MAZEIKIU NAFTA

MATERIAL EVENT



REGARDING THE INCREASE OF THE AUTHORISED CAPITAL



The Extraordinary General Meeting of Shareholders of

AB Mazeikiu Nafta dated 21 August 2002 has resolved on

two increases of the authorized capital of the company

by issuing 58,139,029 and 131,820,176 ordinary-registered

shares of par value 1 Litas each respectively.



All shares to be issued in connection to these authorized

capital increases had to be subscribed by Russian company

OAO Yukos Oil Corporation, or its subsidiary Yukos Finance B.V.,

or any other company proposed and wholly controlled by

OAO Yukos Oil Corporation, however, such subscription was

conditional upon such subscriber of shares entering into

the Investment Agreement with AB Mazeikiu Nafta, the Government

of the Republic of Lithuania and Williams International Company.



Williams International Company continues negotiations with

OAO Yukos Oil Corporation on non-exclusive basis, however,

it is not expected that they are completed in such time

as to allow the increases of the authorized capital of

AB Mazeikiu Nafta be registered by 22 February 2002,

i.e. within six month period prescribed by the Law on

Companies of the Republic of Lithuania.  Consequently,

on the above date the authorized capital of AB Mazeikiu Nafta

will be considered to be not increased according to the

resolution the Extraordinary General Meeting of Shareholders

of AB Mazeikiu Nafta dated 21 August 2002.



The outcome of negotiations with OAO Yukos Oil Corporation

(signing of the agreements or termination of the negotiations)

will be announced by AB Mazeikiu Nafta according to

the requirements of disclosure of material events.





Tadas Augustauskas

Head of Communication Depart.

293-92608