MOSCOW, May 25 (AFP) - The leading Russian oil group LUKoiL reported on Tuesday that profits in ruble terms jumped sharply in 1998, although income in dollar terms was down on the previous year. Pre-tax profit for the company, not including subsidiaries and affiliates, was 3.209 billion rubles (130.7 million dollars at the current ruble rate) from 1.05 billion (then 175 million dollars) in 1997. The drop in profits in dollars terms was due to the sharp fall in the ruble that followed last August's devaluation. The company said it paid 1.142 billion rubles, or 35.6 percent of profits, in taxes last year leaving a net profit of 2.067 billion rubles. Turnover was given at 36.04 billion rubles, up from 25.784 billion a year earlier. LUKoiL invested 1.42 billion rubles over the year, despite the adverse economic climate, channelling capital into "the refurbishment of upstream and downstream capacities, construction of retail outlets, introduction of modern communication systems and facilities", a company statement said. Despite the slump of its share price in 1998, in line with the implosion of the Russian stock market, LUKoiL said trade in its stock amounted to 23 percent of the total turnover on the Russian Trading System (RTS). Equities in blue chip Russian oil majors have led the recovery of the RTS, which was bled white by an investor stampede out of Russia following a financial meltdown sparked by a ruble devaluation and domestic debt default last August. LUKoil has been one of the major beneficiaries of the return of foreign investors to the market prompted by the recovery of world oil prices since April. LUKoil was formed in April 1993 by current chairman Vagit Alekperov following the privatisation of a grouping of downstream and upstream operations across Russia. Last year proved extremely difficult for Russian energy producers, who have been squeezed by low global commodity prices, a government taxation drive and the perennial inability of Russian domestic users to pay for their energy.  