Moscow, 31 January 2002; Sibneft has successfully floated a $250 million Eurobond. The five-year bond carries a coupon of 11.5% and was placed at par value. The transaction was arranged by Schroder Salomon Smith Barney, and the proceeds will be used to support Sibneft’s capital expenditure programme.

The bond carries a Ba3 rating from Moody's Investors Service. Sibneft also has a Ba2 local currency rating, and both ratings have a stable outlook.

“We were very pleased by the strong interest shown by a broad cross-section of international investors, including many who were investing in Russian corporate debt for the first time,” Sibneft president Eugene Shvidler said. “Sibneft intends to turn to international capital markets to meet a greater proportion of its financing needs in the future.”

Sibneft was the first Russian company to issue a Eurobond. The $150 million three-year bond was launched in August 1997 through Salomon Smith Barney and redeemed in August 2000. In March 1998, Sibneft issued a $200 million six month zero-coupon promissory note which was arranged by Salomon Smith Barney. This note was successfully redeemed in September 1998.

Contact:

Nick Halliwell
Sibneft
Tel: +7 095 777 3116
nick@sibneft.ru
www.sibneft.ru