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Sibneft Strengthens Regional Ties

Moscow, January 28th 1999: Sibneft has announced a number of new initiatives aimed at cementing its good relations with the regional governments of Yamalo-Nenetzk and Omsk, the sites of its two principal operating subsidiaries.

The protocols agreed upon with these regions include arrangements for the provision of essential supplies to the Far North, improved arrangements for regional tax collection and a more efficient system of payments by Sibneft's large regional public sector customers.

The Cooperation Agreement with the Yamalo-Nenetzk region was signed by Sibneft President Eugene Shvidler and Governor Yuri Neyolov at a ceremony in Moscow on December 23rd 1998. It has been followed up with a new drive to increase and improve the dialogue between senior managers of Sibneft, one of the Region's most important companies, and the Regional Government. Similar initiatives to improve the mutual exchange of ideas and information are underway in Omsk.

Eugene Shvidler said, "Our excellent relations with the regional governments are a great strength to us but cannot be taken for granted, particularly as the company and its workforce are going through a period of significant change. The regions are playing an increasingly important role in the Russian political process and we must ensure that our relationship with the regional administrations evolves accordingly."