Exclusive Acquisition Talks End Without Agreement

Six months ago, Rusneftegaz reported that we had entered into an exclusivity period to acquire a portfolio of coal-fired power stations from an Indian company. However, it can today be announced that this timeframe has now lapsed after both parties failed to reach a mutual arrangement, and talks are not expected to continue any further. Whilst this result is disappointing for our organization and our management, who invested a considerable amount of time and effort into making these proposals a success, we continue to have numerous options available for the purchase of power assets, not only in India, but across the world. These will now be reviewed promptly and in due course, with any updates that occur to be published at the relevant time. Although Rusneftegaz is limited by the terms of the confidentiality agreements we agreed as to what can be disclosed in public regarding the breakdown of these negotiations, management believes and assures that it made every possible effort to find a favorable outcome to this situation. Due to the sensitive nature of this matter, Rusneftegaz will not be accepting any further inquiries in relation to this episode at this present time.