Dividends

Rosneft's dividend policy is aimed at striking a balance between shareholders' interests and the Company's business needs, as well as at improving Rosneft's investment attractiveness and shareholders value. the Company strictly observes the rights, and strives to continuously increase the returns, of its numerous shareholders.

The Company's General Shareholders Meeting determines the amount of dividend payment following the respective recommendations by the Board of Directors, which are based on Rosneft's non-consolidated net income under RAS. In accordance with the Company's dividend policy, dividend payment should be no less than 10% of Rosneft's net income.

Rosneft pursues a balanced strategy aimed at continuously increasing dividend payments in absolute terms. In determining the amount of annual dividends, the Board of Directors also takes into account dividend payment practices of other oil and gas companies. In any given period, several factors may affect Rosneft's determination of dividend amount, including the Company's business prospects, financial performance and cash requirements, general economic climate and market situation, as well as other factors, including tax and other regulatory considerations.

On April 25, 2008, Rosneft's Board of Directors recommended the General Shareholders Meeting to allocate 10.5% of the Company's net income in 2007 for dividend payment (RUB 1.60 per share, which is 20% higher compared to 2006). On June 5, 2008, the Annual General Shareholders Meeting approved the dividend recommended by the Board of Directors.

Dividend payments on shares held as GDRs for 2007 will be declared and made to the Depositary in rubles. The Depositary will convert the dividends into US dollars and distribute them to GDR holders (net of the Depositary’s fees and expenses).

Rosneft’s Dividend History

¹ — The 1:100 share split of September 2005 is factored in the amount of dividends per share.
² — Net income for 2006 is adjusted for the effect from recognition of Yukos payables.
³ — Dividends are translated from RUB to USD at the CBR exchange rate as of the date of the General Shareholders Meeting, where the respective dividend payment was approved.
⁴ — Expected amount, calculated as total outstanding shares as of the record date multiplied by dividends per share in US dollars at the CBR exchange rate as of the date of the Annual General Shareholders Meeting. The above amount may differ from the actual figure presented in the Company’s consolidated financial statements under US GAAP.
⁵ — Net income is adjusted for major extraordinary items, such as effects from disposal of a stake in OJSC Sevmorneftegaz in 2005, gains from Yukos bankruptcy proceedings in 2007, as well as for the accrual of fines and penalties related to OJSC Yuganskneftegaz tax liabilities.

Key Dividend Dates

⁶ — Not subject to public disclosure.

Key dividend policy provisions and other relevant information are contained in Rosneft’s Regulation on Dividend Policy (Regulations_on_dividend_policy.pdf, 33Êá)