On October 16, the Board of Directors of the Company had a scheduled meeting chaired by R. Yarullin, chairman of the Board. Five issues were on the agenda:
· Situation with Industrial Safety at "Nizhnekamskneftekhim" Inc.
· Investment policy of the Company for the near future.
· Approval of a Quarterly Report of the Company's Issuer for the third quarter 2001 to be submitted to the Federal Securities Committee.
· Approval of Reports on ordinary and preference shares issued in 2001.
· Production of LABs to be organized at "Nizhnekamskneftekhim" Inc.
The most important issue for discussion was the investment policy of the Company in the near future. Mr I. Larionov, Property Department Manager, stated that the business was developing in five directions: expansion of feedstock markets, upgrading production, construction of new production facilities, development of energy-efficient technological processes, upgrading accounting and management systems.
The Board of Directors was informed in detail of the visit of the Company's representatives to Western Europe in order to obtain long-term investments for the Ethylene Plant upgrading - "the western banks are willingly cooperative in rendering loans for the most promising projects". To date, as such can be regarded the following projects with feasibility studies prepared and crediting open:
· Ethylene Plant Upgrading at USD 255 MM
· One-stage Isoprene Synthesis at USD 20 MM
· MTBE Plant 120 000 TPA
· HIPS Plant at USD 30 MM
· Halobutyl Rubber Plant at USD 42 MM, to be commissioned in 2003.
Each of the above projects is assigned a task force which is continuously busy with tackling financial and technical issues in conjunction with the western companies supplying us equipment and know-how technology.
Besides, a design documentation is under preparation to construct a completely novel feedstock plant to process gas condensate 1 MM TPA which is devised to significantly satisfy the requirements of the upstream production facilities.
The decision taken on the matter, approved the investment policy of the Executive Management of "Nizhnekamskneftekhim" Inc with all the comments and additions voiced during the discussion.
An active discussion broke out at the announcement by Kh. Mustafin of the agreement reached with "Ballestra" company (Italy) through the international firm "Solev" (Moscow) on producing in principle a novel type of product - linear alkyl benzene, a detergent widely used in synthetic and perfumery industries. The Italian firm expressed readiness, basing on the technological process devised by the chemical researchers of "Nizhnekamskneftekhim" Inc, to build a plant 40000-45000 TPA on a turn-key basis and after two years, to hand the whole plant over into the ownership of "Nizhnekamskneftekhim" Inc. "Ballestra" will also take up the functions of a final product Seller at the Russian and overseas markets.
According to L. Weinberg, representative of the "Solev" firm, the project will pay back in two years' time, for there is a demand for LABs in the market, - today, they are produced solely by a chemical complex in Kirishi Town of Leningrad region, Russia.
That Project was also approved by the Board of Directors, after that it will be accorded "a green light" for implementation by the Management of "Nizhnekamskneftekhim" Inc, and an opportunity for signing a Contract with an Italian company.

Press Service NKNK Inc