Health, Safety and Environmental Protection

Rosneft adheres to the requirements of Russian and international legislation on health, safety and environmental protection. The Company applies cutting-edge technology and enhanced production methods to create a safe and healthy working environment, as well as to minimize the risk of industrial accidents and other emergency situations.

Rosneft’s policy on industrial safety, labor and environmental protection contains the following key provisions:

• reducing industrial injuries and adverse environmental impacts
• improving industrial and environmental safety to meet current standards of international oil & gas majors
• establishing and maintaining an efficient management system for health, safety and environmental protection
• reducing industrial risks from newly commissioned facilities

The Company has implemented an integrated management system for industrial safety, labor and environmental protection, which provides for continuous involvement of Rosneft’s entire staff in reducing industrial and environmental risks. To ensure its ongoing operation, Rosneft has also introduced corporate standards stipulating key areas of occupational safety and environmental protection activity.

To deliver on all its labor safety and environmental commitments, in 2007, Rosneft focused on further enhancing the integrated management system and adopted additional health, safety and environmental standards. The compliance certification audit performed by Bureau Veritas Certification in May 2007 confirms that the Company’s integrated management system is fully operational, has been continuously upgraded, and generally meets all evaluation criteria. Currently, 27 Rosneft’s subsidiaries hold ISO 14001 and OHSAS 18001 certificates.

Rosneft is also implementing the Target Environmental Program aimed at improving the ecological situation in all regions where the Company operates. The Program is set to run through 2010 and envisages purchasing modern environmental equipment, constructing landfills as well as treatment and reclamation facilities, and establishing emergency clean-up stations to minimize adverse effects of spilled oil and petroleum products.

In 2007, total spending on industrial and labor safety at Rosneft and its subsidiaries was over RUB 1.9 bln (USD 76 mln), up 2.7 times compared to 2006. The Company’s environmental spending in 2007 was RUB 2.7 bln (USD 106 mln), an increase of 36% compared to the previous year.