NOVY NEFT II LIMITED - Distributions To Shareholders

Hamilton, Bermuda: June 16, 2006 -- The Directors of Novy Neft II Limited (the "Company"), wish to advise that sufficient Gazprom GDRs have now been sold in the market to satisfy the Cash entitlements as elected by Shareholders in connection with the compulsory redemption detailed in the Circular to Shareholders dated 22 May 2006 (the "Circular").

Cash Payments

As previously advised, Shareholders who elected for cash were subject to market movement in the price of Gazprom Depositary Receipts until such time as the Company had sold sufficient Gazprom GDRs to satisfy cash entitlements.  As such, the value per Share payable to Shareholders is US$38.00 per Share.

In addition and further to the announcement released yesterday, the dividend element of the payment, which will be a further US$0.18 per Share, will become payable once the Company is in receipt of its dividend entitlement.  It is expected that Gazprom will be making this payment before 31 December 2006.

No amount of less than US$50 shall be paid to any Shareholder and all such amounts shall be retained by the Company.

Payments in specie

Payments in specie will be made to Specie Shareholders on or around 20 June 2006.  The Company has rounded down any entitlements to fractions of Gazprom Depositary Receipts and any surplus has been accrued to the benefit of the Company. 

Specie Shareholders will bear the transaction costs in relation to the transfer of Gazprom Depositary Receipts.  These costs have been deducted in calculating the number of Gazprom Depositary Receipts redeemable by each Specie Shareholder.

It is expected that the Gazprom dividend will be paid before 31 December 2006 and Shareholders will receive their entitlement of US$0.18 per Share, payable in cash, once the dividend has been received by the Company.

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