Yukos Receives Default Notice on $1.6 Billion Trade Finance

YUKOS Oil Company has received a notice dated August 6, 2004 from the facility agent under the YUKOS $1.6 billion pre-export facility secured term loan stating that the lender under that facility considers that an event of default has occurred as a result of recent well publicized events and their actual or potential impact on YUKOS' business and assets.

On July 5, 2004 YUKOS announced that it received a notice from the facility agent under YUKOS's $1.0 billion pre-export facility stating that the lenders considered one or more events of default to have occurred under that facility.

The notice under the $1.6 billion facility stated that following the event of default the loan was payable on the demand of the facility agent.

YUKOS has also been notified by the lenders under both of its pre-export facility term loans that the lenders have used and will use the provisions of the loan documentation in order to be fully or partially repaid from the proceeds of export sales of crude oil securing the facilities.