stock exchange. An ADS is the share issued under the DR agreement, which
is actually traded.
What is the ratio of an DR to an ordinary share?
One (1) LUKOIL DR (CUSIP 677862104) represents One (1) LUKOIL Ordinary
Where are LUKOIL’s DRs traded?
LUKOIL’s DRs in the US
are traded in the OTC Market under the ticker symbol LUKOY. The CUSIP Number is
677862104. To learn more about LUKOIL’s DRs, please visit http://adrbnymellon.com/. In Europe LUKOIL’s DRs are
traded in the IOB system on the London Stock Exchange and on Frankfurt, Munich and Stuttgart stock exchanges.
What is the symbol for LUKOIL DRs on the main stock
LKOD - on the London Stock
LUKOY - on the US OTC
What is the symbol for LUKOIL shares on the local stock
LKOH - on the MICEX (Moscow
Interbank Currency Exchange);
LKOH - on the RTS (Russian Trading System).
Who is LUKOIL’s depositary bank, transfer agent, registrar and exchange
agent for DR shares?
The Bank of New York Mellon is the depositary bank for LUKOIL, also acting
as a transfer agent, registrar and a dividend paying agent. It manages all
aspects of the proxy voting process.
What if I lose my DR certificate, dividend check or tax voucher?
Please contact BNY Mellon Shareowner Services as soon as possible.
Toll Free Telephone for U.S. Callers: 1-888-BNY-ADRS (1-888-269-2377)
Telephone for International Callers: 001-201-680-6825
What if I have more than one DR certificate? Can they be
Yes, please send your certificates to BNY Mellon Shareowner Services,
P. O. Box 358016
15252-8016 with a specific request to combine the
multiple certificates into one certificate. Please be advised that holdings over
250 shares may require additional paperwork.
What if I need to change my home address?
Simply go to BNY Mellon's on-line tool, Investor Service Direct (ISD) and
change your address online:
Alternatively, feel free to contact BNY Mellon Shareowner Services via
the following methods:
Write to us:
BNY Mellon Shareowner Services
Pittsburgh , PA 15252-8016
Toll Free in the U.S: 1-888-BNY-ADRS (1-888-269-2377)
How can shareholders know the current value of their investment in
How can DRs be purchased?
DRs can be purchased through Global BuyDIRECT, a Bank of New York
Mellon-sponsored dividend reinvestment and direct purchase program for DRs. Each
participating company's plan allows its existing shareholders to use dividends
paid by the company to automatically purchase DRs. The plans also allow
first-time and existing investors to purchase DRs of participating companies.
All such investments are made through The Bank of New York Mellon as transfer
agent. As a participant in Global BuyDIRECT, investors benefit from the direct
ownership of their DRs, the efficiency of receiving corporate communications
directly from the DR issuer, and the savings resulting from reduced brokerage
and transaction costs.
Questions or correspondence about Global BuyDIRECT should be addressed
BNYMellon Shareowner Services
Pittsburgh , PA 15252-8016
To request plan brochures and enrollment forms for companies offering
Global BuyDIRECT, please call: 1-800-345-1612
Toll Free Telephone for U.S. Global BuyDIRECT Participants: 1-888-BNY-ADRS (1-888-269-2377)
Telephone for International Callers: 1-201-680-6825
DRs can also be purchased through your Broker. Investors can always
purchase Depositary Receipts through their own full-service, discount, and
on-line brokerage firms in the USA
as well as in
other regions of the world.
How do I convert my ordinary shares into DRs?
Converting ordinary shares into DRs must be done through a broker or an
What is an alternative to a physical certificate?
Book-entry registration is an electronic alternative to a physical
certificate. It allows You to move your shares electronically via the
DRS/Profile to a broker. This eliminates the physical movement of stock
certificates at the time of sale or transfer of ownership. You as a shareowner
will have the ability to self-service your account online via Investor
ServiceDirect® and the Bank of New York Mellon’s speech-enabled Voice Response
Unit. This method is beneficial due to immediate simplification of transaction
processing and you as a shareholder will minimize associated expenses as well as
be provided with more robust management reporting.
What is the difference between a registered holder and a beneficial DR
A registered holder is one whose name appears on the books of the
depositary. The registered holder is considered the owner of the
A beneficial holder is one whose holdings are registered in a name other
than his or her own, such as the name of a broker, bank or nominee.
Who is responsible for making the decision on dividend
The decision on dividend payment, including dividend rate, dividend payment
date and all of the payment details is made at the time of the Annual General
Shareholder Meeting (AGM). The
dividend rate shall not be less than the rate recommended by the Board of
Directors. If the dividend rate is not set by the Board of Directors, the
dividend rate shall not be put to vote at the AGM.
Who is entitled to receive dividends?
The parties entitled to receive dividends are those shareholders, who
appear on the Company’s registrar as of the Record Date for that particular
Annual Shareholder Meeting.
Who is entitled to receive dividends for ordinary shares
for the 2012 financial year?
The parties entitled to receive dividends are those shareholders,
who appear on the Company’s registrar as of the 13 of May, 2013
(the record date) for that particular Annual Shareholder
What is the payment date
for the current dividend and where has it been in previous years?
What is the time period during which the payment of dividends
The decision on dividend payment is made at the
AGM. In accordance with OAO
LUKOIL’s Charter, the term of annual dividend payments
shall not exceed 60 days from the date the decision on their payment was
What is the
dividend rate for the 2012 financial year?
the decisions taken by the Extraordinary General Shareholders Meeting of
“LUKOIL” held on December 18, 2012 and the Annual General Shareholders Meeting held
on June, 26 2013 the
dividend rate for the corresponding reporting period of the 2012 financial year was
approved at 40 rubles per ordinary share and 2012 financial year
dividend rate was approved at 50 rubles per ordinary
share (thus the total dividend amount is 90 rubles per ordinary
As an eligible
shareholder, am I obligated to pay taxes on the dividends I am entitled to
receive? What is the tax rate?
In accordance with the Tax Code of the Russian Federation dividends are considered to be
revenue and are subject to taxation. If a Company pays dividends, it is
considered to act as a tax agent in reference to the taxable income and taxable
profit from the revenue of those individuals who are partially involved in
activity of other organizations (pp.2.p.214 and p.2, p.3 art.275 of the Tax Code
of the Russian Federation).
In other words, the Company shall deduct and withhold from the dividend
recipient a certain tax rate (depending on individual’s type and residency) and
transfer it to the budget of the Russian Federation. This means that an individual will receive a
dividend rate net the amount of taxes which were deducted in accordance with the
Russian tax legislation. The following tax rates are applied according to
individual’s type and residency:
Individuals who are residents of the Russian Federation - 9%. (pp.1 p.3
art.284 of the Tax Code of Russia);
Individuals who are non-residents of the Russian Federation - 15% (p.3 art.224 of
the Tax Code of Russia);
Legal entities who are residents of the Russian Federation - 9% (pp.1 p.3
art.284 of the Tax Code of Russia);
Legal entities who are non-residents of the Russian Federation - 15% (pp.2 p.3
reg.284 of the Tax Code of Russia).
If a foreign legal entity which is entitled to receive dividends is a
resident of a country which has an Avoidance of Double Taxation agreement with
the Russian Federation, there
is a possibility of tax relief or a way to apply a lower tax rate, according to
the art. 7 and 312 of the Tax Code of Russia.
What happens at the Annual General Meeting?
At the Annual General Meeting ("AGM»), shareholders gather to make some
basic decisions about the management of the Company for the upcoming fiscal
year. Routine matters, such as the election of directors and auditors, are
voted upon at every AGM. Non-routine matters that require a shareholder vote can
also be decided at an AGM. At the meeting itself, the management will report the
results of the prior year, discuss any pending matters, and then conduct a
shareholder vote on all items of the AGM agenda.
Can DR holders vote during LUKOIL’s AGM Meeting?
Usually yes, but according to the legislation of the RF the meeting itself
is for local shares represented by ADS. However, once voting rights have been
extended to DRs - all holders of DRs are entitled to vote through LUKOIL’s
Depositary Bank. The Bank of New York Mellon will vote the ordinary shares in
custody as per the instructions of the underlying holders of the DRs at the
For Registered Holders (who do not use a broker-dealer as an intermediary
and have a direct relationship with the Depositary), the requirement is a
written instruction from the holder. In practice, the Depositary sends out
direct mail and enables a web page for those who wish to vote via the
For Beneficial Holders (who have purchased their shares via a bank or
broker), the process is similar, although the actual entity entitled to vote is
the bank or broker.
When is the next Annual General Meeting?
According to the RF Federal Law on Shareholder Companies and OAO LUKOIL
Charter, AGM should be held not earlier than 2 months and not later
than 6 months after the end of the financial year. The dates for the next
AGM have not been announced. Please refer to LUKOIL’s website until further
notice will be posted http://www.lukoil.com/static_6_5id_2108_.html