TATNEFT : Strengthens Cooperation with Kazakhstan

The Company and the Government of the Republic of Kazakhstan signed an Agreement on the principles of participation in the development of the mechanical engineering industry of the Republic of Kazakhstan.

The document was signed by Roman Sklyar, Deputy Prime Minister of the Republic of Kazakhstan, and Nail Maganov, General Director of PJSC TATNEFT, Andrey Lavrentyev, Chairman of the Board of Directors of JSC Allur Group of Companies and Directors of the companies participating in the joint venture TOO KamaTyresKZ.

The agreement contains measures of state support for the project to create a modern high-tech production of automobile tyres in the Republic of Kazakhstan, including co-financing of the project, the provision of tax preferences, as well as the implementation of a set of measures to protect the tyre products market in the Republic of Kazakhstan and support the domestic manufacturer, as well as a number of measures to protect the rights and interests of TATNEFT as a foreign investor.

The TATNEFT and Allur joint project implementation provides for the construction of one and the only factory in Kazakhstan for the production of passenger car, light truck and commercial vehicle tyres with a capacity of 3 million passenger and light truck tyres and 500 thousand commercial vehicle tyres per year. Taking into account related industries the start of production in 2022 will create more than 1,150 jobs.

The car tyres will be sent to the primary assembly of cars produced in Kazakhstan, the secondary market, as well as for exporting to neighboring countries.

The document was signed in the in elaboration of the Agreement of Intent on the implementation of a project for the production of automobile tyres within the territory of the Republic of Kazakhstan, which was earlier concluded between PJSC TATNEFT and JSC Allur Group of Companies, as well as an investment agreement between TATNEFT, Allur Group of Companies and Akimat of Karaganda region of the Republic of Kazakhstan.

Nail Maganov, General Director of PJSC TATNEFT:

'Our joint project to create a tyre production in Kazakhstan is successfully developing. huge amount of work has been done Since signing the Investment Agreement in September this year: the engineering design work is underway, tenders for the main technological equipment are being arranged. We are planning to go to the construction site in the spring.

We have signed an Agreement today aimed at creating a favorable investment climate and protecting the rights and interests of investors in the Republic of Kazakhstan. I am sure that this agreement will become an incentive for further large-scale strategic partnership in other areas, including the involvement the development of high-viscosity oil fields, using equipment, materials and technologies developed in Tatarstan.

A common understanding of the developing industrial cooperation between Kazakhstan and Tatarstan importance is the key to the success of our cooperation and allows us to solve the most diverse and complex tasks at the highest technological and organizational level'.

Forward-looking statements: This press release contains certain statements regarding future events and expectations, which are forward-looking in nature. Any statement in this press release that is not a historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ materially ... PJSC TATNEFT shall assume no obligation to update such forecasts to reflect actual results, changes in assumptions or changes in factors affecting these statements.

For your reference:

PJSC TATNEFT is one of the largest Russian oil companies, which steadily develops oil and gas production, crude oil refining, production of petrochemicals, operation of a tyre manufacturing complex, a operates network of filling stations, electric power generation, development and production of equipment for the oil and gas industry and a block of service structures. TATNEFT is one of the largest Russian public companies with a market capitalization of over USD 28 billion at the end of 2019.

Allur Group of Companies JSC is a shareholder of the largest car manufacturer in Kazakhstan TOO SaryarkaAvtoProm, an official distributor, manufacturer and dealer of JAC, Ankai, Yutong, Chevrolet, Ravon brands, Hyundai, Niva Chevrolet, UAZ and MAN brands in the territory of Kazakhstan.