April 26, “Nizhnekamskneftekhim” INC held an annual regular Conference of shareholders. R. Minnikhanov-the TR Prime Minister, A. Metshin-Head of the Nizhnekamsk Municipal Region and other invitees took part in the event.
V. Busygin, General Director of “Nizhnekamskneftekhim” INC, delivered a summary report on the 2006 operation results stating that the Company’s commodity output amounted to RUR 46bn, which is, in the established prices, by 15.6% more as compared with the preceding year. The index of physical advancement compared to the year 2005 constituted 105.5%, sales income yielded RUR 5.8bn, average monthly wage of the Company employees reached RUR 16.6 K, which is 14.3% higher of the 2005 level.
In the reporting year, the Company launched a Halobutyl Rubber Finishing Line “Welding 2”, Isoprene One-Stage Synthesis Unit, commercialized more than 10 PS grades, signed an ABS-Plastics License Agreement with “Polimeri Europa”. 11 October 2006, a PP Unit was commissioned. Over the past year two months, 5 homopolymer grades were commercialized, including bimodal ones for the first time in Russia. Oligomer Plant commercialized the process of producing 4 new highly remunerative grades of polyethers – polyethylene glycols.
“Nizhnekamskneftekhim” INC effects payments to the budgets of all levels in time and in full, which totaled over RUR 5.3bn in 2006.
In 2007, the commodity output sale proceeds are planned for increase up to RUR 55bn, sales income will level up to RUR 7.6bn. The average monthly wage will indicate RUR 18.2 K. Capital investments will run up to RUR 7bn.
Addressing the Conference, the TR Prime Minister R. Minnikhanov stated that “Nizhnekamskneftekhim” INC had successfully materialized the objectives put forward by the TR Government, Security Council. He defined the Ethylene Complex advancement and completion of the Town Water Treatment Plant construction as priority targets in the activities of the Company Board of Directors and Executive Management.
The Conference approved the annual report, the annual accounting, which includes a gain & loss report and a profit distribution report based on the outcome of the fiscal year 2006, the dividend rates on the Company shares for the year 2006.
The shareholders will be paid dividends in monies at the rate of 54.48% of a face value on ordinary and preference shares, which will amount to RUR 997m or 30% of the Company’s net gain per the 2006 results.

The Conference elected a Board of Directors for “Nizhnekamskneftekhim” INC to consist of 11 members:
1. Rinat K. Sabirov – Head of Department for Oil-Gas-Chemical Complex Issues at the Office of the Tatarstan Republic Cabinet of Ministers (a government representative, with no voting)
2. Sergei V. Alekseyev – First Deputy General Director of “Svyazinvestneftekhim” JSC
3. Vladimir M. Busygin – General Director of “Nizhnekamskneftekhim” INC
4. Radik R. Gaizatullin – Finance Minister for the Tatarstan Republic
5. Rafkat A. Kantyukov – General Director of “Tattransgas” JSC
6. Nahil U. Maganov – First Deputy General Director -Head of Oil & Oil Product Sales Department, OAO “Tatneft”
7. Aidar R. Metshin – Head of the Nizhnekamsk Municipal Region
8. Vladimir V. Presnyakov – Deputy General Director of PSC “TAIF”
9. Ilshat Sh. Fardiyev – General Director of JSC “Tatenergo”
10. Albert K. Shigabutdinov – General Director of PSC “TAIF”
11. Ruslan A. Shigabutdinov – Deputy General Director of PSC “TAIF”

The Conference elected an Auditing Committee to consist of 5 members:
1. Nahila Z. Gilmutdinova – Lead Adviser at the Tatarstan Republic Finance Ministry (a government representative, with no voting)
2. Aleksei I. Belyayev – Section Head of the Fuel and Energy Complex Strategic Development Department at the Tatarstan Republic Ministry for Economy & Industry
3. Olga V. Ignatovskaya – Chief Accountant of PSC “TAIF”
4. Rashit G. Salakhutdinov – Section Head of Corporate Property & Investment Department, “Nizhnekamskneftekhim” INC
5. Dmitry I. Teslenko – Manager of Finance & Economics Department, PSC “TAIF”

The conference approved “Auditing Firm “Audi” Ltd as the Company’s auditor.
The conference approved the amended Statute and the in-house documents (Regulations for the Shareholders’ General Conference, Board of Directors and Auditing Committee activity procedure) of “Nizhnekamskneftekhim” INC, the 2007 expenditure budget for the Board of Directors.
After the Conference was over, the newly elected Board of Directors held its first session. Albert K. Shigabutdinov, General Director of PSC “TAIF”, was again elected chairman of the Board. The Board of Directors confirmed the authority of Vladimir M. Busygin as General Director of “Nizhnekamskneftekhim” INC.
That very same day, the TR Prime Minister R. Minnikhanov and the Conference other attendees witnessed a topping-out ceremony of Cracker SRT-VI startup at NKNK Ethylene Plant.

Reference note: New Cracker for gasoline, kerosene, hydrogenated gas oil has been constructed in line with the Program to expand the Ethylene Plant capacity up to 600 Ktpa. Its particular features are: high selective cracking performance for diversified hydrocarbon feed, high cracking feed performance, efficiency. Licensor and Equipment Supplier – “ABB Lummus Heat Transfer”.