Core Shareholders Announce Plans for Share Placement

Moscow, 20 May 2002; Sibneft’s core shareholders intend to place approximately 1% of the company’s shares with institutional investors, Eugene Shvidler announced today. The shares, with a market value of around $100 million, will be placed with institutional investors outside the United States via a Regulation S offering.

Shvidler said that core shareholders intend to reduce their shareholding to below 75% over the next two to three years. In this regard, Sibneft is continuing to explore the possibility of listing its shares on an international exchange.

“The core shareholders’ decision to reduce their stake has been guided by strong investor demand for more liquidity in the company’s stock and more influence for minority shareholders over the management of the company,” Shvidler said.

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