According to the official report placed at Severnaya Kazna’s website, Russian Tax Association (run by Igor Teuschakov) has reduced its share in the authorized capital of the company twice within this week. This share amounted to .105% on March 1, 2007, whereas on February 26, 2007, the figures halved from 6.447% to 3.438%. This means Russian Tax Association sold 6.342% of its shares in two installments (3.009% and 3.333%). Severnaya Kazna had to officially publish this information as this is a legal requirement for all shareholders possessing more than 5% of a company’s authorized capital.

In fact, this is the fourth time in the last six months that Severnaya Kazna’s shares have been redistributed. Chairman and Member of the Supervisory Board Andrei Volchik sold his holding to Chairman of the Board of Directors Vladimir Frolov on February 16, 2007. Member of the Board Leonid Bratzev reduced his share from 1.839% to .812% on January 25, 2007 (he actually sold it to Mr. Volchik, whose share reached 1.687%). Member of the Board Semen Matochkin sold his whole share to Mr. Frolov on January 24, 2007. Both Mr. Bratzev and Mr. Matochkin have reduced their shares twice over the last six months and, according to the company’s press release as of October 26, 2006, the former chose not to support the additional share issue conducted by Severnaya Kazna.