TATNEFT : and ALLUR Held a Ceremony of Commencing the Construction of a Tyre Manufacturing Factory in Kazakhstan

The factory will produce 3 million passenger car tyres and 500,000 solid steel cord tyres.

Today a ceremony was held to start the KamaTyresKZ factory construction for the production of automobile tyres, which is a joint venture of TATNEFT Group and Allur in the city of Saran, Karaganda region. The construction is scheduled for completion in 2022. The investments in new production facilities will amount to 125 billion tenge or $ 284 million.

The project for the construction of a new tyre factory in Kazakhstan is aimed at implementing the Strategy for the economic integration of the countries of the Eurasian Union and increasing the export potential of the Republic of Kazakhstan.

The event was attended by Askar Mamin, Prime Minister of the Republic of Kazakhstan, Rustam Minnikhanov, President of the Republic of Tatarstan, Nail Maganov, General Director of TATNEFT, Andrey Lavrentyev, Chairman of the Board of Directors of the Allur Group of Companies, Alik Aidarbayev, Chairman of the Management Board of NC KazMunayGas.

TATNEFT presented the technological and innovative potential of the Company at the ceremony and confirmed its readiness to ensure the construction process performance in accordance with the best world practices in the implementation of large investment projects. The project partners are the world's leading manufacturers of the equipment for the tyre manufacturing industry and the largest contractors in the Republic of Kazakhstan. There will be up to 2 thousand persons engaged at the construction site of the factory during the peak period.

A teleconference was also held with the production site of the KAMA TYRES in Nizhnekamsk and employees of the future enterprise undergoing training at the tyre enterprises of TATNEFT. About 500 professionals from Kazakhstan will undergo training and retraining by the time the factory starting production operations.

The new factory will employ over 1,100 persons in 2025. The tyre manufacturing factory products will be supplied for the primary equipment of cars in Kazakhstan, which will increase the localization of related industries, provide import substitution, while the plans provide for about 40% of the product output to be exported.

Prime Minister of the Republic of Kazakhstan Askar Mamin:

'Cooperation with the Republic of Tatarstan occupies a special place in the strategic partnership between Kazakhstan and Russia.

I would like to express my special gratitude to Rustam Nurgalievich Minnikhanov, President of Tatarstan, for his continuous personal support of our interaction.

We aim at further expansion of industrial cooperation.'

President of the Republic of Tatarstan Rustam Minnikhanov:

'Kazakhstan is one of the leading foreign partners of Tatarstan.

The cooperation of TATNEFT Company with Kazakhstan is one of the examples of successful joint efforts. There are tyre projects, projects for geological exploration, development of oil fields, oilfield service projects being implemented; various fuels, as well as fiberglass products are delivered to your country.'

I am sure that this production will become an important element of the package of measures to ensure the intensive socio-economic development of Kazakhstan. It will also serve to further expand the Tatarstan-Kazakhstan cooperation for the benefit of strengthening relations between the Russian Federation and the Republic of Kazakhstan.'

Nail Maganov, General Director of PJSC TATNEFT:

'Joint projects in Kazakhstan prove once again that our fraternal peoples are united by great friendship. Implementing the new production works, we are strengthening the foundation of a single Eurasian economic community.

There are many plans. Our partnership is growing stronger. We see common prospects in a variety of areas, including the development of oil and gas production and as well as that of the petrochemical industry. '

I am sure that we will achieve all the goals that we face by applying joint efforts, as long as our words are always consistent with our deeds. '

Reference Information

PJSC TATNEFT is one of the largest Russian vertically integrated oil companies, which dynamically develops oil and gas production, oil refining, petrochemicals production, a tyre manufacturing complex, operates a network of filling stations, power engineering, development and production of equipment for the oil and gas industry and a block of service structures.

TOO KamaTyresKZ is a joint venture established in Kazakhstan by OOO Tatneft-Neftekhim Management Company and OOO Allur Tyres in October 2020 with the aim of organizing the tyre production in the Saran city of the Republic of Kazakhstan.

JSC Allur Group of Companies is a shareholder of OOO SaryarkaAvtoProm, which is the largest car manufacturer in Kazakhstan, an official distributor, manufacturer and the dealer of JAC, Ankai, Chevrolet, KIA, AvtoVAZ, UAZ and MAN brands in the territory of the Republic of Kazakhstan.

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.