Ratings

Fitch Ratings has today upgraded Rosneft's long-term foreign and local currency Issuer Default Ratings (IDR) to “BBB-“ from “BB+” and assigned them a Positive Outlook.

The upgraded IDR reflects Rosneft's strengthened competitive position following a series of acquisitions, predominantly in the refining and distribution segments, making it one of Russia's leading integrated oil and gas companies.

The Positive Outlook foresees a significant reduction in the Company's total debt over the medium-term as the Company refinances its debt, restructures its tax liabilities and favourably resolves any outstanding third-party claims.

Rosneft will continue to reduce debt through integration of recently acquired assets, improved operating performance, enhanced downstream margins, and potential asset sales. The company is targeting a reduction in leverage to 1x Debt/EBITDA and less than 30% gearing by 2010.