SOURCE: O.A.O. Tatneft

July 14, 2005 14:27 ET

O.A.O. Tatneft Announces 6m 04 US GAAP Accounts

Taterstan -- (MARKET WIRE) -- July 14, 2005 --

                          FORM 6-K

                        UNITED STATES
            SECURITIES AND EXCHANGE COMMISSION

                  Washington, D.C. 20549

                  Report of Foreign Issuer
                        July 14, 2005

           Pursuant to Rule 13a-16 or 15d-16 of
             of Securities Exchange Act of 1934

                                
                 
                         OAO TATNEFT
                   (also known as TATNEFT)

                     (name of Registrant)
                       75 Lenin Street
                Almetyevsk, Tatarstan 423450
                     Russian Federation

         (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file 
annual reports under cover Form 20-F or Form 40-F.

              Form 20-F . . . X . . . . Form 40-F . . . . . . . .

Indicate by check mark whether the registrant by furnishing the 
information contained in this Form is also thereby furnishing the 
information to the Commission pursuant to Rule 12g3-2(b) under 
the Securities Exchange Act of 1934.

                        Yes . . . . . . No . . .X. . . .


                                                    July 14, 2005

The following unaudited interim consolidated financial statements 
of OAO Tatneft for the first six months of 2004 prepared in 
accordance with U.S. GAAP were published on the company's 
web-site today:





                     TATNEFT

    INTERIM CONSOLIDATED FINANCIAL STATEMENTS

      (prepered in accordance with U.S. GAAP)

           SIX MONTHS ENDED JUNE 30, 2004

                 (UNAUDITED)

The interim consolidated financial statements were prepared
by OAO Tatneft in accordance with U.S. GAAP and have not been 
audited or reviewed by our independent auditor.

TATNEFT

Interim Consolidated Balance Sheets, Unaudited
(in millions of Russian Roubles)

                        Notes   At June 30,   At December 31, 
                                      2004              2003

Assets

Cash and 
cash equivalents         5           9,858             8,450
Restricted cash          5             290               300
Accounts receivable, net 6          14,240            13,297
Due from related 
parties                 19          17,830             6,631
Short-term investments   7           5,259             3,223
Current portion of 
loans receivable and 
advances, net           10          16,234            14,042
Inventories, net         8           9,452            10,051
Prepaid expenses and 
other current assets     9          13,722            17,506
Total current assets                86,885            73,500

Restricted cash          5           1,279             1,742
Long-term loans 
receivable and 
advances, net           10           9,884             6,746
Long-term investments    7           3,970             3,721
Property, plant and 
equipment, net          11         177,882           177,008
Total assets                       279,900           262,717

Liabilities and 
shareholders' equity
Short-term debt and 
current portion of 
long-term debt          12          22,014            13,213
Notes payable           13           3,573             6,948
Banking customer 
deposits                13          14,343            16,665
Trade accounts payable               5,165             2,948
Due to related parties  19             635             1,034
Other accounts payable 
and accrued liabilities 14           8,308             5,427
Current deferred tax 
liability               15              97               196
Capital lease 
obligations to 
related parties        11,19           494               643
Taxes payable                        6,340             7,159
Total current 
liabilities                         60,969            54,233
Long-term debt, 
net of current 
portion                 12          12,313            12,796
Notes payable           13           1,203             1,485
Banking customer 
deposits                13           3,194             1,337
Asset retirement 
obligations, net 
of current portion      11          17,771            16,955
Deferred tax liability  15          21,276            21,271
Capital lease 
obligations to 
related parties, net of    
current portion       11,19            237               359
Total liabilities                  116,963           108,436
Minority interest                    5,335             5,101
Shareholders' equity
Preferred shares 
(authorized and 
issued at June 30,     
2004 and December 
31, 2003 - 
147,508,500 shares;    
nominal value at 
June 30, 2004 and 
December 31, 2003 -
RR1.00)                16              148               148
Common shares 
(authorized and 
issued at 
June 30, 2004         
and December 
31, 2003 - 
2,178,690,700 
shares; nominal
value at June 30, 
2004 and December 
31, 2003 - RR1.00)    16            2,179             2,179
Additional paid-in 
capital               16            89,516            89,516
Accumulated other 
comprehensive income                    20               189
Retained earnings                   70,983            62,291
Less: Common shares 
held in treasury, 
at cost                             
(194,016,758 shares 
and 191,430,258 
shares at June 30,
2004 and December 
31, 2003,  
respectively)                       (5,244)           (5,143)
Total shareholders' 
equity                             157,602           149,180
Total liabilities 
and shareholders' 
equity                             279,900           262,717

TATNEFT

Interim Consolidated Statements of Operations and 
Comprehensive Income, Unaudited(in millions of Russian 
Roubles, except per share information)


                             Six months  Six months   Six months
                                  ended       ended        ended
                       Notes   June 30,    June 30,     June 30, 
                                   2004        2003         2002
                                       (As restated 
                                        see Note 4)
Sales and other 
operating revenues      18       85,035      71,281       66,906

Costs and other 
deductions Operating             15,365      14,470       16,980

Purchased oil 
and refined products             12,599      14,857       14,026

Exploration                         422         440          411

Transportation                    4,492       3,115        2,244

Selling, general and 
administrative                    8,190       5,567        7,670

Bad debt charges and 
credits, net                        279         877          128

Depreciation, depletion 
and amortization        18        4,516       4,076        3,599

Loss on disposals of 
property, plant and          
equipment and 
impairment of 
investments             11          337         198          238

Taxes other than 
income taxes            15       23,606      20,779       13,914

Maintenance of social 
infrastructure          11          149         126           43

Transfer of social 
assets                  11          147         878          217

Total costs and 
other deductions              
Other income (expenses)          70,102      65,383       59,470

Earnings from equity 
investments              7          219          32          138

Foreign exchange 
gain / (loss)                       123         271         (579)

Monetary gain            2            -           -          693

Interest income                     168         263          435

Interest expense                 (1,647)     (1,238)      (1,239)

Other income, net                  (180)        (59)         387

Total other income 
(expenses)                       (1,317)       (731)        (165)

Income before income 
taxes and minority 
interest                         13,616       5,167        7,271

Income taxes

Current                          (3,900)     (2,391)      (2,179)

Deferred benefit                     94       1,016        2,222

Total income 
tax (expense) 
/ benefit             15         (3,806)     (1,375)          43

Income before 

minority interest                 9,810       3,792        7,314

Minority interest                  (316)        (70)        (233)

Income before 
cumulative effect 
of change in                         
accounting 
principle                         9,494       3,722        7,081

Cumulative effect 
of change in 
accounting                         
principle, net of 
RR 1,498 million tax                  -       4,742            -

Net income                        9,494       8,464        7,081

Foreign currency 
translation 
adjustments                        (176)        (95)          82

Unrealized 
holding gains on 
available-for-sale               
securities, net 
of tax                               50           -          362

Less: transfer of 
realized gains 
included in net                  
income, net of tax                  (43)          -            -

Comprehensive income              9,325       8,369        7,525

Basic net income 
per share before 
cumulative            16
effect of changes 
in accounting 
principle (RR)
Common                            4.40         1.68         3.18

Preferred                         5.07         2.57         4.15

Cumulative effect 
of changes in 
accounting
principle (RR)
Common                               -         2.23            -

Preferred                                   
Basic net 
income per 
share (RR)                           -         2.23            -

Common                            4.40         3.91         3.18

Preferred                         5.07         4.80         4.15

Diluted net 
income per share 
before cumulative     16
effect of changes 
in accounting 
principle (RR)
Common                            4.40         1.68         3.14

Preferred                         5.07         2.57         4.11

Cumulative effect of 
changes in accounting
principle (RR)
Common                               -         2.22            -
Preferred                            -         2.22            -
Diluted net income per 
share (RR)
Common                            4.40         3.90         3.14
Preferred                         5.07         4.79         4.11
Weighted average 
common shares 
outstanding            16
(millions of shares)
Basic                            1,986        1,984        2,035
Diluted                          1,986        1,986        2,062
Weighted average 
preferred shares
 outstanding           16
(millions of shares)
Basic                              148          148          148
Diluted                            148          148          148


TATNEFT

Interim Consolidated Statements of Cash Flows, Unaudited
(in millions of Russian Roubles)

                             Six months  Six months   Six months
                                  ended       ended        ended
                       Notes   June 30,    June 30,     June 30, 
                                   2004        2003         2002
                                       (As restated 
                                        see Note 4)

Operating activities
Net income                        9,494       8,464        7,081
Adjustments:
Cumulative effect of 
change in accounting                  -      (4,742)           -
principle
Minority interest                   316          70          233
Depreciation, depletion 
and amortization          18      4,516       4,076        3,599
Net barter settlements             (373)        145       (1,234)
Deferred income tax benefit         (94)     (1,016)      (2,222)
Disposals and impairments           337         198          238
Net realized gain on 
available-for-sale 
securities                            7           -            -
Effects of foreign exchange        (178)       (271)         905
Monetary gain                         -           -         (694)
Undistributed earnings of 
equity investments                 (184)         32         (107)
Transfer of social assets           147         878          217
    Other                           650        (220)        (642)
Changes in operational 
working capital, excluding
cash:
Accounts receivable              (2,989)     (4,166)      (1,506)
Inventories                         587      (1,251)       2,133
Prepaid expenses and 
other current assets              3,367       2,065          (41)
Trading securities               (2,060)       (884)         210
Notes receivable                    335      (1,519)          39
Trade accounts payable            2,352        (611)         129
Other accounts payable and 
accrued liabilities              (1,241)      6,293        2,758
Taxes payable                      (778)      1,148         (113)
Net cash provided by 
operating activities             14,211       8,689       10,983
Investing activities
Additions to property, 
plant and equipment              (4,763)     (5,176)      (7,342)
Proceeds from disposals 
of property, plant and                 
equipment                           318          26           54
Purchase of securities 
and net increase in 
loans receivable                (14,817)     (4,826)      (1,698)
Proceeds from disposal/ 
maturity of investments              53         708          520
Purchase of long-term 
investments                      (1,076)        395            4
Change in restricted cash           472         172          107
Net cash used for 
investing activities            (19,813)     (8,701)      (8,355)
Financing activities
Proceeds from issuance of 
short-term debt                  54,709       9,078        9,799
Repayment of short-term 
debt                            (49,253)     (6,403)      (4,048)
Proceeds from issuance of 
long-term debt                    1,876       3,368        8,947
Repayment of long-term 
debt                               (220)     (3,056)      (9,511)
Dividends paid                        -           -          (14)
Purchase of treasury shares        (312)     (1,538)        (859)
Proceeds from sale of 
treasury shares                     210       1,795          719
Net cash provided by 
(used in) financing               7,010       3,244        5,033
activities
Effect of foreign exchange 
on cash and cash equivalents          -          (1)          15
Effect of inflation accounting        -           -         (684)
Net change in cash and cash 
equivalents                       1,408       3,231        6,992
Cash and cash equivalents at 
beginning of period               8,450       7,070        4,872
Cash and cash equivalents at 
end of period                     9,858      10,301       11,864





TATNEFT

Interim Consolidated Statements of Shareholders' Equity, Unaudited
(in millions of Russian Roubles)


                                                                
                        2004               2003              2002
                  Shares   Amount    Shares   Amount    Shares   Amount
Preferred 
shares:

Balance at 
January 1 and 
June 30          147,509      148   147,509      148   147,509      148
(shares in 
thousands)
Common shares:                                                                   

Balance at 
January 1 and 
June 30        2,178,691    2,179 2,178,691    2,179 2,178,691    2,179
(shares in 
thousands)
Treasury 
shares, at 
cost:

Balance at 
January 1        191,430   (5,143)  200,288   (3,990)  176,133   (2,511)
Purchases          8,711     (312)  196,452   (5,995)  195,659   (5,083)
Sales             (6,124)     211  (205,310)   4,842  (171,504)   3,604

Balance at 
June 30 and 
December 31      194,017   (5,244)  191,430   (5,143)  200,288   (3,990)
(shares in 
thousands)
Additional 
paid-in 
capital

Balance at 
January 1                  89,516             88,863             89,026
Stock-based 
compensation                    -                  -                  -
Stock-options 
redeemed                        -                  -               (163)
Treasury share 
transactions                    -                653                  -

Balance at 
June 30 and 
December 31                89,516             89,516             88,863
Accumulated 
other 
comprehensive 
income

Balance at 
January 1                     189                176              3,144
Foreign currency 
translation 
adjustments                  (176)                 3                (20)
Unrealized 
holding gains 
on                             
available-for-sale 
securities, net of 
tax                            50                 43                 33
Transfer of 
realized 
gains included 
in net income, 
net of tax                    (43)               (33)            (2,981)

Balance at June 30 
and December 31                20                189                176
Retained earnings

Balance at 
January 1                  62,291             51,002             36,098
The cumulative 
effect on prior 
years of                        
prior year 
adjustments 
(see Note 4)                    -             (3,226)              (903)

Balance at 
January 1, as 
adjusted                   62,291             47,776             35,195
Net income                  9,494             14,880             13,470
Dividends                    (801)              (365)              (387)
Treasury share 
transactions                   (1)                 -               (502)

Balance at 
June 30 and 
December 31                70,983             62,291             47,776
Total shareholders' 
equity at 
June 30 and               
December 31               157,602            149,180            135,152


 
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