The Board of Directors of Bashneft, at a meeting on October 18, 2011, decided to acquire JSOC Bashneft bonds-non-convertible, interest-bearing, documentary securities payable to bearer with mandatory centralized custody. The bonds have nominal value of 1,000 rubles each. They are series 01 (state registration number 4-01-00013-À of November 17, 2009), series 02 (state registration number 4-02-00013-À of November 17, 2009), and series 03 (state registration number 4-03-00013-À of November 17, 2009).

In retiring the bonds, the company will be carrying out plans to optimize its debt portfolio consistent with its strategy.

Bashneft will acquire the securities on the following terms:

• Acquisition ofthe bonds will beexecuted via transactions onthe Moscow Interbank Currency Exchange, orMICEX, based upon proposals for concluding market contracts for acquisition ofthe bonds (offers). The proposals will bepublished later inthe manner prescribed bylaw.
• Date on which the bonds will be acquired-October 28, 2011.
• Price at which the securities will be acquired-105 (one hundred and five) percent of nominal value of the bond excluding accumulated coupon interest, which will be paid to the owners of the bonds in addition to the stipulated price for bond acquisition.
• Period for notice presentments-from 9:00 a.m. Moscow time on October 26, 2011, to 3:00 p.m. (15:00) Moscow time on October 27, 2011.
• Bashneft’s agent for acquisition of the bonds is Sberbank of Russia.
• Total number of series 01, 02, and 03 bonds to be acquired-up to 50,000,000 (fifty million) bonds.
• Transactions for acquisition of the bonds will be carried out solely in conformance with Russian law. Rules pertaining to acquisition of proprietary securities in accordance with any laws other than the laws of the Russian Federation must not and cannot be applied. The decision on acquisition of the bonds is addressed solely to investors who affirm the non-applicability of laws of any other country except the Russian Federation in connection with their participation in a transaction. If an investor’s participation in a transaction threatens the company with application of laws of another country other than the Russian Federation, the investor is obligated to refrain from such involvement.

The corporate bonds series 01, 02, and 03 with total nominal value of 50,000,000,000 (fifty billion) rubles and a term to maturity of seven years were issued in accordance with a decision of the Board of Directors of Bashneft on September 28, 2009. The Federal Service for Financial Markets registered the series 01,02, and 03 bonds on November 17, 2009.