Announcement for press

On July 16 the meeting of Yugraneft Corporation’s shareholders and the heads of Tyumen Oil Company (TNK) took place in Khanty-Mansiisk on the initiative and in the presence of the governor of the autonomous region Alexander Philipenko.

Alex Rotzang –the head of NoreX Petroleum’s board of directors who according to the list of shareholders owns 98% of Yugraneft Corporation represented Yugraneft’s shareholders. TNK was represented by its president Semen Cookes.

Having exchanged their mutual claims, A. Rotzang and S. Cookes expressed their gratitude to the governor of the autonomous region for the opportunity he let them to resolve the situation in an open dialogue not resorting to the long juridical proceedings.

Alexander Philipenko didn’t call in question the power of the legally elected general director of Yugraneft L. Kondrashina. He expressed an opinion that the conflict between the two economical subjects mustn’t grow into an open confrontation.

The head of NoreX Alex Rotzang demanded that TNK frees the property of Yugraneft Corporation illegally seized by the private guarding service and that it doesn’t prevent the independent company’s staff from work. Together with that A. Rotzang reminded the head of TNK about the debt that TNK’s subsidiary companies owe Yugraneft Corporation.

The president of TNK Semen Cookes didn’t give a clear explanation of the reasons of the illegal seizure of Yugraneft’s office but he did announce the transformations planned in the corporation. At the same time the procurators office of Khanty-Mansiisk Autonomous Region (HMAR) once again confirmed its position in the conflict. They sent the general director of TNK-Nizhnevartovsk Smoler N. G. a warning against the inadmissibility of violating the law. In the opinion of the deputy-procurator of HMAR Nikolai Belan the special gathering of Yugraneft Corporation’s shareholders that was held on July 28, 2001 on the initiative and with participation of “TNK-Nizhnevartovsk” was illegal. All the decisions made at the gathering are illegitimate according to paragraph 51 of the joint-stock companies law of the Russian Federation.

N. Belan cautioned the leaders of TNK-Nizhnevartovsk that any further actions they take regarding the independent company Yugraneft could be declared unlawful. He suggested that they abstain from fulfilling the decisions made at the meeting of shareholders. “Otherwise it might lead to administrative responsibility for arbitrary actions or even to criminal responsibility if damage is caused to Yugraneft Corporation, - N. Belan believes.

The heads of Yugraneft Corporation consider that the damage has already been caused by TNK’s unlawful actions.

In response to TNK’s announcement about the procurator’s office inquiry held the heads of Yugraneft Corporation report that the administration of the internal affairs HMAR has never held any inquiry of the fact of the armed seizure. The more so has it never held an inquiry of TNK’s legal or illegal actions regarding Yugraneft since it is only possible if a criminal lawsuit is brought. No lawsuit has been brought upon the moment.

Yugraneft’s stockholders confirm the legitimacy of the general director L. Kondrashina’s authority and will be actively striving for the legal restoring of their rights, both stockholders and investors.

Press-service of Yugraneft Corporation.