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Mr Medvedev asked Mr Alekperov to report on the company’s big projects, noting that the current times are not the easiest for business. Mr Alekperov informed the President about the launch of the unique Varandey Oil Export Terminal in the Barents Sea, 25 kilometres offshore. The terminal is equipped for loading tankers year-round with oil from the Timano-Pechorsky oil fields.

Mr Alekperov also reported that a deal is near completion with Italian company ERG S.p.A. to set up a joint venture to manage the ISAB oil refinery complex in Sicily. LUKOIL will have a 49-percent stake in the venture. The ISAB refinery can process Urals brand oil, making it possible for LUKOIL to integrate it into its export supply chain.

Mr Medvedev noted that Italy is one of Russia’s key partners and said the project will be good for developing future relations.

LUKOIL holds around 1.3 percent of total world oil reserves and accounts for around 2.3 percent of world oil production. It accounts for almost 19 percent of oil production and refining in Russia.

The company’s main activities are oil and gas exploration and production, petroleum products and petrochemicals production, and also sales of its products in Russia, Europe, the CIS and the USA.