January 23, “Nizhnekamskneftekhim” INC held a labor collective Conference which summed up the 2007 Collective Agreement implementation and adopted a 2008 Collective Agreement.

V. Busygin, General Director of “Nizhnekamskneftekhim” INC, delivered a report on the Company financial and economic activities in the year past.

The 2007 commodity output in money terms amounted to over RUR 55bn. The commercial production growth rate in prices compared to the past year level constituted 112%. Product sales proceeds surpassed RUR 58.6bn, which exceeded the obligations taken by RUR 3.6bn.

The expected gains less taxation per the 2007 results totaled over RUR 3.8bn.

In the year past, the Company transferred the following taxes:

to the budget of the Russian Federation – RUR 1.5bn;

to the budget of the Tatarstan Republic – about RUR 2bn;

to the local budget – RUR 434m;

a uniform social tax – over RUR 1bn

On the whole, tax payments of “Nizhnekamskneftekhim” INC to the budgets of all levels constituted over RUR 4.9bn.

The average wage in the Company increased from RUR 16,600 in 2006 up to RUR 19,750 in 2007.

A principled and creative approach to training and selection of cadres made for further improvement of qualitative composition of the personnel, 25% of which have higher education (in 2006, they were 23.5%). The average age of the employees – 40 years old, the young aging up to 30 constitute 27%.

One of the Company priority activities remains environmental protection. In the year past, about RUR 900m was spent for environmental implementations (including Water Purification Station) in line with the 2007-2015 Ecological Program. A major part of arrangements in creating an automated environmental monitoring system was completed. Over the reporting year, the ecological situation was stable. No emergency emissions, resulting in negative environmental impact, occurred.

Non-production expenses in 2007 totaled RUR 1,151m, including:

•  RUR 261m for Social Development Department;

•  RUR 60.9m for medical examination and treatment of employees;

•  RUR 7.7m for nonworking retirees.

Within the year past, 144 apartments were allotted to the employees in compliance with the Internal Statute, 89 apartments – through the State Housing Fund.

At the conference, V. Shuysky, Chairman of Labor Union of “Nizhnekamskneftekhim” INC, delivered a report on the 2007 Collective Agreement implementation.

A. Metshin, Head of the Nizhnekamsk Municipal Region, attended the Conference.

Delegates to the Conference approved of the 2007 Collective Agreement as fully implemented.

A document, governing the relations between an employer and employees for the year 2008, reserved all privileges and benefits as in the 2007 Collective Agreement. In addition, the text of the Collective Agreement for this year, declared as the Family Year in RT and RF, was complemented with Section "Care for Mother and Child" providing for one-time welfare to “Nizhnekamskneftekhim” INC female employees: RUR 10,000 when giving birth to a child, RUR 70,000 in case of twins and RUR 100,000 in case of triplets.

The Conference also elected the Commissions on labor disputes and social insurance.