Message from the Chairman

Dear Shareholder,

In 2007, Rosneft gained the lead in the Russian fuel and energy industry in terms of crude output, added hydrocarbon reserves, unit operating costs and capital expenditures, as well as other key performance indicators. Furthermore, Rosneft has gradually evolved into a most dynamic global oil and gas company.

The acquisition of new strategic assets and comprehensive exploration and development activities at major upstream enterprises enabled Rosneft to hit a record 100 mln. tonne crude output (over two mln. barrels per day). Steadily growing production at Yuganskneftegaz and Sakhalin-1 was also largely conducive to achieving this milestone.

Due to streamlined integration of new downstream and upstream assets, the Company has become the largest national oil producer operating in 50 regions of the Russian Federation, and managed to better align its production and refining business segments. Rosneft’s superb performance in 2007 is particularly gratifying as it dispels the common lack of confidence in a positive outlook for enterprises with majority state ownership.

Taking the Company public in 2006 allowed us to further extend Rosneft’s development potential. As a result of the IPO, almost 200,000 companies and individuals became Rosneft shareholders. As a public company, we can build on more diverse fundraising options that ensure timely implementation of capital-intensive projects, and take advantage of stronger corporate culture, which is crucial to promoting communication with foreign partners.

Sustained development of upstream operations is further supported by a comprehensive exploration portfolio in the regions that will soon grow to replace traditional areas of hydrocarbon production. The Company is implementing a number of promising projects in East Siberia that has a truly remarkable hydrocarbon potential, and several strategic shelf projects in the Far East, including West Kamchatka shelf. Some of these developments are being carried out in close collaboration with the largest global oil and gas companies.

As the leading national oil company, Rosneft is now better positioned to foster cooperation with major players in the international petroleum market and provide a more significant contribution to the world’s energy supply. I have every confidence that Rosneft will sustain its leadership in the national oil industry, and intensify efforts to deliver greater value to all its numerous shareholders. In particular, this can be made possible due to continuous cost reduction, improved operating efficiency, higher quality of petroleum products and services, as well as ongoing introduction of innovative technology.

I am convinced that all these measures will enable Rosneft to deliver on its key strategic objectives, which include supporting Russia’s long-term economic development and social stability, environmental protection, and efficient development of subsurface resources.

Igor Sechin Chairman of Rosneft Board of Directors