Moscow, November 26, 2002; Sibneft has successfully floated a $500 million Eurobond under Regulation S. The January 2009 bond carries a coupon of 10.75% and was placed at par value. The transaction was arranged by Schroder Salomon Smith Barney.

Sibneft carries a ‘Ba3’ rating from Moody’s Investors Service (outlook: stable) and ‘B+’ rating from Standard & Poor’s (outlook: developing). The company also has local currency ratings of ‘Ba2’ from Moody’s and ‘B+’ from Standard & Poor’s, and an S&P Russian national scale rating of ‘ruAA’.

“We were very pleased by the strong interest shown by a broad cross-section of international investors, including many who were investing in Sibneft bonds for the first time,” said Eugene Shvidler, president of Sibneft. “This successful exercise testifies to Sibneft’s strong name recognition in the investor community, and pays tribute to our strategy and financial strength, as well as our efforts to set high standards of management practice.”

This marks the fourth transaction on international capital markets for Sibneft, which was the first Russian company to issue a Eurobond. Sibneft previously issued a $150 million three-year bond in 1997, a $200 million six-month note in 1998, and a five-year, $400 million bond earlier this year. The new Eurobond is the longest bond deal by a Russian corporate borrower to date and was completed in one day.

Contact:

John Mann
Sibneft
Tel: +7 (095) 777 3116
Fax: +7 (095) 777 3114
JohnM@sibneft.ru
www.sibneft.com