LUKOIL's profits for Q3 2016 were down 71% year on year largely due to volatility of the rouble which resulted in a foreign exchange loss. But operational results were strong with production falling only 1% this quarter compared to 8% last quarter. Start up of the Filanovsky and Pyakyakhinskoye fields and an increase in drilling at its brown fields in Western Siberia have slowed declines in Russia. LUKOIL believes domestic production will return to 2015 levels by 2017. However we estimate it will be 2018 before company wide production recovers to 2015 levels.