The Annual general meeting held on June 29, 2004 took a decision on payment of dividends on Transneft’s shares in the amount of RUR 3 961 682 580.

RUR 509,6 per one share will be paid on ordinary shares (4 664 627 pcs) totals RUR 2 377 093 919.
RUR 1 019,1 per one share will be paid on privileged shares (1 554 875 pcs) totals RUR 1 584 588 661 (10% of net profit).

Payment period is not later December 31, 2004.

Payment priority order is as follows:

· Individual and legal persons – residents of the Russian Federation including clients of nominal holders;
· Individual and legal persons –non residents of the Russian Federation including clients of nominal holders.