Moscow, July 4, 2005.  Sibneft’s board of directors, meeting on June 30, approved a resolution recommending that the annual general meeting of shareholders endorse a dividend payment of 13.91 rubles per ordinary share based on the company’s 2004 financial results.

“Sibneft had a successful year in 2004 and it is proper that we share that success with all of our individual shareholders and institutional investors,” said Sibneft president Eugene Shvidler. “Sibneft’s strong cashflow will allow us to continue with our aggressive capital investment program and acquisitions of new reserves.”

The board of directors also accepted the resignation of Sibneft chairman and vice president Konstantin Potapov, who has left to concentrate on his post as president of Omsk Avangard. A new chairman will be selected by the board following the rescheduled AGM.

Contact:

John Mann

Sibneft

Tel:  +7 (095) 777-3116, 777-3182

Fax: +7 (095) 777-3114

JohnM@sibneft.ru

www.sibneft.com