NK Lukoil : NOTIFICATION OF CHANGE OF DEPOSITARY

NOTIFICATION OF CHANGE OF DEPOSITARY

Wednesday, April 19, 2017

PJSC 'LUKOIL' ('LUKOIL' or the 'Company') announces that Citibank, N.A. has replaced The Bank of New York Mellon as depositary for the Company's Rule 144A and Level I American Depositary Receipt ('ADR') programs, effective as of April 19, 2017.

The Company and Citibank, N.A. (the 'Depositary') have entered into Amendment No. 1 to the Amended and Restated Rule 144A Deposit Agreement, dated as of April 19, 2017 relating to the Rule 144A ADR program (the 'Rule 144A Deposit Agreement'). The Company and the Depositary have also entered into Amendment No. 1 to the Amended and Restated Deposit Agreement, dated as of April 19, 2017 relating to the Level I ADR program (the 'Level I Deposit Agreement'). Sberbank of Russia will provide custody of the local underlying shares.

Holders of the Company's Rule 144A and Level I ADRs do not need to take any action in connection with this notice.

'We are very pleased to further expand our cooperation with Citi by its appointment as the successor depositary bank for our ADR programs,' commented Alexander Matytsyn, CFO of LUKOIL. 'Citi's proven track record as one of the leading depositary banks should support further development and improvement of the programs to the benefit of our ADR holders.'

'We are honored to be appointed successor depositary bank for LUKOIL's ADR programs,' said Dirk Jones, Head of Global Issuer Services at Citi. 'With Citi's global presence and investor relations expertise, we are confident our powerful platform will enable the continued success of LUKOIL's ADR programs and provide best-in-class service to its ADR holders.'

Information regarding the ADRs:

The Company's ADRs are traded on the London Stock Exchange under the symbol 'LKOD' andin the U.S. over-the-counter (OTC) market under the symbol 'LUKOY'. Each ADR represents one LUKOIL's common share. The Company's underlying common shares (traded under the symbol 'LKOH') are listed on the Moscow Exchange.

Information regarding the new depositary:

Citibank, N.A. was originally organized on June 16, 1812, and is now a national banking association organized under the National Bank Act of 1864 of the United States of America. Citibank, N.A. is primarily regulated by the United States Office of the Comptroller of the Currency. The registered office of the Depositary is located at 388 Greenwich Street, New York, New York 10013, USA.

The Rule 144A Deposit Agreement and the Level I Deposit Agreement reflect the replacement of the depositary, as well as certain other amendments to the deposit agreements and form of ADRs. Copies of the Rule 144A Deposit Agreement and the Level I Deposit Agreement shall be available for inspection at the registered office of the Depositary during normal business hours on any New York business day.

For more information about Citibank, N.A.'s Depositary Receipt Services please visitwww.citi.com/dr.

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