On March 27, 2007, RN-Razvitiye, a 100% held indirect subsidiary of Rosneft, was declared the winner of an auction for 1 billion shares of Rosneft and 3.56 billion RUR (nominal) of Yuganskneftegaz promissory notes held by YUKOS. RN-Razvitiye offered RUR 197,840,000,000 for the lot, which equates to RUR 194.282 per share taking into account the nominal value of the promissory notes.

Rosneft considers the company’s shares an attractive investment with material growth potential. The Company intends to use the acquired shares as a strategic currency in exchange for oil and gas assets in Russia and abroad.