2009 Taif-Nk English

CONTENTS
Reliability
is the property ofanobject
to maintain through time the values
of all parameters within fixed limits.
Thenotion of reliability is intuitively associated
with impermissibility of any failures during operation.
Scientists have created a whole theory of reliability which
is based upon a number of factors such as operational
availability, high accessibility, durability, operating capability,
and conservability. These properties are also deemed to be
an indicator of stable operation of a company, an enterprise
orabank since the stable operation guarantees reliable and timely
fulfillment of commitments made. What else makes a company
reliable? Its a sound financial position that enables the company
not only to survive the crisis but also todevelop, move onward
and implement new projects. Itsavailability of highly qualified
management, a well thought-out strategy and sufficient
resources. That is why the company recognizes and respects
those values only that have been proved in practice. Being
reliable does not mean tomerely possess knowledge
and practical experience gained over years but
also to do for the generations to come the
same things that the previous
generations did for us
reliably.
General Director's Message
Chapter I. Oil Refining in Russia
Chapter II. Companys Standing in Oil Refining Industry
12
Chapter III. Technical and Economic Performance
20
Chapter IV. Industrial Safety and Personnel Health Issues
32
Chapter V. Integrated Management System
38
Chapter VI. Social and HR Policy
42
Chapter VII. Companys Development Prospects
48
Chapter VIII. Corporate Management Structure
52
Chapter IX. Major Risks Associated with Companys Businesses
60
Chapter X. Financial Statements
66
Company's Contact Details
72
General Directors Message
Dear Shareholders, Investors and Business Partners!

I bring herewith to your attention TAIF-NK 2009 Annual Report which summarizes the results of the Companys core
business activities over the reporting period. The previous year was rather challenging, however it was the period of the
Companys steady progress. We proved our reliability as an investment oriented company. We significantly strengthened
our processing capability, with having achieved unprecedented results in a variety of activities.
In 2009 the Company's units refined as much as 8,059.6 thousand tons of crude oil. The primary feedstock refining
capacity utilization averaged 100.7% over the reporting period.
The crude refining cost dropped by 1.83% in 2009 vs. 2008. The oil product output equaled RUB 74.9 bln.
Motor gasoline supply within the Republic of Tatarstan increased to 46% in 2009 up from 37% in 2008, with this type
of fuel having high quality and meeting EURO-4 requirements.
In 2009 the total amount of tax charges paid by the Company to all level budgets and non-budgetary funds equaled
RUB 14.8 bln.
Net proceeds made up RUB 617 mln at year end. The amount of dividends paid out of the previous years revenues
made up RUB 2.5 bln.
We put into commercial operation own TAME and MTBE Units in order to obtain high-octane blending components
for gasoline production. The manufacture of TAME and MTBE furthered enhancement of motor gasoline quality and
helped lessen the Companys dependence on external suppliers of octane-increasing components.
We have moved to the next stage of the Companys strategic development by proceeding to the Heavy Residue
Conversion Complex (HRCC) Project implementation. The HRCC Project will allow maximization of the Companys earning
power along with strengthening the resistance to external risks and supplying the feedstock to TAIF Group subsidiaries
inlight of the petrochemical enterprises development program.
Launching of the Heavy Residue Conversion Complex is supposed to expand the Companys oil refining throughput
from the current 7 mln tpa up to 9.1 mln tpa and increase the production of straight-run gasoline by 59%, motor gasoline
by 38%, diesel fuel more than twofold.
We are optimistic about the future since the period of economic slump is not just the time of losses but the time
ofnew potentialities for realization of which we have everything at our disposal as far as we have the time which can
be used for making a decisive dash and we have efficient and united personnel as well as cutting edge technologies
available.
Looking back at the previous year and summing up the results attained I would like to emphasize that the tasks
weve got will demand maximum concentration of our efforts. We will have to demonstrate not only the flexibility and
ability to keep the high level of results but also the capability to adequately and effectively respond to the challenges
ofthemodern world.
I am sure we are bound to be successful.
Alexander A. Babynin
TAIF-NK General Director
To be reliable is...
is to provide backup
Chapter I
Oil Refining in Russia
ANNUAL REPORT PSC TAIF-NK 2009
The oil refining industry is the most important secToday the Russian oil refining
tor
intheoil
complex. It is the industry that determines efficiency
sector is presented by twenty seven
largest refineries ofthe use ofhydrocarbons as feedstock. Its proper functioning assures
adequate satisfaction of the Russian market demand for motor fuels,

lubricants and other oil products without which normal functioning
of transport infrastructure, economic and strategic safety on the state
level would be impossible.
Today the Russian oil refining sector is presented by twenty seven largest refineries. The location of oil refining plants within theRussian Federation is determined by the peculiarities of the oil refining
industry development in the Soviet Union time. Therefore most of the
refineries in Russia were constructed during the period of late 1940s till
mid 1960s when location of new construction sites was selected sothat
future oil refining facilities were in close proximity to the places of oil
product concentrated consumption like Ryazan Region, Yaroslavl Region, Gorky Region, Leningrad Region, the Krasnodar Territory and Siberia where two largest refineries in Omsk and Angarsk were built.
At the same time the redundant oil production grew in the Urals and
the Volga region, in particular, a number of new refineries were built
inBashkiria, Samara and Perm Regions. The situation was determined
by the fact that the Urals and the Volga regions represented thebiggest
crude oil stock production centers until late 1960s.
It was Achinsk refinery commissioned in 1982 that became
the first refining plant in Russia constructed after 1966. Besides,
in 1979 JSC Nizhnekamskneftekhim mastered crude oil processing
with a view to satisfy the need of feedstock for downstream production of petrochemicals.
Russia is the 4th country in the world in terms of the crude
intake and the 3rd after the USA and China in terms of the refining
capacity.
It is worth noting that today the average oil conversion rate
obtained at Russian refineries varies between 7172% which isanevidence of high residual oil content in the oil products. For reference, the
oil conversion rate in Europe comes up to 85-90%, whileintheUSA
itis 95%.
Chapter I
Crude oil refining dynamics in Russia
190
195
211
220
229
236
236
mln tons
mln tons
mln tons
mln tons
mln tons
mln tons
mln tons
2003
2004
2005
2006
2007
2008
2009
Sources:
1. InfoTECH. Oil & Gas Bulletin, Issue 1 2008, Issue 1 2009, Issue 1 2010;
2. Federal State Statistics Service of the Russian Federation and Federal State Unitary Enterprise
Fuel and Energy Complex Central Dispatch Service.
Russian plants utilize nearly all range of refining technologies

employed throughout the world. However, the proportion between
thetechnologies that allow increasing the oil conversion rate thus improving the quality of fuels and the technologies that relate to the primary crude distillation is considerably lagging behind the global rates.
Upgrading of refining capacities and increase of oil conversion
rate are the matter of top priority for the national industry. Modernization of the refining and petrochemical sectors will allow making
the best use of the two competitive advantages of Russia: high scientific and technical potential and rich reserves of hydrocarbons. Asfar
astherefining sector, application of the latest scientific and technological achievements will produce the tangible business effect since
up-to-date approaches can make it possible to offer considerably
more expensive and higher quality products in the domestic and world
markets. The switch from feedstock exporting to end product exporting will allow Russia to change its status of a feedstock supplier and
obtain substantially higher revenues from the export sales, while the
refiners can achieve the synergic effect as a result of reduced invest-
From the strategic viewpoint

it is essential for the refining sector
to address the issue of efficient
refining of the so-called heavy
residues
Chapter I
ments and operational costs, utilization of land resources, improved

logistics, industrial design engineering, enhanced environmental
characteristics and industrial safety.
From the strategic viewpoint it is essential for the refining
sector to address the issue of efficient refining of the so-called heavy
residues. Development of the oil refining industry as a middle level
chain in the oil-gas-chemical complex of the Republic of Tatarstan
is meant for diversification and damping of the oil-gas-chemical
complex against any negative influence of the market. The known
strategic sensitivity of the regional oil exploration and production
sector linked to the high volume of very heavy, sulfurous and scavenger crude in theoverall oil production structure can partly be leveled
by the growing volume of intraregional crude refining and production
ofpetrochemical products. It also corresponds to the worldwide trends
in terms ofwider use of hydrocarbons for petrochemicals production
as well as higher integration and interrelationship between oil production, refining and petrochemical sectors in the single complex
ofplants, assets and managerial functions.
Oil refining development projects bring about a pronounced
social and economic effect which is associated with the contribution
into the regional and national gross output by way of installing new
production capacities, with the increase in budget system revenues,
with creation of new workplaces, with the growing degree of effectiveness and innovativeness of the economy. The direct effect is supposed to be produced by greenfield projects envisaged for construction of new refining and petrochemical facilities, whereas the indirect
effect will be produced by development of a cluster based on newly
installed capacities and including the production units within various
industry sectors and economy as a whole taking into account science
and education as well.
Russian Refineries Overview: Oil Conversion Rates

2009
Company / Plant
Crude Intake,
thousand tons
Residual
Oil Yield,
thousand tons
Novo-Ufimsky Refinery
6,641.0
Omsk Refinery
18,431.7
Ufaneftekhim
7,590.2
Volgogradneftepererabotka
11,259.3
Permnefteorgsintez
12,654.8
Ukhtaneftepererabotka
4,242.8
Ufimsky Refinery
6,515.2
Angarsk Petrochemicals Company 9,534.0
TAIF-NK
8,059.6
Salavatnefteorgsintez
5,643.1
Moscow Refinery
10,002.6
Novokuibyshev Refinery
7,362.0
Saratov Refinery
5,761.1
Ryazan Refinery
14,372.7
Kirishinefteorgsintez
20,416.0
Yaroslavnefteorgsintez
13,628.2
Syzran Refinery
6,385.5
Achinsk Refinery
7,101.9
Nizhegorodnefteorgsintez
15,797.4
Khabarovsk Refinery
2,987.5
Orsknefteorgsintez
5,089.8
Komsomolsk Refinery
7,299.8
Kuibyshev Refinery
6,665.8
KrasnodarEkoneft
2,461.0
Tuapse Refinery
5,221.2
Afipsky Refinery
2,602.3
Total for Russia
235,728.4
2001
Oil Conversion
Rate
Rating
2007
2008
Oil Conversion Rate

%
759.8
2,332.8
1,080.6
1,919.8
2,315.4
809.4
1,355.7
2,247.9
2,055.2
1,446.0
2,604.9
2,044.0
1,632.4
4,643.5
6,687.1
4,480.7
2,136.3
2,592.6
5,832.8
1,103.8
1,909.9
2,815.0
2,757.9
1,032.7
2,266.4
1,208.0
87.1
85.8
84.3
81.4
80.2
79.4
77.7
74.9
73.3
72.9
72.5
70.7
70.2
66.2
65.7
65.6
65.0
62.0
61.6
61.6
61.0
59.9
57.1
56.5
55.1
52.1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
19
20
21
22
23
24
25
72.0
82.8
75.5
81.7
83.2
59.2
77.0
76.4
44.4
64.1
67.5
74.5
64.0
61.4
61.6
62.6
69.2
66.4
62.6
65.4
67.3
58.1
67.4
62.4
56.1
52.3
80.0
84.4
76.9
81.5
85.2
76.0
80.1
78.2
71.1
78.1
59.7
71.0
70.8
66.3
66.5
66.8
68.9
61.1
64.6
61.6
62.8
60.8
62.9
59.8
56.5
52.4
85.2
81.9
79.5
80.7
83.7
81.1
78.3
77.8
74.1
77.8
66.4
70.7
72.2
66.6
65.5
66.1
66.3
62.2
63.4
61.6
59.9
58.5
59.4
55.4
55.4
50.4
64,433.5
71.2
67.6
71.7
71.5
Sources:
1. InfoTECH Oil & Gas Bulletin, Issue 1 2008, Issue 1 2009, Issue 1 2010;
2. Refiners and Petrochemical Association;
3. TAIF-NK Proprietary Data.
10
11
to be a guide
Chapter II
Companys Standing
in Oil Refining Industry
The Companys aggregate crude

intake amounts to 8mlntpa,
with the CDU/VDU design
capacity of7mln tpa and
theGasCondensate Processing
Plant design capacity of 1 mln tpa
14
Companys Standing in Oil Refining Industry
Chapter II
TAIF-NK at present is the heart of oil refining in the Republic

of Tatarstan, being known as a producer of a wide range of oil products. The Companys aggregate crude intake amounts to 8 mln tpa,
withtheCDU/VDU design capacity of 7 mln tpa and the Gas Condensate Processing Plant design capacity of 1 mln tpa.
Despite the location in Tatarstan, the Company is situated
within the area of highly concentrated refining capacities. Therefineries which operate in the neighboring regions have sufficient resources
topromote oil products (namely, gasoline and diesel) to the Tatarstan
market.
Meanwhile the gasoline produced by the Company isadvantageously more competitive since the product meets the EURO-4
requirements. Furthermore, there are resources available for 100%
production of EURO-4 certified diesel fuel.
During 20082009 there was a growth in saleable product
output by 3% and 5% correspondingly. At that diesel fuel, straightrun gasoline, aviation kerosene and motor gasoline accounted for the
largest percentage (more than 50%) in the Company's saleable product structure.
In 2009 the Company put into operation own TAME and MTBE
units designed for production of high octane blending components
to obtain high quality gasoline under the Company's oil product upgrading program. The launch of the TAME and MTBE units furthered
advancement of the qualitative parameters of motor gasoline, helped
lessen the Company's dependence on suppliers of octane-increasing
components as well as improve the technical and economic performance in terms of motor fuels production.
In July 2009 the Company commenced commercial production of RT grade jet fuel. The event was preceded by successful passing the flight testing and obtaining the certificate of compliance with
the requirements imposed on superior grade oil products. Consequently, theRT grade jet fuel produced by the Company gained anaccess totheRussian market, while the Company got the right to sell
theproduct toa wide range of inland customers.
The scientific and methodological support of the RT grade

jet fuel production at the Company's facilities along with monitoring of the use of RT grade jet fuel in aircrafts were provided under
theguidance of FSUE SRDE of Civil Aviation (FGUP GosNII GA). To that
end anumber of the Tatarstan Airlines' aircrafts were used for testing
theRT grade jet fuel under the Monitoring Programme of TAIF-NK's
RT Grade Jet Fuel Use for Civil Aircrafts According to GOST 10227-86.
During 20082009 there

was agrowth in saleable
product output by 3% and 5%
correspondingly
TAIF-NK Saleable Product Structure

Product
Quantity
tons
Percentage
%
Quantity
tons
2007
Percentage
%
2008
Quantity
tons
Percentage
%
2009
Diesel Fuel
Straight-Run Gasoline
Kerosene / Aviation Kerosene
Road Bitumen
Motor Gasoline
Vacuum Gas Oil
Heating Oil
Residual Oil (Mazut)
Others
1,714,843
1,238,844
384,093
60,386
488,692
690,873
413,575
1,959,429
280,677
23.7
17.1
5.3
0.8
6.8
9.6
5.7
27.1
3.9
1,918,103
1,333,858
268,959
75,202
627,050
662,055
382,318
1,871,598
295,228
25.8
17.9
3.6
1.0
8.4
8.9
5.1
25.2
4.0
1,980,706
1,453,728
374,972
65,746
549,361
599,342
451,918
2,055,234
266,078
25.4
18.6
4.8
0.8
7.0
7.7
5.8
26.4
3.4
Total
7,231,412
100.0
7,434,371
100.0
7,797,083
100.0
15
Chapter II
Oil Product Output Structure in Russia during 20072009

Item
No.
Company/plant
Diesel Fuel
2007
1 Angarsk Petrochemicals Company 2,802.0

2 Afipsky Refinery
673.8
3 Achinsk Refinery
2,037.6
4 Volgogradneftepererabotka
2,458.3
5 Kirishinefteorgsyntez
4,849.1
6 Komsomolsk Refinery
1,829.4
7 Krasnodareconeft
804.7
8 Kuibyshev Refinery*
2,225.6
9 Moscow Refinery
2,777.3
10 Nizhegorodnefteorgsintez*
4,035.6
11 Novokuibyshev Refinery*
2,144.0
12 Novo-Ufimsky Refinery*
2,260.1
13 Omsk Refinery
5,261.7
14 Orsknefteorgsintez*
1,340.2
15 Permnefteorgsintez*
3,687.4
16 Ryazan Refinery
4,016.8
17 Salavatnefteorgsintez*
2,332.7
18 Saratov Refinery*
1,850.1
19 Syzran Refinery*
2,067.0
20 TAIF-NK*
1,716.3
21 Tuapse Refinery
1,764.5
22 Ufaneftekhim*
2,619.3
23 Ufimsky Refinery*
2,225.4
24 Ukhtaneftepererabotka
1,127.2
25 Khabarovsk Refinery
533.6
26 Yaroslavnefteorgsintez
3,810.3
27 Tatneft (mini-refinery)*
74.8
28 Maryisky Refinery*
342.7

Total for Tatarstan Republic
1,791.1

AIF-NK share. %
95.8
Total for the PFR**
28,921.2

TAIF-NK share. %
5.9
Total for the Russian Federation 66,354.0

TAIF-NK share. %
2.59
* are included into the Privolzhsky Federal Region (VFD)
** Privolzhsky Federal Region
16
Motor Gasoline
2008
2009
2007
2,994.4
651.9
2,152.5
2,876.5
5,013.4
1,984.6
823.6
2,186.9
2,674.3
4,126.0
2,119.5
1,770.0
6,051.5
1,356.5
3,902.1
4,089.8
2,245.5
1,971.3
1,997.4
1,918.6
1,771.5
3,305.3
2,179.8
1,021.9
644.2
4,145.4
104.8
208.1
2,907.0
780.0
2,295.6
3,200.0
5,002.4
2,095.1
818.5
2,203.6
2,675.4
3,856.8
2,106.1
1,907.4
5,677.7
1,414.3
4,084.3
3,765.1
1,804.4
1,672.2
2,100.3
1,980.7
1,706.0
3,227.7
2,087.0
1,137.9
319.0
3,728.6
98.9
41.6
1,272.0
-
1,129.8
1,165.5
2,198.1
458.9
-
1,070.9
2,305.4
1,986.0
1,091.7
1,672.2
3,488.6
731.1
1,401.3
3,078.0
841.4
805.8
1,046.3
489.1
269.6
1,740.4
1,497.1
355.9
344.6
2,289.3
58.3
-
1,269.9
-
1,208.2
1,461.2
2,333.6
449.7
-
981.2
2,175.2
1,987.9
1,070.2
1,440.7
3,610.4
684.6
1,645.6
3,126.8
731.3
841.2
970.9
627.5
258.0
2,035.5
1,545.9
303.6
341.7
2,283.7
68.6
-
1,285.2
-
1,205.5
1,482.5
2,378.1
403.0
-
974.3
2,321.7
2,047.9
1,097.6
1,337.4
3,639.2
715.6
1,765.4
2,765.8
745.5
781.3
979.6
549.4
221.9
2,003.8
1,676.8
394.1
399.1
2,325.4
70.2
-
2,079.6
547.4
95.2
89.35
28,585.3 14,431.6
6.9
3.39
67,348.4 35,105.4
2.94
1.39
696.1
90.15
14,631.1
4.29
35,746.1
1.76
619.6
88.67
14,744.8
3.73
35,775.9
1.54
2,023.4
94.8
29,391.8
6.5
69,019.2
2.78
2008
Aviation Kerosene
2009
2007
Straight-run Gasoline
Residual Oil (Mazut)
2008
2009
2007
2008
2009
2007
2008
469.8
3.5
325.6
860.7
741.1
320.3
59.3
-
531.1
815.3
311.4
74.9
1,273.8
248.9
758.9
888.3
-
-
174.5
-
-
-
-
18.1
186.1
700.6
-
-
422.5
30.3
340.2
931.8
779.8
328.4
58.3
-
554.4
878.1
344.2
71.9
1,244.7
284.5
775.8
888.3
-
-
149.8
44.7
-
-
-
26.7
208.6
737.3
-
-
159.4
46.6
282.4
900.2
743.4
276.1
47.9
-
617.0
648.9
345.1
20.8
1,333.6
278.9
675.7
831.8
-
-
32.5
77.4
-
-
-
32.1
157.7
746.8
-
-
65.0
567.0
168.0
551.2
-
792.8
495.2
92.3
198.5
226.6
177.1
180.6
-
48.4
334.6
128.2
347.5
141.2
223.0
1,238.8
756.0
-
643.5
163.4
269.4
461.8
-
158.9
514.0
508.6
172.8
380.5
-
854.9
509.5
152.2
170.8
120.1
186.2
504.0
-
38.8
519.6
18.1
338.9
69.2
266.6
1,333.9
769.4
-
516.9
186.5
352.8
493.7
-
134.6
528.7
505.4
301.7
392.5
-
1044.8
502.2
178.5
241.1
68.6
177.6
377.3
-
45.7
507.0
-
277.2
-
242.6
1,453.7
839.8
-
526.0
121.4
183.0
608.8
-
122.6
2,089.2
1,284.8
2,327.3
2,005.7
6,440.8
2,775.7
957.5
2,452.6
2,621.2
5,981.3
2,014.2
1,097.6
3,610.9
1,847.8
1,745.4
4,690.7
1,342.1
1,503.4
1,973.0
1,959.4
2,262.0
1,270.2
1,234.3
986.0
1,179.6
3,979.5
-
103.7
1,969.3
1,189.8
2,458.7
1,916.9
6,749.4
2,913.6
1,113.1
2,511.8
2,647.5
5,874.6
2,064.8
898.8
3,052.5
1,897.1
1,833.4
4,749.3
1,321.1
1,746.5
2,086.8
1,875.6
2,254.9
1,422.4
1,244.4
660.2
1,247.3
4,370.8
-
274.8
-
-
2,383.9
-
9,007.8
-
44.7
100.0
2,549.0
1.75
9,335.6
0.48
77.4
100.0
2,079.3
3.72
8,490.8
0.91
1,238.8
100.0
3,590.2
34.51
11,863.9
10.44
1,333.9
100.0
3,879.1
34.39
10,182.0
13.10
1,453.7
100.0
3,528.8
40.61
10087.3
14.41
1,959.4
100.0
24,525.0
7.99
62,434.0
3.14
2009
2,247.9
1,208.0
2,592.6
1,919.8
6,687.1
2,815.0
1,032.7
2,757.9
2,604.9
5,832.8
2,044.0
759.8
2,332.8
1,909.9
2,315.4
4,643.5
1,446.0
1,632.4
2,136.3
2,055.2
2,266.4
1,080.6
1,355.7
809.4
1,103.8
4,480.7
395.2
1,875.6 2,055.2
100.0
100.0
25,052.1 25,721.2
7.49
7.99
63,901.4 64,433.5
2.94
3.19
Sources:
1. InfoTECH Oil & Gas Bulletin, Issue 1 2008, Issue 1 2009, Issue 1 2010;
17
The design capacity

oftheCompanys RT grade
jet fuel production line
is 610 thous tpa.
TAIF-NKis planning
to increase the output
up to 1.6 mln. tpa by 2016
Based on the successful outcome of the RT grade jet fuel testing within the scope of GOST 10227-86 as well as a comprehensive
toolbox of qualification assessment and successful monitoring of use
of the jet fuel in civil aircrafts during 20082009, Federal Agency ofAir
Transport (Rosaviation) recommended that the TAIF-NK's RT grade jet
fuel should be used in civil air-crafts without any restrictions. FSUE
SRDE of Civil Aviation (FGUP GosNII GA) issued the Compliance Certificate thereby recognizing the Company's product conformity with
theTechnical regulations on motor gasoline, aviation gasoline, diesel
and marine fuels, jet engine fuels and residual oil as well as GOST
10227-86 requirements.
The design capacity of the Companys RT grade jet fuel production line is 610 thous tpa. TAIF-NK is planning to increase the output
up to 1.6 mln. tpa by 2016.
With the view of diversification and satisfaction of consumer's
aviation fuel demand TAIF-NK in 2009 successfully carried out a certification procedure aimed to ascertain usability of the Company's aviation fuel for Jet A -1 jet engines.
TAIF-NK Saleable Product DIAGRAM for 2009

Residual Oil
(Mazut) 26,4%
Road Bitumen 0,8%

Others Products 3,4%
Kerosene
Aviation Kerosene 4,8%
Diesel Fuel 26,4%
Chapter II
Heating Oil 5,8%
In light of the Companys Jet A-1 aviation fuel commercial production programme the following arrangements were made:
TAIF-NK Jet A-1 aviation fuel certification was carried out, subsequently a compliance certificate was obtained to confirm fulfillment of requirements of the Technical regulations onmotor
gasoline, aviation gasoline, diesel and marine fuels, jet engine
fuels and residual oil as well as GOST 10227-86 requirements;
international inspection of Jet A-1 fuel production was conducted at the Company by I inspectors.
The oil product testing

has been completed
with positive outcome.
Declarations of oil product
conformity with
the Technical Regulations
have been issued toTAIF-NK
TAIF-NK now is ready for commercial production of Jet A-1

aviation fuel.
Since the Technical regulations on motor gasoline, aviation
gasoline, diesel and marine fuels, jet engine fuels and residual oil
became effective TAIF-NK carried out a variety of activities pertaining
to oil product compliance verification against the requirements envisaged in the Technical Regulations. The work was conducted incooperation with representatives of ZAO RSMT Test-Tatarstan and JSC
Volga Raw Hydrocarbons Research Institute Test Center for Crude Oils,
Oil Products and Gases.
The oil product testing has been completed with positive outcome. Declarations of oil product conformity with the Technical Regulations have been issued to TAIF-NK.
In 2009 TAIF-NK started production of diesel fuel containing
anti-wear additive and recommended for Emission Class 2 automotive
vehicles.
Owing to the positive results after testing in the JSC Volga
Raw Hydrocarbons Research Institute Test Center for Crude Oils, Oil
Products and Gases TAIF-NK obtained declarations of conformity
forsummer diesel fuel L-0,05-62 and winter diesel fuel Z-0,05-35 confirming fulfillment of requirements of the Technical Regulations.
Motor Gasoline 7%
Straight-Run Gasoline 18,6%
18
Vacuum Gas Oil 7,7%
19
to stand up
tothecircumstances
Chapter III
Technical
and Economic
Performance
Technical and Economic Performance
Chapter III
Over the reporting year

theCompanys refining throughput
amounted to 8,059.6 thousand tons
for feedstock, which made up 105%
of the 2008 throughput
Notwithstanding the negative economic environment caused

by the global recession the Company during the reporting year managed not only to maintain its position but also improved a number
ofsignificant performance indicators.
Over the reporting year the Companys refining throughput
amounted to 8,059.6 thousand tons for feedstock, which made up
105% of the 2008 throughput. The primary crude oil capacity utilization averaged 100.7% in 2009. At year end the Companys CDU/VDU
(Primary Crude Oil Distillation Unit) was operated at 104.2%, while
the Gas Condensate Processing Unit was operated at 76.4%.
In 2009 the catalytic cracking unit (FCCU) installed at theCompanys Gasoline Plant processed 935 thous tons, with the FCCU capacity of 880 thous tpa. Thus, the FCCU capacity utilization averaged 106%
over the reporting year.
Designed for the vacuum gasoil cracking reaction using
themicrospherical zeolite-containing catalyst, the FCCU was put into
operation in 2005 with a view to obtain such products as:
- high-octane blending component of commercial gasoline;
- butane-butylene fraction;
- propane-propylene fraction;
- light cycle oil;
- heavy cycle oil;
- dry hydrocarbon gas;
- sour (H2S containing) gas.
FCCU Capacity Utilization
TAIF-NK Capacity Utilization
8,000,000
tons
8,000,000
In 2009 the Company produced

549.4 thous. tons of gasoline
and 1,980.7 thous tons of diesel fuel,
of which 431.7 thous tons of gasoline
and 765.9 thous tons of diesel
fuel was supplied to the domestic
market, while 127.2 thous tons
of gasoline and 1,186.0 thous tons
of diesel fuel was exported
8,059,619
tons
721,260
849,960
934,643
2007
2008
2009
tons
tons
tons
tons
8,000,000
tons
7,556,008
7,672,020
tons
tons
2007
Total Design Throughput Capacity for Feedstock
Feedstock Throughput Volume
22
2008
2009
FCCU Capacity = 880 thous tpa

23
Chapter III
The gas condensate processing unit (GCPU) installed

The Companys light oil
attheCompanys
Gasoline Plant and featuring the throughput capacproduct output increased
in 2009 and made up 63.48% ity of 1 mln tpa processed 764.5 thous. in 2009. Thus, the GCPU capacity utilization averaged 76% over the reporting period.
as compared to 2008
The GCPU is designed for processing gas condensate feedstock
with a view to obtain the following range of products:
- straight-run gasoline;
- stable gaseous gasoline;
- diesel fuel;
- propane-butane fraction;
- residual oil (mazut).
The Companys light oil product output increased in 2009 and

made up 63.48% as compared to 2008
Light Oil Product Sampling at Companys Production Facilities
59.62
63.48
62.60
2007
2008
2009
Light Oil Product Sampling
GCPU Capacity Utilization
505,101
tons
683,219
tons
764,468
tons
During 20072009 the Companys feedstock refining cost was

decreasing. In 2008 there was recorded just a 0.12% drop as compared to 2007, whereas in 2009 the feedstock refining cost went down
by1.83% vs the previous year of 2008.
Companys Feedstock Refining Cost Decrease
100.00
%
99.88
%
98.05
%
2007
2008
2009
2007
2008
GCPU Design Capacity = 1 mln tpa

2009
Refining Cost Index
Over the reporting year the Company produced marketable oil

products in the amount equivalent to RUB 74.9 bln. The sales amount
equaled RUB 74.4 bln. The Companys net proceeds amounted to RUB
617 mln RUB in 2009.
24
25
Chapter III
Consolidated Data: Oil Product Output and Sales During 20072009

2007
2008
2009
Parameters
Thousand tons
Including TAIF-NK
Thousand tons
Including TAIF-NK
Thousand tons
Thousand tons
%
Including TAIF-NK
Thousand tons
Primary Refining

RF*
PFR**
Tatarstan
228,598.3
94,885.4
7720.9
7,556.0
7,556.0
7,556.0
3.3
8.0
97.9
236,301.1
96,970.8
7,876.6
7,672.0
7,672.0
7,672.0
3.2
7.9
97.4
235,728.4
95,511.7
8,244.8
8,059.62
8,059.62
8,059.62
3.4
8.4
97.7
Straight-Run Gasoline
Production

RF
Tatarstan
11,863.9
1,016.5
1,016.5
1,016.5
8.6
100.0
10,182.0
1,032.0
1,032.0
1,032.0
10.1
100.0
10,087.3
1,003.6
1,003.6
1,003.6
9.9
100.0
Motor Gasoline
Production

RF
Tatarstan
35,105.4
547.4
489.1
489.1
1.4
89.4
35,746.1
696.1
627.5
627.5
1.8
90.1
35,775.9
619.6
549.4
549.4
1.5
88.7

Marketing
Export

RF
Incl. Tatarstan
6,096.2
29,457.3
663.6
275.1
205.9
128.3
4.5
0.7
19.3
4,570.3
31,175.8
768.1
236.1
382.5
282.4
5.2
1.2
36.8
4,500.6
31,222.3
809.0
127.2
431.7
373.1
2.8
1.4
46.1
Diesel Fuel
Production

RF
Tatarstan
66,354.0
1,791.1
1,716.3
1,716.3
2.6
95.8
69,019.2
2,023.4
1,918.6
1,918.6
2.8
94.8
67,348.4
2,079.6
1,980.7
1,980.7
2.9
95.2

Marketing
Export

RF
Incl. Tatarstan
32,097.2
34,256.8
855.6
1,028.0
661.7
314.0
3.2
1.9
36.7
33,810.0
35,209.2
958.2
873.6
1,045.9
621.6
2.6
3.0
64.9
37,460.6
31,789.3
936.1
1,186.0
765.9
572.9
3.2
2.4
61.2
Fuel Oil Residue

Production

RF
Tatarstan
62,434.0
1,959.4
1,959.4
1,959.4
3.3
100.0
63,901.4
1,875.6
1,875.6
1,875.6
2.9
100.0
64,433.5
2,055.2
2,055.2
2,055.2
3.2
100.0

Marketing
Export

RF
Incl. Tatarstan
55,374.2
22,400.4
103.1
1,287.7
637.7
66.6
2.3
2.8
64.6
44,037.0
19,864.4
278.8
1,336.3
581.1
224.9
3.0
2.9
80.7
63,850.6
15,882.4
147.3
1,697.6
344.1
30.7
2.7
2.2
20.8
* Russian Federation
** Privolzhsky Federal Region
26
Thousand tons
Sources:
1. InfoTECH Oil&Gas Bulletin, Issue 1 2008, Issue 1 2009, Issue 1 2010.
27
Chapter III
Refining Output
and Sales of Marketable Products
The Port of Caucasus
Over the reporting year the Company produced marketable oil

products in the amount equivalent to RUB 74.9 bln. The sales amount
equaled RUB 74.4 bln. The Companys net proceeds amounted to RUB
617 mln RUB in 2009.
2007 2009 Technical and Economic Performance (RUB MM)
Description
Marketable Product Output

Sales Total
Including Exporting
EBITDA
Accrued Taxes
Profit Before Taxes
Earnings
Assimilated Investment Funds (without VAT)
Net Assets
2007
2008
2009
65,358
64,621
35,241
9,168
10,393
6,086
4,582
8,732
5,436
89,131
89,149
43,793
10,695
15,888
7,100
5,272
2,027
16,557
74,933
74,394
40,499
4,092
12,681
912
617
990
14,770
In 2009 TAIF-NK worked busily on optimization of operation

of the enterprises located within the Port of Caucasus which are SNRG
Logistic Ltd.'s subsidiaries and affiliates.
SNRG Logistic Limited is a TAIF-NKs subsidiary. The efforts
made were aimed at integration of the three terminal companies
to form a single corporation in order to allow significant reduction
ofduplicate managerial functions and maximize the use of labor force
and financial resources. The next year the work described above is going to be continued.
In the reporting year a SNRG Logistic Ltd. Business Plan
oftheCaucasus Port Development Investment Project was worked out
and approved by SNRG Logistic Ltd. shareholders. The criteria specified in the Business Plan will provide the basis for long-term planning
ofterminal companies' operation within the next 5 years.
Key Performance Indicators

of Caucasus Port Enterprises Being SNRG Logistic Ltd. Subsidiaries
SNRG Logistic Ltd. is TAIF-NK's subsidiary
Tax Accruals and Charges

The Company charges and pays taxes and duties in due time
incompliance with the established procedure and according to thetax
and revenue legislation of the Russian Federation. By the aggregate
amount of tax payments due to different level budgets TAIF-NK isone of
the major regional and federal taxpayers. The total aggregate amount
of tax accruals paid by the Company equaled RUB 14.8 bln. in 2009.
In the reporting year a SNRG

Logistic Ltd. Business Plan
oftheCaucasus Port Development
Investment Project was worked out
and approved by SNRG Logistic Ltd.
shareholders. The criteria specified
in the Business Plan will provide
the basis for long-term planning
of terminal companies' operation
within the next 5 years
2009
564.9
2008
378.9
RUB mln
RUB mln
2009
114.5
2008
-167.9
Tax Payments to Budgets (RUB mln)
RUB mln
RUB mln
Budget
Russian Federation Budget

Tatarstan Republic Budget including Budgetary Trust Funds
Local Budget
Total
28
2007
2008
2009
9,478
956
44
12,223
2,627
51
14,578
120
83
10,478
14,901
14,782
Revenues
Net income
29
Chapter III
Regular EURO-92 gasoline

Oil Product Retail Trade
accounts for 76% of the whole
TAIF-NK gas filling stations offer motor fuel of various grades
TAIF-NK's retail sales,
such
as
gasoline Normal-80, diesel fuel recommended for Emission
thus making the essential part
ofthe Company's retail trading Class 2 automotive vehicles, gasoline Regular EURO-92 conforming
tothe EURO-4 requirements, and gasoline Premium EURO-95. Regular

EURO-92 gasoline accounts for 76% of the whole TAIF-NK's retail sales,
thus making the essential part of the Company's retail trading.
The high quality of motor fuels produced by the Company
along with a well-balanced pricing policy regarding motor fuels marketing through own retail chain led to the increase in the average sales
volume via the Companys retail network by 1.4 times during January
December 2009, i.e. from 1,357.2 tons at the reporting year beginning
up to 1,877.2 tons per month at the reporting year-end.
Average sales volume through the Companys retail network
increased by 1.4 times during January December 2009, i.e. from
1,357.2 tons at the reporting year beginning to 1,877.2 tons per
month at year end.
TAIF-NK Retail* Sales Volume per Each Fuel Type in 2009
In Russia the main tendency in development of the fuel retail

business was reported to be creation of multi-functional complexes
tooffer customer service at the highest world levels. At the same time
the current environment in the Russian retail sales market has its own
peculiarities which correspondingly impact on overall fuel retail business strategies.
For instance, in overseas markets the qualitative characteristics of marketable fuels are nearly identical and not subject to particular suppliers' specifications, whereas in Russia the quality of a fuel
isone of the key factors of competitive ability. Sensitivity of widely
used and relatively expensive foreign brand motor vehicles to fuel
quality is thereason why car owners take special care when choosing
a gas filling station.
For the purpose of expansion of its own retail network TAIF-NK
in February 2009 acquired 99.9% shares of Tatneftekhim-Solvalyub
ZAO (TATSOL ZAO) which possesses as much as ten retail sites located
within the Republic of Tatarstan.
The Company is planning to construct four gas filling stations
to be located in Leninogorsk, Yelabuga, Naberezhnye Chelny in 2010.
Altogether by 2015 it is scheduled to have as much as 200 gas filling
stations within TAIF-NK's overall retail network.
Average sales volume through

the Companys retail network
increased by 1.4 times during
January December 2009,
i.e. from 1,357.2 tons at the
reporting year beginning
to 1,877.2 tons per month
at year end
TAIF-NK Oil Product Retail Sales in 2009

Regular EURO-92 Gsoline 76%
1,357.2
1,513.6
1,877.2
January
July
December
tons
tons
tons
18 thousand tons
Diesel Fuel 9%
Normal-80 Gasoline 8%
Premium EURO-95 Gasoline 7%
* Currently TAIF-NK's own retail network includes 8 fuel filling stations
30
31
to aim at perfection
Chapter IV
Industrial Safety
and Personnel
Health Issues
TAIF-NK continuously takes

Industrial Safety
preventive measures and actions
In accordance with the Company's Health, Safety and Enviof control aimed at detection,
prevention and elimination ronmental Protection Policy, the main objectives regarding assurance
ofthe industrial safety are as follows:
ofindustrial safety requirements
improved and enhanced control in the course of production
violation within the Companys
toverify compliance with the industrial safety requirements;
subdivisions
introduction of applicable up-to-date methods and techniques
sufficient to provide personnel occupational safety;
planning and introduction of preventive measures aimed
at preclusion against failures and accidents during production;
Company manpower's safety assurance during fulfillment
ofany assigned work;
improvement of personnel competence.
For the implementation of the objectives declared by the Company with respect to the industrial safety a variety of consistent activities has been carried out, in particular:
assurance of the industrial safety requirements in the operating organization;
evaluation of industrial safety assurance in the operating organization, including assessment by way of relevant checks
and expertises;
elaboration of measures designed for improvement of industrial safety measures and prevention of environmental damage;
verification of compliance with the industrial safety requirements established by the federal laws and other normative
legal acts;
coordination of activities aimed at failure prevention at hazardous production facilities and assurance of readiness to localization of failures and elimination of consequences;
monitoring of timely carrying out necessary testing and technical inspection of equipment and hardware employed at hazardous production facilities; repair, maintenance and verification of instrumentation and controls;
monitoring of compliance with industrial discipline requirements.
34
Industrial Safety and Personnel Health Issues
Chapter IV
In the reporting year the Company carried out a series of activities related to identification and preparation of documentation for
further registration of the MTBE and TAME production lines with the
Russian Federal Service for Environmental, Technological and Nuclear
Supervision (RosTekhNadzor). TAIF-NK took measures aimed to verify
and assure compliance with license requirements in the Company's
subdivisions subject to the licenses that had been obtained to allow
operation of chemically and explosion hazardous production facilities and carrying out hazardous cargo handling operations for railway
transportation.
In pursuance of the requirements of the Federal Law On Hazardous Production Facilities Safety, the Company takes steps relevant
to insurance of liability for any damage to life or health or property
ofthird persons and environment in case of a failure at hazardous production facilities located within the Company's battery limits.
Taking into account the positive findings of the technical survey performed by Suregrove Limited in respect of TAIF-NK's engineering risks and overall industrial safety, in the reporting year the amount
of the insurance premium payable to the insurer was reduced.
TAIF-NK continuously takes preventive measures and actions
of control aimed at detection, prevention and elimination of industrial
safety requirements violation within the Companys subdivisions.
TAIF-NK annually conducts emergency response drills and
exercise routines in its subdivisions in order to train personnel skills
applicable to cases of failures.
Taking into account the positive

findings of the technical survey
performed by Suregrove Limited
in respect of TAIF-NK's engineering
risks and overall industrial safety,
in the reporting year the amount
ofthe insurance premium payable
to the insurer was reduced
Personnel Health and Safety

The tasks and objectives which the Company assigns regarding personnel health and safety are set forth in the TAIF-NK Corporate
Policy on Quality, Industrial Safety, Personnel Health and Safety, and
Environmental Protection.
Company's commitments with respect to personnel health
and safety are embodied through:
comprehensive and special-purpose inspections being conducted at the Company's subdivisions subject to the approved
consolidated work plan of the administrative and technical departments for carrying out supervision and preventive inspections of the status of personnel health and safety, industrial
safety and fire safety activities;
35
training and further examination of personnel for safety

The Company managed
knowledge assessment;
tomake use of the Visbreaker
formalization of required documentation;
sweet hydrocarbon gas
holding meetings to discuss personnel health and safety reby burning the overall volume
lated issues.
of effluent gases in CDU/VDU
With a view to provide health support to the staff involved
heaters, owing towhich in their respective callings and prevent occupational diseases, timely
the residual oil consumption organization of regular checkups and other types of medical examinain the reporting year decreased tions have been envisaged at the Company.
Necessary arrangements are made on regular basis to provide
by 48%as compared to 2008
the Company's staff with milk, detergents and neutralizing agents,
with certified (declared to conform to the established requirements)
special clothes, footwear and other means of personal protection.
In accordance with the Programme of production control
aimed to ensure compliance with the sanitary and epidemiological
requirements, there are samples being regularly taken on the Company's premises to verify conformity of the work places to the established norms and regulations. In 2009 the Company proceeded toassessment of professional risks and potential impacts on personnel
health. The assessment activity is scheduled to be completed in 2010.
For the sake of prevention of occupational injuries and with
the view of strengthening personnel's interest in safety activities
theCompany's subdivisions arrange half-yearly review competitions
dedicated to health and safety, industrial safety and fire safety issues.
Energy Conservation
36
Industrial Safety and Personnel Health Issues
Chapter IV
As a major regional oil refiner within the Republic of Tatarstan,

TAIF-NK is reported to be the largest consumer of utilities among other
regional manufacturers. On the background of the steep rise in tariffs
for utilities, the issue of energy conservation turns out to be a factor
ofmanaging the Companys profitable operation.
The Company carries out various activities in accordance with
the corporate 2007-2010 Energy Conservation Program.
In 2009 in order to reduce energy expenditures in the production costs a number of arrangements related to energy conservation
were made by the Company, in particular:
revamping of installed process units with implementation
ofnew technologies;
improvement of control systems and energy consumption accounting systems;
replacement of out-dated equipment with new equipment

having improved performance;
increased use of waste energy;
introduction and improvement of the information system
which allows collection and analysis of utilities consumption
data as well as planning of energy consumption optimization
measures.
The Company managed to make use of the Visbreaker sweet
hydrocarbon gas by burning the overall volume of effluent gases
in CDU/VDU heaters, owing to which the residual oil consumption
inthe reporting year decreased by 48% as compared to 2008.
The CDU/VDU & MDHC Steam Pipeline System Modernization
Project is being implemented to increase the share of refinery produced steam in the total heat consumption volume. Implementation
of the Project will allow more flexible redistribution of refinery produced thermal energy at alterations in steam consumption by process
units during different periods as well as reduction of steam consumption by the neighboring power plant.
In the reporting year the audit firm Gelit-Expert OOO conducted an energy audit on the Company's premises. Findings of the energy
audit confirmed the effectiveness of the TAIF-NK' approach to the use
of energy resources.
Ecology & Environmental Protection

As far as the environmental safety assurance, the Company
primarily seeks after enhancement of environmental efficiency, compliance with environmental norms, planning and implementation
of preventive measures aimed at mitigating the negative impact
onthe environment.
Over 2009 the total amount of pollutant emissions was reduced by 989 tons from the standard values. The reduction of pollutant emissions was mainly due to the Company's implementation
ofenvironmental protection actions.
Following the results of the 2009 ECOleader Annual Republican Contest held under the auspices of the Cabinet of Ministers
oftheRepublic of Tatarstan and the Ministry of Environment and Natural Resources of the Republic of Tatarstan, TAIF-NK was announced
thewinner among the Category II enterprises in the Emissions Reduction Activities nomination.
Changes in Specific Quantity of

Pollutant Emissions
(ton of contaminants/ton
of feedstock)
0.00212
0.00209
0.00205
2007
2008
2009
37
to remain constant
Chapter V
Integrated
Management
System
According to the second AS

Management System
9100 B compliance audit findings,
the Company collected 92.3 points.
TAIF-NK has introduced and certified and maintains the integrated
management
system for compliance with the requirements
The score surpassed the results
ofthe certification audit conducted of four international standards, in particular, ISO 9001:2008 Quality
in November 2008 (91.07 points) Management System, ISO 14001:2004 Environmental Management
System, OHSAS 18001:2007 Occupational Health and Safety Management System, AS 9100 B Quality Systems. Aeronautics & Astronautics.
The certification covers the whole spectrum of oil produce,
namely, vacuum gas oil, sulphur, naphtha, aviation kerosene, jet fuel,
diesel fuel, straight-run gasoline, fuel oil and residual oil, bitumen,
motor gasoline, low-viscosity marine fuel, heating oil, heavy gas oil,
butane-butylene fraction, propane-butane fraction, propane-propylene fraction, stable gaseous gasoline, export grade process fuel.
TAIF-NK's integrated management system enables to systematically and immediately detect and eliminate any possible shortcomings in the existing management system for the purpose of further
prevention and elimination thereof by as much as possible fulfillment
of requirements of customers and shareholders pertaining to supply
of high quality oil products.
In February 2009 the Company successfully passed the first
compliance audit aimed at assessment of the Company's management
system conformity with the requirements of the international standards, namely, ISO 9001:2008, ISO 1400:2004, and OHSAS 18001:2007.
In December 2009 the second compliance audit of theCompany's integrated management system was performed to verify conformance
to the requirements of AS 9100 B standard. According to the second AS
9100 B compliance audit findings, the Company collected 92.3 points.
The score surpassed the results of the certification audit conducted
inNovember 2008 (91.07 points).
The international certification authority recognized that
all the business processes applied to the operation of the refinery,
thegasoline plant, the management apparatus and the department
of oil product retail sales complied with the requirements of the international standards.
40
Integrated Management System
Chapter V
The Company carries out regular activities on improvement

ofthe management system, analysis and optimization of the system
of awareness and interaction between structural subdivisions, distribution of responsibility and authority, the aim of which is to raise efficiency of decision making on management level.
The Company has commenced and continues the work related
to the improvement of planning its business activities and identification of efficiency criteria for each subdivision with regard to net profit
generation.
Within the framework of optimization of the management
system the Company continues to work on the Project of Creation
of TAIF-NK Business Activities Computerized Management System
Based on SAP software (Systeme, Anwendungen und Produkte in der
Datenverarbeitung / Systems, Applications and Products in Data Processing). The main mission of the Project is:
analyze the Company's existing business processes and elaborate a conceptual design of the target model of the Companys
business processes taking into account the existing TAIF-NK's
Computerized Management System;
formalize TAIF-NK's target business processes with a view
toincrease the Company's operation efficiency.
An acknowledgement of the Company's management system's effective functioning and the Company's leading role on
the republican level was the Diploma issued by the Republic of Tatarstan's Cabinet Council for Achievement of Significant Results in the
Sphere of uality and a commemorative token which were presented
toTAIFNK according to the results of the Tatarstan Republic Governmental Quality Contest.
41
to keep being
at ones best
Chapter VI
Social
and HR Policy
The main objective

ofTAIFNK's HR Policy is to involve
highly qualified specialists
in theproduction activities
and to make the best use
ofthetheoretical and
practical knowledge
of the Company's personnel
HR Policy Objectives and Fundamentals
HR Educational Structure (%)
The main objective of TAIF-NK's HR Policy is to involve highly

qualified specialists in the production activities and to make the best
use of the theoretical and practical knowledge of the Company's personnel for making a stable profit through manufacture of competitive
products.
The Companys staff policy priorities are as follows:
identification of factors which influence the manpower requirement in accordance with the Companys development
strategy, the amount of produce, the technologies employed
for production etc;
analyses of professional and qualification structure of theemployed manpower and the Companys demand for labor resources;
definition of qualitative (detection of compliance with the
professional and qualification requirements, analysis of personnels abilities necessary for fulfillment of the production
plan) and quantitative (prediction of general demand for personnel, assessment of staff rotation) requirements in terms
oflabor resources.
TAIF-NK HR Structure is characterized by the following criteria:
HR Structure by Occupation Category

Description
Amount of Employed Staff

Including Managers
Technicians
Office Staff
Workers
44
Social and HR Policy
Chapter VI
2007
2008
Number
ofPeople
Number
ofPeople
2,698
326
466
82
1,824
100
12
17
3
68
2,920
356
513
85
1,966
2009
%
100
12
18
3
67
Number
ofPeople
2,941
357
528
76
1,980
100
12
18
3
67
Description
Higher Education
Secondary Professional Education
Elementary Professional Education
Secondary Education
2007
2008
2009
37
24
21
18
38
23
29
10
39
23
28
10
7 employees of the Company hold the degree of Candidate of Science
Quantitative and Age Characteristics (Number of People)

Indicator
2007
2008
Average Age of Staff (years)

38
38
Staff Age Range:
18-35
1,292
1,389
36-40
275
313
41-50
772
785
51-60
359
423
2009
38
1,381
331
730
499
The number of working young people under 35 years old

amounted to 1,381 people, or 46.96% of the whole quantity the Companys personnel at year-end.
One of the Companys primary objectives in its relationship
with the personnel is continuous improvement of HR skill level to meet
the challenges of modern production and social environment.
Training of employees is carried out on the basis of detailed
study of the Companys demands.
Training, continuing education and advanced training
oftheCompanys manpower are provided at the professional college
No.44 based in Nizhnekamsk.
45
In 2009 as much as 2,836 employees

of the Company were trained using
various educational forms in total
amount of RUB 22.9 mln
A contract for managers and specialists qualification improvement was concluded between TAIF-NK and the Institute of Advanced
Professional Training based at Kazan State Technology University inorder to improve professional skills of the Companys top management
and technicians.
In 2009 as much as 2,836 employees of the Company were trained
using various educational forms in total amount of RUB 22.9 mln.
The Company pays great attention to adaptation of new employees at the enterprise. Occupational adaptation includes active mastering ofprofessional and additional skills, as required, and development
of abilities. Tothis end the Company arranges occupational training for
new comers.
Staff rotation is provided for adequate evaluation of labor potential and more efficient use of their professional, intellectual and creative abilities. The rotation is envisaged on regular basis subject tojob
categories.
Any Companys worker having relevant education, practical
knowledge, professional skills, business, personal and ethical qualities
required to fulfill his job duties can become a candidate for introduction into theTAIFNK HR Pool. Introduction into the Companys HR Pool
enables anemployee to count on taking on a higher salary job position
if a vacancy appears inthe Company.
Such an approach to organization of production activities
makes itpossible to avoid the professional standstill of manpower
and effectively utilize labor resources.
TAIF-NK Personnel Training Costs
12,200
46
Social and HR Policy
Chapter VI
13,600
22,930
thous. RUB
thous. RUB
thous. RUB
2007
2008
2009
Social responsibility
PSC TAIF-NK contributes to solving important social
problems of employees and their families. Particularly, in 2009
contraction relations on voluntary medical insurance between
OJSCAlfaStrakhovanie and PSC TAIF-NK were prolonged. Such fact
enabled Companys employees to obtain different kinds of medical
and health improvement services in the clinics of Tatarstan Republic
in 2009 as well.
The provision of employees with the comfortable housing
isperformed because of the Companys participation in therepublican
program Social mortgage. 20 apartments were secured
totheemployees of the Company in 2009.
The social policy of PSC TAIF-NK is realized by the Company
providing the following guaranties and social benefits to the personnel,
including:
social payment in case of child birth and (or) child adoption;
monthly financial assistance for women who are on a childrearing leave;
financial assistance for medical and preventive measures;
monthly one-time payment for meals;
In 2009 for the purpose of charity support PSC TAIF-NK
expended over 6.8 mln RUB to:
social welfare institutions;
institutions of health care, education, science, physical fitness
and sports;
low-income citizens.
PSC TAIF-NK takes an active part in realization of social
and charity projects. Implementation of such programs considerably
contributes to the development of the town and region, and testifies
the Companys high social responsibility to citizens of the Republic
of Tatarstan. Currently the social activity falls beyond the scope
ofcharity, becoming a part of business activity and is carried out by all
the Companys subdivisions.
PSC TAIF-NK takes an active part

in realization of social andcharity
projects. Implementation
of such programs considerably
contributes to the development
of the town
47
to use brains
Chapter VII
Companys
Development
Prospects
The strategic target

Companys Development Prospects
isoperation of a modern complex
with crude oil throughput
The strategic target is operation of a modern complex with
capacity of up to 10.1 mln tpa and crude oil throughput capacity of up to 10 mln tpa and the conversion
theconversion rate of up to 98.5% rate of up to 98.5%.
Improvement of oil products quality to achieve compliance
with the EURO-5 international requirements as well as the level specified bythe Russian Federation legislation by 2015, increase oftheconversion rate, reduction of crude processing costs (primarily, the cost
of utilities and the purchase cost of motor gasoline components)
arethe activities vital for effective development of the Companys oil
refining complex in the tightening competition.
Attainment of the strategic target should be based on creation
of a modern enterprise capable to keep pace with the global leaders
interms of the technological level through effective utilization theCompanys existing production base. It is supposed to be the enterprise
with hydrocarbon feedstock (crude oil and gas condensate) throughput capacity of up to 10.1 mln tpa and conversion rate upto98.5% capable to produce oil products in conformity with the European quality
standards and the regulations set by the Russian Federation legislation.
To this end a comprehensive development programme of the existing
crude oil processing capacities is expected to be realized by TAIF-NK
inthe mid-term future (2010-2015).
In the reporting year the Company proceeded with implementation of the Heavy Residue Conversion Complex Project (HRCC Project).
Putting the Heavy Residue Conversion Complex into operation will allow the Company to avoid production of low-liquidity residual oil while
boosting production of more valuable light oil products meeting theEuropean quality standards owing to higher conversion rate. Another important issue is feasibility to increase the crude intake upto1.8 mln tpa.
Owing to the commercial operation of the HRCC theCompanys total
feedstock throughput capacity will amount to 10.1mln tpa taking into
account the gas condensate intake of 1 mln tpa.
The HRCC will comprise solvent deasphalting unit, vacuum
distillates hydrocracker, atmospheric distillates hydrotreater, gasification complex with HPU (hydrogen production unit) as well as a number
ofancillary units and tank farms.
50
Companys Development Prospects
Chapter VII
To date TAIF-NK has worked on a number of technical and commercial proposals regarding the HRCC Project, which were presented
by such companies as Chevron Lummus Global, UOP Limited, GS E&C,
Lurgi GmbH, Chiyoda Corporation.
The contracts for basic design engineering and provision of licenses for the deasphalting and hydro cracking technologies have been
entered into by TAIF-NK and UOP Ltd.
The HRCC Project implementation will help boost the output
of the most valuable petrochemical feedstock, i.e. naphtha and LPG
as well as Euro-5 diesel fuel. Moreover, it will enable the Company
toincrease the output of straight-run gasoline by 59%, motor gasoline
by38%, diesel fuel more than twofold.
It is worth noting the HRCC Project envisaged by TAIF-NK has
an evident social and economic effect associated with the guaranteed
contribution to the RGP (regional gross product) and the NGP (national
gross product) owing to the new production lines as well as with increased income of the budget system, creation of new job places, and
higher level of performance and innovativeness of the national economy in general.
Putting the Heavy Residue

Conversion Complex into operation
will allow the Company to avoid
production of low-liquidity residual
oil while boosting production of
more valuable light oil products
meeting the European quality
standards owing to higher
conversion rate
Simplified HRCC Block Diagram

LPG
Vacuum Gas Oil
Naphtha to Petrochemical Complex
Deasphalted Oil
Jet Fuel
Hydrocracking Unit
EURO-5 Diesel Fuel

Vacuum
Residue
Solvent
Deasphalting Unit
Asphalt
Hydrogen
Gasification Complex
Hydrocracker
Residue
Existing FCC
Euro-5 Motor
Gasoline
51
to master
the situation
Chapter VIII
Corporate
Management
Structure
Major Transactions
and Interested Party Transactions
PCS TAIF-NK didnt make any major transactions in 2009.
Interested party transactions, made by the Company in 2009

Transaction Parties
PSC TAIF-NK
(Lessor)
CJSC TATSOL
(Lessee)
Interested Party
(Parties)
A. Babynin
Essential Terms
of Transaction
Contract of tenancy
Rent payment is
305,224.25 RUB per
month
(including VAT)
The Companys Management

Body Approving Transaction
Board of Directors
Share capital and dividend policy

Structure of the share capital as of 31st of December, 2009
The statutory capital of PSC TAIF-NK is 5,851,000,000 RUB.
I. Main information of capital issue:

1. Category and type: common registered non-documentary stock
Total amount: 8,349 RUB
Total number of shares: 8,349 pieces
Par value: 1 rouble/piece
Date of registration: July 29, 1998
Registration number: 1-01-50545-
The state registration body: FCSM of the Russian Federation
Way of distribution: distribution at issue
54
Corporate Management Structure
Chapter VIII
II. Information on additional capital issues:

Total amount: 991,651 RUB
Total number of shares: 991,651 pieces
Date of registration: June 29, 2006
Registration number: 1-01-50545--001D
The state registration body: FFMS of the Russian Federation
Way of distribution: close subscription
Cancellation date of the individual number: December 18, 2007
In 2009 the Company paid

dividends in the amount
of 2.5 bln RUB

Total amount: 5,850,000,000 RUB
Total number of shares: 5,850,000,000 pieces
Date of registration: November 22, 2007
Registration number: 1-01-50545--002D
The state registration body: FFMS of the Russian Federation
Way of distribution: close subscription
Cancellation date of the individual number: July 8, 2008
PSC TAIF-NK dividend policy is based on the balance
of interests of the Company and its sole shareholder, on increasing
of the investment appeal of PSC TAIF-NK and its capitalization,
on the respect and strict observation of the shareholders rights
incorporated in the existing legislation of the Russian Federation,
inthe Company Charter and in its internal documents.
In 2009 the Company paid dividends in the amount
of2.5bln RUB.
55
Chapter VIII
Information on the adherence

to the Corporate Governance Code
The information is disclosed in accordance with the Order 06-117/
- of FFMS of the Russian Federation dated October 10, 2006 Concerning the approval of the regulations for information disclosure
by the emitters of equity securities and the Instruction N 03-849/
ofFCSM of the Russian Federation dated April 30, 2003.
56
Article of the Corporate

Governance Code
Article of the Corporate

Governance Code
Notes
The Charter of the Company states that the approval of the terms and conditions of the employment contracts with the General director is included
inthe responsibilities of the Board of Directors.
Observed
It is not advisable to elect to the board of directors a person who is a member

of the board of directors, the General director, a member of a management
body or an employee of legal entity competing with the Company.
Observed
It is advisable that the Companys Charter provide for the election of members of the board of directors by cumulative voting.
Observed
The Company should develop and incorporate into its internal documents
procedures for conducting meetings of the Board of directors.
Observed
The Companys Charter or the internal documents stipulate that major

transactions should be approved prior to their consummation.
Observed
10
The Company should have a website Internet; and the information about
theCompany should be regularly disclosed through this website.
Observed
Notes
Company should enable shareholders to study the lists of persons authorized

to participate in the General shareholders meeting at any time from the moment of notice and until the General shareholders meeting held in person
isover, or, in case of the General shareholders meeting held by means of absentee ballots, until the last date for submitting voting ballots.
Observed
Company should enable shareholders to study the information (materials),

subject to provision in preparation to the General shareholders meeting
byelectronic means, including Internet.
Observed
The shareholders should have the right to propose agenda items and
call for the General shareholders meeting. Companies should not require
that a shareholder appearing in the register produce any documents
astheevidence ofrights. It is recommended instead that the company should
check the existence of the shareholders specific rights against theregister.
Provided the right to shares is recorded in a deposit account, it is recommended that acurrent statement of the account be regarded as an ample
proof oftheshareholders right to the shares.
Observed
The Companys Charter should assign the annual approval of procedures

forfinancial and business plan of the Company to the authority of the board
of directors.
Observed
Management bodies
The system of the Companys governing bodies includes:
General shareholders meeting (Shareholders resolution);
Companys Board of Directors;
Sole executive body General Director.
57
The companys supervisory body

is the Companys Audit committee:
The Companys Board of Directors
Rustem N. Sulteev
Chairman of the Board of Directors
Deputy General Director for Production
and Sale First Deputy, PSC TAIF
Year of birth: 1954
Education background: higher education
Graduated from Kazan Institute of Civil Engineering
Holds no shares of the Company
Albert K. Shigaboutdinov
General Director of PSC TAIF
Year of birth: 1952
Education background: higher
education Graduated from Kazan
Aeronautical Institute
Vladimir V. Presnyakov
Deputy General Director
for Petrochemicals and Refining, PSC TAIF
Year of birth: 1951
Graduated from Kazan Chemical and
Technological Institute

General Director of PSC TAIF-NK
Year of birth: 1972
education Graduated from
Priazovsky State Technical
University
Ruslan A. Shigaboutdinov
Deputy General Director
for Corporate Governance of Property
and Investments, PSC TAIF
Year of birth: 1976
education Graduated from Kazan
State University

58
Chapter VIII
The Chairman of the Audit committee

Dmitriy I. Teslenko
Head of financial and economic department, PSC TAIF
Graduated from Leningrad Institute of Fine Mechanics and Optics
Information on changes in the composition of the Board of Directors

of PSC TAIFNK occurred in 2009:
the composition of the Board of Directors
ofPSCTAIFNK was re-elected to a new term
in the former composition (Shareholders resolution 22/06-09 dated 22.06.2009).
Sole executive body General Director
Members of the Audit committee

Albert F. Sulteev
Deputy manager of production and sales department, PSC TAIF
Education background: higher education Graduated
from Kazan State University
Olga A. Kuznetsova
Service lead accountant for RAS, PSC TAIF
from Kazan State Finance and Economics University
Venera Kh. Mustafina
Senior economist of production and sales department , PSC TAIF
from Kazan State Finance and Economics University
Natalya V. Sokolnikova
Deputy manager of planning and economic department
for cost optimization and analysis of results of PSC TAIF-NK
from Nizhnekamsk Institute of Chemistry and Technology
The amount of remuneration of the person, being the PSC TAIF-NK sole executive body
incumbent, obtained by him in 2009 made 8,915,000 RUB.
The remunerations, reimbursements of expenses were not paid out to PSC TAIF-NK Board
ofDirectors members in 2009.
59
to be well prepared
for all eventualities
Chapter IX
Major Risks
Associated
with Companys
Businesses
Chapter IX
Branch Risks
The main factor of branch risk is the possible destabilization
ofprice policy that is connected with political and economical situation not only in Russia but overseas.
The oil refining industry has its specific risks that include
thevolatility of world prices for crude oil and competitiveness among
oil companies.
At present PSC TAIF-NK and OJSC Tatneft named after
V.D. Shashin has established close mutually beneficial cooperation
intheoil supplies. This cooperation guarantees supplies of feedstock
of good quality in due time and at market price.
Technological innovation development by competitors which
considerably reduces operating costs and increases the quality of output products can also constitute a threat for the Companys economic
security.
To minimize these risks the Company is constructing new
plants and is upgrading the existing ones in order to increase thedepth
offeedstock processing and to produce high quality products meeting
EURO-4 and EURO-5 standards.
Integration of PSC TAIF-NK into the petrochemical complex
within the framework of TAIF Group of companies considerably
reduces external risks related to the appreciation of petrochemical
andrefined feedstock and intermediate products, used by the Company in its production.
Financial Risks
Credit Risk. Many Russian companies faced the problem
ofcredit resources attraction due to the world financial crisis. The positive history of cooperation with creditors, business activity and creditability enabled PSC TAIF-NK to attract in 2009 the loan funds in due
time and in the required amounts for financing its activities.
The company is also the borrower on the global debt market,
where the debt servicing obligation is denominated in US dollars.
Theforeign currency revenue allows minimizing the influence of credit risk factors and untimely fulfillment of the Companys obligations
tothe creditors.
62
Major Risks Associated with Companys Businesses
Optimal distribution of debts by their repayment dates is very

important for PSC TAIF-NK in order to eliminate the negative impact
of the credit risk.
Interest Rate Risk. Being a large loan debtor, PSC TAIFNK
is subjected to risks connected with changes of interest rates.
Thegreater part of the debt portfolio of PSC TAIF-NK is represented
bytheloan denominated in US dollars. The interest rate for the loan
servicing isbased on the Libor floating rate. Increase in the cost ofcredit can have a negative impact on the financial results of theCompany.
Forthat purpose transaction on fixing of the interest rate level inpart
of currency credits are handled.
Growth of TAIF-NKs credit capacity as well as structuring
ofthecredit portfolio between the different kinds of lending institutions allows choosing the best interest rates which is an important factor of reducing of the cost of borrowed funds. As a result, for instance,
for the period from 2006 to 2009 average credit rates are reduced from
8.39% to 4.24% per annum, correspondingly.
Growth of TAIF-NKs credit capacity

as well as structuring of the credit
portfolio between the different
kinds of lending institutions
allows choosing the best interest
rates which is an important factor
ofreducing of the cost
of borrowed funds
Exchange Rate Risk. A considerable part of PSC TAIF-NK

proceeds is formed by export operations concerning oil products marketing. Consequently fluctuations in rates of foreign exchange towards
the rouble have an impact on the results of financial and operational
activities of PSC TAIF-NK what is the factor of the exchange rate risk.
The exchange rate risk of the Company significantly reduces due to the expenses expressed in US dollars (long-term credit
inUS dollars). The structure of revenues and debt liabilities operate
asahedging mechanism of exchange rate risk where multidirectional
factors compensate each other.
Inflation Risk. The change of consumer price index has acertain impact on the financial situation of the company. The inflation risk
is taken into account in drafting financial schemes of PSCTAIFNK.
The existing and projected inflation levels are far from critical values for
PSC TAIF-NK and the industry in general. On this basis, inthe future
the impact of inflation factors on the financial stability oftheCompany is not significant.
63
Chapter IX
The insurance work

Risk of Property Loss
in PSC TAIF-NK is based
on the unified principles
The insurance complex system including property insurance,
liability
insurance and insurance against construction and assembly
and methodology of insurance
process organization risks and others is used in PSC TAIF-NK for the purpose of minimizing
the insurance risk. This system is treated as one of the key supportand has a complex character
ing mechanisms for the stable strategic development of the Company
inthe long term prospect, as the instrument of Companys protection
from the uncompensated financial losses which arise in the industrial
accidents or any kinds of industrial emergencies.
The insurance work in PSC TAIF-NK is based on the unified
principles and methodology of insurance process organization and
has a complex character. Under this work, the system of insurance
risks monitoring, insurance contracts, and quality of insurance coverage is established. This system is based on the list of requirements,
criteria of quality (reliability) determination of theinsurance company
and its insurance services.
The result of the conducted operations is deemed to be
thequalitative insurance coverage of PSC TAIF-NK which allows enforcing theabsolute rights and property interests of the shareholder
as to the safekeeping of property and exclusion of uncompensated
losses (indemnities) from the production accidents.
Major Risks Associated with Companys Businesses
consistence of legal system and its aptitude to regular changes are

related totheexternal factors of the legal risk appearance. Beyond
that point to the risk factors they relate the incorrect enforcement
of oreign state law and (or) the standards of international law, impossibility ofsolving the individual questions by means of negotiations
and as a result the Companys appeal to the law courts for the purpose ofsuch questions regulation and also the violation of the contract
terms bytheCompanys contractors.
In order to provide the minimization of legal risk, the Company
legal service takes the following measures:
continuous monitoring of the Russian Federation legislation;
conducting of operations on informing and explanation
totheemployees and the Companys services about thechanges in regulatory legal acts of the Russian Federation including
local acts;
regular training of lawyers for the career progression program; conducting consultations with the qualified specialists
ofPSCTAIF and the TAIF Group of Companies;
the regular work on creation of the effective and local rulemaking.
In prospective view, the general legal risks reduction can
bepredicted in connection with filling of the gaps in the law by judicial practice and permanent perfection of tax and currency laws
oftheRussian Federation.
The result of the conducted

operations is deemed
to be the qualitative insurance
coverage of PSC TAIF-NK
which allows enforcing
the absolute rights and property
interests of the shareholder
astothe safekeeping of property
and exclusion of uncompensated
losses (indemnities)
from the production accidents
Legal risks
The legal risks management is performed by the legal service of the Company in order to reduce (exclude) the possible losses.
Theuprising of legal risk can be determined by both internal factors
and external ones. The non-observance of Russian Federation law
by the Company including the adoption of local acts which are uncomfortable to the regulatory legal acts and also the terms of transactions violation by the Company are related to the internal factors.
The imperfection of government legal frame which is stated intheabsence of sufficient legal regulations of several social relations, thein-
64
65
to value
the attained results
Chapter X
Financial
Statements
Financial Statements
Chapter X
Balance Sheet as of December 31, 2009 * (thousand RUB)

ASSETS
Line Code
Reporting
Year Beginning
Reporting
Year-End
LIABILITIES
Line Code
Reporting
Year Beginning
Reporting
Year-End
I. Non-current Assets
Intangible Assets
Fixed Assets
Construction in Progress
Income-bearing Investments in Material Assets
Long-term Investments
Deferred tax Assets
Other non-current Assets
Total for Section I
Stocks
VAT for Purchased Assets
Accounts Receivable
(settlement is expected in over 12 months
after the reporting date)
Accounts Receivable
(settlement is expected during 12 months
after the reporting date)
Short-term Financial Investment
Cash
Other current Assets
Total for Section II
68
110
120
130
135
140
145
150
190
-
15,167,774
1,737,850
11,455
2,521,561
37,400
3,930
19,479,970
II. Current Assets
BALANCE
Balance Sheet as of December 31, 2009* (Continued)
1,590
14,155,629
1,095,297
34,937
3,457,375
44,944
2,275
18,792,047
210
220
2,818,155
800,158
5,679,531
1,425,820
230
240
250
260
270
5,722,273
3,539,500
2,171,751
279
7,873,167
2,350,910
770,915
1,179,600
290
15,052,116
19,279,943
300
34,532,086
38,071,990
III. Capital and Reserves

Equity
Treasury Shares
Additional Capital
Reserve Capital
Retained Profit (Uncovered Loss)
Total for Section III
410
411
420
430
470
490
5,851,000
-
-
263,628
10,492,169
16,606,797
5,851,000
263,628
8,655,498
14,770,126
IV. . Long-term Liabilities

Loans and Credits
Deferred Tax Liabilities
Other long-term Liabilities
Total for Section IV
510
515
520
590
12,737,352
258,628
-
12,995,980
7,059,905
468,967
7,528,872
V. Short-term liabilities
Loans and Credits
Accounts Payable
Liabilities to Shareholders on Income Payment
Deferred Income
Provisions for Future Expenses
Other short-term Liabilities
Total for Section V
610
620
630
640
650
660
690
1,833
4,927,476
-
-
-
-
4,929,309
2,761,713
12,902,488
58,650
50,141
15,772,992
BALANCE
700
34,532,086
38,071,990
69
Financial Statements
Chapter X
STATEMENT OF VALUE CHARGED ON OFF-BALANCE ACCOUNTS
Rented Assets
Material Assets under Custody
Goods Accepted on Commission
Bad Debt Written Off to Losses
Collateral Received
Collateral Paid
Housing Depreciation
Depreciation of Land Improvement Facilities
and Other Similar Ones
Intangible Assets Obtained for Use
Strict Reporting Forms
Profit / Loss Statement* (Continued)
Line Code
Reporting
Year Beginning
Reporting
Year-End
910
920
930
940
950
960
970
741,214
196
2,483
-
5,323,561
-
871,435
46

3,098
7,439,663
-
980
990

512
57,448
-
672
56,934
-
Profit / Loss Statement* (thousand RUB)

Indicator
Code
Revenues and Expenses from Ordinary Activities

Revenues from Sales, Products, Activities, Services (net)
(excluding VAT, Excises and Similar Compulsory Payments)
Cost of Sold Goods, Activities and Services
Gross Profit
Business Expenses
70
For Reporting
Period
Same Period
Previous Year

010
020
029
030
040
(1,165,204)
050
2,967,787

060
30,572
070
(567,164)
080
548
090
56,771,942
100
(58,291,109)
140
912,028
141
32,823
142
(205,357)
150
(109,268)
180
(13,580)
181
(25,280)
Administrative Expenses
Profit (loss) on Sales
Other Revenues and Expenses
Interests Receivable
Interests Payable
Income from Partnership with Third Companies
Other Revenues
Other Expenses
Profit (Loss) Before Tax
Deferred Tax Assets
Deferred tax Liabilities
Current Income Tax
Tax Sanctions
Deferred Tax Assets for Previous Taxation Period
Deferred Tax Liabilities for Previous Taxation Period

Income Tax for Previous Taxation Period
Net Income (Loss) Over Reporting Period
(1,269,369)
10,451,098
182
183
190
(4,982)
30,268
616,652
142
(15,376)
5,271,560
FOR REFERENCE ONLY:

Permanent Tax Liabilities (Assets)
200
99,390
123,519
247,570
(779,866)
57,090,472
(59,909,421)
7,099,853
21,817
48,208
(1,896,525)
(1,065)
1,4506
* The reliability of data, contained in the Annual report of the Company, is confirmed by the Companys audit committee

74,393,796
(63,501,145)
10,892,651
(6,759,660)
89,148,809
(72,713,540)
16,435,269
(4,714,802)
General Director
A. Babynin
Chief Accountant
D. Kuramshina
71
Company's Contact Details

Public Stock Company TAIF-NK (PSC TAIF-NK)
Place of location and postal address
PSC TAIF-NK, PO 20, OPS-11, Nizhnekamsk, 423570, Republic of Tatarstan, Russian Federation
Tel.: +7 (8555) 38-16-16; fax: +7 (8555) 38-17-17
e-mail: referent@taifnk.ru
Web address: www.taifnk.ru
Registrar
Limited Liability Company Euro-Asian Registrar - Kazan branch
Place of location and postal address
6, Vishnevskiy Street, Kazan, 420043, Republic of Tatarstan, Russian Federation
Tel.: +7 (843) 236-27-52; fax: +7 (843) 236-27-52
e-mail: regist@bancorp.ru
Web address: www.erd.ru
License
Number: 10-000-1-00332
Date of issue: March 10, 2005
Expiration date: unlimited
The body that issued the license: Federal service for financial markets
Information on the Companys auditor
Limited Liability Company FBK Povolzhie
Place of location and postal address:
10, Prospekt Yamashev Street, Kazan, 420080, Republic of Tatarstan, Russian Federation
Tel.: +7 (843) 555-64-94; +7 (843) 555-60-67
e-mail: fbk-povolzje@acg-pkf.ru
Web address: www.acg-pkf.ru
License
Number: 002876
Date of issue: December 10, 2002
Valid until: unlimited
The body that issued the license: Ministry of Finance of the Russian Federation
72

2009 Taif-Nk English

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CONTENTS

General Director's Message

Chapter I. Oil Refining in Russia

Chapter II. Companys Standing in Oil Refining Industry

Chapter III. Technical and Economic Performance

Chapter IV. Industrial Safety and Personnel Health Issues

Chapter V. Integrated Management System

Chapter VI. Social and HR Policy

Chapter VII. Companys Development Prospects

Chapter VIII. Corporate Management Structure

Chapter IX. Major Risks Associated with Companys Businesses

Chapter X. Financial Statements

Company's Contact Details

General Directors Message

Dear Shareholders, Investors and Business Partners!

Oil Refining in Russia

ANNUAL REPORT PSC TAIF-NK 2009

adequate satisfaction of the Russian market demand for motor fuels,

Oil Refining in Russia

Crude oil refining dynamics in Russia

Russian plants utilize nearly all range of refining technologies

ANNUAL REPORT PSC TAIF-NK 2009

From the strategic viewpoint

Oil Refining in Russia

ments and operational costs, utilization of land resources, improved

Russian Refineries Overview: Oil Conversion Rates

Oil Conversion Rate

ANNUAL REPORT PSC TAIF-NK 2009

The Companys aggregate crude

Companys Standing in Oil Refining Industry

TAIF-NK at present is the heart of oil refining in the Republic

The scientific and methodological support of the RT grade

During 20082009 there

TAIF-NK Saleable Product Structure

ANNUAL REPORT PSC TAIF-NK 2009

Companys Standing in Oil Refining Industry

Oil Product Output Structure in Russia during 20072009

1 Angarsk Petrochemicals Company 2,802.0

Residual Oil (Mazut)

ANNUAL REPORT PSC TAIF-NK 2009

The design capacity

TAIF-NK Saleable Product DIAGRAM for 2009

Road Bitumen 0,8%

Diesel Fuel 26,4%

Companys Standing in Oil Refining Industry

Heating Oil 5,8%

The oil product testing

TAIF-NK now is ready for commercial production of Jet A-1

Vacuum Gas Oil 7,7%

ANNUAL REPORT PSC TAIF-NK 2009

Technical and Economic Performance

Over the reporting year

Notwithstanding the negative economic environment caused

FCCU Capacity Utilization

TAIF-NK Capacity Utilization

In 2009 the Company produced

FCCU Capacity = 880 thous tpa

ANNUAL REPORT PSC TAIF-NK 2009

Technical and Economic Performance

The gas condensate processing unit (GCPU) installed

The Companys light oil product output increased in 2009 and

GCPU Capacity Utilization