Rosneft Denies Problems With Dollar Accounts

March 19, 2010

Rosneft has denied media reports that cash payments in dollars have been frozen, the company reported in a news release. Rosneft officially states:

Due to reports made by a number of news media on the alleged “freeze” of all cash payments to Rosneft for exported crude oil, the Company Information Division is duly authorized to make an official statement on the fact that any reports of such kind are contrary to the actual situation.

Rosneft is fully meeting all its obligations with respect to crude oil and petroleum products deliveries, including those under export contracts. No restrictions of payments in US dollars for the oil delivered are in existence and any such statements are either a product of fictitious belief or premeditated misinformation.

At the same time a former YUKOS subsidiary, the Yukos Capital S.a.r.l., is currently taking steps in an attempt to enforce certain arbitration awards, which were previously reversed by the Russian Federation courts of all jurisdictions. For that purpose Yukos Capital filed a case with the Federal Court of the State of New York (USA) and on February 8, 2010 secured a temporary injunction with respect to making payments. On February 17, however, the injunction was lifted after Rosneft was given an opportunity to state its legal case and position.

During the hearings of March 17, 2010 the court of the State of New York found that it had no jurisdiction in the case, ruling that the only grounds for recognition of its jurisdiction could be the existence of Rosneft assets in the State of New York. The Court also granted the plaintiff approximately 60 days to locate such assets, saying that, if no such assets were to be found, the claim would be completely dismissed. The Federal Court of the State of New York has dismissed all other motions made by Yukos Capital.

In addition to that, based on a motion by Yukos Capital, on March 11, 2010 the Court of London ordered an attachment of the part of Rosneft property in England and Wales as an injunctive relief for the legal action to enforce the previous arbitration awards. Rosneft believes that the said injunction order is groundless and is taking all necessary steps to protect its interests in courts. It must be noted, however, that the value of property attached under the English Court order is not material for Rosneft’s commercial operations and cannot in any way affect the performance of the Company’s obligations.

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