Lukoil: Fund for investing in promising projects

History

2021

Creation of a $0.5 billion fund to invest in promising projects

In early June 2021, Lukoil's largest shareholders created a fund with a starting volume of $0.5 billion to invest in promising projects. About this in an interview with TASS said the president and co-owner of Lukoil Vagit Alekperov.

Lukoil shareholders decided to create an investment fund, where they will transfer part of their dividends for reinvestment in promising projects. Plus, sports facilities, a university are being built with this money. This is all shareholder money, not state money, "he said.

Lukoil's largest shareholders created a fund with a starting volume of $0.5 billion to invest in promising projects

According to Alekperov, the size of the fund can increase as necessary. He voiced the name of the new organization.

By the beginning of 2021, Alekperov's share in the authorized capital of Lukoil in direct and indirect ownership reached 28.33% against 28.22% in April of the same year. At the same time, the share of the vice president for strategic development of the company Leonid Fedun increased from 9.28% to 9.32%. Thus, their total control increased from 37.5% to 37.7%.^[1]

Lukoil management plans to create a fund

In April 2021, it became known that all the top management of Lukoil, including the largest shareholders Vagit Alekperov and Leonid Fedun, will most likely send part of their dividends or even all dividends to a special fund so that the company can spend them on an investment program. Fedun told RBC about this, adding that in this way "his native company will be supported."

According to him, this will affect only Lukoil management, but not the rest of the investors. He assured that the reduction or non-payment of dividends to Lukoil shareholders was not planned.

In March 2021, Lukoil President Vagit Alekperov announced that the company plans to direct 550 billion rubles for investments . A week later, Alekperov announced that Lukoil would optimize investment costs, reducing them by $1.5 billion.

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