At its meeting on May 5, 2006, Rosneft’s Board of Directors considered issues relating to preparation for the company’s annual meeting of shareholders, scheduled for June 7, 2006.

 

The Board provisionally approved the company’s annual report and financial statements, including its income statement and distribution of profits, for 2005.

 

The Board issued recommendations to the annual meeting of shareholders in respect of the amount and procedure for the payment of dividends on Rosneft shares pursuant to the 2005 results. It was recommended that 11,335.5 million rubles be paid in dividends, comprising 20% of the company’s net profits. It was recommended that 1.24673 rubles be paid per share.

 

The Board has recommended the appointment of audit firm “Tsentr Bukhgaltera i Auditora” for the audit of Rosneft’s 2006 annual financial statements in accordance with Russian accounting standards, such appointment also to be considered by shareholders at the annual meeting.

 

Rosneft’s Board also approved the form and text of the voting slips for the annual meeting of shareholders.