At the today’s meetings, the Boards of Directors of JSOC Bashneft’s subsidiaries participating in the reorganization (OJSC Ufimsky refinery plant, OJSC Novoil and OJSC Ufaneftekhim) approved several related-party transactions.

As part of these transactions, OJSC JSFC Sistema, JSOC Bashneft’s majority shareholder, will purchase preferred treasury shares of the above mentioned subsidiaries of Bashneft worth 1.92 billion roubles at the market prices determined by an independent appraiser.

After the shares of subsidiaries are exchanged for JSOC Bashneft’s securities in October 2012, JSFC Sistema will become the owner of an additional stake comprising 1,364,023 preferred shares of the Group, which will account for 0.6% of JSOC Bashneft’s authorized capital.

The funds raised by Bashneft’s subsidiaries from the sale of treasury shares will be allocated for the Group’s development considering the interests of all its shareholders.

MAIN CHARACTERISTICS OF TRANSACTIONS IN TREASURY SHARES OF JSOC BASHNEFT’S SUBSIDIARIES