29 September 2006, NKNK Board of Directors held its regular session presided by A. Shigabutdinov, General Director of “TAIF” JSC.

Board of Directors reviewed implementation of the “Nizhnekamskneftekhim” INC Investment Programs. Pursuant to the President’s Programs of the Tatarstan Republic oil-gas-chemical complex development for 1999-2003 and 2004-2008, the Company is implementing technical reequipment, reconstruction of the existing units and setting up new facilities to produce competitive commodities. Within the period of 1999-2005, over RUR 22.9bn was allotted to realize the Program, due to which the commodity output in established prices increased 3.8 times and constituted RUR 39.8bn in 2005 against 10.4bn in 1999. In 2005 as compared to 1999, the production volume went up by 84.4% for rubber, 58% for butadiene, 28.9% for ethylene, 22.8% for propylene, 26% for styrene, 50% for ethylene oxide, 70% for polyethers, 205% for neonols and 201% for monoalkyl phenols.

The Company’s strategic profile for the period until 2008 contemplates developing polymers and plastics production based on produced monomers, scaling up the efficiency of the rubber sector and switching over to production of an extended range of rubber types, devising less energy consuming process technologies and introducing innovative highly effective processes to generate energy resources. NKNK is presently devising a program of advanced development to increase the output volumes up to RUR130bn by 2012.

“Nizhnekamskneftekhim” INC Board of Directors approved of the Company’s Investment Program progress.

Board of Directors took into consideration the information on measures arranged to reduce the production cost and instructed to go on with its optimization.

Board of Directors Members approved of the Ethylene Plant Upgrade Program implementations intended to expand the capacity to 600 Ktpa by the year 2009.