Rosneft (the „Company“) today reported its consolidated financial results in accordance with US GAAP for the three and twelve months ended December 31, 2007.

In Q4 2007, EBITDA grew almost six times to USD 5,083 million compared to USD 872 million in Q4 2006, and by 27.1% quarter-on-quarter (from USD 3,999 million in Q3 2007). For the full year of 2007, EBITDA almost doubled to reach USD 14,085 million, compared to USD 7,276 million for 2006. Net Income in Q4 2007 grew almost five times to USD 2,976 million compared to USD 603 million in Q4 2006, and by 59.5% quarter-on-quarter (from USD 1,866 million in Q3 2007). For the full year of 2007, Net Income increased more than three times to USD 12,862 million.

Net Debt in Q4 2007 decreased by USD 1,557 million from USD 27,832 million at September 30, 2007 to USD 26,275 million at December 31, 2007. Based on preliminary (unaudited) management account estimates, Rosneft’s Net Debt decreased further during Q1 2008 by USD 2.4 billion to USD 23.8 billion as of March 31, 2008. The total debt reduction of over USD 4 billion achieved during Q4 2007 and Q1 2008 represents substantial progress towards the Company’s target leverage (Debt/EBITDA) ratio of approximately 1x by the end of 2010.

At the same time, the Company remained the global leader in terms of growth in crude oil production in 2007. In Q4 2007, Rosneft’s consolidated subsidiaries, including the Company’s share in affiliates, increased crude output by 35.7% to 205.47 million barrels (includes 100% of Tomskneft production from the date of acquisition to December 26, 2007 and 50% from December 26, 2007 on), compared to 151.47 million barrels in Q4 2006. The organic growth in crude output amounted to 7.8% net of new acquisitions, which is far above the average of Rosneft’s domestic competitors. In twelve months of 2007, Rosneft’s consolidated subsidiaries, including the Company’s share in affiliates, produced 740 million barrels of crude oil, a 26.9% increase over 2006 (582.7 million barrels).

In Q4 2007, Rosneft’s consolidated subsidiaries, including the Company’s share in affiliates, produced 4.06 billion cubic meters of natural and associated gas, an increase of 17.2% compared to the same period of 2006. In twelve months of 2007, Rosneft’s production of natural and associated gas increased by 15.5% to 15.7 billion cubic meters from 13.6 billion cubic meters in the respective prior-year period.

In Q4 2007, the Company’s petroleum products output increased by 104.7% year-on-year to 12.07 million tonnes from 5.90 million tonnes. In 2007, the total output of petroleum products from Rosneft’s crude, including output at mini refineries and refineries controlled by third parties, increased by 69.4% to 38.4 million tonnes from 22.7 million tonnes in twelve months of 2006.

„The Company’s Q4 and full year 2007 results are further confirmation of our efforts to consistently implement our dynamic growth strategy while also improving efficiency and profitability and strengthening our balance sheet. We will continue to focus and deliver on these priorities through 2008 and beyond,“ — Rosneft President Sergey Bogdanchikov commented.

Rosneft’s US GAAP financial statements and management discussion and analysis (MD&A) for the three and twelve months ended December 31, 2007 and previous periods will be made available for download at www.rosneft.com.

Rosneft Information Division
Tel.: +7 (495) 221-31-07
Fax: +7 (495) 411-54-21
n_manvelov@rosneft.ru
April 8, 2008

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no responsibility to update the forward-looking statements contained herein to reflect actual results, changes in underlying assumptions or changes in factors affecting these statements.