On March 14, 2008, Rosneft completed the repayment of the second tranche ($5.2 billion) of the short term acquisition financing drawn in early 2007. Rosneft funded the repayment by closing a new US$3 billion five year pre-export international bank facility as announced in February and generation of sufficient free cash flow to cover the balance.

As of March 14, 2008, Rosneft has refinanced or repaid USD 5.6 billion out of USD 5.8 billion of short term debt falling due in the first quarter of 2008, with USD 2.6 billion fully repaid from free cash flow. The repayment of the remaining USD 190 million will also be funded by free cash flow.

Rosneft President Sergei Bogdanchikov commented: “Despite adverse conditions in global credit markets, Rosneft’s refinancing and repayment of US$5.6 billion of maturities is a good indication of both the company’s strong reputation among major international lenders and its ability to generate significant free cash flow, notwithstanding the current challenges presented by rising inflation and taxation.”