NVTK: OAO Novatek: NOVATEK Closes Eurobond Issue

  NVTK: OAO Novatek: NOVATEK Closes Eurobond Issue

UK Regulatory Announcement

MOSCOW

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY, IN THE
UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN, THE RUSSIAN FEDERATION OR
ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

OAO NOVATEK (“NOVATEK” and/or the “Company”) announced today the closing of
its ten-year Eurobond issue due 2022 in an aggregate amount of US$ 1.0
billion, which was more than three-times oversubscribed based on the book
building results. The annual coupon rate is set at 4.422% with coupons payable
semi-annually.

The Company’s CFO and Board member Mark Gyetvay stated: “We successfully
placed our new Eurobond issue within our ten-year debut bond curve, reflecting
the Company’s strong financial position and our future prospects for
sustainable growth, combined with investors’ appetite for high quality
issuance out of Russia with investment grade ratings.”

The Joint Lead Managers for the Eurobond issue were Barclays, Gazprombank,
Goldman Sachs International and Sberbank CIB.

                                     ***

For further information, please visit www.novatek.ru or contact:

                    
Press Service           Investor Relations
+7 (495) 721 2207       +7 (495) 730 6013
press@novatek.ru        IR@novatek.ru
                        

                                     ***

OAO NOVATEK is Russia’s largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, the Company is
engaged in the exploration, production, processing and marketing of natural
gas and liquid hydrocarbons. The Company’s upstream activities are
concentrated in the prolific Yamal-Nenets Autonomous Region, which is the
world’s largest natural gas producing area and accounts for approximately 84%
of Russia’s natural gas production and approximately 17% of the world’s gas
production. NOVATEK is an open joint stock company established under the laws
of the Russian Federation. The Company’s shares are listed in Russia on
MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker
symbol “NVTK”.

                                     ***

This announcement is not for distribution, directly or indirectly, in or into
the United States (including its territories and possessions, any State of the
United States and the District of Columbia). This announcement is not an offer
or solicitation to purchase or subscribe for securities in the United States.
Securities may not be offered or sold in the United States, or to, or for the
account or benefit of, U.S. persons (as such term is defined under Regulation
S under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
absent registration with the United States Securities and Exchange Commission
or an exemption from registration under the Securities Act. There is no
intention to register any part of the offering in the United States or to
conduct a public offering of securities in the United States.

This announcement is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth
entities, and other persons to whom it may lawfully be communicated, falling
within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and
(iii) above together being referred to as “relevant persons”). Any securities
described herein are only available to, and any invitation, offer or agreement
to subscribe, purchase or otherwise acquire such securities will be engaged in
only with, relevant persons. Any person who is not a relevant person should
not act or rely on this document or any of its contents.

In member states of the European Economic Area, this announcement is directed
only at persons who are "qualified investors" within the meaning of article
2(1)(e) of Directive 2003/71/EC (the "Prospectus Directive"). This
announcement is an advertisement and is not a prospectus for the purposes of
applicable measures implementing the Prospectus Directive.

In connection with the offer or sale of the securities referred to herein,
Goldman Sachs International may over-allot the securities or effect
transactions with a view to supporting the market price of the securities at a
level higher than that which might otherwise prevail. Any stabilisation action
or over-allotment will be conducted by Goldman Sachs International in
accordance with all applicable laws and rules.

Information contained in this document is not an offer, or an invitation to
make offers, sell, purchase, exchange or transfer any securities in Russia or
to or for the benefit of any Russian person, and does not constitute an
advertisement of any securities in Russia. This information must not be passed
on to third parties or otherwise be made publicly available in Russia. The
securities referred to herein have not been and will not be registered in
Russia or admitted to “placement” and/or “public circulation” in Russia. The
securities are not intended for “placement” or “circulation” in Russia except
and to the extent permitted by Russian law.

Contact:

OAO Novatek