Sibneft Forms Dividend Payment Fund

Moscow, 4 September 2000; Sibneft will create a $50 million fund for the payment of dividends, the company? board of directors decided at a meeting held today. The board will meet again on 10 October to approve the payment and to decide on the exact size of the dividend. The payment will be based on the company? third quarter results.

Sibneft president Eugene Shvidler announced plans to pay a dividend at the company? annual general meeting held on 28 June. This will be the company? first dividend payment, and Sibneft plans to pay dividends on an annual basis in future.

Sibneft trading affiliate Runicom is maintaining its offer to swap stock in four Sibneft subsidiaries for shares in the parent company. Subsidiary shareholders who swap their stock by 30 September will be eligible to receive dividends on their Sibneft shares. Runicom in July renewed its offer to exchange shares in production unit Noyabrskneftegas, the Omsk refinery, retailer Omsknefteproduct and survey company Noyabrskneftegasgeofizica for stock in the parent company.