Novy Neft II Limited Annual General Meeting Update

Hamilton, Bermuda: 27^th July 2005 - The Directors of Novy Neft II Limited (the "Company"), wish to advise that at the Annual General Meeting ("AGM") held on 27 July 2005 Shareholders attending by proxy voted in favour of the Company continuing as an investment company.

Votes cast were as follows:-

For :                   1,597,321

Against :                   1,322,953

Abstain :   0

Further to the commitment made by the Directors in their announcement of 23 June 2005, the Directors now propose a buy back of up to a further 12.46% of the Company's issued share capital as at 19 August 2004 on 24 August 2005.  This is equivalent to 23.75% of the current shares in issue.  So as not to disadvantage the remaining shareholders, the price at which shares will be bought back will be determined by reference to the average price at which the underlying Gazprom structures are sold in the market in order to raise the cash necessary to pay the selling shareholders and will be at a 1% discount to that price.

A copy of this announcement (to include a reply slip for use by those Shareholders who may wish to participate in the buy back) is to be distributed to all Shareholders today.  Those Shareholders wishing to participate should complete the reply slip as directed and return as soon as possible, and in any event no later than 5 p.m. on 22 August 2005 to the Registrar and transfer agent, HSBC Securities Services (Isle of Man) Limited, PO Box 34, 12/13 Hill Street, Douglas, Isle of Man IM1 1EF, British Isles (Fax: (44) 1624 637778).

If demand is received for more than the 12.46% of the shares to be bought back and cancelled, then Shares will be bought back on a pro rata basis.  The record date for the buy back will be 19 August 2005.

In the event that all of the above shares are bought back and cancelled then there will be no further buy backs of shares.  This is in accordance with guidelines which are designed to ensure that the Company is not open-ended for taxation or regulatory purposes.

Expected Timetable:

Record Date                                19 August 2005

Latest Receipt of Buyback Requests                                5.00pm on 22 August 2005

Shares Repurchased and Cancelled                                24 August 2005

Details of Buyback announced                                26 August 2005

Distribution of Proceeds                                on or about 16 September 2005

For further information on Novy Neft II Limited please contact: