The news came from Igor Zaikin, deputy head of the LUKoil main technical department.
RIA Novosti cited Zaikin saying 75% of the funds would go to implement a clean-air project to cut greenhouse gas emissions by 17,000 metric tons in 2009-2013. Over that period, LUKoil enterprises are tasked with cutting a total of 645,000 metric tons of polluting emissions.
The company's environmental program, if implemented, will be worth $435 million in tax breaks to be granted to the crude producer under provisions of the Kyoto protocol to the UN framework convention on climate change, the executive said.
LUKoil, which accounts for about 1.3% of global oil reserves and 2.3% of world crude output, produced 710 million barrels of oil in 2007 at its 361 deposits, with about 28,000 oil wells, located in West Siberia and the Urals.
The company spent around $6.6 billion on the development of oil deposits in 2007.