MOSCOW — Sibir Energy is pleased to confirm that in the Royal Courts of Justice this morning, the Judge, Mr Justice Peter Smith, dismissed in their entirety the claims made by Harley Street Capital against Sibir Energy, Chalva Tchigirinsky, Alexander Tchigirinsky and Bennfield Limited, striking the claims out as an abuse of the court process.

Handing down judgment, Mr Justice Smith dismissed the claim for application to continue the derivative action; dismissed the freezing injunction preventing the defendants from selling their stakes in Sibir Energy; set aside the claimant's permission to serve outside the jurisdiction; and refused the claimant's request for a stay pending a decision in the ongoing proceedings by Sibir Energy against Sibneft, Roman Abramovich and associated offshore companies in the British Virgin Islands.

In his written Judgment, Mr Justice Smith noted that it was said by all parties in these proceedings that the issue related to a fraud perpetrated by Sibneft/Roman Abramovich. He said that it was not readily apparent why Chalva Tchigirinsky would participate in a dilution which has a direct impact on the value of his shareholding in Sibir and he found no evidence of any wider deal, as had been alleged by Harley Street Capital.

Supporting his decision, Mr Justice Smith commented, "This was a bogus claim lacking in bona fides. The Claimant made a host of allegations that were completely unjustified." He went on to say that he "did not believe for a minute that the Claimant brought the action as a concerned shareholder, although the real reason for their claims was still a mystery."

The judge acceded to requests by Sibir and the other defendants for costs to be awarded against the Claimant on an indemnity basis and directed that an interim payment of ?200,000 be made by 4 p.m. on 8th September.

There will be a further hearing tomorrow, Friday, 26th August at 9.30 a.m. to hear a request by Sibir that, in view of the lack of bona fides of the Claimant, the identities of the backers of Harley Street Capital should be revealed.

Commenting on the Judge's findings, Henry Cameron, Chief Executive of Sibir Energy, said, "The clear and unequivocal findings of the Judge vindicate what Sibir has said from the beginning - that our 50% holding in Sibneft-Yugra had been illegally diluted by Roman Abramovich's companies. There was no conspiracy. There was no secret deal. There was just dishonesty from our former partner.

"The case that was thrown out by the Judge today has been an expensive and completely unnecessary diversion for Sibir. We will now redouble our efforts and will not cease until our rightful property is returned."