On July 12, 2007, Rosneft was declared the winner of an auction for Lot 17 of the YUKOS assets that were sold in connection with the company’s bankruptcy proceedings. After an opening price of RUB 5,732,930,000, Rosneft offered the winning bid of RUB 5,847,588,000.

Lot 17, in particular, consists of property and property rights at licensed blocks in the Khanty-Mansiysk Autonomous District (Sredne-Balyksky, Vstrechny, Vostochno-Salymsky and Chupalsky blocks), in Evenkia (Ayavinsky, Dzhelindukonsky, Oskobinsky, and Tersko-Kamovsky blocks), as well as in the Samara Region (Malaninsky block).

Rosneft’s management believes that the acquisition of these assets will allow the Company to strengthen its position in these strategically important regions.