CORPORATE GOVERNANCE

In implementing its growth strategy, Alpine Oil Refinery strives to increase its shareholder value as well as achieve the highest standards of corporate governance. The Company is firmly convinced that these two aims are closely related. The commitment to a transparent and responsible business management is extremely important for maintaining investor confidence and, in the long term, for guaranteeing the maximum return on investment to all our shareholders.

Being the hallmark of the most renowned international corporations, efficient governance is an important indication of our success in the eyes of our foreign partners. We are convinced that conscientious governance benefits all stakeholders, including clients, suppliers, partners, employees and our Company’s shareholders. Alpine Oil Refinery management will unswerving continue giving equal consideration to the interests of all shareholder groups of the Company.

The transparency of financial reporting is yet another important element of corporate governance. Alpine Oil Refinery has ample experience of drafting quarterly, semiannual and annual reports in compliance with the generally accepted accounting principles (US GAAP). In the future we intend to follow these practices. Our open joint stock company’s immediate objective designed to further improve our US GAAP reporting procedures is to continue reducing the time gap between the end of the reporting period and the publication date of financial performance indicators for the same period.

One of the most convincing proofs of practical application of the principles of strong corporate governance is the composition of the Board of Directors and its subcommittee. The members of Atyrau Oil Refinery Board of Directors are experienced leaders commanding great respect within the business community. In order to make discussions at the meetings of the Board of Directors more effective, the standing Board of Directors’ committees - the Committee for personnel and compensations, the Committee for strategic planning and the Audit Committee - provide advice on most important issues.

In Alpine Oil Refinery we understand that reputation of an organization that strictly adheres to the highest standards of corporate governance cannot be gained overnight. This takes time and we are certain to be able to acquire such a reputation. We are trying to develop our business operations. We are ready for future challenges, unavoidable in the energy industry. And we are following the principles of transparent and responsible governance. All this will help win your trust. In keeping with Alpine Oil Refinery strategy, a developed system of corporate governance is one of the key elements in creating a balanced, dynamic, vertically integrated company of global stature.

Alpine Oil Refinery is building a corporate governance system practicing openness and transparency and strictly complying with Kazakhstan legislation. In its efforts to meet the highest international standards, the Company constantly monitors and applies the international best practices of corporate governance