Annual Meeting of Shareholders of OAO Nizhnekamskneftekhim was held on June 3, 2009 on the results of the Company’s operation in 2008. Among the participants of the Meeting were Rustam Minnikhanov, the prime minister of the Republic of Tatarstan, and Aidar Metshin, head of Nizhnekamsk municipal region. The report on the operating results of 2008 was submitted by Vladimir Busygin, general director of OAO Nizhnekamskneftekhim. In spite of the negative influence of the global financial crisis on the real sector of the economy Nizhnekamskneftekhim proved its position of the leading petrochemical producer in the Russian market. In the year under report the Company’s commercial production output exceeded the amount of 70 billion rubles, which is over 106% versus the last year in comparable prices. The product sales proceeds reached 70.9 billion rubles. The sales profit amounted to more than 7.4 billion rubles. The Company made payments to the budgets of all levels in due time and in full measure. These payments in 2008 came to 5.7 billion rubles.

After commissioning of line 3 of polystyrene production plant in August 2008 Nizhnekamskneftekhim became the largest producer of polystyrene in Russia. At present more than 70% of Russian polystyrene plastics are manufactured here. At the end of 2008 construction of polyethylene plant was completed and it was started-up in February this year. Thus the Company successfully completed the program of transition from production of monomers to polymers. The work is in progress on revamping and expansion of ethylene plant, the test batch of solid polyethylene glycols was produced and a new plant was commissioned to produce polybutadiene rubber based on lithium catalyst (PBR-L).

However under the influence of the financial crisis in the fourth quarter of last year there was the sharp reduction of prices for petrochemical products at the world market that caused the fall of prices for the products of the Company. This affected all the main product categories supplied by the Company to the domestic and foreign markets. Under such conditions the management of the Company initiated certain anti-crisis measures aimed at the reduction of production cost, increase of efficiency of management structure and the level of information transparency of the Company’s relationship with shareholders, investors and business partners.

The annual report and the annual financial statements were approved including the profit and loss statement and distribution of profit of OAO Nizhnekamskneftekhim based on financial results of 2008. The shareholders shall be paid the share dividends for 2008 at the rate of 30.98% of the par value of ordinary and preference shares. ZAO PricewaterhouseCoopers Audit was approved as the auditor of the Company.

The shareholders elected the members of the board of directors of OAO Nizhnekamskneftekhim:

1. Rinat K. Sabirov - head of department for oil-gas-chemical complex issues at the office of the Tatarstan Republic cabinet of ministers

2. Albert K.Shigabutdinov – general director of TAIF JSC

3. Vladimir M. Busygin – general director of OAO Nizhnekamskneftekhim

4. Radik R. Gaizatullin – finance minister for the Republic of Tatarstan

5. Evgueni A. Grishin – state adviser on economic issues under the president of the Republic of Tatarstan

6. Nahil U. Maganov - first deputy general director for oil & oil product sales & processing-head of oil & oil product sales department, Tatneft JSC

7. Aidar R. Metshin – head of Nizhnekamsk municipal region

8. Zhelko Milich – chief executive officer of IPCO – TRADING S.A.

9. Vladimir V. Presnyakov - deputy general director for oil-refining & petrochemistry, TAIF JSC

10. Alexander L. Rappoport – managing partner of the lawyer’s office “Rappoport & partners”

11. Guzelia M. Safina – deputy general director for economics and finance, TAIF JSC

After the shareholders meeting the first meeting of the new board of directors was held and Albert Shigabutdinov, general director of TAIF JSC, was again elected as the chairman of the board and the authority of Vladimir Busygin was confirmed as the general director of OAO Nizhnekamskneftekhim.