January 21, “Nizhnekamskneftekhim” INC held a labor collective Conference which summed up the 2008 Collective Agreement implementation and adopted a 2009 Collective Agreement.

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

The 2008 commodity output in money terms amounted to over RUR 70 bn, in comparable prices that is more than 106.4 % against the year past. Product sales proceeds reached RUR 70.9 bn, which is RUR 7.7 bn above the obligations assumed. Sales profit totaled over RUR 8 bn.

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

- to the budget of the Russian Federation – RUR 1.7 bn;

- to the budget of the Tatarstan Republic – RUR 2.4 bn;

- to the local budget – RUR 419 m ;

- a uniform social tax – over RUR 1.1 bn

On the whole, tax payments of “Nizhnekamskneftekhim” INC to the budgets of all levels constituted over RUR 5.6 bn.

By 2008-end, the average wage in the Company reached RUR 22,500.

A principled and creative approach to training and selection of the personnel contributed to further upgrade of the petrochemical employees: 26.8% of them have higher education (25% in 2007). The average age of the employees – 39.5 years old, the young aging up to 30 constitute 29.5%. In 2008, the Company employed 670 graduates from Nizhnekamsk petrochemical-oriented educational institutions (Chemical-Engineering Institute, Petrochemical College , two Polytechnic Vocational Schools).

One of the Company priority activities remains environmental protection. In the year past, over RUR 340 m was allotted for environmental implementations as part of the 2007-2015 Ecological Program. In 2008, an automated environmental monitoring system was launched, monitoring stations were set up in the sanitary-hygienic zone and along the Company industrial site border line.

2008 nonmanufacturing costs amounted to:

•  RUR 98.4 m for medical examination and treatment of employees, RUR 3 m for medical care to nonworking retirees;

•  RUR 102 . 4 m for extraordinary grants in retiring,

•  RUR 6.3 m for sanatorium-resort vouchers (Health Centre “Ship-Timber Grove” hosted over 4,000 people; more than 2,300 vouchers were actualized to Recreation Centre “Leafy Grove”; all in all, RUR 81.3 m was spent to pay for sanatorium-resort vouchers);

•  RUR 10 m for grants to young families.

Within the year past, the Company provided financing to construct over 12,000 m 2 of housing. 143 apartments were actualized for the waiting list employees.

At the conference, A. Khairullin, Chairman of Labor Union of “Nizhnekamskneftekhim” INC, delivered a report on the 2008 Collective Agreement implementation.

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

Delegates to the Conference approved of the 2008 Collective Agreement as fully implemented.

A document, governing the relations between an employer and employees for the year 2009, reserved all the privileges and benefits as stipulated in the 2008 Collective Agreement. In addition, the text of the Collective Agreement for this year was complemented with a Section contemplating for a one-time grant to the families of the petrochemical employees bringing up handicapped children.