LUKoil creates Litasco to take over all foreign trading
LUKoil's First Vice President Ralif Salin told in Sofia that the company had merged its many international petroleum
trade subsidiaries into one unit, to be called LUKoil International Trading and Services Co or Litasco.
The new trading company will take over the foreign portfolio of LUKoil International, an Austrian-registered company
that supervises around 80 LUKoil affiliates through its control of three holding companies. These holding companies
are LUKoil-Invest Holding, which is involved in investment projects and petroleum sales; LUKoil-Project Holding,
which deals with foreign joint ventures; and LUKoil-Trading Holding, which handles LUKoil's trading operations.
"Information on the structure of the new trading company will be formally released," Salin said. He stated that
LUKoil managers hoped the creation of Litasco would allow for the streamlining of operations as well as an increase
in exports of crude oil and refined petroleum products. "Litasco may export up to 30 mm tons of crude and 15 mm tons
of products in its first year of operation, which would make it Europe's biggest trading concern," he said.
LUKoil exported some 30.7 mm tons of oil and 4 mm tons of fuel through its various trading arms in 1999, compared to
32.7 mm tons and 2.6 mm tons, respectively, in 1998.
