Refining increased 7% to 55.8 million tons, the company said in a statement.
In 2008, the total volume of petroleum product retail sales via the sales network is expected to be finalized at 15 million tons, an 11% increase on the 2007 figure.
The statement said that the LUKoil Group was "Russia's biggest taxpayer" in 2008, with preliminary data showing that the company paid more than 800 billion rubles, or $33 billion, in taxes and customs duties to all levels of the Russian budget system.
LUKoil accounts for about 1.3% of global oil reserves and 2.3% of world crude output. The company has a 18.6% share in Russian oil production and 18.1% in Russian oil refining.