26 February 2009

Rosneft Becomes General Partner of Sochi 2014 Olympics

Rosneft was awarded the General Partnership of 2014 Olympics in ‘Petroleum’ category. According to Rosneft and the partnership contest organizers – Sochi 2014 Organization Committee – the Olympic Partner status of the Company will foster maximum efficiency in preparation for the main sporting event of 2014.

The moment the relevant agreements are signed Rosneft becomes the Official General Partner of XXII Winter Olympic Games and XI Winter Paralympics of 2014 (until the end of 2014), the General Partner of the Olympic Committee and Paralympics Committee of Russia (until the end of 2016), as well as the General Partner of the Russian Olympic and Paralympic Teams (as applies to each of the teams of 2010, 2012, 2014 and 2016). On behalf of Rosneft the agreement was signed by the Company President Sergey Bogdanchikov, on behalf of Sochi 2014 Organization Committee – by its President Dmitry Chernyshenko.

Rosneft President Sergey Bogdanchikov and President of the Sochi 2014 Organization Committee Dmitry Chernyshenko

The total amount of sponsor contribution by Rosneft will be USD 180 million. The Company bid includes the opportunity to supply fuel to the Games Committees (Olympic and Paralympic) structures, to the Olympic Team and Olympstroy Corporation, as well as to make Rosneft’s recreation and resort facilities available to the Committee in the Southern Federal District. Rosneft also presented a number of infrastructure upgrade projects in Sochi and Krasnodar Region.

As part of the Olympic Program, Rosneft intends to commission over 150 new filling stations, more than 60 of them in Krasnodar Region, the rest along the key federal highways in 9 other regions. Rosneft is also planning to build the mountain snow trucks fueling facilities and two floating fueling stations for river boats in the Games area.

The General Partner status provides the Company with exclusive rights, particularly for the use of XXII Olympics and XI Paralympics insignia and National Olympic and Paralympic Committees logos in Russia. The General Partner will have the right to use the Olympics intellectual property and to participate in various Olympic projects and marketing programs, including the priority right of sponsorship for all events preceding the Games themselves.

Rosneft President Sergey Bogdanchikov in his comment on the signed agreement: “We are satisfied with the award in this contest. Such a large-scale support of the Olympics in Sochi not only matches the interests of Russia and its citizens, but is also a profitable project for the Company itself”.

Sochi, sea view

The 2014 Olympics sponsorship contract will become an integral part of Rosneft’s policy aimed at providing continuous and significant contribution to social and economic development of the host regions.

According to Russia’s Prime Minister Vladimir Putin, comprehensive programs to develop social, transport and environmental infrastructure in Sochi are among the RF Government’s top priorities and will account for over 80% of total investment in the XXII Winter Olympics.

The Sochi 2014 Committee’s strong confidence in Rosneft is primarily explained by the Company’s superb performance in 2008, with the best operating and financial results ever in the Russian petroleum history. Rosneft’s partnership commitments are also supported by robust plans for 2009 that envisage further production growth and total investment of about USD 8 billion.

Ski-flying hill model

Alpine skiing track model

Earlier this year, the major telecommunications consortium of Rostelecom and MegaFon was awarded the General Partnership of 2014 Olympics in the ‘Telecommunications’ category. The consortium’s eight-year contract provides for a USD 130 million sponsor contribution and another USD 130 million in services – by far the largest sponsorship total in Olympics history.

In its respective category, Rosneft’s contribution is also a record high, exceeding the former leader BP’s 50 million pounds to sponsor the 2012 Olympics in London.

Later in 2009, the Sochi 2014 Organization Committee will select the Olympics General Partners in the remaining six categories (Gas, Metallurgy, Apparel, Airlines, Insurance, and Banking). In total, eight General Partners are expected to contribute more than USD 1.2 billion. In addition, the Organization Committee plans to cooperate with Tier 2 Partners (USD 50–70 million) and the Olympics suppliers (USD 10–15 million).

Rosneft Information Division