As the successful bidder in the Tüpras tender process through its international arm, Efremov Kautschuk G.m.b.H. (“EKG”), Tatneft is disappointed that the privatisation process has now been suspended by the decision of the Ankara 10^th Administrative Court, on the basis of the alleged non-compliance of EKG’s bid with Tender Specifications and an alleged violation of public policy. The court decision was issued only hours before the closing of the transaction scheduled by the Privatisation Administration, when all necessary steps to the purchase had been completed and the related financing fully arranged.

Tatneft believes that both the initial bid and the final bid submitted by EKG were in full compliance with Turkish law and the Tender Specifications.  EKG has clearly specified at all stages of the tender process its full and unconditional acceptance of the Tender Specifications.

Advised by the internationally reputable firms Société Générale Corporate and Investment Banking (SGCIB) and technical consultant Purvin & Gertz, EKG and Tatneft worked out a bid and an investment plan for Tüpras which has valued the refining group at a very fair price, all the more so in light of the current stock market environment. Furthermore, Tatneft, together with its respected Turkish partner Zorlu Holding, intends to contribute additional human and financial resources andpursue a capital expenditure program for the development of Tüpras, while always respecting the interests of Tüpras’ employees, customers and minority shareholders.  As a major Russian oil producer, Tatneft would also offer to Tüpras a secure source of crude oil.  Accordingly, far from being against public interest, Tatneft and Zorlu’s acquisition of Tüpras would be very positive for the development of the Turkish refining industry and the Turkish economy.

Tatneft has unquestionably a strong interest in the Turkish market and is fully committed to this important project. Tatneft believes that this project would contribute to the further opening of the Turkish economy to foreign direct investment and represent a very positive development in Turkish-Russian, and Turkish-Tatarstan, relationships. In Tatneft’s opinion, the Tüpras privatisation would more generally be an important step to reinforce the image of a business-friendly Turkish economy open for foreign investment, and therefore the attractiveness of Turkey vis-à-vis European markets, investors and even political partners.

Tatneft will of course respect the ultimate decision of the Turkish courts and believes in the fair, independent and efficient justice of the Turkish courts.

Tatneft is Russia's oldest and sixth-largest vertically integrated oil company. The company is present in Tatarstan and other regions of Russia, as well as in Ukraine. Tatneft participates in operating the Nizhnekamsk refinery in Tatarstan, the Moscow refineryand the Kremenchug refinery in Ukraine with a total annual refining of 35mln tons, and country-wide retail networks in both Russia and Ukraine.  The company produces 24 mln tons of crude oil annually. Tatneft is a public company and is listed on the Moscow, London, and New York stock exchanges.