1 СONTENT

PROFILE: EXPORT 5 WORLD’S LARGEST EXPORTER

GENERAL SUPPLY STATISTICS 9

LNG SUPPLY 18

PIPELINE GAS SUPPLY TO NEW MARKETS 20

NATURAL GAS PURCHASING 21

GAS TRANSPORTATION AND STORAGE 23

TRANSPORTATION 23

GAS STORAGE 28

EXPORTS OF CRUDE OIL, PRODUCTS, AND SULFUR 29

CURRENT AREAS OF ACTIVITY 29

FUTURE AREAS OF ACTIVITY 31

NATURAL GAS AS MOTOR FUEL 33

ENVIRONMENTAL PROTECTION 37

CHARITY AND SPONSORSHIP 39 PROFILE: GAZPROM EXPORT World’s largest natural gas exporter

Our company: • supplies natural gas to over 20 countries; • exports gas condensate, crude oil, petroleum products, liquefied natural gases, and other petrochemicals; • performs gas marketing in new markets, optimizes export flow, analyses and forecasts the trends of natural gas market; • provides reliable and secure natural gas supply to international clients; • participates in developing and implementing Gazprom Group’s investment projects in gas and energy, in and worldwide; • actively participates in developing cooperation with international partners.

Gazprom Export is one of Russia’s most successful Russia’s gas reserves and Gazprom and advanced companies; its export earnings contribute significantly to Russian federal budget revenues. Gazprom Export’s global market positions rest on the gas reserves owned by Gazprom. Gazprom possesses the world’s In 2015, natural gas exports to non-CIS countries came largest natural gas reserves. It has around 17% of the world’s to 158.6 billion cubic meters (bcm). reserves and 72% of Russia’s reserves.

As at January 1, 2016, Gazprom Group’s gas reserves Russian gas and Europe in categories A+B+C1 stood at 36.15 trillion cubic meters. Gazprom accounts for around two-thirds of Russia’s gas Russia possesses 6.1% of the world’s proven oil reserves, production. In 2015, Gazprom Group enterprises produced 17.6% of coal reserves, and 25% of natural gas reserves. 418.5 bcm. The European continent’s energy consumption structure is expected to see an increase in the share of gas, currently The total length of trunklines and gas transmission system in second place behind oil. Since Europe’s own gas reserves (GTS) pipelines has reached 171,200 kilometers. Gas transport are limited and domestic production of this energy source utilizes 250 linear compressor stations with a total gas pumping is falling, European nations will have to import more gas unit capacity of 46,200 MW. Gazprom operates 26 underground from other countries. gas storage facilities and six gas processing plants in Russia.

Gazprom Export is ready to contribute to meeting the needs of European consumers by drawing on the Russian gas industry’s powerful resources.

Source: BP, OPEC (2014) 5 Construction of the “Central Asia — Center” gas pipeline system, 1967 Construction of the “Power of ” pipeline, 2015

CORPORATE HISTORY VALUES Reliable gas supplies are a highly important part of Europe’s Relevance of the company’s activities to the interests Stages of a long journey energy security, as proven by our record of over 40 years of gas importing countries of cooperation. Gazprom Export’s management pays special Our company guarantees reliable and sustainable gas supply Gazprom Export’s headquarters moved to Saint Petersburg attention to the company’s reputation with its partners and to importing countries. The history of gas supplies to Europe In November 2013, in accordance with its founder’s decision, Gazprom Export LLC relocated the public. Gazprom Export upholds the principles of social shows that despite the turbulent political transformations both to the city of St. Petersburg. responsibility for its operations, and strives to contribute in the purchasing countries and the former Soviet Union, we to developing the gas industry and the Russian economy. are capable of ensuring uninterrupted gas supply to our clients.

Gazprom Export LLC In 2006, in accordance with its founder’s decision, Gazexport LLC was renamed Gazprom Export LLC.

OOO Gazexport Limited liability company (OOO) Gazexport was established under Resolution No. 39 of the RAO Gazprom Board of Directors, dated April 9, 1997 and Resolution No. 53 of the RAO Gazprom Board of Directors, dated February 12, 1998. The Moscow Registration Chamber registered the company on May 12, 1999. PAO Gazprom is the company’s founder and 100% owner.

VEP Gazexport In 1993, GVP Gazexport was transformed into a foreign trade enterprise (VEP), subsidiary of Russian joint-stock company (RAO) Gazprom, becoming known as VEP Gazexport.

GVP Gazexport In December of 1991, as all organizations on the territory of the Russian Soviet Federative Socialist Republic transitioned to the jurisdiction of the Russian Federation, the state-owned foreign trade enterprise was renamed GVP Gazexport.

V/O Soyuzgazexport into the state concern Gazprom In the fall of 1991, V/O Soyuzgazexport was incorporated into the state gas concern Gazprom as a state-owned foreign trade enterprise.

V/O Soyuzgazexport The All-Union Foreign Trade Organization (V/O) Soyuzgazexport was founded on April 23, 1973.

7 GENERAL SUPPLY STATISTICS

EUROPE

Dynamics of gas supply to Europe

Natural gas sales via Gazprom Export outside the former Soviet Union (bcm)

Since 1973, we have supplied over 4 trillion cubic meters The natural gas market of Eastern and Central Europe of gas to European countries. In 2015, Gazprom Export is particularly important due to its geographic proximity supplied 158.6 bcm of gas to European countries. to Russia. Our work on developing partnerships in this Around 80% of Russia’s natural gas exports go to countries region over recent years has taken place against a backdrop in Western Europe (including Turkey), with 20% going of significant geopolitical changes and national aspirations to countries in Central Europe. to diversify energy supply sources. All the same, Russian natural gas accounts for over half of gas consumption The Western European market (plus Turkey) accounts in this region. In 2015, Gazprom Export sold 28.5 bcm for the bulk of Russia’s exports. In 2015, Gazprom Export of gas in this market. supplied 130.1 bcm of gas to the markets of countries in this region. The largest importers: • Poland (8.91 bcm) The largest importers are: • Hungary (5.87 bcm) • (45.31 bcm) • (4.20 bcm) • Turkey (27.02 bcm) • Slovakia (3.81 bcm) • Italy (24.42 bcm) • Great Britain (11.12 bcm) Around 80% of the gas we sell in Central Europe goes to these countries.

9 BOSNIA AND HERZEGOVINA CZECH REPUBLIC

Austria’s largest company, OMV AG, has been Gazprom’s Natural gas has been supplied to Bosnia and Herzegovina, Russian-Chinese gas sector cooperation is rising Russian natural gas supplies to Czechoslovakia began in 1967. primary business partner for over 40 years. Until 1994, this formerly part of Yugoslavia, since 1978. Prior to the breakup to a fundamentally new level. The first Russian pipeline Gazprom Export currently has two long-term contracts company was 100% state-owned. OMV’s current shareholders of the Socialist Federal Republic of Yugoslavia, gas was gas should reach the Chinese market in 2019. for supplying gas to the Czech Republic: with RWE Supply are as follows: the Austrian government (via the Austrian supplied under the Intergovernmental Agreement of 1988. & Trading CZ a.s. (formerly RWE Transgas) and Vemex s.r.o. Industrial Holding) with a 31.5% stake, the International Gazprom’s main partner in the Chinese market is China National Russian natural gas transit via Czech territory is handled Petroleum Investment Company of Abu Dhabi with 24.9%, From 1993 to 1995, natural gas was supplied under a contract Petroleum Corporation (CNPC) — China's largest state-owned by NET4GAS, the Czech Republic’s gas transmission OMV itself with 0.3%, and 43.3% in free float. The company with Progresgas-Trading, a Russian-Yugoslavian joint venture. oil and gas company and one of the world’s leading integrated system operator. is headquartered in Vienna. In April 2004, OMV Gas GmbH Since October 1995, Gazprom Export has been supplying gas oil and gas producers. (a 100% subsidiary of OMV AG) became the legal successor via the Energoinvest d.d.-Sarajevo company. Founded in 1951, RWE Supply & Trading CZ remains Gazprom Export’s main to contracts signed between Gazprom Export and OMV AG. the state-owned Energoinvest d.d.-Sarajevo is the leading partner in the Czech Republic. A long-term contract energy sector enterprise in Bosnia and Herzegovina. with RWE Supply & Trading CZ (RWE Transgas) was signed In 1968, OMV became the first Western company to sign on October 15, 1998 and is in effect until the end of 2035. a long-term natural gas purchasing contract with the USSR. Our annual exports to Bosnia and Herzegovina do not exceed From the start of deliveries to January 1, 2016, Austria has 400 mcm. The total volume of gas delivered under the current For many years, Russian gas transit across Czech territory was received over 190 bcm of Russian natural gas in total, including contract between 1997 and 2015 was over 4.6 bcm, including based on a long-term contract signed on November 1, 1999 4.40 bcm in 2015. Due to Austrian gas market deregulation and around 202 mcm in 2015. with RWE Transgas (known as RWE Supply & Trading CZ the restructuring of OMV AG natural gas trade operations, from January 1, 2013). On April 1, 2013, in line with agreements the parties agreed in 2006 that EconGas GmbH would replace reached by the parties, RWE Supply & Trading CZ transferred OMV Gas GmbH as the purchaser of Russian gas. this contract to NET4GAS, the operator of the Czech gas BULGARIA transmission system. Russian natural gas deliveries for onward On September 28, 2006, Gazprom Export terminated its existing transit via the territory of the Czech Republic are carried out contracts with OMV AG and another Austrian company, Russia is the sole exporter of natural gas to Bulgaria. Deliveries mainly through the Yamal–Europe and /OPAL gas GWH Gashandel GmbH (renamed Gazprom Austria GmbH (GPA) began in 1974. Russian-Bulgarian cooperation is based pipelines, using the Olbernhau/Brandov entry point. from February 27, 2013), and signed new contracts for gas on several documents, the most important being the General Signing of the gas supply contract between Gazprom and CNPC supply to Austria (effective November 1, 2006 to December 31, Agreement between member states of the Council for Mutual In March 2006, Gazprom Export signed a gas supply contract 2028) with EconGas GmbH, GPA, and Centrex Europe Energy Economic Assistance (CMEA) on developing the Orenburg with Vemex, marking the start of supply diversification and Gas AG (Centrex). GPA and Centrex also gained the right gas field and constructing the main Orenburg-Western Soviet On May 21, 2014, Gazprom and CNPC signed a Purchase and in the Czech market — as well as access to end consumers to sell gas directly to distributor companies in the provinces Border gas pipeline, and the Yamburg Agreement between Sale Agreement for Russian pipeline gas via the Eastern route. in the Czech Republic, given Gazprom Group’s stake in Vemex. of Carinthia, Styria, and Salzburg. the USSR and Bulgaria on developing the Yamburg gas field and This is the largest gas purchase and sale deal in the history In total, 4.2 bcm of Russian gas was supplied to the Czech constructing the Yamburg-Western Soviet Border gas pipeline. of the global gas sector. Under a 30-year contract, China will market in 2015, counting auctioned gas volumes As well as trading gas, Gazprom Export is also involved receive 38 bcm of natural gas per annum from the (including gas for compressor stations). in operating the Haidach underground gas storage facility (UGS) Gazprom Export’s main partners in the Bulgarian market and Irkutsk gas production centers, via the Power of Siberia in Austria, in cooperation with the Austrian company RAG and are Bulgargaz EAD and Overgas Inc. Bulgargaz, a state-owned gas pipeline. Germany’s WINGAS. enterprise, is a 100% subsidiary of Bulgarian Energy Holding EAD. The enterprise was established in 1974. The parties met in Moscow on October 13, 2014 to sign Austria plays an important role in natural gas transportation, the Technical Agreement — a supplement to the natural gas providing transit for around 30 bcm of Gazprom Group’s gas In December 2006, Gazprom Export and Bulgargaz signed Purchase and Sale Agreement. It sets out the basic parameters An agreement signed in 2006 on natural gas supply each year to Italy, , Germany, Hungary, and Slovenia. a Memorandum on further development of Russian-Bulgarian for designing, building, and operating the cross-border section via the Nord Stream gas pipeline defined the basic terms The following pipelines are this trunkline system’s main gas sector relations. The Memorandum extended the contract of the Power of Siberia gas pipeline. It also contains the basic for Danish company DONG’s purchases of Russian gas components: TAG (Trans Austria Gas pipeline for transit for Russian natural gas transmission via Bulgaria to other technical and technological specifications for delivering gas over a period of 20 years. to Italy), SOL (Süd-Ost-Leitung pipeline to Slovenia and Croatia), countries until 2030, while keeping booked transit capacity from the seller to the buyer. On November 9, 2014, Gazprom WAG (West-Austria-Gasleitung to Germany and France), at around 17.80 bcm a year. and CNPC signed a Framework Agreement on natural gas Deliveries of Russian natural gas to DONG began HAG (Hungary-Austria Gas pipeline), and Penta West supply from Russia to China via the Western route, under with the commissioning of Nord Stream’s first line (linking the Oberkappel and Burghausen points on the Austrian- Overgas Inc. is a joint-stock company, 50% owned by Gazprom which China will take delivery of 30 bcm of gas per annum on November 8, 2011. In 2015, supply to Denmark German border). As well as its trunklines, Austria also has Export. The activities of Overgas Inc. include constructing over 30 years from fields in Western Siberia via the Power amounted to 672 mcm. a distribution network totalling around 25,000 kilometers. and operating gas pipelines and gas distribution networks of Siberia 2 pipeline. Work on the corresponding Purchase on the territory of Bulgaria, as well as supplying natural gas and Sale Agreement is underway. to end consumers. The Russian and Chinese parties have already determined On November 15, 2012, Gazprom Export and Bulgargaz EAD the basic technical and commercial parameters of future signed a new long-term gas supply contract for up to 2.9 bcm supplies via the Power of Siberia 2. These are defined per annum. The contract covers natural gas supply from by the Heads of Agreement for pipeline deliveries of natural Russia to Bulgaria starting January 1, 2013, and is effective gas from Russia to China via the Western route, signed to December 31, 2022. by Gazprom CEO and CNPC Vice President Wang Dongjin. In 2015, Bulgaria’s natural gas consumption was around 3.2 bcm, and gas imports amounted to 3.11 bcm (fully covered The Russian and Chinese parties are also holding talks aimed by supplies from the Russian Federation), including 200 mcm at looking into opportunities for cooperation on building gas for compressor stations. As at December 31, 2015, underground gas storage facilities in China to secure the supply the cumulative total of gas supplied to Bulgaria throughout of Russian natural gas to China. the cooperation period was around 167 bcm.

11 FINLAND contract was signed on October 28, 1983 for delivering gas GERMANY (Unique Performance), will take charge of power generation to the border of Czechoslovakia and West Germany. from conventional energy sources, production, extraction, Natural gas has been supplied to Finland from Russia On December 19, 2006, Gazprom Export and Gaz de France Germany has been, and remains, the largest buyer and gas trading. for over 40 years. The first supply contract was signed signed a major package of commercial agreements which of Russian natural gas. Its total import volumes in 2015, in 1971, for up to 1.40 bcm per year. covered extending their existing contracts through 2031, including resales, came to 45.31 bcm (including gas supplies Uniper imports natural gas from Russia, the , relocating delivery points to the French border, transferring purchased at auction). Norway, and Denmark, accounting for around 60% of gas Gas deliveries to Finland actually started in 1974, and to date part of the natural gas volumes — and the corresponding supplied to the German market. Finland has received over 121 bcm, including 2.76 bcm in 2015. transmission capacities — to Gazprom Export for the purpose The total volume of natural gas sold by Russia to Germany of operating in France’s retail market, and selling new volumes from the start of deliveries (in 1973, including East Germany) Gazprom Export’s four main contracts with Uniper have been For 25 years, the Russian party’s partner was Finland’s Neste delivered through the Nord Stream pipeline. to the present stands at over 1 trillion cubic meters. extended to 2035. company (restructured as Fortum after merging with Imatran Voima in 1998), with which Gazprom has developed a strong Deliveries via the Nord Stream pipeline started from January 1, Natural gas is supplied to Germany under Gazprom Export’s The total volume of gas supplied to the Uniper company’s legal relationship. The companies have worked together for many 2014 and now amount to 2.5 bcm per annum. In March 2010, contracts with Uniper Global Commodities SE (formerly predecessors from the start of deliveries to the present stands years on developing the Finnish natural gas market. In 1994, in the presence of Russian President Dmitry Medvedev E.ON Global Commodities SE), WIEH GmbH & Co. KG, at over 620 bcm. this collaboration resulted in the founding of the Gasum joint- and French President Nicolas Sarkozy, a Memorandum WINGAS GmbH, and Shell Energy Europe Ltd. stock company, committed to importing and selling natural of Interest was signed for additional supplies of natural gas With the aim of making natural gas sales more efficient and gas as well as operating and developing Finland’s gas within the Nord Stream project. Thus, if the market situation The Ruhrgas AG joint-stock company was founded in 1926. increasing market share in Germany, Gazprom and transmission system. is favorable and both parties express interest, gas supply Its operations included natural gas purchasing and transmission AG (100% owned by BASF AF) established two joint ventures in via this pipeline may increase to 4 bcm per annum. via trunklines, with subsequent sales to gas distribution Germany: WIEH (1990) and WINGAS (1993). In December 2015, Gazprom Export and Gasum extended companies. The company also handled the whole spectrum Gazprom and Wintershall AG completed an asset swap the March 12, 1994 contract for gas supply to Finland On June 18, 2015, during the 19th St. Petersburg International of functions related to gas transmission system design, on October 1, 2015. This deal resulted in Gazprom increasing through to December 31, 2031. Economic Forum, Gazprom and ENGIE signed a Memorandum construction, and operation. its stake in the European gas trading and storage companies of Understanding and Cooperation regarding the Nord Stream 2 WINGAS, WIEH, and WIEE to 100%. project; key agreements relating to this project were signed In early 2003, the German energy corporation E.ON AG became in September 2015 at the Eastern Economic Forum the sole shareholder of Ruhrgas AG. In compliance with Several long-term contracts have been concluded with WIEH FRANCE in Besides our partnership with ENGIE, cooperation the German regulator’s requirements, E.ON Global Commodities and WINGAS. Gazprom Export has signed an agreement with with Electricité de France (EDF) has been developing actively was restructured in 2010 into two companies: trading and WIEH, WINGAS and WIEE extending these contracts until 2031. Russia and France have enjoyed over 40 years of successful since 2009: on November 27, 2009 Gazprom and EDF signed transport. A long-term agreement on natural gas transmission and mutually beneficial cooperation in the area of natural gas a Memorandum of Understanding on engaging in long-term via German territory to the Netherlands and , along Along with the Nord Stream project coming on stream, gas supply. In this time, 354.8 bcm of natural gas has been mutually beneficial cooperation in the gas sector, electrical with several short-term contracts, have been in effect since deliveries to WINGAS began in 2013. exported to France. Exports to this country in 2015 amounted power, and gas storages. Gazprom and EDF signed a binding October 1, 2001 with the transport company, Open Grid Europe to 9.7 bcm. Gazprom Export and ENGIE (former Gaz de France document on gas supply at the St. Petersburg International GmbH (successor to E.ON Gastransport GmbH). In 2015, Gazprom Export supplied 27.06 bcm of gas and GdF SUEZ) currently have six major long-term contracts Economic Forum on June 21, 2013. to Germany, Belgium, and Britain via WINGAS and WIEH. for Russian gas supply to France. Effective from January 1, 2016, E.ON restructured its business With the aim to enter the retail market, a new Gazprom Group by dividing into two companies. The first of these, retaining Gazprom Export also cooperates in the German market with The first two contracts were signed on September 3, 1975 company was registered in France in July 2006: Gazprom the name E.ON, will focus on renewable energy sources (wind, Shell Energy Europe, with which it has a contract to supply and entailed delivering gas to the Slovak-Austrian border. Marketing & Trading France, engaged in supplying gas solar, and hydro power), distribution issues, and client services. 1.2 bcm of gas per annum for 20 years. Within the framework of the ‘Gas for Pipes’ project, a third to end consumers in France. The second company, now known as Uniper

Isabelle Kocher, Deputy CEO and Chief operating office of ENGIE, Alexeу Miller, Chairman of the Management Committee of Gazprom, “Portovaya” compressor station, the starting point of the Nord Stream 2 pipeline Gérard Mestrallet, ENGIE CEO, Alexander Medvedev, Deputy Chairman of the Management Committee of Gazprom and Pierre Chareyre, ENGIE Chairman of the Board, celebrating the 40th anniversary of gas supplies to France

13 GREAT BRITAIN GREECE ITALY NETHERLANDS

In December 1994, Gazprom became a shareholder Russian gas deliveries to Greece began in 1996 under Gazprom Group’s main partner in the Italian market is ENI, Gas and oil fields were first discovered in the Netherlands in Interconnector (UK), owner and operator a contract between V/O Soyuzgazexport and the DEPA Public founded in 1953. There are three business units in ENI’s at the beginning of the 20th century, and commercial of the Interconnector gas pipeline between continental Europe Gas Corporation of Greece, signed in 1988 and covering corporate structure: Exploration & Production, Gas & Power, development of these deposits started after the World War II. and Great Britain. Gazprom is using 2 bcm per year of this delivery of up to 3 bcm per annum through 2016, inclusive. and Refining & Marketing. Gas purchases and sales are handled pipeline’s forward flow capacity (toward Europe) and 6 bcm In 2014, this contract was extended to 2026. by ENI Gas & Power S.p.A., part of the second unit. Gazprom The Gasunie trading company was established on April 6, 1963, per year of reverse flow capacity (toward Great Britain). Group supplies natural gas under three long-term contracts for the purpose of creating an effective national gas supply DEPA is a state-controlled gas corporation established in 1988 with ENI. system. It was authorized to purchase gas from producers, With the aim of optimizing the use of this pipeline’s capacity to diversify Greece’s fuel and energy balance. It has exclusive transport it, and sell it both domestically and abroad. Gasunie and developing trade in Europe’s deregulated markets, a 100% rights to regulate and shape Greece’s natural gas market. Gas is also exported to other companies operating in the Italian signed its first export contract with Belgium’s Distrigas in 1965. Gazprom subsidiary — Gazprom UK Trading (now known Greece is gradually bringing its gas market functionality model market, such as Sinergie Italiane, Axpo Trading AG, ERG, as Gazprom Marketing & Trading, or GM&T) — was in line with the European Union’s standards and requirements. and AEMME Linea Energie. Despite its relatively small size and population, the Netherlands established in Britain on May 6, 1999. Its core areas The first steps in this direction entailed splitting off is currently Europe’s fifth-largest consumer of natural gas, of activity presently include: the transport unit of the DEPA national gas corporation Russian gas is also delivered to Italy through subsidiaries JSC due to the high level of gasification in the residential, industrial, • trading operations across Europe’s major trade platforms, into an independent specialized company, and providing Promgaz (established on a parity basis by Gazprom and ENI and power generation sectors. The overall share of gas including trading in gas, electricity, crude oil, and petroleum potential new players in Greece’s gas market with access in June 1993; Gazprom bought out ENI’s stake in late 2011) in the national energy balance is up to around 39% to the Greek gas transmission system. and PremiumGaz (established in 2008 with A2A S.p.A. (the European average is 22%). The total length of gas products, as well as CO2 emission permits; • developing Gazprom Group’s electricity business; and Iride S.p.A). transmission networks stands at 11,000 kilometers. In order to develop Russian-Greek gas sector cooperation, • selling gas and electricity to end consumers in Britain, Prometheus Gas S.A. was established in 1991, with equal In 2015, 24.42 bcm of natural gas were supplied to Italy under The foundations of Gazprom’s business cooperation France, Germany, and the Netherlands; stakes held by Gazexport and Copelouzos Group Ltd. all current contracts. A total of 586.48 bcm of gas has been with Gasunie were laid in the framework agreement of 1996; • providing end consumers with consumption metering Prometheus Gas S.A. mainly focused on building energy supplied to this country since 1974. besides Russian natural gas supply to the Netherlands, services for gas, electricity, and other products; facilities in Greece, in accordance with the Supplement this also covered various forms of partnership in transmission, • developing LNG trade operations in Atlantic and Pacific to the Intergovernmental Agreement of 1987. Facilities Gazprom and ENI worked together on the project storage, enhancing gas supply flexibility, etc. A 20-year contract regional markets; brought online to date include eight branch gas pipelines, as part of their strategic alliance based on the Agreement for Russian natural gas sales to the Netherlands was signed

• selling LNG and trading CO2 emission quotas the Florina thermal power station (300 MW capacity), signed in 1998. This pipeline system is operated by a Russian- in September 2000. The first deliveries to the Netherlands in the Asia-Pacific via GM&T Singapore; and a compressor station at Nea Mesimvria. Italian joint venture called the Blue Stream Pipeline Company. started on October 1, 2001 via the Yamal–Europe gas pipeline • selling gas to end consumers in the North American The gas pipeline’s capacity is shared by Gazprom and ENI system. In 2015, Gazprom Export supplied 2.38 bcm of gas market via GM&T USA. As at December 31, 2015, a total of around 38.5 bcm of gas on a 50/50 basis. In 2010, the pipeline achieved its designed to the Netherlands. had been exported to Greece since cooperation began. capacity of 16 bcm per annum. Having started with volumes of 260 mcm, Gazprom Group Deliveries to Greece in 2015 amounted to around 1.98 bcm. In compliance with European Union directives, the government is now supplying 11.12 bcm of natural gas to the British market of the Netherlands has restructured Gasunie. The legal each year (as at 2015). Together with Russian gas, GM&T’s unbundling of the company’s transmission and trading units portfolio also includes gas from other producers. For instance, MACEDONIA was completed in July 2005. The newly-formed transmission GM&T has a contract with DONG (Denmark) for purchasing HUNGARY company N.V. Nederlandse Gasunie is now 100% state-owned, natural gas from the Ormen Lange field in the North Sea. GM&T Gas sector cooperation with Macedonia began with a contract while shares in the trading unit — known as GasTerra from buys significant volumes of gas directly in the market as well. Natural gas supply cooperation with Hungary began in 1975, signed in 1991 with Makpetrol A.D. to build a trunkline and September 1, 2006 — are still held by the former Gasunie and until 1998 gas was exported under the intergovernmental branch pipelines in that country on general contract terms. shareholders, with the distribution of shareholder capital also In order to make gas supply to Great Britain more reliable agreements on developing the Orenburg and Yamburg Construction was completed in 1997. remaining the same (Energie Beheer Nederland B.V. 40%, Exxon and flexible, the company is optimizing capacities gas fields. Mobil 25%, Shell 25%, and the state 10%). According to the in the Interconnector and BBL pipelines. Russian gas exports to Macedonia started in 1997, with a total new structure, GasTerra is now Gazprom Export’s counterparty Panrusgaz, a Hungarian-Russian gas sector joint venture, of around 1.41 bcm of gas sold by December 31, 2015, including under the contract for natural gas supplies to the Netherlands. Another way of improving reliability and optimizing supply was set up in 1994 to ensure that Hungary’s long-term natural around 62 mcm in 2015. involves gas swap deals, which make it possible to lower gas import requirements would be met reliably, to develop N.V. Nederlandse Gasunie is Gazprom’s partner transmission costs and ensure that gas volumes in the portfolio mutually beneficial trade ties, and to maximize the opportunities in the Nord Stream project. The Dutch company has a 9% for any given market can be increased regardless of capacity given by the strategic partnership. Importing natural gas stake in Nord Stream AG, the pipeline’s operator. loading in a particular section. GM&T also participates is the company’s core business. Panrusgaz is Hungary’s in operations such as exchanging pipeline gas for liquefied leading natural gas supplier (around 65%). natural gas (LNG). Long-term contracts were signed with Panrusgaz in 1996 The reliability of gas supply to consumers is also enhanced for supplying natural gas to Hungary in 1996-2015. Under by optimizing and balancing the company’s own product these contracts, gas is supplied to Hungary via two routes: portfolio, including hedging transactions and signing through Beregovo (Ukrainian-Hungarian border) multiple-component contracts involving bundled products and Baumgarten (Slovak-Austrian border). (gas/electricity/ greenhouse gas emission permits). As at December 31, 2015, a total of 230.1 bcm of natural gas The sale of gas to end consumers is a gas business segment that had been exported to Hungary. Supply to this country in 2015 enables diversification of the revenue sources. Moreover, direct amounted to 5.87 bcm. gas deliveries to end consumers offer an additional guarantee of natural gas sales in Britain’s deregulated market. In 2015, gas sales to end consumers in Great Britain via GM&T’s Gazprom Marketing & Trading Retail subsidiary came to 2.9 bcm. UGS Bergermeer in the Netherlands

15 POLAND ROMANIA SLOVAKIA gas supply to Turkey across the Black Sea. The maximum annual capacity for supply via this route is 16 bcm. Poland has been purchasing natural gas from Russia longer The start of gas cooperation with Romania involved Slovakia is a long-standing and reliable partner of Russia than any other country. The first small volumes were supplied the development of the Orenburg gas condensate field in the field of gas exports. Deliveries of Russian natural gas The BOTAŞ state pipeline company was founded to Poland from 1944. In recent years, Poland has imported more and the construction of the Orenburg-Western Soviet Border to Slovakia started as long ago as 1967 and continue by the TPAO state oil company in 1974 in accordance gas from Russia than any other country in Eastern Europe did. gas pipeline, as stipulated in the 1974 General Agreement to this day. Slovenský plynárenský priemysel a.s. (SPP) with a Turkish government resolution. BOTAŞ has Supply from Russia meets 50% of Poland’s demand for gas. among member states of the Council for Mutual Economic is Gazprom Export’s main partner in Slovakia. SPP engaged in gas trading and transportation since 1986. Assistance (CMEA). is presently 100% state-owned (through the State Property Natural gas supply to Poland and transit across its territory Fund). Moreover, SPP is the chief stakeholder in Slovakia’s Until recently, BOTAŞ had exclusive rights to oversee are covered by long-term contracts with PGNiG SA and EuRoPol Natural gas has been supplied to Romania since 1979, gas transmission system operator, Eustream a.s., as well as and structure the gas market in Turkey. Striving for accession GAZ s.a., under an Intergovernmental Agreement dated August and its market share has ranged from 2% to 25% of total in a number of other companies engaged in gas distribution, to the European Union, the Turkish government enacted 25, 1993 on Russian gas supply to Poland and the creation consumption in various years. Gas from the Russian Federation transmission, and storage. a Natural Gas Market Act that entailed gradually eliminating of a gas pipeline system for gas transit across Polish territory is supplied under long-term contracts with WIEE and Conef the gas import monopoly by having BOTAŞ transfer pre- to Western Europe. Energy for natural gas supply to Romania through 2030. Gas supply to the Slovak Republic is based on the Framework contracted gas volumes to private sector importers, Agreement signed in 2008 and effective to 2030. Russian on a tender basis (and subject to the gas seller’s approval). Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) is Poland’s As at January 1, 2016, a total of around 126.9 bcm of gas natural gas transit via the Uzhgorod corridor passes through largest oil and gas company. Its operations include oil and gas had been supplied to Romania, including 0.18 bcm in 2015. the territory of the Slovak Republic. There is a current contract With Turkey’s gas market being liberalized, Gazprom Export field development, production, storage, and transmission with Eustream, the operator of Slovakia’s gas transmission agreed to transfer part of the volumes for one of its contracts of these primary energy products, construction and network, for gas transmission to the Baumgarten delivery point in a tender called by BOTAŞ, and in 2007 it signed contracts development of the national oil and gas transmission system, (on the Austrian border) through 2028. Since January 1, 2013, with the four private companies that gained the rights to import and gas imports and exports. The company was established SERBIA gas volumes formerly shipped via Lanžhot on the Uzhgorod gas into Turkey. as a state enterprise in 1982. In 1990, it was transformed transit corridor have been completely rerouted to the Nord into a 100% state-owned joint-stock company. As a result Russian natural gas deliveries to Yugoslavia began in 1978. Stream gas pipeline. The next step in deregulating the national gas market was of step-by-step partial privatization, the state-controlled stake After the breakup of the Socialist Federal Republic of Yugoslavia the Turkish government’s decision to admit new private players is now 70.4%. (SFRY) in the early 1990s, separate intergovernmental In 2015, 3.81 bcm of gas was supplied to Slovakia into the market. For this reason, and at the request agreements on gas industry cooperation were signed (including gas for compressor stations). of the Turkish party, Gazprom Export signed new long-term EuRoPol GAZ, a Russian-Polish joint venture, was established with the new sovereign states. contracts (through 2042, inclusive) with Turkish private in 1993 to design, finance, and build gas transit pipeline companies in August 2012 for supplying up to 6 bcm a year systems on Polish territory. The company owns the 684- A Russian-Serbian Intergovernmental Agreement was signed of Russian gas to Turkey. The total supply volumes under kilometer section of the Yamal–Europe gas pipeline that runs on February 7, 1995. To strengthen Gazprom’s position SLOVENIA these new contracts completely replaced the natural gas through Poland. Construction of the first leg of the Yamal– in the region, a new Russian-Serbian joint venture, Yugorosgaz volumes formerly supplied to BOTAŞ under the contract Europe gas pipeline was completed at the end of 1999. (50% Gazprom-owned), was established in July 1996 under Natural gas deliveries to Slovenia began in 1978. Since signed on February 14, 1986. Gas supply under the new With five compressor stations now in operation, its current an Intergovernmental Agreement dated April 11, 1996. the breakup of Yugoslavia, cooperation has been based contracts commenced on January 1, 2013. throughput capacity is around 33 bcm per annum. Yugorosgaz’s operations cover phased implementation on an Intergovernmental Agreement signed on November 5, of the construction plan for the southern branch of Serbia’s gas 1992. Gazprom Export’s partner in the Slovenian market On December 1, 2014, Gazprom CEO Alexey Miller and pipelines, gasification and gas supply to consumers in southern is Geoplin d.o.o. Ljubljana, founded in 1975 and now BOTAŞ Board of Directors Chairman Mehmet Konuk signed Serbia, and participation in joint energy projects. This company the country’s largest importer of natural gas. The current a Memorandum of Understanding on building a subsea gas has been Serbia’s natural gas purchaser since 2007. contract is effective to 2018. pipeline across the Black Sea in the direction of Turkey. This new pipeline will have an annual capacity of 63 bcm, On October 13, 2012, Russia and Serbia signed As at January 1, 2016, around 13 bcm of natural gas had been including 14 bcm for Turkish consumers and 47 bcm an Intergovernmental Agreement on natural gas supply supplied to Slovenia, including 0.48 bcm in 2015. for transmission to the Turkish-Greek border, where a delivery in 2012-2021, allowing gas supply to be increased to 5 bcm point will be organized. The pipeline’s starting point should be per annum. Based on an Intergovernmental Agreement dated the Russkaya compressor station in the Krasnodar Territory. March 27, 2013, Gazprom Export and Yugorosgaz signed a long-term contract for natural gas supply to Serbia until TURKEY As at December 31, 2015, over 391.17 bcm of natural gas had the end of 2021. As at December 31, 2015, a total of around been supplied to Turkey since cooperation began. Supply 13.8 bcm of gas had been supplied under the contract with In February 1986, based on an Intergovernmental Agreement volumes for 2015 came to 27.02 bcm. this company, including 1.68 bcm in 2015. dated September 18, 1984, a contract was signed with Turkey’s BOTAŞ company for increasing gas supplies over 25 years “Minskaya” compressor station on Yamal–Europe gas pipeline Natural gas transmission, distribution, and storage within (1987-2011), up to 6 bcm per annum. The first deliveries Serbia are handled by the state-owned enterprise Srbijagas, of natural gas to Turkey from the Soviet Union began in June Intergovernmental and corporate agreements aimed established on October 1, 2005 by the government 1987, by transit via Romania and Bulgaria through the dedicated at strengthening Russian-Polish cooperation were concluded of the Republic of Serbia in the course of restructuring Trans-Balkan pipeline. in October 2010. This resulted in gradually increasing volumes the state-owned enterprise Naftna Industrija Srbije (NIS). supplied to Poland through to the expiration of the contract In 1998, a long-term contract was signed with BOTAŞ between Gazprom Export and PGNiG, as well as resolving An Intergovernmental Agreement on the Banatski Dvor for supplying an additional 8 bcm per annum via this route issues related to the activities of EuRoPol GAZ, especially tariff underground storage (UGS) project was signed on January 25, through 2022. formation for Russian gas transmission services across Polish 2008. Banatski Dvor was put into operation in October 2011. territory and the corporate governance of EuRoPol GAZ. The UGS has an active gas storage volume of 450 mcm, Until 2003, natural gas was delivered to Turkey only by transit with a maximum daily withdrawal capacity of 5 mcm. through Ukraine, Moldova, Romania, and Bulgaria. Gas exports As at January 1, 2016, a total of 292.7 bcm of natural gas had This storage facility guarantees reliable supplies of Russian through the Blue Stream pipeline began in 2003 under been sold to Poland, including 8.9 bcm in 2015, 378 mcm gas not only for Serbia, but also for consumers in Hungary a Gazexport–BOTAŞ contract dated December 15, 1997 of this figure being fuel gas. and Bosnia and Herzegovina. and based on an Intergovernmental Agreement on Russian Laying the subsea section of the Blue Stream gas pipeline

17 LNG SUPPLY

“Ob River” LNG carrier moored Ice-class LNG carrier “Velikiy Novgorod”

Gazprom Group’s ability to compete in the LNG trade is based already supplied LNG on a spot market and short-term basis on its extensive trading portfolio, the Group’s own fleet of gas to Atlantic region countries such as Argentina, Mexico, Egypt, transport tankers, and a great deal of experience in LNG market Kuwait, the UAE, and others; and is working on expansion trading operations. of the geography of deliveries to this region.

With the aim of expanding its presence in Atlantic Basin LNG supply to the new markets markets, Gazprom is also working to develop its own LNG in the Asia-Pacific Region project in the Leningrad Region (Baltic LNG). The decision to move this project into the investment stage was taken Gazprom Group actively works on LNG markets across in early 2015. A plant will be built in the port of Ust-Luga, the Asia-Pacific Region (APR), supplying traditional markets 160 km from St. Petersburg; its annual capacity will be (Japan, South Korea, Taiwan) as well as the fast-growing 10 million tons. markets of India, China, and Southeast Asia. Gazprom is also expanding its LNG portfolio by means Gazprom Group’s key source for LNG supply to the APR is LNG of purchases from third-party projects. For instance, from the Sakhalin-2 project. This project’s two production in January 2015 Gazprom Marketing & Trading Singapore lines nominal output capacity, is 9.6 million tons per annum. and Yamal Trade signed a long-term purchase-sale contract In June 2015, Gazprom and Shell signed a Memorandum for 2.9 million tons of LNG per annum from the Yamal LNG on implementing the project for constructing the third process project over 20 years, complete with delivery to a reloading Expansion of LNG business is a priority area for Gazprom At present, Gazprom Group’s LNG trading portfolio is based train at the Sakhalin-2 liquefaction plant, with an output point in Europe. Moreover, in November 2015 a purchase Group, aiming to increase natural gas export volumes on LNG supplies from the only natural gas liquefaction project capacity of up to 5 million tons of LNG per annum. This project and sale contract for LNG was signed by Gazprom Marketing by entering the new markets which are inaccessible for pipeline in Russia — the Sakhalin-2. LNG is also purchased from is scheduled to launch in 2021. & Trading Singapore, Perenco Cameroon, and SNH gas deliveries. For over a decade, Gazprom has been actively the third parties through fixed-term contracts and spot deals. (La Société Nationale des Hydrocarbures du Cameroon) increasing its LNG trading portfolio by carrying out its own From 2005 to 2015, Gazprom Marketing & Trading delivered granting Gazprom Group exclusive rights to the entire LNG projects as well as purchasing LNG from third parties. over 250 shipments of LNG to 14 countries, including over LNG supply to the new markets output of the Cameroon LNG floating plant from 2017 100 cargoes from the Sakhalin-2 project. The implementation in the Atlantic Basin (up to 1.2 million tons of LNG per annum over eight years). Gazprom Marketing & Trading company is Gazprom Group’s of the Group’s new LNG projects — including the third LNG trading portfolio operator. The portfolio approach production train of the Sakhalin-2 liquefaction plant and The Middle East, Latin America, and North Africa are new to the LNG trading enables the company to respond promptly the Baltic LNG project — will ensure the growth of Gazprom and promising LNG consumption centers. Gazprom Group has to changing market conditions, ensure that supply Group’s supply portfolio, as well as facilitating the geographical is geographically diversified, and optimize transport costs. expansion of deliveries and entrance to emerging regional markets.

Liquefied natural gas plant Liquefied gas is piped via the pipelines of the 800 m long berth Loading of LNG carrier in the Aniva Bay at the south end of Sakhalin Island

19 PIPELINE GAS SUPPLY NATURAL GAS PURCHASING TO NEW MARKETS

Following the aim to diversify exports, Gazprom Group Gas will be supplied via the Power of Siberia gas transmission is interested in expanding its share in the Asia-Pacific Region system, which total length exceeds 3,000 km. The start markets by constructing new pipelines to supply China along of supply under this contract is linked to the production with the LNG business development, as well. and transmission capacities construction schedule, and is expected in 2019-2021.

Gas supply to China Another step toward strengthening Russian-Chinese gas sector cooperation was taken in Moscow in May 2015 signing Gazprom is actively working on projects for pipeline supply the Heads of Agreement for pipeline deliveries of natural gas to a market which is among the fastest-growing and the largest from Russia to China via the Western route. Implementing in the world: China. this export project will entail building a new pipeline transmission system, Power of Siberia 2, within the existing Market participants estimate that China’s annual natural gas transport corridor from Western Siberia to Novosibirsk consumption will reach around 300 bcm by 2020 and around followed by an extension to the Russian-Chinese border. 500 bcm by 2030. In 2015, Gazprom and CNPC started the feasibility study On May 21, 2014, in the presence of the Russian President process for various options for pipeline gas supply to China and the Chinese President Xi Jinping, Gazprom from the Russian Far East. A Memorandum of Understanding and CNPC signed a 30-year contract for supplying 38 bcm on this area of cooperation was signed with CNPC of Russian gas a year to China. in September 2015.

The resources for fulfilling this contract will come from gas Azerbaijan Up to 27 bcm of gas from Uzbekistan has been delivered since fields in the Yakutsk and Irkutsk gas production centers. 2007, including 2.9 bcm in 2015, and around 9 bcm of Russian In October 2009, Gazprom Export and the State Oil Company gas has been delivered as well. of the Azerbaijan Republic (SOCAR) signed a medium-term contract for supplying 0.5 bcm of natural gas a year from Our company’s partners in the Kazakhstan market are Azerbaijan in 2010-2015 via the Shirvanovka point delivery KazRosGas LLP (a joint venture between Gazprom and JSC NC on the Russian-Azerbaijani border. Natural gas deliveries KazMunayGas), KazTransGas, and others. from Azerbaijan started in January 2010. In June 2010, the parties signed an addendum to the contract, allowing purchases of Azerbaijani gas to be increased to 2 bcm per annum. A total of 5.4 bcm of Azerbaijani gas was Turkmenistan purchased in 2010-2015, including 206 mcm in 2015. The contract between Gazprom Export and Turkmengas covers In 2015, Gazprom Export’s subsidiary Gazprom Schweiz AG gas supply from Turkmenistan in the period from 2004 to 2028. signed a contract with Azmeco Oil & Gas Equipment Trading Natural gas deliveries under this contract began in January 2004. FZE on gas supply to the Republic of Azerbaijan from September 21, 2015 to December 31, 2020, inclusive, Gazprom Export purchased a total of 204.4 bcm of gas with volumes up to 2.0 bcm per annum. In 2015, 107.4 mcm in 2004-2015, including 3.12 bcm in 2015. of gas was delivered under this contract.

Kazakhstan Uzbekistan

In the 2004-2015 period, Gazprom Export’s subsidiaries Gas deliveries from Uzbekistan started in 2003. The volumes purchased a total of 102.8 bcm of gas, including purchases and supply terms were regulated by the Agreement on strategic for subsequent supply to northern Kyrgyzstan. In 2015, cooperation in the gas sector between Gazprom 12.7 bcm were purchased. and the Uzbekneftegaz National Holding Company, signed on December 17, 2002; this agreement expired in 2013. Due to the specific features of Kazakhstan’s gas transmission system, natural gas trading with Kazakhstan makes extensive Gazprom Export and its subsidiaries purchased a total use of swap arrangements. Gazprom Export and its Gazprom of 127.9 bcm of gas in 2003-2015, counting purchases Schweiz AG subsidiary not only buy Kazakh gas, but also for resale to consumers in Kazakhstan’s southern regions supply natural gas from Russia and Uzbekistan to the Aktobe as part of swap operations and for supply to southern and Kostanay regions of Kazakhstan and to consumers Kyrgyzstan, including 6.4 bcm in 2015. in Kazakhstan’s southern regions. Welding the first joint of the Power of Siberia pipeline

21 GAS TRANSPORTATION AND STORAGE

TRANSPORTATION

Yamal–Europe The pipeline’s Belarusian sector is 575 km long, with five compressor stations: Nesvizhskaya, Krupskaya, Slonimskaya, The Yamal–Europe transnational gas pipeline crosses Minskaya, and Orshanskaya. Gazprom is the sole owner the territory of four countries: Russia, Belarus, Poland, of the Belarusian sector of the pipeline. and Germany. This export corridor added flexibility and security to the gas supplies to Western Europe. The European Union The Polish sector is 683 km long, with five compressor stations: categorized the Yamal–Europe gas pipeline as a Trans-European Ciechanów, Szamotuły, Zambrów, Włocławek, and Kondratki. Networks (TEN) priority investment project. The Polish sector of the pipeline is owned by EuRoPol GAZ (a joint venture between Gazprom and Poland’s PGNiG). Construction of the pipeline began in 1994, and when its final compressor station came online in 2006, Yamal–Europe The pipeline’s westernmost point is the Mallnow compressor reached its planned annual capacity of 32.9 bcm. station near Frankfurt (Oder) on the German-Polish border, The pipeline has 14 compressor stations, a pipe diameter where the pipeline connects to the JAGAL-Nord gas of 1,420 millimeters, and a total length of over 2,000 km. transmission system, which then connects it to the STEGAL West-MIDAL-Rehden UGS gas transmission system, and The pipeline’s starting point is the Torzhok gas transmission STEGAL East-Olbernhau, where the German and Czech gas junction in Russia’s Tver Region, where it receives gas transmission systems link up. The German part of the pipeline from the Northern Tyumen Regions (SRTO)–Torzhok pipeline. is owned by Gascade (formerly WINGAS Transport). WINGAS Transport GmbH was renamed Gascade Gastransport GmbH The pipeline sector on Russian territory is 402 km as of March 1, 2012. To guarantee gas transmission to delivery in length, with three compressor stations: Rzhevskaya, points, additional capacity was booked with Gascade Holm-Zhirkovskaya, and Smolenskaya. for deliveries to the Netherlands, Belgium, and France.

23 The Ukrainian corridor Blue Stream Nord Stream April 2010: Construction of Nord Stream’s first line begins in the Baltic Sea. The Ukrainian gas transport corridor includes the Urengoy– The Blue Stream gas pipeline is designed to supply natural The Nord Stream pipeline links Russia and Germany directly, Pomary–Uzhgorod gas pipeline. gas directly to Turkey across the Black Sea. Blue Stream and is intended to play an important role in ensuring natural gas August 15, 2011: The laying of pipes for Nord Stream’s second complements the Russia-Turkey gas transmission corridor supply security and meeting additional gas demand in Europe. line is completed in the Gulf of Finland. This pipeline runs through Ukraine to Slovakia. When earlier running through Ukraine, Moldova, Romania, and Bulgaria. This route makes it possible to bypass unpredictable transit contracts expired, an Agreement on gas transmission across countries. August 22, 2011: Completion of the “golden weld” — the final Slovakia’s territory was signed on November 11, 2008 This pipeline substantially added to supply security of Turkey, weld in the Russian sector of Nord Stream’s first line. with Eustream a.s., covering transmission of around 1 trillion as well as facilitated the development of Turkey’s gas market Nord Stream has two lines with an annual capacity of 27.5 bcm cubic meters of gas in total over 20 years. and gas infrastructure. Blue Stream also makes it possible each. It runs along the Baltic Sea floor from Portovaya Bay August 25, 2011: Completion of the final weld linking Nord to cover demand spikes in Turkey due to cold snaps in winter. near the city of Vyborg to the German coast near Greifswald. Stream’s first line to Europe’s OPAL pipeline. Gas transit via Slovakia runs in the direction of Austria and plays Nord Stream is 1,224 km long. an important role in supplying natural gas to Italy, Hungary, Given that over 60 km of the pipeline’s Russian onshore section November 8, 2011: The first line of Nord Stream comes Slovenia, and Croatia. Russian gas transmission across runs across mountain territory, and the depth of the offshore The Nord Stream AG (Switzerland) gas transmission company online. After four years of planning and 18 months of intensive Austrian territory to the Italian border uses the TAG gas pipeline, section reaches 2.15 km in an aggressive hydrogen sulfide was established to plan, build, own, finance, and operate construction, Russian gas starts being delivered to the within booked capacities. environment, some special technical solutions were required the gas pipeline. European gas transmission network. during construction in order to enhance the pipeline’s reliability. Another component of the Ukrainian gas transport corridor These solutions included using pipes made from high-quality Stakes in Nord Stream AG are distributed as follows: Gazprom April 2012: The laying of pipes for Nord Stream’s second line is its southern branch, running across Ukraine and Moldova noncorrosive steel with inner and outer polymer coatings, (51%), E.ON (15.5%), Wintershall (15.5%), Gasunie (9%), is completed throughout its route. to Romania. Romania plays an important strategic role running stress tests on the pipeline, using smart inserts and ENGIE (9%). in natural gas transit to the Balkan states and Turkey. in the mountain and offshore sections, and so on. October 8, 2012: The second line of Nord Stream comes online, Ever since the Nord Stream pipeline came online, Gazprom has bringing the gas pipeline’s total throughput capacity to 55 bcm. Under an Intergovernmental Agreement signed in 1986, a transit The total length of the Blue Stream pipeline is 1,213 km, been looking into opportunities for expanding the throughput The project shareholders consider the preliminary findings pipeline was built on Romanian territory and used to deliver gas and its designed throughput capacity is 16 bcm of gas a year. capacity of this route. Eventually, at the 19th St. Petersburg of a feasibility study for building a third and fourth line for Nord via Bulgaria to Turkey from 1987, to Greece from 1996, and International Economic Forum in June 2015, the top executives Stream, deciding that construction is economically viable and to Macedonia from 1997. In order to increase Russian exports Our main partner in building Blue Stream was Italy’s ENI, which of Gazprom, E.ON, Shell, and OMV signed a Memorandum technologically feasible. to the Balkan states and Turkey, an Intergovernmental has extensive experience in building offshore pipelines. of Intent with a view to cooperating on a project to build two Agreement to expand transit pipeline capacity in Romania additional lines for Nord Stream. Like the first pipelines, these June 18, 2015: Gazprom CEO Alexey Miller, E.ON CFO Klaus was signed in 1996. From 2002, transit capacity for exporting In 2015, the volume of gas transported via Blue Stream reached will run from the Russian coast via the Baltic Sea to Greifswald. Schäfer, Shell CEO Ben van Beurden, and OMV Executive Board natural gas via Romania to other countries was increased 15.58 bcm. The new gas pipeline will have an annual capacity of 55 bcm. Member Manfred Leitner sign Memorandum reflecting to 18.7 bcm per annum. the parties’ intention to go ahead with building two new lines for Nord Stream from the Russian coast to the German coast Project’s timeline: via the Baltic Sea.

September 2006: Shareholders sign a Final Agreement, along September 4, 2015: A Shareholders’ Agreement on with an Agreement on the basic terms for gas transmission. implementing the Nord Stream 2 project is signed by Gazprom and its international partners (E.ON, Shell, OMV, Wintershall, Spring 2010: The Nord Stream consortium raises €3.9 billion and ENGIE). in external financing from a syndicate of 26 banks for the first phase of the project. For €3.1 billion of this sum, guarantees were received from the SACE and Hermes export credit agencies.

25 TurkStream the Black Sea floor. The maximum depth along the pipeline Power of Siberia Project’s timeline: route will be up to 2.2 km. The subsea section will be 910 km The purpose of creating a new transport corridor in southern long. The length of the Turkish onshore section will be 180 km. The first joint of the Power of Siberia gas transmission system 2009: Gazprom and CNPC sign a Framework Agreement Europe is to increase the volume of natural gas exports The pipeline’s four lines will have a total annual capacity was welded at a ceremony in Yakutsk on September 1, 2014. on the basic terms for supplying natural gas from Russia to Europe and ensure supply security. of 63 bcm, with 47 bcm of this gas supplied to the Turkish- This system will deliver gas from the Yakutsk and Irkutsk to China, foreseeing exports of up to 68 bcm per annum Greek border. production centers to consumers in the Russian Far East and to the Chinese market. Initially, this purpose was to have been served by the South China. The gas transmission system will run across five Stream project. The pipeline’s offshore section, 931 km long, Russian regions: the Irkutsk Region, the Republic of 2010: The Expanded Basic Terms for gas supply from Russia was supposed to be laid across the Black Sea floor from Russia (Yakutia), the Region, the Jewish Autonomous Region, to China are signed. to Bulgaria. The pipeline’s onshore section would then run and the Territory. Its total length will be around through Bulgaria, Serbia, Hungary, Slovenia, and Austria. 4,000 km, with an annual capacity of 61 bcm (including 38 bcm September 2013: Gazprom and CNPC sign an Agreement The main route was supposed to have branches leading for the Chinese market). on the basic terms for pipeline gas supply from Russia to China to Croatia and Republika Srpska (a state formation within via the Eastern route. Bosnia and Herzegovina). The pipeline was intended to have The first pipeline sector, over 2,200 km long and running from an annual capacity of 63 bcm. the Chayanda field in Yakutia to the city of May 21, 2014: Gazprom and CNPC sign a contract for Russian (on the Russian-Chinese border), will be constructed pipeline gas supply to China. The contract is effective On December 1, 2014, Russian President Vladimir Putin by the end of 2018. Further plans entail building a sector for 30 years, with annual deliveries of 38 bcm. announced that Russia could not continue working from the in the Irkutsk Region to the Chayanda on the project. It was cancelled because field (around 800 km), and later a sector from the city May 23, 2014: The order is signed to start practical Bulgaria had not issued a construction permit for the gas of Svobodnyi in the Amur Region to the city of Khabarovsk implementation of Gazprom’s investment projects for gas pipeline’s offshore section. At the same time, Gazprom and (around 1,000 km). Thus, Power of Siberia will link up with supply to China, and a comprehensive plan of measures Turkey’s BOTAŞ Petroleum Pipeline Corporation signed the Sakhalin–Khabarovsk–Vladivostok gas transmission is approved. a Memorandum of Understanding on building a gas pipeline system. across the Black Sea to Turkey. September 1, 2014: A ceremony is held in Yakutsk to mark The creation of the Yakutsk gas production center is based the welding of the first joint of the Power of Siberia gas At a meeting on January 27, 2015 Gazprom CEO Alexey Miller around the Chayanda oil and gas condensate field. This field’s transmission system. It will be a highly important element and Turkish Energy and Natural Resources Minister Taner Yıldız reserves (C1+C2 categories) make it unique: around of the gas supply system under construction in eastern Russia. considered the preliminary feasibility study results for the new 1.45 trillion cubic meters of gas and around 93 million tons gas pipeline and decided on the route it would take. of liquid hydrocarbons (recoverable reserves). To isolate October 13, 2014: In Moscow, Gazprom and CNPC sign valuable components (including helium and ethane) from a Technical Agreement — a supplement to the Purchase and On February 7, 2015 Alexey Miller and Taner Yıldız determined Laying a subsea section of a gas pipeline the gas, Gazprom will build the Amur gas processing plant Sale Agreement for natural gas supply via the Eastern Route. the route’s key reference points and technical solutions in the Amur Region. This sets out the basic parameters for designing, building, and for the gas pipeline on Turkish territory. The project meets all modern environmental safety standards. operating the cross-border section of the Power of Siberia gas The construction and utilization technologies for the subsea Development of the Chayanda field’s gas deposit and trunkline. It also contains the basic technical and technological The plan calls for TurkStream’s landing point to be gas pipeline will have minimal impact on the sea floor’s ecology construction of the Amur gas processing plant started in 2015. specifications for delivering gas from the seller to the buyer. in the European part of Turkey, near the town of Kıyıköy; and geology, water quality, and the marine environment, Gas production at the Chayanda field is scheduled to start the delivery points will be Lüleburgaz for Turkish consumers including the habitat of marine life, mammals, sea birds, in late 2018. This will make it possible to start direct deliveries December 17, 2015: In Beijing, Gazprom and CNPC sign and a Turkish-Greek border sector near İpsala for European and the fishing industry. of gas to China under the contract in 2019. an Agreement on designing and building the cross-border consumers. The gas pipeline’s offshore section will run across section of the Power of Siberia pipeline, including an underwater passage across the Amur River.

27 EXPORTS OF CRUDE OIL, PETROLEUM PRODUCTS, AND SULFUR

CURRENT AREAS OF ACTIVITY

In 2015, Gazprom Export exported 5.77 million tons of liquid Brent crude prices continued to fall in 2015, from $75 a barrel hydrocarbon products and refined products, worth a total at the start of the year to $35 at the end. Brent crude averaged of around $1.4 billion. These goods were sold under $52.30 a barrel in 2015, practically halving relative to 2014 commission contracts with Gazprom, subsidiaries, prices ($99 a barrel). Nevertheless, Gazprom Export’s oil and UGS of Gazprom Group in Europe and other producers of oil and gas chemistry products. gas portfolio revenues dropped only 36% — from $2.2 billion (maximum technical capacities of the UGS, where Gazprom Group has stakes, are displayed on the map) to $1.4 billion. Gazprom Export’s product portfolio in 2015 included gas condensate, gas-derived sulfur, fuel oil, gas condensate Within the efforts to optimize distribution channels and distillate, liquefied petroleum gas (LPG) and small-scale LNG reduce costs, Gazprom Export used various forms of transport GAS STORAGE (ssLNG), alcohols, helium, carbon black, and a number in delivering goods to inland and maritime transshipment ports of other petroleum products and petrochemicals. in 2015. The corresponding contracts were concluded In order to ensure uninterrupted gas supply to European of 629 mcm. Its current active volume is 219 mcm. on a competitive basis, and comprehensive services consumers in peak demand periods or during gas transmission This UGS facility ensures supply security for Western Europe In 2015, the overall volume of exported products was were provided to consignors: customs procedures, rail system maintenance, and in order to expand gas sales, at the Mallnow, Waidhaus, Gaspool, and NCG delivery points, maintained at the 2014 level: 6 million tons ± 5%, transport, reloading, quality analysis, and in-port storage. Gazprom Group has adopted an underground gas storage (UGS) as well as for the supplies through the Nord Stream pipeline; with a decline in exports of Gazprom’s petroleum products system development strategy. Potential storage facilities must offset by the growth and expanded range of products be located close to pipelines used for transporting natural gas. • In Serbia, Gazprom Export has completed the Banatski Dvor from Gazprom Neftekhim Salavat. As a rule, Gazprom Export builds UGS facilities in cooperation UGS project, with an active volume of 450 mcm of gas. with local partners. Gazprom Group holds a 51% stake in this project. This UGS facility ensures natural gas supply security Between 2006 and 2015, Gazprom Export’s gas storage for Hungary, Serbia, and Bosnia and Herzegovina; capacity in Europe increased from 1.4 to 4.9 bcm, and daily output rose from 18.2 to 61.5 mcm. • The Bergermeer UGS in the Netherlands was commissioned in 2014. This UGS facility has a strategic location as well as Gazprom Group is involved in underground gas storage projects significant active gas reserves, where Gazprom has booked in the countries along Russia’s main export routes: 1.9 bcm in storage capacity. The Bergermeer UGS is intended to ensure the stable operation of the Nord Stream pipeline • Gazprom Export and WINGAS operate Europe’s largest UGS and gas supply security; facility: Rehden in Germany, capable of holding over 4 bcm; • Working with Moravské naftové doly (MND) in the Czech • Gazprom Export, WINGAS, and RAG operate the Haidach UGS Republic, we have started building the Dambořice UGS in Austria. After Phase 2 was commissioned, its active gas facility, scheduled to be commissioned in the summer volume reached 2.83 bcm. The Haidach UGS ensures natural of 2016, with an active volume of 450 mcm. This project gas supply security in the direction of the Baumgarten hub will ensure Russian natural gas supply security for the OPAL and for consumers in Slovenia, Croatia, Hungary, Austria, and Nord Stream pipelines. Germany, Slovakia, and Italy; Gazprom Group is also conducting feasibility studies with • Together with German VNG we are working on the Katharina a view to participating in UGS projects located in Austria, UGS (Germany) project. This UGS facility is designed Slovakia, and several other countries. to handle daily output of 26 mcm, with an active gas volume

Gas chemical plant in Orenburg

29 Crude oil and petroleum products Liquefied petroleum gas FUTURE AREAS OF ACTIVITY Exports of crude oil and petroleum products in 2015 reached Liquefied petroleum gas (LPG) produced by Gazprom 2.5 million tons, including a total gas condensate volume Pererabotka and Gazprom Dobycha Orenburg is exported of around 0.6 million tons: 95% more than the figures for 2014. to countries in Central and South-Eastern Europe, as well as Export growth was driven by the start of stable gas condensate to CIS countries. Exports of around 280,000 tons a year (SGC) shipments from the Kirinskoye gas condensate field are shipped by rail and sea under medium- and long-term (Sakhalin III), along with the resumption of SGC exports from contracts. the Sosnogorsk gas processing plant and SGC production growth at the Surgut condensate stabilization plant.

The process of integrating Gazprom Export into the system for exporting Gazprom Neftekhim Salavat’s products was continued, leading to product range expansion (ship fuel, gas condensate distillate) and export volume growth.

Sulfur In 2015, Gazprom Export exported around 2.9 million tons of gas-derived, technical, and granulated sulfur.

Sulfur exports to countries outside the former USSR (the North Africa, the Mediterranean region, etc.) and former Soviet states (Lithuania, Belarus) were carried out on a remote basis via river ports and sea ports in Russia. Despite a substantial market drop, along with unfavorable global conditions, 100% of Gazprom’s propane/butane byproducts were successfully exported in 2015.

Activities under the European REACH Regulations Compressor station Portovaya (near Vyborg) — the starting point of the Nord Stream pipeline Gazprom Export and its Special Representative in the EU, GM&T France, are continuing to work on supporting Gazprom Group products registered in compliance with the requirements Eastern Gas Program Small-scale LNG (ssLNG) exports of REACH/CLP Regulations. We are continually monitoring new requirements from the European Chemicals Agency (ECHA) Gazprom’s plans for the Eastern Gas Program, besides its gas We continue working on expanding Gazprom Export’s presence regarding chemical substances. Product safety data sheets component as such, call for establishing a number of large- in Europe’s small-scale LNG markets, as well as diversifying are updated in line with the requirements of REACH/CLP scale processing facilities in Eastern Siberia and the Russian ssLNG deliveries by road as well as through the use of various Regulations, including classification and labeling; additional Far East. logistics options, including on a remote basis. studies are being done on component composition and physical-chemical properties in line with ECHA standards. As East Siberian fields are developed, large-scale helium and Comprehensive work was done in 2015 on organizing LNG Given the unfavorable situation with shipments to Russia’s New products are registered to ensure that they will be LPG production projects will become a separate area of activity, exports from the production facility operated by Gazprom southern ports, due to North Caucasus Railroad overloading, exportable to EU member states. with Gazprom Group becoming one of the leading suppliers Gas-Engine Fuel LLC, once it achieved a continuous production sulfur was exported for the first time through the SmartBalk of these products to Asia-Pacific Region markets. cycle; as a result, all of the produced volumes marked for export terminal (Port Ust-Luga Transport Company) at the port were sold successfully. In addition, a contract was signed of Ust-Luga, never before used in the logistics of export The signing of the contract for pipeline gas supply to China for LNG supply to the Czech Republic, and LNG was supplied shipments. This made it possible to diversify the geography was followed by the approval of a comprehensive Action Plan to Germany in the peak load season under a contract with of sulfur export flows and reduce the risks of delivery for creating gas production, transmission, and processing Gazprom Germania GmbH. disruptions due to potential (force majeure) closure capacities using gas from fields in the Yakutsk gas production of traditional shipment routes. center. In accordance with this Action Plan, Gazprom Export In 2015, negotiations were held with international companies and other Gazprom Group companies have been tasked with to explore opportunities for cooperation on joint projects developing an optimal export model for helium and LPG in the area of ssLNG infrastructure. Such projects include Oil and gas chemistry products exports and negotiating with potential clients. building LNG unloading terminals, LNG filling stations, and other infrastructure, including a pilot project aimed The helium export porfolio’s structure changed in 2015: sales at establishing a ssLNG unloading terminal at the Port volumes for gaseous helium almost halved, while liquid helium of Rostock in Germany. sales volumes and revenues grew almost 100%. This was due to the launch of Gazprom Gazenergoset’s helium liquefication unit at the Orenburg helium plant in mid-2014, and the start of liquid helium production and exports.

31 NATURAL GAS AS MOTOR FUEL

Filling a car with CNG in Germany

Reducing harmful emissions in transport is a global problem. market. Gas refueling infrastructure on the ground plays a key One way to solve it is through the use of less environmentally role in promoting natural gas as a vehicle fuel, and Gazprom harmful fuels. Emissions can be reduced effectively through Group is making a substantial contribution to developing it: more extensive use of natural gas. Gas is a readily available fuel that is technologically and environmentally safer and less • In Germany, our Gazprom Germania subsidiary operates expensive than conventional petroleum products. 38 CNG filling stations.

Gas-fueled cars emit a quarter less CO2 than cars running • In the Czech Republic, Gazprom Group subsidiaries on gasoline. Methane-fueled engines emit around 95% less own 14 natural gas filling stations by the end of 2015. carbon monoxide than diesel engines, and solid particle Moreover, seven independent CNG filling stations emissions from gas-fueled engines are practically zero. in the Czech Republic and one in Slovakia are supplied with natural gas from Vemex’s portfolio. In the first decade of the 21st Century, the number of gas- powered vehicles in use worldwide grew tenfold. Over 22 million • In Poland, Gazprom Germania joined Polish bus producer cars, buses, and trucks around the world now run on methane. Solbus and the MZA transport company in running a pilot Gas-fueled vehicles still make up only 0.02% of total road project that enabled the residents of several Polish cities vehicles, but their numbers are rising rapidly. to experience the advantages of municipal buses running on LNG. In 2013, Gazprom Germania and Solbus started A key problem in developing this segment is the lack delivering 11 LNG-fueled buses to the city of Olsztyn of infrastructure for refueling with compressed and liquefied in northern Poland and signed a contract to supply 35 natural gas (CNG/LNG). This infrastructure will need to be of such buses to Warsaw, as well as developing refueling in place before the advantages of gas-fueled road vehicles, infrastructure. The new Euro VI environmental standards, ships, and trains can be fully utilized. introduced from 2015, will make environmentally friendly methane-fueled buses even more competitive against Gazprom Group has an interest in developing the gas motor diesel-fueled buses. fuel market both in Russia and abroad, including the European

33 In 2013-2014, Gazprom Group took part in the Scirocco R-Cup race series with the aim of promoting the use of natural gas as motor fuel. All stages of the races, held annually from 2010 to 2014, involved only commercially-available CNG-fueled Volkswagen Scirocco cars with 2.0-liter turbo engines. Gazprom was the exclusive supplier of fuel for these cars.

Gazprom Group has over 4,000 natural gas vehicles at its disposal, the largest corporate fleet of its kind.

CNG-fuelled Volkswagen Passat and Volkswagen Scirocco

• Gazprom Group’s subsidiary Promgaz is aiming for a solid Since 2008, Gazprom Group and Uniper (formerly E.ON Global position in Europe’s leading gas motor fuel market, Italy. Commodities) have regularly organized the Blue Corridor Promgaz is doing market research, selecting partners, Rally. Each year, a convoy of vehicles using gas-engine fuel cooperating with Italian and European authorities, drives thousands of kilometers across Europe with the aim and exchanging technologies. These operations embrace of showing that gigantic transport streams could be far less not only CNG for light vehicles, but also LNG for heavy environmentally damaging if the development of infrastructure vehicles and shipping. for natural gas vehicles continues.

• In Croatia, a roadmap was signed with LNG Croatia Statistics show that from 2009 to 2015, the European countries in September 2013 with the objective of running pilot projects on the Blue Corridor Rally route saw a 70% increase in filling Volkswagen Scirocco CNG racing series for converting the country’s bus fleet to run on natural gas. station numbers (over 1,800 new stations built); demand for natural gas grew by 320%, while the number of gas-fueled Our company is actively involved in the work of international vehicles doubled. and national organizations to introduce small-scale LNG as a fuel for trucks and municipal transport vehicles, Light vehicles are fueled with compressed natural gas as well as for sea and river vessels. (CNG); heavy trucks, municipal buses, and sea or river vessels are fueled with liquefied natural gas (LNG).

From 2004 to 2015, the number of gas-fueled vehicles used worldwide grew almost six-fold to over 22 million. According to the International Gas Union’s forecasts, the number of methane-fueled vehicles may reach 50 million by 2020.

By 2030, vehicles running on natural gas may account for 4% of the global engine fuel balance. Gas-engine fuel demand in Europe is forecasted to rise to 40 bcm by 2030.

Solbus LNG bus

35 ENVIRONMENTAL PROTECTION

Environmental protection and corporate environmental Natural gas is the cleanest fuel from the environmental responsibility issues are particularly important in the world standpoint. Modern energy-saving equipment allows today. For Gazprom Export, doing business includes meeting to burn it efficiently with minimal harmful emissions such the very highest environmental standards. as greenhouse-inducing carbon dioxide.

Gas pipeline crossing river barrier in the Russian Far East

In supplying natural gas, our company pays great attention Protecting the environment and countering adverse global to the state of the gas transmission network. Extrapolation climate change is also becoming a business objective for our of gas leakage measurement results shows that across company. The Kyoto Protocol, aimed at gradually reducing Gazprom Group’s trunkline system, including production carbon dioxide emissions into the atmosphere, allows quotas facilities, total gas leakage is only around 1%. Thus, the gas for these emissions to be traded. Our UK-based subsidiary, supply process has minimal impact on the environment. Gazprom Marketing & Trading, is working successfully in this area.

37 CHARITY AND SPONSORSHIP

As one of Russia’s largest energy exporters, Gazprom Export Over several years, Gazprom Export has worked with a number sees its task as not only growing its business successfully, of social foundations and nonprofits on various social projects but also striving to reinforce its status as a socially responsible in the healthcare and education, aimed at providing diverse company by following certain ethical standards of behavior, forms of assistance to disabled children. In 2015, we paid paying special attention to socially significant issues and great attention to working with children’s social institutions endeavoring to do all in its power to assist in resolving them. and organizations in St. Petersburg and the Leningrad Region.

Charity and sponsorship are integral corporate strategy Gazprom Export cooperated with the Home of the Future components for Gazprom Export, a company interested independent nonprofit charity on a rehabilitation and integration in developing dialogue between the public and business project for children with cerebral palsy, orphans, and children in various fields. from disadvantaged families; this included organizing entertainment events, educational workshops, and Our strategy in the field of sponsorship and charity is based children’s parties to mark significant dates: Knowledge Day on quality long-term development of projects whose themes (September 1), International Child Protection Day (June 1), and geographical location are integrally linked to the company’s Victory Day (May 9), New Year, and so on. Along with holding core business. Through its sponsorship and charity programs, a cycle of such events, we also assisted in upgrading Gazprom Export supports cultural, educational, sports, social, specialized institutions for disabled children and supplying and other projects. them with educational equipment.

The International Summer Academy of Arts “Energy for Life”

39 In 2015, with Gazprom Export’s support and participation, the ‘Learning From You’ social adaptation program continued organizing support for current and former students at the specialized education institutions we sponsor in the city of Smolensk and the Smolensk Region. This program entails creating a “companion” model for children whose abilities are limited by health conditions as they enter the independent life, as well as developing new rehabilitation methods. A similar initiative — the ‘Graduate Companion Program’ — is also being implemented successfully at another children’s home we sponsor in the Kostroma Region.

Over several years, in cooperation with the Adeli Foundation, our company has been developing a project to support children with cerebral palsy. Their condition can be improved only by medical rehabilitation treatment which must be carried out on a regular basis. It is also important to assist children with socialization and adaptation, involving them in activities, expanding their interests and social contact areas. The International Summer Academy of Arts “Energy for Life” The funding provided by our company is used to purchase specialized suits that make it easier to restore the children’s Social Project, held in Austria and Germany, marked its tenth motor function, along with medical equipment. All this is anniversary this year. This project, under the auspices supplied to rehabilitation centers in various cities. Based on of UNESCO and UNICEF and the patronage of Austrian Social the work of the Adeli Medical Center, regular training sessions Affairs Minister Rudolf Hundstorfer and Vienna Mayor Michael are held for experts and parents of children with cerebral palsy. Häupl, is based on inclusiveness principles: it aims to include disabled and disadvantaged children in creative and social The participants of the cultural-educational project “Synergy in Music” in South Korea Gazprom Export is developing social projects abroad as activities. Over a thousand children from Russia and various well as in Russia. The Open World International Children’s European countries took part in the project in 2015. For many years now, Gazprom Export has been actively In Beijing, China’s capital, as part of celebrations marking involved in promoting the best examples of Russian arts the 70th anniversary of the end of World War II, our company abroad. In South Korea, an important energy market sponsored the highly successful “Victory! 1945-2015” art in the Asia-Pacific Region, we assisted in the successful exhibition, hosted by China’s largest museum and covering organization of Synergy in Music — an annual cultural- a period of 70 years — the postwar development of the world. educational project aimed at promoting the development The exhibition gave Chinese audiences an opportunity to see of cultural exchange and mutual understanding between the best examples of war-themed Russian art from Russia’s Russia and APR countries. state museums: the Tretyakov Gallery, the Russian State Museum, the Central Museum of the Armed Forces, This project features a significant educational component the Institute of Russian Realist Art, the ROSIZO State along with its general cultural aspects. Well-known Russian Museum and Exhibition Center, and others. This project musicians perform a concert and hold workshops for children is a part of Gazprom Group’s long-term initiative aimed and music students, facilitating cultural intermingling both at promoting cultural exchange between Russia and on and off the stage. countries in the Asia-Pacific Region.

Finalists of the Victory Photo-Wheel educational experience program Workshops for young Korean musicians are conducted The Russian ambassador to China Andrey Denisov by the violinist Tatyana Samouil and the Deputy Minister of Culture of China Ding Wei at the opening ceremony of the art exhibition “Victory! 1945-2015”

41 The international tournament of the ATP series World Tour St. Petersburg Open

Supporting sports projects is an integral part of Gazprom the St. Petersburg Open and the St. Petersburg Ladies Trophy: Group’s sponsorship strategy. Our support for Russian sport an important event for all Russian athletes and tennis fans. includes aiming to develop Russian hockey and popularize it among the public, as well as assisting youth sports schools The newly-resumed St. Petersburg Open and the first and college teams. St. Petersburg Ladies Trophy are sure to facilitate the development and popularization of women’s tennis Noteworthy sport projects held this year with Gazprom Export’s in Russia and worldwide. support also included two ATP World Tour tennis tournaments,

SKA Ice Hockey Club are the KHL Gagarin Cup Champions of the season 2015 Photos are courtesy of PAO “Gazprom”, Gazprom Export LLC and ZAO “SKA Hockey Club”

43 Legal address of Gazprom Export LLC: 2a, Litera A, Ostrovskogo Square, St. Petersburg, 191023, Russian Federation Our head office is located at: 2a, Litera A, Ostrovskogo Square, St. Petersburg, 191023, Russian Federation

Phone: +7 (812) 646-14-14

Fax: +7 (812) 646-14-15

E-mail: [email protected] [email protected]

Media contacts: [email protected]

Website: www.gazpromexport.com