SIBUR

Introduction and H1 2012 Financial Results

Investor Presentation October 2012 DISCLAIMER The information contained herein pertaining to SIBUR (the "Company") has been provided by the Company solely for use at this presentation. By attending this presentation, or by reading these presentation slides, you agree to be bound by the limitations set out below. This presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto.

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1. SIBUR: Business Overview and Strategy

2. H1 2012 Operational and Financial Performance

Appendices

3 SIBUR AT A GLANCE(1)

• The largest integrated gas processing & petrochemical company SIBUR Revenue Breakdown in , CIS and CEE in revenue terms Other Other H1 2012 Asia − FY 2011 revenues of USD 8.5 bln 9 2 7 Russia Energy − H1 2012 revenues of USD 4.5 bln 46 products % 30 % 53 Europe • Industry-leading profitability: 47 – FY 2011 EBITDA of USD 2.95 bln with EBITDA margin of 34.9% Petro 6 chemicals CIS – H1 2012 EBITDA of USD 1.4 bln with EBITDA margin of 31.1% By Product By Region • across Russia as of 30 June 2012 27 production sites SIBUR Market Shares in Russia(3) • Two main business segments: feedstock & energy (F&E) % in total processing/ 2011 and petrochemicals production • In 2011, our F&E business processed over 18 bcm(2) of associated APG processing 58% petroleum gas (APG) and produced: MTBE 51% 15.8 bcm of 4.2 mmt of 3.6 mmt of 1.3 mmt of 405 kmt of Feedstock natural gas(2) NGL(2) LPG naphtha MTBE & Energy LPG 34% Naphtha 7% • In 2011, our petrochemical business produced: 373 kmt of 426 kmt of 587 kmt of 3.2 mmt of basic polymers synthetic rubbers plastics and organic intermediates Mono-ethylene glycol 65% synthesis products Butadiene 55% • Around 31,800 employees as of 30 June 2012 Petro- LDPE 38% • Ultimate controlling shareholder is Leonid Mikhelson, chemicals Synthetic rubbers 34% the CEO and founder of Polypropylene 27%

(1) All financial figures for SIBUR in this presentation are based on combined financial information, which excludes the results of the mineral fertilizers and tires businesses, which were divested by SIBUR in December 2011, for all reporting periods. SIBUR’s reporting currency is Russian rouble. For this presentation, all P&L and CF figures have been translated from RR to USD at average FX rates for respective periods , balance sheet figures – at end-of-period FX rates (2) Including share of TNK-BP in our JV Yugragazpereragotka 4 (3) Sources: the Central Dispatch Administration of the Fuel and Energy Complex, Syntezkauchuk association, Kortes, MarketReport, SIBUR estimates

INDUSTRY-LEADING FINANCIAL PERFORMANCE: STRONG GROWTH, HIGH PROFITABILITY, LOW LEVERAGE(1)

SIBUR Financial Performance Sales CAGR vs Peers Sales, USD bln Based on USD figures 2006 - 2011 EBITDA, USD bln SABIC 17% EBITDA Margin, % SIBUR 17% 34.9% (2) Dow Chemical 9% 30.9% 8.46 Petronas Chemicals(3) 7% (2) 6.21 BASF 2% 20.3%

4.03 EBITDA Margin vs Peers, 2011 2.95 2011 1.92 Petronas Chemical 37% 0.82 SIBUR 35% 2009 2010 2011 SABIC 32% (2) Net Debt/ BASF 20% EBITDA 1.54x 0.74x 0.78x (2) Dow Chemical 15% Braskem 11%

(1) All financial figures for SIBUR in this presentation are based on combined financial information, which excludes the results of the mineral fertilizers and tires businesses, which were divested by SIBUR in December 2011, for all reporting periods. SIBUR’s reporting currency is Russian rouble. For this presentation, all P&L & CF figures have been translated from RR to USD at average FX rates for respective periods , balance sheet figures – at year-end FX rates (2) Including only the following segments: BASF – plastics & chemicals, Dow- performance materials, performance plastics, feedstock and energy 5 (3) CAGR for 2008-2011 financial years, starting 1 April and ending 31 March of a respective year

WHAT MAKES SIBUR DIFFERENT?

Integration

Growth Scale

Cost

6 OUR VERTICALLY-INTEGRATED BUSINESS MODEL

Feedstock & Energy Petrochemicals External Sales

Feedstock Processing Products Processing Intermediates Products Key Customer Industries • Automotive Associated Gas Synthetic rubbers Petroleum processing •Natural gas •Butadiene • Commodity • Industrial •Isoprene machinery Gas (APG) (GPPs) •NGL • Specialty • TEP • Construction

Oil Production • Oil & gas NGL Cracking & Basic polymers • Retail other • PP • Construction chemical NGL & other •LPG • PE •Propylene • Automotive liquid Gas processing • PVC hydrocarbons •Naphtha •Ethylene • Road building fractionation (GFUs) •Benzene Plastics & org •MTBE / synthesis Gas Production and other •Styrene • Chemicals fuels & fuel • Glycols processing •PTA, etc. • Retail additives • Alcohols • Construction Methanol & • PET • Road building other • Polystyrene • BOPP-films

Key Customer External Sales Energy & chemicals Chemicals Industries

• 100% of natural gas and MTBE volumes are sold externally H1 2012 Segment EBITDA F&E(1) Petrochemicals(1) SIBUR EBITDA • In H1 2012, 35% of total available for sale volumes of LPG, EBITDA Contribution, naphtha and NGL were supplied to our petrochemical USD billion 1.20 0.35 1.39 business as feedstock EBITDA Margin, % 44.6% 15.5% 31.1% • C. 85% of feedstock for our petrochemicals is supplied by our feedstock & energy business 7 (1) Segment EBITDA Contribution does not take into account corporate overheads and other unallocated expenses 7 F&E: HIGH PROFITABILITY THROUGH ACCESS TO ADVANTAGED FEEDSTOCK, NATURAL GAS PRODUCTION AND LONG POSITION IN ENERGY PRODUCTS

Feedstock Types & Sourcing Key Products & Markets

TYPES SOURCING Customer Industries • Natural gas (produced from APG) • Two main feedstock types: • С.48% of our hydrocarbon • NGL (produced from APG) Chemicals feedstock supply volumes(2) come − Associated petroleum gas (APG), • LPG (through NGL fractionation) through our JV with TNK-BP 19 from oil producers (SIBUR - 51%, TNK-BP – 49%) • Naphtha (through NGL fractionation) Fuels (LPG • MTBE 40 % − Liquid hydrocarbons (LHC), car fuel, 18 Energy • Other suppliers are major oil & gas including NGL, LPG and naphtha, • C.35% of H1 2012 volumes of NGL, utilities companies in Western LPG & naphtha(2) were supplied mainly from gas producers 23 to petrochemicals segment Refineries

Key Supply Contracts as of 30 June 2012 External Revenue Breakdown External Revenue Breakdown APG LHC By product H1 2012 By market H1 2012 •TNK-BP •TNK-BP Other NGL (2%) • Neft •Rosneft (1yr) •Novatek(4) •Surgutneftegaz •Russneft MTBE 4 Domestic • •Gazprom •Northgas 15 41 42 • 61% of APG supplies for 2012 • 59% of LHC supplies for 2012 % LPG % Natural 18 Export guaranteed under multi-year guaranteed under multi-year gas 59 (3) (3) contracts contracts 20 • WA maturity of multi-year • WA maturity of multi-year Naphtha supply contracts – 6.6 years(3) supply contracts – 7.0 years(3)

External revenue from sales of energy products totaled USD 3,825 million in FY 2011 and USD 2,071 million in H1 2012

(1) In metric tons of liquids extracted (2) Volumes available for sale, including internal production and purchases from third parties (3) Including all supplies within our JV arrangements with TNK-BP (4) Terms under negotiations 8 PETROCHEMICALS: DIVERSIFIED PRODUCT PORTFOLIO RANGING FROM COMMODITY TO SPECIALTY PRODUCTS

Basic Polymers Synthetic Rubbers Plastics & Organic Synthesis External Revenue Breakdown • Polypropylene (PP) • Commodity rubbers •Glycols •Plastic By product H1 2012 compounds • Polyethylene (PE) • Specialty rubbers •Alcohols (1) •Polystyrene Intermediates Synthetic • Polyvinylchloride (PVC) • Thermoplastic •Polyethylene 18 rubbers elastomers (TEP) terephthalate (PET) •BOPP-films 35 Basic % Antifreeze, polymers 18 solvents 29 Packaging Plastics & organic Tyres Bottles synthesis products

Pipes Fibers External Revenue Breakdown By market H1 2012 General rubber goods Export Heat 38 insulation Stationery %

62 Packaging Automotive Domestic components Automotive and light Revenue from sales of vessel components Labels petrochemical products totaled USD 4,146 million in FY 2011 and USD 2,103 million in H1 2012

(1) C.82% of H1 2012 production volumes of intermediates were used internally for further processing into other petrochemical products

9 WE OWN AND OPERATE UNIQUE ASSET BASE ACROSS RUSSIA… … with gas processing and transportation infrastructure concentrated in Western Siberia

Basic polymers Synthetic rubbers GPPs GFUs Western Siberia(1) SIBUR has quasi-monopoly Plastics & organic synthesis products Transportation infrastructure SIBUR’s future petrochemical hub in Western Siberia: SIBUR’s existing pipelines in Western Siberia 6.9 bln mt 46 tln cm • 7 GPPs, 3 GFUs, c. 3,000 km of SIBUR’s pipelines under pipelines RusVinyl construction Depletion (PVC, JV with SolVin) NGL transportation by rail 40% 30% • Strategic projects at advanced stages NPP Neftekhimia (PP, JV with ) Gazprom natural gas pipeline • Estimated replacement CapEx of over Access points to Gazprom Proven oil Proven gas USD 15 bln with over 7 years to build Yuzhno-Priobskiy GPP pipeline reserves reserves (JV with Gazprom Neft)

10 (1) Source: Russian Ministry of Energy TOBOLSK-POLYMER: FIRST STEP IN BUILDING SIBUR’s PETROCHEMICAL HUB IN WESTERN SIBERIA

Project Description Key Facts • Construction of the largest polypropylene (PP) plant • Estimated CAPEX: c. USD 2 bln in CIS and Eastern Europe • Estimated launch: Q1 2013 • Production capacity: • Leading global players involved: - Propane dehydrogenation: 510 ktpa of - EPC contactors: Tecnimont, Linde propylene - Licensors: UOP, INEOS - PP production: 500 ktpa Completion Stage

• The project will enable SIBUR to capitalize on 30 June 2012 Russia’s import substitution potential Design 100% • Use of latest global technology for PP production Equipment & Procurement 100% ensures high production quality & competitiveness Construction 86% on global PP markets

Production Scheme mmtpa

Dehydro- NGL Propane Propylene PP-500 genation 3,800 612 510 TOBOLSK Gas Fractionation Unit

11 NEW PETROCHEMICAL HUB IN WESTERN SIBERIA: MONETIZATION OF STRANDED FEEDSTOCK… ILLUSTRATIVE Polypropylene vs LPG Sales USD Prices for 2013, CMAI forecasts

EBITDA margin = с. 50%(1) Tobolsk Incremental Tobolsk margin in Incremental EUROPE, margin in ~700 RUSSIA, ~740 140 $15801,470 70 270 1 440 300 730 130

330

Propane price in Transport& Propane price Production Transport to Transport PP price in PP price in EUROPE duties to in Tobolsk costs(2) W.Russia to W.Europe W.Russia W.Europe Europe +Duties

12 (1) Full capacity utilization, depending on regional sales distribution (2) Using LPG consumption ratio of 1.2; current prices …SUPERIOR COMPETITIVE POSITIONS ON GLOBAL PP & PE COST CURVES

Delivered to NW Europe Delivered to S. China 2,000 2,000 10% 30%

N America / NE Asia Avg. W Europe Avg. W Europe Avg. N America Avg. 1,500 1,500 SE Asia Avg. NE Asia Avg. NE Asia Avg. W Europe W Europe Avg. SE Asia Avg. Avg.

SE Asia Avg. NE Asia Avg. ME Avg. ME Avg. N America Avg. ME Avg. SE Asia Avg. 1,000 1,000 ME Avg. N America Avg. N America’s SIBUR Tomsk Costs, USD/ton Costs, Ethane USD/ton Costs, N America SIBUR SIBUR Ethane Tomsk ME Ethane Tobolsk-Polymer PP curve PP curve Cash Cash Cash Cash ME SIBUR PE curve PE curve 500 500 Ethane Tobolsk-Polymer SIBUR ZapSib-2(1) SIBUR ZapSib-2(1)

0 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative Capacity, % Cumulative Capacity, %

Source: IHS, company analysis (1) Illustrative. ZapSib-2 project is at the FEED stage. The final decision has not been made. The complex will not be operational before 2018 13 SIBUR BENEFITS FROM EXPOSURE TO HIGH-GROWTH MARKETS

Global Megatrends Global Consumption Growth Global Consumption Growth(1) Steel & Wood Substitution 1970 – 2010 CAGR, 2009 - 2020 1970 5 % 11.0x Plastics share 2010 8 % in vehicles 2020E 10-15 % Urban Population Growth 5.5% 1970 1.4 4.9% 4.5% 4.3% 4.3% 2010 3.5 Urban 3.1% population, bln 2020E 4.3 3.3x 2.7% 2.4% 2.1x 1.0% Global Wealth Growth 1.1x

Real GDP per 2011 7.6 Wood Steel Aluminum Basic PET PVC MEG PP PE SR LPG PS MTBE capita, 000’ 2005$ 2025E 11.2 Polymers

Consumption of Basic Polymers Former SU Countries Consumption Former SU Countries Consumption Growth(1) PE Kg per capita PE Kg per capita CAGR, 2010 - 2020 PP PP 9.8% USA 38 18 Germany 29 20 27 6.9% 6.7% Hungary 28 20 5.7% 9 19 5.0% 4.9% Japan 20 19 15 3.9% 8 2.7% Poland 20 14 9 11 6 8 5 1.5% 2 3 China 14 11 6 6 7 9 11 18 Russia 12 6 2003 2006 2009 2012 2015 2018 PVC PE PP SR PS PET MEG LPG MTBE

(1) World MTBE 2009 – 2014 CAGR, PE incl. LDPE, LLDPE & HDPE, SR incl. SBR, PBR, BR, SBS & IIR, PS incl. PS & EPS Sources: Nexant, CMAI, PlasticsEurope, IMF, Global Insight, IRSG, Purvin&Gertz, McKinsey 14

INVESTMENT PROGRAM DESIGNED TO MEET STRATEGIC GOALS

2012F-2016F SIBUR Investment Program

USD billion (excl. VAT)(1) Primarily maintenance CapEx 15.8

Reconstruction of ethylene cracker 2.4 and other modernization projects

Selective expansion in Russia and international JVs in China and India

Tobolsk-Polymer polypropylene plant and ZapSib-2 FEED 7.0 Increase in Tobolsk gas fractionation capacity

NGL pipeline 1.3 6.5 network expansion and Ust-Luga export terminal 0.5 1.1 0.2 0.6 2.8

USD 1.1 bln financed in H1 2012 Feedstock & Feedstock & Basic Synthetic Plastics & Other Group TOTAL ZapSib-2(2) CAPEX TOTAL, incl. Energy Energy Polymers Rubbers Organic CAPEX Expansion Expansion Transport Capacity Synthesis Potential Potential Increase

Source: Company data (1) In current prices in Russian rubles, translated from RR to USD at FX rate of 31.5758 15 (2) Further expansion of petrochemical capacities in Tobolsk STRONG GROWTH IN PETROCHEMICAL PRODUCTION SHALL RESULT IN REBALANCING BETWEEN FEEDSTOCK MONETIZATION CHANNELS

Hydrocarbon Feedstock Composition & Monetization Channels

2012F 2016F 2020F Million metric tons(1) Million metric tons(1) Million metric tons(1) 12.5 12.5 11.8 11.8 Growth of Growth of 92% to 2012 2.0 156% to 2012 SIBUR SIBUR 3.6 petchem APG(2) petchem (2) 31% 7.0 APG 56% 51% 58% 6.9 4,4 6.5 6.5 SIBUR 2.5 petchem (2) External APG 4.9 38% 8.2 75% LHC(3) sales 69% (3) LHC 5.5 6.1 External External 42% 4.9 44% LHC(3) 4.0 sales 62% sales 49% 25% 1.6 Feedstock Monetization Feedstock Monetization Feedstock Monetization composition channels composition channels composition channels

ZapSib-2 project • Impact of gradual decrease in share of APG-based feedstock on EBITDA margin of F&E segment… • … is expected to be compensated by growth in volumes and higher margin in petrochemicals… • …resulting in sustained industry-leading EBITDA performance

(1) In metric tons of liquids extracted (2) APG-based feedstock, which includes 100% of NGL produced by our JV with TNK-BP as a result of APG processing (3) Liquid hydrocarbon feedstock, including NGL (purchased from third-parties apart from TNK-BP), LPG and naphtha 16 TRANSPARENT OWNERSHIP STRUCTURE AND HIGH CORPORATE GOVERNANCE STANDARDS

Shareholder Structure as of 30 June 2012 Board of Directors Leonid Mikhelson Chairman of the BOD Leonid Mikhelson CEO of NOVATEK

Gennady Timchenko Co-founder of Gunvor

Alexander Dyukov Deputy Chairman of the BOD CEO of Gazprom Neft

37.5% Pavel Malyi 57.5% Representative of Leonid Mikhelson % Oleg Golounin Representative of Leonid Mikhelson

Current and former Dmitry Konov CEO of SIBUR senior SIBUR 5% Ruben Vardanyan(1) managers President of Troika Dialog

Seppo Remes(1) Portfolio manager, CEO of Kiuru investment fund

Arkadiy Samokhvalov(1) Assistant to the acting deputy prime minister of Russia Board Committees Audit Remuneration Finance Strategy and Investments Seppo Remes(1)(2) Ruben Vardanyan(1)(2) Pavel Malyi(2) Alexander Dyukov(2) Oleg Golounin Oleg Golounin Ruben Vardanyan Gennady Timchenko Arkadiy Samokhvalov Seppo Remes Seppo Remes Pavel Malyi Arkadiy Samokhvalov

(1) Independent Directors (2) Chairmen of the Board Committees

17 EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD

Dmitri Konov President/ CEO 8 years at SIBUR

Alexey Filippovskiy Vladimir Razumov Mikhail Karisalov CFO Executive Director, Co-COO Executive Director, Co-COO 8 years at SIBUR 11 years at SIBUR, over 40 years in petchem 9 years at SIBUR Best Practices Executive Board • SIBUR is implementing several strategic programs aimed at efficiency enhancement and based on world best-practice: - Working capital optimization (with BCG) • 16 members - Supply chain management (with Accenture) • 75% of current Executive Committee members have - Shared services (with PWC, Ernst&Young, KPMG) been with Sibur for over 7 years - Performance management (with McKinsey) SIBUR Production System (with DuPont) - - Health Check (with BCG), ERP (SAP) • The Company has a number of HR development programs, including SIBUR University, Sales and Marketing Academy

18 SIBUR: LEADERSHIP AND GROWTH

•Abundant stranded hydrocarbon feedstock in Western Siberia + •Feedstock and product mix Access to Diversified flexibility leads to: advantaged SIBUR’s near-monopoly in feedstock collection and feedstock & − Margin optimization feedstock product portfolio processing in the region = − Business model resilience •Unique cost advantage

•Cementing cost position and •Russia’s legacy of under- feedstock access Exposure to consumption of petrochemicals + Strong growth •Enhancing domestic leadership a highly attractive import dependence = potential through •Achieving global competitiveness domestic market •Above-trend demand growth project pipeline in target products •Premium pricing off import parity •Generating industry-leading returns

•Cooperation with world EPC •Existing assets new projects + leaders High barriers developed ahead of competition Unique expertise in construction of large- •Strong in-house capabilities in to entry for potential = developing large projects competition scale industrial •High barriers to entry facilities •Proven ability to build capacity in the world’s harshest environment

Committed •Core shareholder: L. Mikhelson •Protection against feedstock − Excellent equity markets track Net long position in prices growth shareholders & record energy products •Strong cash flow generation to strong management •Management fully on board support our growth strategy team − The team behind SIBUR’s success story

19 CONTENTS

1. SIBUR: Business Overview and Strategy

2. H1 2012 Operational and Financial Performance

Appendices

20 H1 2012: MARKET ENVIRONMENT

Macro Data(1) Market Developments(2)

Brent Average Exchange Rate Energy Products Basic Polymers USD per bbl RR/USD USD USD 111.0 113.6 28.62 30.64 +2.3% +7.0% 1,000 2,000 750 Propane, CIF NWE 1,500

500 Butane, CIF NWE 1,000 H1 2011 H1 2012 H1 2011 H1 2012 LDPE, FOB NWE 250 Naphtha, average (CIF 500 PP, FOB NWE ARA, FOB Rotterdam) Russian GDP Growth Consumer Price Index 0 0

9.5% 4.4% 3.6% 3.8% Synthetic Rubbers Plastics & Organic Synthesis

H1 2011 H1 2012 Н1 2011 Н1 2012 USD USD 6,000 2,000

Railway Tariffs Indexation Average Electricity Tariffs 4,000 1,500 RR per kw/hour 1,000 ESBR 1500, FD NEW 8.0% 2,000 PET, FOB Korea 6.0% NR, SMR 20 500 MEG, FD NWE IIR, CIF East China 1.99 1.89 0 0

H1 2011 H1 2012 H1 2011 H1 2012

(1)Sources: Rosstat, CB RF, Platts, FTS of Russia, SIBUR (2)Sources: CMAI, Platts 21 SIBUR: KEY DEVELOPMENTS IN H1 2012

Credit Ratings Upgrade New Contracts • New supply contracts between SIBUR and NOVATEK, • In September, Moody’s upgraded SIBUR to Ba1 from Ba2 under which SIBUR will deliver to NOVATEK up to 800 with stable outlook mcm of dry gas in Q1 2013 and up to 69,700 mcm between 2013 and 2022 • In August, Fitch upgraded SIBUR to 'BB+' from 'BB‘ with stable outlook • ZapSibNeftekhim (ZapSib-2) contracts: − technology license agreements with LINDE AG (cracker), INEOS (PE production) and LyondellBasell Acquisitions and Divestitures (PP production) − FEED contracts with LINDE AG (cracker), TECHNIP • In March, SIBUR acquired control over Biaxplen, a (PE production) and ThyssenKrupp Uhde (PP BOPP-films producer operating three production facilities production) (78 kmtpa) − Contract with ОАО VNIPIneft - Russia’s leading engineering institution (pre-design and FEED) • In July, SIBUR announced gradual shutdown of its • 10-year supply contract with Gazprom Neft on APG outdated chlorine and caustic soda production in deliveries Dzerzhinsk • Cooperation agreements between SIBUR and to • In H1, SIBUR received USD 532 mln in proceeds set up new JVs for: (including dividends and receivables) from sale of non- – nitrile-butadiene rubber (NBR) and polyisoprene rubber core businesses (IR) production in Shanghai, based on SIBUR technologies (50 kmtpa); – nitrile rubber in Krasnoyarsk (on the basis of SIBUR’s existing facility, c.50 kmtpa).

22 H1 2012 RESULTS SUMMARY

Six months ended Key Developments: Change, % USD million except as stated 30 June 2012 30 June 2011 • Revenue growth of 5.2% y-o-y on: Total revenues, including 4,469 4,248 5.2% − higher sales of energy products; and Energy products 2,071 1,918 7.9% − consolidation of new businesses in petrochemicals… Petrochemical products 2,103 2,087 0.8% − partially offset by price correction for majority of our products in Q2; and Other sales 296 243 21.9%

− decline in synthetic rubbers Operating expenses (3,234) (2,799) 15.5% production due to an unscheduled shutdown EBITDA 1,389 1,566 (11.3%) • OpEx growth of 15.5% y-o-y due to: EBITDA margin,% 31.1% 36.9% − higher staff, feedstock&materials, repairs and maintenance and Operating profit 1,235 1,449 (14.7%) transportation costs… Operating margin,% 27.6% 34.1% − …partially attributable to consolidation of new businesses Profit for the year 968 1,135 (14.7%) • H1 2012 profit affected by non-cash FX loss Profit margin,% 21.7% 26.7%

23 PRODUCTION VOLUMES BY PRODUCT GROUP

Feedstock Business Petrochemical Business

LPG Naphtha Basic Polymers Synthetic Rubbers(2) kmt kmt kmt kmt

1,807 1,916 218 616 650 213 +6% 196 196 (2%) +6% 0%

H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012

Natural Gas(1) MTBE Plastics & Organic Synthesis(3) Intermediated and Other mcm kmt kmt kmt

393 1,709 5,438 5,324 1,555 200 207 283 +10% (2%) +4% +39%

H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012

(1) Including 51% of natural gas produced by the JV with TNK-BP (Yugragaspererabotka) (2) Decline in production was due to accident at our Tolyatti production site in April 2012 (3) Growth in production was attributable to consolidation of production volumes of Biaxplen group of companies, OAO Acrylate and OAO Polief 24 24 H1 2012 REVENUE STRUCTURE AND DYNAMICS

LPG Basic Polymers USD million USD million Sales Breakdown by Product 935 (7%) Processing services, 871 388 (2%) 380 H1 2012 Intermediates and trading and other sales other chemicals LPG

H1 2011 H1 2012 H1 2011 H1 2012 7 8 19 Basic polymers 9 Naphtha Naphtha Synthetic Rubbers % 9 USD million 14 USD million 8 417 874 Plastics and organic 344 +21% (17%) 728 Natural gas synthesis products 16 1 8

Synthetic rubbers MTBE and other fuels and fuel additives H1 2011 H1 2012 H1 2011 H1 2012 NGL Total revenues USD 4,469 mln

Natural Gas Plastic and Organic Synthesis • Energy products revenues rose 7.9% y-o-y due to USD million USD million 375 616 − higher sales of natural gas, MTBE and naphtha 311 +21% +54% 401 − price correction in Q2, which partially offset Q1 growth

H1 2011 H1 2012 H1 2011 H1 2012 • Petchem revenues almost flat y-o-y on − slowdown in demand and price correction in Q2 MTBE Intermediates and Other USD million USD million − industrial accident in Togliatti in April, resulting in lower 424 (11%) 379 production of synthetic rubbers… 236 +27% 301 − …offset by consolidation of new businesses in plastics

H1 2011 H1 2012 H1 2011 H1 2012 and organic synthesis product group

25 H1 2012 OPERATING EXPENSES STRUCTURE AND DYNAMICS

Feedstock & Materials Transportation Structure of Operating Expenses USD million USD million +12% 941 H1 2012 Other 840 Repairs and maintenance 551 +8% 597 Feedstock and Depreciation and 9 materials amortization 3 29 Goods for resale 4 7 % H1 2011 H1 2012 H1 2011 H1 2012 14 Staff costs 18 14 Transportation

Energy Staff Costs Total OpEx USD 3,234 mln Energy USD million USD million • Key growth drivers: 544 (15%) − Staff costs growth primarily due to change in bonus provision 465 464 +57% treatment (one-off non-cash increase) and consolidation of 296 new businesses − Feedstock & materials increased due to consolidation of paraxylene purchases and higher prices for NGL H1 2011 H1 2012 H1 2011 H1 2012 − Transportation expenses rose on higher export transportation tariffs − Repairs & maintenance increased on new programs Goods for Resale Repairs & Maintenance implementation and change in maintenance schedules USD million USD million • Offsetting factors: − Energy & utilities declined due to efficiency gains 270 (19%) 219 +112% 108 − Goods for resale decreased as we ceased trading with and for 51 divested businesses, reduced LPG purchases for resale and reclassified PP purchases as feedstock & materials due to H1 2011 H1 2012 H1 2011 H1 2012 consolidation of Biaxplen

26 CASH FLOW STATEMENT HIGHLIGHTS

Key Developments: Six months ended Change 30 June 30 June USD million except as stated % • Net cash from operating activities surged 2012 2011 32.2% y-o-y on Net cash from operating activities, including 1,268 959 32.2% − lower operating cash flows before Operating cash flows before working capital 1,484 1,589 (6.6%) changes in working capital due to changes lower EBITDA Changes in working capital 37 (388) n/m − helped by positive impact from changes in working capital due to Income tax paid (253) (242) 4.5% better receivables collection Net cash (used in) investing activities, (516) (808) (36.1%) including • Net cash used in investing activities declined 36.1% y-o-y with Purchase of property, plant and equipment (1,052) (545) 93.0% − CapEx growth of 93.0%... Proceeds from disposal of the mineral fertilizers businesses and discontinued 532 - n/m − …compensated by proceeds from operations(1) disposal of non-core businesses Net cash (used in) financing activities, (1,106) (463) 138.9% • Net cash used in financing activities including grew 138.9% y-o-y due to Effect of exchange rate changes on cash and (5) (6) (10.6%) − net repayment of debt cash equivalents − dividend payment Net (decrease) in cash and cash equivalents (360) (318) 13.2%

(1)Including collection of accounts receivable from the buyers of the mineral fertilizers businesses less income tax of RR 900 million as well as including collection of accounts receivable and proceeds from sale of OAO Kirov Tire Plant and ZAO Voronezh Tire Plant 27 INVESTMENT PROGRAM IMPLEMENTATION

Capital Expenditures Key Investment Projects Project Spent in H1 2012 Completion USD million (excl. VAT) USD million (excl. VAT)

• New PP complex in Tobolsk 343.6 2013 1,052 • New NGL pipeline between Purovskiy gas condensate plant, Yuzhno-Balykskaya main pumping station and 309.1 2015 Tobolsk

+93% • New Ust-Luga LPG and light oils trans-shipment facility 84.8 2013 • Construction of a GPP on the basis of Vyngapurovskaya compressor station 44.8 Completed

• New GFU in Tobolsk 37.4 end 2014 545 • New thermoplastic elastomers production in Voronezh 33.0 H1 2013

• New gas processing unit at Yuzhno-Balykskiy GPP 27.0 end 2012

• Ethylene cracker reconstruction in Kstovo 26.7 2013

• Reconstruction of butyl rubber production in Tolyatti 12.4 end 2013

• Third compressor station construction in Nizhnevartovsk (1) 11.9 end 2012 • Second expandable polystyrene production line in H1 2011 H1 2012 10.9 Completed Perm • CAPEX increase of 93.0% y-o-y to USD 1,052 mln came as a result of SIBUR‘s substantial investments in development of both feedstock & energy and petrochemical businesses in line with our strategic objectives

28 (1) Including TNK-BP ‘s share of financing DEBT STRUCTURE AND MATURITY PROFILE

Change Key Developments: USD million 30-Jun-12 31-Dec-11 % • Total debt largely flat y-o-y as net debt repayment was compensated by Biaxplen debt consolidation Debt 2,541 2,575 (1.3%) Cash & cash equivalents 121 465 (74.1%) • Net debt increased by 14.7% due to dividend payment and CapEx financing Net debt 2,420 2,110 14.7%

• As of 30 June 2012, majority of the debt was Average loan tenor(1) 2.6 2.4 - unsecured with the exception USD 542 mln (2) outstanding under the Tobolsk-Polymer project Available credit lines 2,218 2,072 7.0% finance facility Debt / EBITDA(3) 0.99x 0.96x -

• Share of US-denominated borrowings increased up Net debt / EBITDA(3) 0.94x 0.78x - to 65% due to the USD 133 mln tranche received as

part of Tobolsk-Polymer financing EBITDA / Interest 71x 34x -

Debt Maturity Profile Debt Currency Split USD million 30.06.2012 30.06.2012 Euro 897 3 746 32 RR 458 440 %

USD 65

< 1 y 1-2 y 2-5 y > 5 y

(1) Credit facilities and bonds (2) Undrawn amounts of committed and uncommitted credit facilities 29 (3) Ratios based on Russian rouble-denominated numbers CONTENTS

1. SIBUR: Business Overview and Strategy

2. H1 2012 Operational and Financial Performance

Appendices

30 CORPORATE HISTORY: KEY MILESTONES

1995-2001 2002-2003 2004-2009 2010 - present

• Incorporated in 1995 under • Excessive leverage due to • Focus on operational • Launch of strategic Government aggressive acquisitions and excellence and asset efficiency programs Decree as a gas the consequences of the portfolio rationalization • Change in ownership: processing and 1998-1999 financial crisis investor group led by • Gazprom sells SIBUR to fractionation business • Management change: (Gazfund) Leonid Mikhelson through • Transformed into a appointment of Alexander acquires control • Current CEO Dmitry Konov several transactions vertically integrated Dukov as CEO and takes over in 2006 petrochemical company formation of a new • Disposal of mineral through an active management team • Active investment in the fertilizers and tires acquisition strategy businesses • Focus predominantly on expansion and modernization of existing • Continuous investment in • Gazprom becomes organic development assets the controlling shareholder of expansion and modernization of existing SIBUR in 1998 • Launch of Tobolsk- assets Polymer greenfield project • Launch of other greenfield projects, including RusVinyl and Ust-Luga Terminal

31 SIBUR BENEFITS FROM ACCESS TO ABUNDANT STRANDED RESOURCE BASE

Feedstock Highlights Feedstock Trends • APG has limited growth potential due to expected slow-down in oil SIBUR’s Feedstock & Energy business operates predominantly in production.. APG Production in WS(3) Western Siberia, Russia’s largest oil and gas province by production and reserves Bcmpa 46 49 50 SIBUR uses two main hydrocarbon feedstock types − Associated petroleum gas (APG), a by-product of oil extraction − Liquid hydrocarbons (LHC), largely a by-product of gas extraction 2010 2015 2020 APG • …which can be partially offset by lower flaring rates − APG flaring above 5% limit is penalized by law and may result in APG Utilization in Russia(4) material fines or license withdrawal 2010 − Apart from gas processing, productive APG utilization is limited 24% Flaring − Oil companies typically lack APG processing infrastructure 15% Oil companies’ use − SIBUR provides oil companies with effective APG processing 61% Utilization solution and can source it at attractive terms LHC • Condensate-based LHC volumes produced in Western Siberia are − LHC include NGL, liquefied petroleum gas (LPG) and naphtha expected to more than triple by 2020 − Due to abundance of LHC resources in Western Siberia, high and LHC production in WS(3) rising transportation tariffs and export duties, domestic prices in Mmtpa WS are substantially lower than internationally 32 − LHC is an attractive and growing source of feedstock for our 19 petrochemical business 9

2010 2015 2020

(1) Sources: Russian Ministry of Energy, CERA 32 (2) Source: Central Dispatch Administration of the Fuel and Energy Complex (the “CDU-TEK”) FEEDSTOCK TYPES

West Siberia Availability of feedstock growth in Western Siberia

Oil field Gas field 356% LHC production growth Core 211% products for 100% 107% 109%APG production growth oil and gas companies C1 C2 C3 C4 C5 C6 C7+ C1 C2 C3 C4 C5+ 2010 2015F 2020F Associated petroleum gas (APG) Light hydrocarbons (LHC)

Third party gas processing plants Hydrocarbon chain Uses SIBUR’s gas Third party gas Methane processing stabilization plants С (gas) plants Natural Gas 1 C C2-6 1 C3-5 Ethane Domestic sales С2 (gas) via Gazprom pipeline system Associated Propane Gas-fractionation Petroleum (gas/liquid) units Gas (APG) LPG Butane Natural Gas С3-4 (gas/liquid) Liquids (NGL) С 2 Basic polymers Pentane (liquid) С3-4 Petro- Naphtha Synthetic rubbers chemical С5-6 Hexane С business (liquid) Domestic and export sales 5-6 Plastics & organic Domestic and export sales Other synthesis Oil Heavy fractions С7+

Source: Company information, Russian Ministry of Energy, CERA (1) Excluding flaring and in-field utilization

33 DIVERSIFIED PRODUCT PORTFOLIO

74

51 External sales, 21 21 22 24 25 (RURbn), 2011 LPG and naphtha Natural gas MTBE and other fuels Basic polymers Synthetic rubbers Plastics and organic Intermediates and and fuel additives synthesis products other chemicals

Export Export Export Domestic Domestic Export 23% 26% 26% 27% 100% 29% Sales split, Export Domestic 56% 44% 2011 Export Domestic Domestic Domestic Domestic 73% 77% 71% 74% 74% • Commodity cycle, • 100% domestic • Domestic fuel • Urban population • Strongly linked to • Primarily domestic • Used in further global oil prices exposure additives market growth, replacement tyres manufacturing customers in the processing in (gasoline car fleet of traditional / automotive chemical, retail, petrochemical • Transportation • Government- materials Key drivers as main customers) industry construction, and industry costs and export approved price increase road building • Retail, construction, duties schedule for the next 3 • Fuel standards • Also driven by industries years regulations automotive natural rubbers and crude oil prices • Import substitution

Correlation with oil  S     

• Acts as price-taker • 3rd largest supplier • #1 producer in Russia • Top-3 producer in • #2 in Russia • Leading positions in • Leading positions in in Russia with 40- 50% market Russia with 30-40% Russia and CIS Russia and CIS • 34% of LPG market • Top-10 globally Competitive share market share in PE in Russia and PP position • Can fully meet demand of any Russian oil company • Prices are off the • Fixed growth rates • Strong demand for • 8-10% demand • c. 4% consumption • Robust growth in • Increasing share of Mid-term peak but still at at 15% annually MTBE on the back growth expected in growth expected to domestic market on value-added outlook historically high within the next 3 of strong gasoline Russia outpace supply the back of import derivative products trends levels years prices and growth substitution and • Switch to ethane- derivatives based cracking in US development to limit availability of butadiene 34  Strong correlation  Medium correlation  Weak correlation REGIONAL DIVERSIFICATION AND CUSTOMER CONCENTRATION

Revenues by Products Revenues by Market Customer Concentration Feedstock and energy 2009 2009 51% 33% Other Other 23% Asia 7 6 5 Energy Russia Europe 9 47 products Top-3 Top-5 Top-10 50 % % 45 Basic polymers Petro 30 chemicals CIS 23% 10% 14%

Top-3 Top-5 Top-10

Synthetic rubbers 61% 47% 39% 2011 2011 Other Other Asia 8 3 6 Russia Energy Top-3 Top-5 Top-10 45 products 27 % 57 % Europe Plastics and organic synthesis 49 Petro 5 49% CIS 31% chemicals 22%

Top-3 Top-5 Top-10

35 BASIC POLYMERS: LARGE-SCALE LOW COST PRODUCTION AND IMPORT SUBSTITUTION ON PREMIUM DOMESTIC MARKET

External Revenue Breakdown Consumer Industries Long-Term Growth Drivers By product 2011 2011 Road building 2011 • Large-scale low-cost production of Polypropylene (0.4%) Construction polypropylene and polyethylene through greenfield projects in Automotive 13 Tobolsk (2%) • Import-substitution play in Russia 50 % 50 % (30% of domestic demand is satisfied by imports) and 85 expansion into attractive export Retail(1) markets Polyethylene (LDPE) • JV with SolVin to produce PVC

External Revenue Breakdown Contract Terms Customer Industries Growth(2) By market 2011 2011 2011-2020 CAGR Contract Auto 9% Export 29 18

% % Retail 9% 71 82 Construction Domestic Spot 7%

Russian GDP CAGR forecast of 3.5-4%

(1) Packaging, FMCG, non-food retail, etc. (2) Sources: CEIC, Sibur estimates, Oxford Economics 36 SYNTHETIC RUBBERS: TECHNOLOGY LEADERSHIP WITH SELECTIVE INTERNATIONAL EXPANSION

External Revenue Breakdown Consumer Industries Long-Term Growth Drivers By product 2011 2011 Roofing 2011 • Sustainable technology leadership TEP materials Oil&gas (4%) and export of solutions Other (3%) Specialty 5 Industrial 4 3 • Cost leadership in monomers for 5 rubbers equipment commodity rubbers 21 15 • Selective international expansion % % through JVs in target markets for specialty rubbers 74 73 • New specialty products development via own R&D and partnerships Automotive Commodity rubbers • Dominant market position in Russia and CIS for TEP

External Revenue Breakdown Contract Terms Customer Industries Growth(1) By market 2011 2011 2011-2020 CAGR n/a 14 Export Auto 9%

44 Spot 17 56 % % Construction 7% 69 Industrial 5% Domestic Contract equipment

Russian GDP CAGR forecast of 3.5-4%

(1) Sources: CEIC, Sibur estimates, Oxford Economics 37 PLASTICS AND ORGANIC SYNTHESIS: LOW-COST PRODUCTION AND IMPORT SUBSTITUTION ON PREMIUM DOMESTIC MARKET

External Revenue Breakdown Consumer Industries Long-Term Growth Drivers By product 2011 2011 2011 • Leading market positions PolystyreneBOPP -films Construction • Low-cost production Plastic 4 Retail 6 • Import substitution play in Russia compounds 7 Glycols • Selective scale build-up 12 33 39 % % • Premium niche play in certain products 19 55 PET 24 Chemicals • New specialty products development for own production and as new client Alcohols applications

External Revenue Breakdown Contract Terms Customer Industries Growth(1) By market 2011 2011 2011-2020 CAGR n/a 7 Export 26 Retail 9% Spot 40 % % 53 Construction 7% 74 Chemicals Domestic Contract 6%

Russian GDP CAGR forecast of 3.5-4%

(1) Sources: CEIC, Sibur estimates, Oxford Economics 38 JOINT VENTURES: PARTNERSHIPS WITH LEADING WORLD PRODUCERS

Project Description Rationale

•Capacity: SIBUR SOLVIN - PVC: 330 ktpa • Best PVC technology • Access to the fast available including RusVinyl - - Caustic soda: 225 ktpa growing PVC market further improvements in CIS PVC Plant in •Estimated CAPEX: c. USD 1.6 bn through technology JV transfer • Access to cheap Nizhny •Sources of funds: project finance attracted at JV level feedstock supply •Commercial start up: 2014 • Vast experience in Novgorod construction and •50:50 JV with SolVin (Solvay) operation of PVC production

•Capacity: SIBUR - Butyl rubber: 100 ktpa • Access to the fast- • Access to SIBUR •Estimated CAPEX: c. USD 0.45 bn growing Indian proprietary market JV Reliance JV •Capex contribution proportionate to ownership technology • Infrastructure and •Commercial start up: 2014 utilities •SIBUR owns 25.1% of JV, Reliance share is 74.9% • Industrial site & monomers supply

•JV on Shanghai site base: - Capacity - Nitrile butadiene rubber 50 ktpa, Isoprene SIBUR SINOPEC rubber 50kt/a • Access to the fast- • Access to SIBUR growing Chinese - Commercial start up: 2015 proprietary technology Sinopec JV market - SIBUR will own 25.1% of JV, Sinopec will own 74.9% • SIBUR’s vast • Access to Sinopec experience in (existing and - Capex and financing to be determined JV distribution capacity operation of NBR and planned JV) •Planning JV on Krasnoyarsk Synthetic Rubber Plant base IR production - Capacity – Nitrile butadiene rubber 42.5 ktpa • Access to Russian - SIBUR would sell 25.1% share in Krasnoyarsk SR plant market

39 JOINT VENTURES: STRENGTHENING POSITIONS ON THE DOMESTIC MARKET

Site Description Rationale

•Capacity: SIBUR TNK-BP - Three gas processing plants (Nizhnevartovskiy GPP, Belozerniy GPP and Nyagan GPP) with total • Expansion in an • Processing and Yugra- APG processing capacity 13 bln.m3 attractive regional transportation market gazpererabotka - NGL transportation infrastructure, APG pipelines JV capacities & and three compressor stations • Long-term safe APG infrastructure (operating JV) •SIBUR owns 51% of JV, while TNK-BP share is 49% supply

SIBUR Gazprom Neft •PP plant with c. 100 ktpa capacity, advantageous located close to the biggest PP consumer region in • Expansion in an • Experience in Russia and also to European market attractive regional production of PP NPP market •50:50 JV with Refinery (Gazprom Neft) • Marketing and Neftekhimia • Consolidation of JV distribution (operating JV) market share capability • Access to industrial site and feedstock supply

40 SIBUR’s PROJECTS PLAY A KEY ROLE IN RUSSIA’s PETROCHEMICAL INDUSTRY DEVELOPMENT PLAN THROUGH 2030 SET BY THE GOVERNMENT… … and are included in state and regional top-priority lists Petrochemical Industry 2030 Development Plan

Framework Objectives • Developed by Ministry of Energy and approved by • Efficient utilization of growing hydrocarbon feedstock the Russian Government special commission • Development of globally competitive petrochemical capacities in Russia • Part of overriding strategy to increase the share of • Growth in Russian consumption of petrochemical products higher value-added innovative industries in the economy vs. exports of resources SIBUR’s key projects form the backbone of the Plan • Implementation of the Plan to be monitored by the • Tobolsk-Polymer, PP complex in Tobolsk Government on semi-annual basis • RusVinyl, PVC complex in Kstovo, Nizhny Novgorod region Support mechanisms • ZapSIb-2, PE&PP complex in Tobolsk (subject to approval post FEED) • Improvements in technical requirements/controls • NGL pipeline Purpe-Yuzhny Balyk-Tobolsk (Western Siberia) • Promotion of petrochemical products consumption • Ethane cracker modernization in Nizhny Novgorod • Development of petrochemical clusters • Expansion of Tomskneftekhim production capacity (ethylene, PE, PP) • Lending and financing programs • Expansion of POLIEF production capacity in Blagoveshchensk (PET) • Infrastructure development • Togliatti rubber plant expansion (butyl rubbers) • Export regime favoring domestic producers • Voronezh rubber plant expansion (TEP)

Selected Additional Support Measures

RusVinyl Tobolsk-Polymer • Included in Minpromenergo’s top-priority list and • Included in Minpromenergo’s top-priority list Nizhny Novgorod region’s top-priority list

• Favorable tax regime on imports of technological equipment

41 NEW PETROCHEMICAL HUB IN WESTERN SIBERIA: MONETIZATION OF STRANDED FEEDSTOCK… Average prices in 2012 ILLUSTRATIVE Polypropylene vs LPG Sales USD

EBITDA margin = с. 50%(1) Tobolsk Tobolsk Incremental Incremental margin in margin in RUSSIA, EUROPE, ~980 ~700 150 70 1,780 $15801,580 270 320 150 830

410

Propane price in Transport& Propane price in Production Transport to Transport PP price in PP price in EUROPE duties to Tobolsk costs(2) W.Russia to W.Europe W.Russia W.Europe Europe +Duties

42 (1) Full capacity utilization, depending on regional sales distribution (2) Using LPG consumption ratio of 1.2; current prices PE SUPPLIED BY ZAPSIB-2 WILL REMAIN COMPETITIVE IN EUROPE WITH THE NORTH AMERICAN OFFERING ENTERING THE MARKET

HDPE cash cost (1)

USD/mt Implied ethane price • PE supplied by ZapSib-2 to for North American Europe would remain producers competitive vs North American SIBUR 1,118 offering from ethane crackers 1,000 518(2) USD/mt with forecasted ethane price 969 (10.5 USD/mbtu) at and above 400 USD per 800 metric ton

400(3) USD/mt 600 (8.1 USD/mbtu) • Natural gas price recovery in the USA from current USD 80 per 919 847 400 thousand cubic meters to USD 304(4) USD/mt 150-200 per thousand cubic (6.2 USD/mbtu) 200 meters would trigger ethane prices growth and support SIBUR’s competitive position in 0 ZapSib-2 (1.5 mmt) NA ethane crackers Europe (1.5 mmt)

Source: CMAI, SRI, SIBUR estimates (1) Including transportation cost to Europe; cash costs account for the relevant CapEx (2) CMAI forecast 2018 (3) Conservative forecast 2018 43 (4) Average Mont-Belvieu ethane price in 2012 (CMAI forecast) TOBOLSK IS A LOVELY PLACE…

44