceeded 100 million, the global market LUKOIL to achieve fill rights to 71 large-tonnage vessels and global auto producers (including leadership among its Russian rivals. at shipyards in China, Korea, Turkey, VW and Ford) continued to build new Romania, Russia, Japan, Germany, auto manufacturing plants throughout AT PRESENT THE SUPPLY NETWORK OF LLK and Ukraine. the country. This is why the Chinese MARINE COVERS ABOUT 600 PORTS Regarding lube basestock, if be- market is LLK International’s key prior- IN 62 COUNTRIES fore 2008 this commodity was most- ly available in Europe, today base oils are delivered in a geographical range spanning North and South America, Africa, and Eurasia to a total of 35 countries (including Argentina, Ecuador, Colombia, Cuba, China, USA, Korea, Vietnam, Singapore, Thailand, India, Sudan, Israel). LLK International’s foreign business development strategy calls for raising the level of distribution and further scaling up its footprint on traditional markets in Europe, the Middle East, and Central Asia. The Company’s next target for ready-made lubes will be the rapidly expanding countries of Southeast Asia and neighboring China, with the latter being the top priorty. According to official statistics, China currently im- ports 2.7 million tons of lube basestock (of which 150,000 tons came

3 Alexey Strelchenko: "One of the secrets of the Company's

BUSINESS BUSINESS success is its top-notch DEVELOPMENT and comprehensive service"

The latest significant events in the business of OOO LLK-International are associated with its international development of foreign supplies. In this interview, deputy general director of LLK-International Alexey Strelchenko talks about OAO LUKOIL’s performance and plans for foreign sales of lubricants produced in Russia.

Масла@ЛУКОЙЛ | Could you com- ment on LUKOIL’s performance in ex- porting ready-made lubes from Russia over the past few years?

Alexey Strelchenko | OAO LUKOIL’s international lube business has been developing at a steady pace in recent years thanks to the Company’s global expansion. Along with extending our range of supplies, we are broaden- ing our array of goods and devoting increasingly greater attention to their quality. The development of LUKOIL’s ready-made lubes manufactured in Russia got under way in earnest when the Company conquered the biggest markets among post-Soviet countries – Belarus, Ukraine, and Kazakhstan – and some Caucasian republics. In 2010 the Company took steps to expand its business in other countries of Central Asia where, according to OAO LUKOIL President Vagit Alekhperov, the Company has strategic interests. LUKOIL’s sales of lubricants have reached historic levels in Central Asia, Ukraine, and Belarus, as this indicator rose nearly 50% compared with the previous year.

Масла@ЛУКОЙЛ | Higher lubricant sales are largely a result of OAO LUKOIL’s successful implementation of its business strategy, which is geared toward import substitution. Could you provide with some examples? And what about LLK-International’s rela- tions with neighboring states?

4 Alexey Strelchenko | One of the this synergy is the delivery of lubricants the Company’s success is its top-notch clearest illustrations of this strategy is for TE33A Evolution diesel locomo- and comprehensive service. Sales of an agreement on the supply of lubri- tives to Tajik railroads. These locomo- premium goods are driven by a high cants for General Electric diesel lo- tives are purchased by the Tajik party level of services and expertise of the comotives running on railroads in from General Electriс’s Kazakhstan- distribution network. Nowadays Kazakhstan. With this agreement, we based JV. The contract for the sup- LLK-International’s distribution in replaced Shell, a serious and strong ply of LUKOIL locomotive lubricants Kazakhstan, Ukraine, Belarus, Central competitor. Another highlight this year became possible largely due to work Asia, and the Caucasus is one of the was a first-fill contract signed with au- performed in earlier years to obtain competitive compared with other com- tomotive engine plant General Motors the approvals and conduct service panies. We are satisfied with the qual- Power Train Uzbekistan (Tashkent, tests on General Electric’s locomotives ity of work performed by our dealers. Uzbekistan) and auto assembly facil- in Kazakhstan. They truly pull out all the stops to cul- ity AO AgromashHolding (Kostanay, Other achievements include open- tivate long-term business ventures, Kazakhstan). ing up the first mono-brand shop in rolling out new and advanced sales In addition, commercial supplies are Central Asia at the largest wholesale points branded in the corporate style underway to AO TNK Kazchrome, and retail market in the region, the of OAO LUKOIL. part of the ENRC group of compa- Dordoy Bazaar (Bishkek, Kyrgyzstan) The new stage in promotion of nies, (LUKOIL Geyser and LUKOIL and successful collaboration with LUKOIL lubes in Central Asia is un- Avantgarde lubes) and TOO Ivolga- Kazakh hypermarkets and service sta- derpinned by plans to launch ad- Holding (LUKOIL Avantgarde Ultra tions. Effective operations with ser- vanced marketing campaigns in an and LUKOIL Verso). This made it pos- vice stations in Kazakhstan helped effort to roll out the B2B and B2C sible for the Company to replace pave the way for similar initiatives in segments. A separate plan is worked Shell and Fuchs lubricants. Test Kyrgyzstan and Armenia. out and approved for each country at batch supplies have been made to the beginning of the year. However, a major mining and metals compa- Масла@ЛУКОЙЛ | What are the there is a common focus in these ny in Kazakhstan, AO ArcelorMittal key factors behind the success of LLK- joint operations – serious advertis- Temirtau, and to oil producer Buzachi International? ing and technical support for sales Operating Ltd. of the premium lubricants marketed It is important to note that our track re- Alexey Strelchenko | We have al- and sold by LUKOIL Avantgarde and cord with major industrial enterpris- ways tried to take into account all re- LUKOIL Luxe. es in the region has bolstered LLK- gional features: economic, cultural, International’s authority when holding religious, and legislative. There’s re- LUKOIL'S FIRST MONO-BRAND SHOP IN negotiations with other potential in- ally no other way to build a success- CENTRAL ASIA, AT THE HUGE DORDOY dustrial clients. One such example of ful business. One of the secrets behind BAZAAR (BISHKEK, KYRGYZSTAN)

5 Michael Weis: "We are producing and

PRODUCT introducing key products for the European market"

LUKOIL continues strengthening its position on the lubricant market in Europe. Michael Weis, General Manager of LLK Lubricants Eastern Europe told us about the new product line GENESIS, in particular, about LUKOIL GENESIS PREMIUM and it’s prospects for the upcoming years.

Масла@ЛУКОЙЛ | What is the main reason for launching a portfo- lio of Genesis products? Why did the Company decide to produce this port- folio?

Michael Weis | In order to be successful in Europe, we need to prove our technical capabilities, launch a flagship product line that carries approvals from major OEMs, including the market leader, Volkswagen Group.

Масла@ЛУКОЙЛ | Could you com- ment on the latest news? What is the status of GENESIS production? Are you going to produce a full range of products or are you planning to start with only one?

Michael Weis | There are range of products in the Genesis line. For the launch, we are producing and introducing key products for the European market, namely, Genesis Premium 5W40 and 5W30. In recent years, we have invested significantly in our production facilities, some $3.5 million last year and anoth- Michael Weis is a proven business leader. He has led organizations er $2.5 million is planned for this year. across geographies and turned around and restructured struggling Once the upgrade is complete, at the businesses. He has wide experience working in the downstream sec- end of this year or early next year, pro- tor internationally and across cultures. Michael moved to his current duction of the full range will commence. position in January 2012. His responsibilities in the countries of the Eastern European cluster include building brand and market pres- Масла@ЛУКОЙЛ | What kind of ence as well as entering into new geographical markets. He previ- modernization are you doing? ously worked for Castrol as a country sales manager (BP Lubricants in Germany), general manager and head of country (BP Lubricants Michael Weis | We are investing in in Romania, Moldova, Bulgaria, Slovenia, Croatia, and Serbia). blending, to become fully automated, Academic background: master of business administration, Vienna in filling equipment, and in storage; in University of Economics. fact, we are making a state-of-the-art European plant.

6 Масла@ЛУКОЙЛ | Can you com- ment on the main advantages to the Company in producing Genesis products?

Michael Weis | As a company, we are committed to the European market. There are, however, certain myths associated with being a Russian company, such as not having the latest technology. This is absolutely not true in our case, and we want to use the launch of Genesis to show our consumers that we are a modern company, with state-of-the-art facilities in Europe. The quality product line that we offer will secure our future image and help toward building our brand in СONTRACT SIGNATURE WITH DACIA FOR THE MOTRIO BRAND. the European market. FROM LEFT TO RIGHT: PATRICK LECLERC (DIRECTOR OF PURCHASING ROMANIA), JEROME OLIVE (CHIEF OPERATING OFFICER, AUTOMOBILE DACIA), MICHAEL WEIS (GENERAL MANAGER, Масла@ЛУКОЙЛ | Can you com- LLK LUBRICANTS ROMANIA), LUMINITA PANAIT (TECHNOLOGY DIRECTOR, LLK LUBRICANTS ment on your own attitude toward ROMANIA) AND CALIN COMAN (SALES & MARKETING DIRECTOR, LLK LUBRICANTS ROMANIA) this product? Do you have any chal- lenges? prised at the high quality and modern the exceptional quality and value of Michael Weis | I have been with the processes of the company. I am very LLK products, as I did. My challenge company now for 6 months. LLK is a excited at the launch of this line; I see going forward is to convince as many young, dynamic, and energetic com- this as an opportunity to reach out to consumers as possible to pick up and pany. During this period, my own per- more consumers, to help them realize try this new product line. ception of Russian oil products has changed; I have been positively sur- LUKOIL GENESIS PREMIUM 5W40 AND 5W30 – THE KEY PRODUCTS FOR THE EUROPEAN MARKET

LUKOIL Genesis is a product line of high performance syn- thetic engine oils. LUKOIL Genesis Premium is formulat- ed for passenger cars and it was designed for low SAPS engines (low sulphated ash, phosphorus, and sulphur). It helps to reduce harmful deposits which can build up in diesel particulate filters and increases exhaust after- treatment system service life. LUKOIL Genesis Premium is recommended for year-round use in high performance gas- oline and direct-injection diesel engines operating under severe conditions with extended oil change intervals (as defined by the engine manufacturer). LUKOIL Genesis Premium contributes to extended service intervals and to reduction of car emissions without compromising engine durability.

7 LUKOIL MOTO new lubes – European quality for small PRODUCT engines

This year OAO LUKOIL began to produce LUKOIL MOTO, a new port- folio of lubricants for small engines and motors. The new products are fully compliant with advanced environmental standards and the high- est machinery manufacturing requirements, even exceeding them by some indicators.

SMALL, ALBEIT IMPORTANT, bikes (including turbocharged mo which has a higher traction coeffi- TECHNOLOGY dels), mopeds, snowmobiles, and cient, thus making the new lubricant scooters fitted with four-stroke high- especially fit for use in wet clutch LUKOIL MOTO lubricants were de- and medium-performance motors. bikes. signed for the small engines and mo- This product can also be used to lu- The new LUKOIL МОТО GARDEN tors with which many motorcycles, bricate transmissions and clutches of and LUKOIL МОТО 4Т API 10W-30 mopeds, scooters, gardening equip- advanced automotive vehicles that lubes are expected to make their de- ment, saws snowmobiles, and out- require lubrication using motor oils. but on the European market in August board motors are now equipped. This lubricant features excellent emul- 2012 and will be available at a later Until recently, the Company had only sion and anti-oxidant properties, en- time in Russia. one universal product in its lube port- hanced anti-wear, anti-corrosion, The third group of LUKOIL’s new folio – LUKOIL MOTO 2. It was for use and anti-foam properties, and ex- products for light equipment features in two-stroke engines in various types cellent running performance at cold lubricants specially designed for out- of light equipment. Advanced trends temperatures and high adhesive in- board motors – LUKOIL Outboard 2T in the development of engines and dicators. All these factors guarantee and LUKOIL Outboard 4T. The main their design features, a wide array of superior traction for any load. The difference of these products com- two- and three-stroke engines, and product has a JASO MA2 license, pared with motorcycle lubes is their operating conditions encouraged the essentially zero ash content, which is Company to roll out a line of special- achieved by using an especially thin ized products. Thus, in line with a pro- oil base and special ash-free addi- gram to broaden the range of its prod- tives. Motor capacity is improved by ucts, LLK International is preparing to 5-10%. Its most important feature is manufacture a number of products for less carbon deposits on electric spark two- and three-stroke engines at the plugs, which significantly lowers the group’s Romanian faciility, Petrotel- possibility of engine failure. LUKOIL LUKOIL Refinery. МOTO OUTBOARD is recommend- The LUKOIL МОТО 2Т GARDEN and ed for use in advanced high-power LUKOIL МОТО 4Т GARDEN lubri- air- or water-cooled outboard mo- cants devised by LLK engineers are tors – power boats, yachts, wa- recommended for use in advanced ter scooters and motor boats – and garden equipment motors, including in all engines where NMMA FC-W lawn mowers, gas-powered saws, (4T) and TC-W3 (2T) lubricants are motor hoes, and walk-behind trac- recommended. Production of these tors. This product line is compliant lubes is scheduled to begin in the with the latest technical specifications third quarter of 2012. in this segment: JASO FD, API TC, ISO L-EGD, and Husquarna (МОTО THE NEW LUKOIL МОТО GARDEN AND LUKOIL GARDEN 2T). МОТО 4Т API 10W-30 LUBES ARE EXPECTED LUKOIL МОТО 4Т API 10W-30 has TO MAKE THEIR DEBUT ON THE EUROPEAN been specially engineered for mo- MARKET IN AUGUST 2012. THEY WILL BE tocycles, racing and cross-country AVAILABLE LATER IN RUSSIA

8 Armin Bolch: "We are strategic partners

of global OEMs" PARTNERSHIP

The deputy general director for business development of LLK- International, Armin Bolch, told us about the basis of cooperation with global OEMs and his perception of prospects for LUKOIL's lubricants business segment.

r. Bolch has been work- select global OEMs that are ben- And we have to be able to adapt. Ming at LLK-International eficial for the growth of the overall During my years at Daimler, I was since January 2012. Before that, he LLK-International business. In these able to witness the changing cus- used to work for Daimler AG – one of partnerships, the standards of our tomer demands and business rela- the leaders of the automotive industry. clients will have to be our standards. tionships. The development of the Mercedes- Benz oil business was within his responsibilities.

Масла@ЛУКОЙЛ | What are some of the attributes of cooperation between LLK-International and global OEMs?

Armin Bolch | The cooperation with OEMs is a long-term investment that requires time and attention. It is like a puppy that requires constant attention in order to grow. For growth of cooperation between LLK and global OEMs, influential people on the customer side have to be identified and addressed correctly, information has to be channeled, needs have to be identified, and interests of LLK have to be positioned within the customer organization. The result of this work, the ultimate goal, is a signed contract, but it can take many months before both parties eventually agree about each of the topics addressed in the contract. Furthermore, there is not only cooperation on the commercial side of the business; technical aspects of cooperation with OEMs can be ex- tremely beneficial for both parties. OEMs can benefit from the expertise of the oil supplier and, in return, give insights on the newest devel- opments in the industry. Our goal is to enter strategic partnerships with

9 Масла@ЛУКОЙЛ | You mentioned It is crucial to take into consideration are a company that people can trust! the changing demands the lubricants the variety of demands and needs and Foreign companies that produce pre- supplier. What exactly do you mean? develop the right oils. Some demands, mium cars will never work with a com- What is this change? I have already mentioned, but let me pany that offers products of poor qual- just recap a few: emission standards, ity. This is our chance to shine and Armin Bolch | There is one main goal gas guzzler tax, tax reductions for prove to skeptical customers that we on which all global OEMs focus all economy cars, compatibility of differ- have high-tech products. their efforts: reduction of carbon di- ent fuel types and different fuel qual- Furthermore, please have a look at oxide emissions. To meet tough gov- ity standards, the opportunity to install a world map – Russia is the biggest ernment regulations and avoid high the engine into a wide range of mod- country. It has an incredible varie- penalties, fuel consumption has to els—especially if we take into consid- ty of climatic conditions. Such condi- be reduced. And this is where you eration the ever-growing number of tions are optimal for testing the quality can witness a fundamental change OEM alliances, for instance, Peugeot and endurance of lubricants that will in priorities. Five, or even only two & GM. be used all over the world. So let me years ago, the number one target for I think you see here the complexity phrase it this way: if it works in Russia, an OEM was to have a reliable oil. of the business. And this leads me to it works everywhere. Nowadays it is top priority that the lu- the following conclusion: lubricants bricant is contributing to the overall fu- shouldn’t be perceived as a com- Масла@ЛУКОЙЛ | LLK-International el consumption, ranking reliability on- modity any more. Lubricants should is a company with a very rapid rate ly second. be considered an integral part of the of growth. How do you see the com- But not only fuel efficient lubricants con- engine. pany’s business in 5-10 years? tribute to the reduction of fuel consumption. In general, the engineers have to Масла@ЛУКОЙЛ | In what way is Armin Bolch | Global vertically inte- fine-tune aerodynamics, install start- the Russian market for lubricants differ- grated companies put emphasis on stop systems, and “downsize” the en- ent from others? market globalization. That touches gine. The latter is heavily impacting lu- upon the whole industrial chain: ex- bricant requirements. It has to cope with Armin Bolch | The Russian lubri- traction, refining, and selling. LUKOIL higher temperatures. We have a wide cants market possesses great poten- is a player of global scale and in the range of high-quality products avail- tial. The number of foreign cars on future its positions will only strength- able for our customer needs and will Russian roads is rapidly growing and en. We will put strong emphasis on have even more available in the future. with it, demand for high-quality lubri- markets beyond the borders of Russia Already our oils correspond to the de- cants. Our major goal is to change the but obviously not neglect our home mands of all leading international API stereotype perception of the LUKOIL market. I see great potential with and ACEA standards and to the speci- brand oils. The products we make great people on board – let us to- fications of global OEMs. are really of exceptional quality. We gether start our journey!

10 www.lukoil-masla.ru NEWS

LUKOIL lubes granted LUKOIL ATF SYNTH HD is widely new approvals used in the gearboxes of such makes of vehicles as BMW, Hyundai, Kia, Volvo has approved LUKOIL ATF Mitsubishi, Mazda, Nissan, Toyota, SYNTH HD as automatic transmission VW, and Volvo. This lubricant is also fluid for VOLVO trucks. This approval suitable for use in power steering de- confirms application during warranty vices. period for the truck automatic trans- Universal all-season tractor oil LUKOIL missions, F series loaders, as well as VERSO MOTOR 15W40 has gained custom-design vehicles (used in con- approval from Massey Fergusson for struction, and operations in rural ar- its CMS М1145 transmission units, eas, forests and community facilities). hydraulic systems, and engines in the LUKOIL wins tender for lube supply to OAO Magnit Valentin Nemets named best employee of LUKOIL Group LUKOIL won a tender to supply lubricants to ZAO Tander (the retail The Management Committee of OAO LUKOIL chain of OAO Magnit). Magnit’s passed a resolution at its meeting on June network of shops is one of Russia’s 25, 2012, awarding the prize for Best leading food retail chains. The com- Employee of LUKOIL Group Companies to the pany manages its own logistics sys- head of the Division of Science, Technology, tem, which has 17 distribution cent- and Standardization of LLK-International, ers. The company’s vehicle fleet Valentin L. Nemets. Mr. Nemets graduat- consists of 3,922 MAN tow trucks ed with distinction from the Gubkin Russian (all two years or newer) - about 50% State University of Oil and Gas with a ma- of MAN’s Russian truck fleet for this jor in chemical technology for processing oil and gas. He is profes- age. sor of chemistry and technology for lubricants and chemmotology at Starting in the third quarter of 2012, the Gubkin Russian State University of Oil and Gas. He holds a PhD LUKOIL will begin to supply LUKOIL in technical science. In 2002 he was hired in the Division of Oils, AVANTGARDE PROFESSIONAL Lubricants and Additives of OAO LUKOIL. In 2006 he was appoint- 10W40 and LUKOIL GEYZER LT 22 ed manager of the Division of Certification and Research at the newly lubricants and LUKOIL G12 Ultra formed OOO LLK-International. In 2008 he was appointed head of the antifreeze. LUKOIL Avantgarde Division of Science, Technology, and Standardization, Department of PROFESSIONAL 10W40 is a syn- Research and Technological Development of OOO LLK-International. thetic motor oil designed for heavy The certification and standardization division is responsible for devel- duty diesel engines. oping and promoting news types of products, certifying and standard- Products are manufactured using a izing those products, and conducting a unified technical policy at all carefully balanced and highly effi- LUKOIL Group companies that produce lubricants. cient foreign-made blend of addi- In 2009 Valentin Nemets was awarded a certificate of merit by OOO tives. LUKOIL GEYZER LT features LLK-International for his high professional skill, conscientious work, and enhanced low-temperature, anti- personal contribution to the development of OOO LLK-International. wear, anti-oxidant, anti-acid, and In 2010 the Ministry of Energy of the Russian Federation expressed its anti-corrosion properties. LUKOIL gratitude to him for his long years of conscientious work and great con- G12 ULTRA is a high-quality liquid tribution to the development of the fuel and energy complex. Valentin for transmissions in trucks and car, Nemets has earned great respect from his co-workers. As a profes- and is suitable for use both in older sional teacher and specialist of lubricants he acts as a mentor to young automatic transmissions and the lat- people. est models.

11 volume of the country’s lube market is estimated at 100,000 tons of lubricat- ing oils per year.

LLK-International updates corporate website

OOO LLK-International is set to launch a new corporate website in September. The company’s Internet portal is being devised using state- of-the-art design solutions and will display the Company’s corporate colors. Thanks to its new format for posting news and browsing, the site will be easier to navigate, more in- formative, more interesting, and more user friendly. Furthermore, the new online resource will broaden the Company’s ability to Super Tractor Oil Universal (STOU) LUKOIL upsizes footprint on convey important news to customers. class. Massey Ferguson® was incor- Bangladesh lube market In the previous version of the site, key porated in 1953 through a merger be- information on the Company’s prod- tween tractor manufacturer Massey- LUKOIL is scaling up its presence on ucts (approvals received from global Harris and Harry Ferguson Limited of the lubricant market of Bangladesh equipment manufacturers, achieve- England. A global leader, Massey (Southern Asia). At the beginning of ments in scientific and technical devel- Ferguson produces a broad range of April 2012 a road show for LUKOIL’s opment, and other) were concealed tractor models, ranging from agricul- lube brand was held in the capital of the deep inside the site, and it was no easy tural tractors and harvesters to com- country, Dhaka. The Russian ambassa- matter to find this information. The ex- pact, custom-made garden tractors. dor to Bangladesh, Alexander Nikolaev, panded features of the new portal’s and managers of leading companies home page and the advanced design LUKOIL lubes showcased and associations of Bangladesh busi- solutions will allow consumers to lo- at exhibitions in China ness attended the event. cate quickly the information they are So far the following products are looking for. The new online site will In April 2012, as part of its busi- available on the market of that coun- offer visitors a large amount of infor- ness development strategy in China, try: LUKOIL SUPER, LUKOIL LUXE, mation on the Company’s success LUKOIL’s lubricants were presented at LUKOIL AVANTGARDE ULTRA, and capabilities and provide great- two major Chinese regional events – LUKOIL AVANTGARDE EXTRA. The er details on the quality of its prod- the Zhengzhou Lubricant Exhibition first delivery of LUKOIL motor oils was ucts, which will enhance the image of and the Xi`An Lubricant Exhibition. made to Bangladesh in 2011. The LUKOIL’s lubricants. LLK-International’s partner in China, Fujian Nanan Export&Import, ar- ranged high-profile participation in the exhibitions, not only providing and setting up the display booths but also showing exclusive video ads show- casing LUKOIL on a large-format screen of over 15 meters. LUKOIL’s brand-name goods raised consider- able interest from experts in various sectors of the country’s economy and end consumers who visited the display booth. This fall the Company will par- ticipate in two other major exhibitions in China, for spare parts and automotive lubricants. In May 2012 Fujian Nanan was named an official dealer by LLK- International. This company is LLK’s first official dealer for business in China.