Statement On Treasury Stock Transaction

Moscow, 23 October 2001; Sibneft president Eugene Shvidler made the following comments regarding the sale of a 27% stake in the company:

"Sibneft recently completed the sale to core shareholders of a 27% stake formerly held as treasury stock. Sibneft made a profit on this transaction, and this will be fully reflected in the company's year-end US GAAP results."

"The cash received as a result of this transaction will reduce the company's borrowing requirements. The company originally acquired the shares from core shareholders in December 2000. Both transactions were carried out at prevailing market prices."

"Our record dividend payout earlier this year offers compelling evidence of the company's commitment to ensure that all shareholders participate in the success of the company."

"Sibneft continues to examine the possibility of increasing the company's free float through a listing on a foreign exchange. The company hopes that an increase in the liquidity of the company's stock will help to reduce volatility in its share price."