Lukoil has profited greatly from record high prices particularty in the past year or so s its own production has begun to revive. However, high Russian oil taxation, particularty export duties which are indesed to world prices, moderate financial gains, Sweeping cost-cutting menures first implemented in 2004 have also helped improve Lukoil's financial position. Lukoil's net income was $6.44 billion in the first nine months of 2006, a 34.2% increase on carnings in January - September 2005, according to US GAAP accounts published by the company. ERITDA was S10.12 billion, a 32.9% increase on levels in the first nine months of 2005. Revenues from sales rose by 27.9% to $51.46 billion. Lukoul's operating expenses are climbing sharply in largely due to the appreciation of the Russian rouble against the US dollar. The company's ol hting custa have also chmbed partly futads umpoad aneg Tatatin cats into company camings. The crade ed export duty rose by 51. in 2006 Taxes on foreign sales of light ol prolucta one by an even sharper 55. The mineral extraction un levied at olfields clambed to 2