Result of BoD Meeting

PRESS RELEASE

LUKOIL Board of Directors RESOLVES TO hold Extraordinary General Shareholders Meeting and RECOMMENDS Interim Dividend Amount

By the decision of the LUKOIL Board of Directors, an Extraordinary General Shareholders' Meeting in the form of absentee voting will be held on December 4, 2017, with the following agenda:

1. Dividend payment (declaration) based on the performance for the first nine months of 2017.

2. Payment of partial remuneration to members of the LUKOIL Board of Directors for the execution of their duties.

3. Resolution on LUKOIL's participation in the Russian Union of Industrialists and Entrepreneurs, an all-Russian association of employers.

4. Resolution on Approval of a Related-Party Transaction.

The list of persons entitled to participate in the Extraordinary General Meeting of

Shareholders will be compiled as of November 9, 2017.

The Board of Directors recommended to the Extraordinary General Shareholders' Meeting to resolve on payment of dividends for the first nine months of 2017 on LUKOIL's ordinary shares (hereinafter referred to as interim dividends) in the amount of 85 rubles per ordinary share. The Board of Directors also recommended the 22nd of December, 2017 as dividend record date. The recommended interim dividend per share is 13% higher than the interim dividend for 2016. The dividends are recommended to be paid in cash.

In addition to that, the Board of Directors recommended that the Extraordinary General Shareholders' Meeting approve a related-party transaction. The transaction is carried out as part of an intra-group transaction in the form of a monetary contribution to the authorized capital of an international subsidiary.

The Board of Directors also resolved to amend the Company's Social Code, available at http://www.lukoil.ru/Responsibility/SocialPartnership/SocialCodeofPJSCLUKOIL.