OJSC Rosneft (Rosneft or “the Company”) today reported its consolidated financial results in accordance with US GAAP for the three and nine months ending September 30, 2007.

Summary financial results:

* Adjusted for the effect of non-operating accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt
** Adjusted for the effect of non-operating accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt as well the effect of proceeds from the Yukos bankruptcy.

In the third quarter of 2007, EBITDA, adjusted for the effect of accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt in the amount of USD 31 million, rose by 90.7% year-on-year to USD 4,054 million from USD 2,126 million in the third quarter of 2006 and by 13.2% quarter-on-quarter (from USD 3,581 million in the second quarter of 2007). Similarly, in the first nine months of 2007, EBITDA, adjusted for the effect of accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt in the amount of USD 373 million and USD (-13) million in the first nine months of 2007 and 2006, respectively, increased by 47.1% to USD 9,399 million in the first nine months of 2007 from USD 6,391 million in the first nine months of 2006.

In the third quarter of 2007, net income, adjusted for the effect of non-operating accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt in the amount of USD 38 million and USD (-75) million in the third quarter of 2007 and 2006, respectively, increased by 97.5% year-on-year (to USD 1,928 million from USD 976 million in the third quarter of 2006) and by 13.2 % quarter-on-quarter (to USD 1,928 million from USD 1,703 million in the second quarter of 2007). In the first nine months of 2007, net income, adjusted for the effect of non-operating accrual of fines and penalties related to pre-acquisition Yuganskneftegaz tax debt proceeds in the amount of USD 437 million and USD (-13) million for the nine months of 2007 and 2006, respectively, as well the net effect of receipt of the YUKOS bankruptcy receivables in the amount of USD 6,019 million in the first nine months of 2007, increased by 48.4% to USD 4,328 million in the first nine months of 2007 from USD 2,917 million in the first nine months of 2006.

In the third quarter of 2007 Rosneft and its consolidated subsidiaries increased production of crude oil by 29.2% to 192.35 million barrels from 148.88 million barrels in the third quarter of 2006. This growth was largely due to an increase in production at Yuganskneftegaz to 113.05 million barrels in the third quarter of 2007 from 106.69 million barrels in the same period of 2006, or by 6.0%, as well as the acquisition of Tomskneft and Samaraneftegaz, which collectively contributed 57.15 million barrels to Rosneft’s crude oil production from the day of their acquisition in May 2007 to September 30, 2007. Including share in affiliates, Rosneft increased its production by 32.6% to 199.08 million barrels in the third quarter of 2007 from 150.12 million barrels in the third quarter of 2006. In the first nine months of 2007, Rosneft and its consolidated subsidiaries increased crude oil production by 19.6% to 511.62 million barrels (up from 427.67 million barrels in the same period of 2006) while crude oil production, including equity share in affiliates, increased by 23.2% to 531.41 million barrels (up from 431.23 million barrels in the nine months of 2006). Among the factors contributing to this increase was a growth in average well flow rates, which increased from 109.73 barrels per day in the nine months of 2006 to 112.5 barrels per day in the same period of 2007.

In the third quarter of 2007, Rosneft and its consolidated subsidiaries produced 3.89 billion cubic meters (bcm) of natural and associated gas, an increase of 15.9% compared to the same period of 2006. In the first nine months of 2007 Rosneft’s production of natural and associated gas increased by 14.6% to 11.60 bcm from 10.13 bcm in the same period of 2006. The growth was primarily due to the increased production at Krasnodarneftegaz, Grozneftegaz and Purneftegaz. Including share in affiliates, gas production increased by 14.8% to 11.63 bcm in the nine months of 2007.

In the third quarter petroleum products output increased by 109.3% year-on-year to 11.93 million tonnes in 2007 from 5.70 million tonnes in 2006. For the first nine months of 2007, output of petroleum products from Rosneft produced crude oil, including output at mini refineries and refineries controlled by third parties, increased by 56.0% to 26.32 million tonnes from 16.87 million tonnes for the same period of 2006.

Sergey Bogdanchikov, president of Rosneft, commented on the published results by saying, “The third quarter was another record quarter for Rosneft both in terms of operational performance and increased profitability, whether reviewed only on an organic basis or incorporating recent acquisitions. We continued to demonstrate industry leading organic production and earnings growth rates. Profitability per barrel increased despite taxation and inflation cost increases exceeding oil price appreciation. As outlined in our communication following the review of our 2008 business plan at our Board of Directors meeting in December, we are confident in our ability to continue to demonstrate leading operational and financial performance through rigorous cost control, improved downstream margins via increased sales through new and more profitable sales channels to end customers and continued organic volume growth.”

Rosneft’s US GAAP financial statements and management discussion and analysis (MD&A) for the third quarter and nine months ending September 30, 2007 and previous periods will be made available for download on the Company’s website at www.rosneft.com.

OJSC Rosneft Information Division
Tel.: +7 (495) 221-31-07
Fax: +7 (495) 411-54-21
n_manvelov@rosneft.ru
January 16, 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 historical 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 obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.