On March 5, 2005, OAO Tatneft issued the following press release:

OAO Tatneft announces restatements of its US GAAP financial statements

OAO Tatneft announces that the Company has identified errors related to deferred tax expense and depreciation, depletion and amortization expense in its previously issued audited financial statements prepared under US GAAP. The errors resulted in an understatement of expenses of approximately 2.3 billion Russian Rubles (U.S.$ 73.4 million) in 2002 and 0.2 billion Russian Rubles (U.S.$ 6.9 million) in 2001 (relating to depreciation, depletion and amortization expense only), and corresponding overstatements of net income under US GAAP in those years. The cumulative impact of the error related to depreciation, depletion and amortization expense on years earlier than 2001 was less than 0.7 billion Russian Rubles.

The Company will also make adjustments to its previously published interim unaudited financial statements prepared under US GAAP for the first six months of 2003, including, inter alia, the effect of the error referred to above in the calculation of deferred tax expense for 2002, which resulted in an understatement of US GAAP net income for the first six months of 2003 of approximately 2 billion Russian Rubles (U.S.$ 64.0 million). The Company will also make other adjustments in these interim unaudited financial statements identified in the course of the audit of its U.S. GAAP financial statements for 2003 which, in aggregate, are not expected to be material to the Company’s net income in that reporting period.

The identification of these errors was not connected with any review by the Russian or Tatarstan Tax Authorities or compliance by OAO Tatneft with Russian or Tatarstan tax laws. Nor was it connected with the investigation being conducted by Kennedys, special counsel to the Audit Committee of the Board of Directors of OAO Tatneft, of certain transactions identified by the Company’s external auditors.

OAO Tatneft will release its restated interim unaudited financial statements for the first six months of 2003 and its restated audited financial statements for 2002 and 2001 when it publishes its audited US GAAP financial statements for 2003. The Company expects the audit of the Company’s financial statements prepared under US GAAP for the year ended 31 December 2003 to be completed after the results of the investigation by Kennedys have been assessed. OAO Tatneft will publish its audited financial statements prepared under US GAAP for the year ended 31 December 2003, and file its annual report on Form 20-F for 2003 with the US Securities and Exchange Commission, upon completion of the 2003 audit.

The Company has been in active communication with the New York Stock Exchange (the “NYSE”) throughout the finalization of the audit of its financial statements for 2003 and is aware of the NYSE’s policy regarding the late filing of Annual Reports on Form 20-F.

Forward-looking statements: This press-release contains certain forward-looking statements of OAO Tatneft. OAO Tatneft can give no assurance that any of the events mentioned in such statements will occur, or as to the precise timing of their occurrence.

Currency translation: U.S. dollar amounts for each of 2001, 2002 and the first six months of 2003 have been derived from the corresponding Russian Ruble amounts using the average exchange rate for the relevant period.