Sibneft AGM Approves Independent Directors

Moscow, June 29th 1999: Sibneft shareholders voted overwhelmingly at the Sibneft AGM in Moscow today to approve three independent directors to sit on the new nine member group Board.

SIBNEFT PRESIDENT EUGENE SHVIDLER said, " Sibneft is committed to achieving international standards of corporate governance, but actions speak louder than words. Independent directors are the linchpins of our corporate governance policies. This is the first time any Russian company has willingly placed so many independent directors on its Board and Sibneft is proud to be setting a new standard."

"The non-executive directors, senior lawyer Natalia Rusina, George Pearce, formerly of Huhtamaki OY (one of Finland's largest international companies) and Michael Hunter, the President of Dart Capital, will play an important supervisory role in line with our corporate governance charter and international best practice. However, we also expect them to make a valuable contribution to our strategic discussions, as the directors map out the next exciting steps for our company."

The AGM also confirmed Eugene Shvidler as group president and Konstantin Potapov as chairman of the Board.