LUKOIL has a balanced value chain in all three sectors of oil industry: upstream, midstream and downstream. In the upstream sector, the company has significant assets in Azerbaijan, Kazakhstan, Egypt, Iraq and Iran. The regional market of Central and Eastern Europe has refining capacity in Odessa (Ukraine), Burgas (Bulgaria) and Ploiesti (Romania). The downstream sector mainly operates distribution networks in Ukraine, Turkey, Bulgaria, Moldova and Romania (Lukoil corporate report 2011 via Gafarova).

– Lack of political freedom- high rate of corruption
– Corruption leaves bad impact on economy (despite that Russia’s gaining economic strength). Investors are concerned about making investment in the country.
– However, sufficient resources to make the economy strpng
– Leading country in technology. Development in fields like IT technology and increased their living standard.
– Effective system to reduce pollution and controls environmental disasters.
– Judicial system is strong, though corruption rate is high.
– High in power distance, Low in uncertainty avoidance, low in future orientation, low in performance orientation, not as individualistic, particularistic country