Speech by Alexey Miller, Chairman of the Management Committee, OAO Gazprom

Gazprom: New Horizons

Annual General Shareholders Meeting. June 30, 2011 It is proposed that the Shareholders Meeting approve:

. OAO Gazprom Annual Report 2010

. Annual Accounting Statements

. Distribution of profits and the proposals on the amount of, time for and form of the dividend payment

. PricewaterhouseCoopers Audit as the Auditor

2 Gazprom: New Horizons Hitting Pre-Crisis Levels

Gas reserves added through 547.7 3 geological exploration, billion m 468.8

Hydrocarbons production, 649 million t (fuel equivalent) 592

508.6 3 Gas production, billion m 461.5

52.6 * Oil production, million t 48.6 *

2010

2009

* Including shares in associated companies

3 Gazprom: New Horizons Upward Trend in Financial Performance

OAO Gazprom Gazprom Group

4,000 3,661.7 3,500 3,384.7 3,118.5 3,000 2,879.4 2,507.0 2,486.9 2,500

2,000

1,500 1,257.5 1,166.4 844.5 1,000 895.6 822.4 553.3 500

0

2008 2009 2010 2008 2009 2010

Sales, RUB billion Profit from sales, RUB billion

4 Gazprom: New Horizons Dividend Growth

Dividend per share, RUB

3.85 4

3 2.39

2

The Board of Directors recommend 1 paying out RUB 3.85 per share in 0.36 dividends to the shareholders

0 2008 2009 2010 recommended

5 Gazprom: New Horizons Export Supplies Recovery

Supplies beyond in H1 2010–2011, billion m3

Early 2011 performance: 140 128.7 . In Q1 2011 the European consumers increased 120 102.2 gas offtake by 12% versus the same period

100 of 2010

80 . In H1 2011 the gas supplies beyond Russia showed a 26% growth versus the same period 60 of 2010 40

20

0 2010 2011* * Preliminary results

6 Gazprom: New Horizons New Factors Boosting International Gas Trading

. Revision of nuclear power generation programs

. Decline of indigenous gas production in Europe

. Re-estimation of political risks associated with individual suppliers

. Reduction of subsidies for energy alternatives

. Intensified growth of energy demand in Asia and domestic markets of gas exporting countries

7 Gazprom: New Horizons Hydrocarbon Reserves Replenishment by Gazprom Group

Hydrocarbons production, Reserves added through geological million t (fuel equivalent) exploration, million t (fuel equivalent) 797 800 761 696 678 700 649 592 583.4 600 549.7 billion m3 547.7 3 508.6 3 billion m billion m 500 461.5 billion m3 468.8 billion m3 billion m3 400 300

200

100

0 2008 2009 2010 2008 2009 2010

Gas Condensate Oil

8 Gazprom: New Horizons Production Performance

Gas production, billion m3 Liquid hydrocarbons production, million t

600 70 5.2 10.5 500 60 21.6 7.4 16.5 19.8 549.7 50 400 461.5 508.6 40 42.9 43.3 300 41.7 30 200 20

100 10

0 0 2008 2009 2010 2008 2009 2010

Gazprom Group Gazprom Group owned shares in associated companies

Capital investments of Gazprom Group in exploration and production totaled RUB 202.4 billion

9 Gazprom: New Horizons Key Investments in Gas Production

Kara Sea

Bering Sea

Bovanenkovskoye

Kamchatka B a Peninsula id a ra Kshukskoye ta Yamal B a y Peninsula Yamburgskoye Nizhne-Kvakchikskoye Fields pre- development Sea of Sobolevo

Yamburg Tazovsky Okhotsk Hydrocarbons production y Petropavlovsk- a Zapolyarnoye Kamchatsky B b O Onshore fields Pacific Urengoyskoye Ocean Offshore fields Urengoy Novy Urengoy Gas mains Nadym Yuzhno-Russkoye

10 Gazprom: New Horizons Oil Business Development

Oil production by Gazprom Group, million t

52.6* 50 48.6* . Creation of a new production center in northern Yamal-Nenets Autonomous Okrug, 40 development of the Novoportovskoye field and the Messoyakhskaya group of fields 30 . Building up the resource base through new 20 acquisitions as well

10

0 2009 2010

* Including shares in associated companies

11 Gazprom: New Horizons Kirinskoye Field Pre-Development within Sakhalin III Project

Sea of Onshore Kirinskoye gas Okhotsk processing facility Okha (existing) and condensate field (GCF)

Piltun

Boatasino

Nogliki Onshore processing facility Kirinskoye GCF (new) Pacific Ocean

Tatar Strait Sakhalin Island Drilling platform Oil pumping station

GCS No.2 OPS No.2 Onshore processing facility Subsea production complex

Ilyinsky Liquefied natural gas (LNG) plant Multiphase pipeline Sea of Yuzhno-Sakhalinsk Okhotsk Oil export terminal (OET) Umbilical

Prigorodnoye LNG plant Gas compressor station Satellite well Sea of OET Japan

12 Gazprom: New Horizons First Coalbed Methane Production Facility in Russia

Zhernovo UM-5.8 Shift camp

UM-5.7

UM-5.6 UM-5.4

UM-5.5 УППГGas pre-treatment unit АГНКСGas filling station

UM-5.9 ООО Gazprom dobycha Kuznetsk UM-5.10 (eastern block of Taldinskaya area)

Kuznetsky basin

Taldinskaya 13.1 area 6.0 Gas pipeline route Exploratory wells Forecasted CBM resources, trillion m3 13.1 Kuznetsky basin, including 6.0 Taldinskaya area

13 Gazprom: New Horizons Exploration and Production Abroad

Uzbekistan United Kingdom Exploration in Wingate Ustyurt region Shakhpakhty

Kyrgyzstan Eastern Mailu-Suu IV and Serbia Kugart investment blocks NIS projects Tajikistan Rengan, Sargazon, Sarykamysh, Western Cuba Algeria Shaambary licensed blocks Offshore blocks El Assel

Venezuela No.44, 45, 50 licensed block Urumaco I and and 51 Vietnam Urumaco II blocks, Blocks No.112 (expanded), No.129–132 Junin-6 block Iraq India Libya Badra Block No.26 Bolivia Licensed blocks Ipati and Aquio No.19 and No.64 blocks Concessions C96, C97 Equatorial Guinea T, U blocks

Hydrocarbons prospecting Gas and gas Oil production and exploration condensate production Projects launched in 2010

14 Gazprom: New Horizons Unified Gas Supply System

Gas pumped into Gazprom’s UGSS in Russia, billion m3

Implementation of domestic gas transmission 661.2 projects in 2010 resulted in commissioning of: 650 589.7 600 . 1,338.6 km of gas trunklines and laterals 550

500 . A 64 MW line compressor station 450 400

350

300 2009 2010

15 Gazprom: New Horizons New Gas Trunklines in Eastern Russia

Sobolevo – Petropavlovsk-Kamchatsky gas pipeline Sakhalin – – gas transmission system

Bering Sea Piltun-Astokhskoye

Kamchatka Peninsula Lunskoye Khabarovsk Krai Sea of Komsomolsk-on- Okhotsk Kshukskoye Amur Yuzhno- Sakhalinsk Nizhne- Kvakchikskoye Khabarovsk Sobolevo Primorsky Krai Japan Petropavlovsk- Kamchatsky China

Sea of Okhotsk Pacific Ocean Vladivostok Sea of Japan

Hydrocarbons production Offshore hydrocarbons production Gas mains

16 Gazprom: New Horizons Gas Transmission Projects

Barents Sea RUSSIA Urengoy Norwegian Sea Murmansk 4

6 Atlantic Ocean Peregrebnoye 5 1 Surgut 12 Oslo Yugorsk Helsinki Dublin North Sea Stockholm St. Petersburg Novosibirsk 3 Tallinn Gorno-Altaisk 2 Tyumen Barnaul Copenhagen Gryazovets Perm London Baltic Sea 8 Amsterdam Torzhok Pochinki Brussels Vilnius Voskresensk Kazan Ufa Astana RUSSIA Berlin Warsaw Bay of Paris Minsk Tula 10 Biscay Orenburg Prague Yelets Petrovsk Sobolevo Bern Petropavlovsk- Vienna Bratislava Kiev Alexandrov Gai Okha Kamchatsky Lisbon Ljubljana Frolovo Madrid Novopskov Kishinev Zagreb Astrakhan Бишкек -on- Komsomolsk- Sea of Okhotsk Belgrade on-Amur Rome Sarajevo Bucharest C 7 a s Yuzhno- Sofia 9 p ia Khabarovsk Sakhalinsk Black Sea 11 n Tbilisi S Dushanbe Algiers e a Baku Tunis Yerevan Sea of Valetta Athens Ankara Ashgabat Japan Pacific Ocean Mediterranean Sea VladivostokKabul

1 SRTO – Torzhok 5 Murmansk – Volkhov 9 South Stream route options 2 Gryazovets – Vyborg 6 Bovanenkovo – Ukhta and Ukhta – Torzhok 10 UGSS expansion for South Stream

3 7 Sakhalin – Khabarovsk – Vladivostok GTS 11 Dzhubga – Lazarevskoye – Sochi

4 Urengoy hub expansion 8 Pochinki – Gryazovets 12 Altai

17 Gazprom: New Horizons Underground Gas Storage in Russia

Barents Sea Baltic Sea Finland Kara Sea Sea of Okhotsk

Kaliningrad St. Petersburg Gatchinskoye

Nevskoye Belarus Russia Ukhta Khabarovsk Kaluzhskoye Moscow Urengoy Shchelkovskoye Kaluga

Tula Punginskoye Uvyazovskoye Kasimovskoye Yugorsk Kazan Surgut Karashurskoye Perm Ukraine Saransk Peschano- Izhevsk Umetskoye Yelshano-Kurdyumskoye China Dmitrovskoye Sea of Stepnovskoye Samara Tyumen Rostov-on-Don Amanakskoye Japan Kushchevskoye Mikhailovskoye Kiryushkinskoye Krasnodarskoye Volgograd Kumertau Armavir Kanchurinskoye Musinskoye Omsk Tomsk Stavropol Sovkhoznoye Severo-Stavropolskoye Novosibirsk Kemerovo

Caspian Sea Barnaul Irkutsk Novokuznetsk Kazakhstan Gorno-Altaisk

Existing UGS facilities with working gas capacity below 5 billion m3 Exploration areas for UGS facilities Existing UGS facilities with working gas capacity over 5 billion m3 Gas mains UGS facilities being constructed and designed

18 Gazprom: New Horizons Existing and Projected UGS Facilities Abroad

Norway 2.3 Capital investments of the Group Latvia Incukalns Sweden RUSSIA Lithuania in underground gas storage equal Baltic Sea Denmark AtlanticAtlantic OceanOcean RUB 17.4 billion Belarus North Sea

United Kingdom Ukraine Rehden Ireland 4.5 0.2 4.0 Katharina (Peissen) Humbly Grove Bergermeer Netherlands Damborice Germany 0.6 Czech Republic Moldova Saltfleeby 0.8 Belgium Slovakia 2.8 Hungary Black Sea Austria Hungarian UGS Romania Haidach 0.5 Switzerland Slovenia Croatia France Bosnia and Banatski Dvor Herzegovina Bulgaria Serbia Georgia Italy Macedonia Turkey Albania Azerbaijan Mediterranean Sea Greece AbovyanPortugal 0.1 Spain

Armenia Turkey

Working gas capacity of existing UGS facilities used by Projected UGS facilities with participation of OAO Gazprom 4.8 3 OAO Gazprom, billion m Gas mains 0.6 Working gas capacity of planned UGS facilities with Nord Stream gas pipeline and South Stream gas pipeline participation of OAO Gazprom, billion m3 route options 19 Gazprom: New Horizons Promising Markets

YAKUTIA CENTER LNG sales growth, thousand t

SAKHALIN 2,000 CENTER 1,820 Tynda Okha Komsomolsk- on-Amur 1,500 Blagoveshchensk 1,350 Khabarovsk

Yuzhno- Sakhalinsk Prigorodnoye

1,000 China Vladivostok

Beijing 454 500 South 311 Korea Japan Seoul Tokyo

0 Shanghai 2007 2008 2009 2010 Taiwan, India Gas production center Planned gas pipeline

Offshore production Pipeline under construction LNG transportation routes

20 Gazprom: New Horizons Gas Markets Revival

Growth of gas sales by Gazprom Group in 2010 31% 28%

23.5%

7.2% 5.4%

Germany France Serbia Czech Republic Poland

21 Gazprom: New Horizons Gazprom’s Performance in European Market

Gazprom’s share in European market Gas export beyond FSU: volumes and sales

25 23% 149 42.5 43.87 45 140.65 138.6 40 20 19% 148 35 15 30 10% 147 10 25 6% 20 146 5 15

0 145 10 Gazprom Norway Algeria Qatar 2009 2010

Gas supply volumes, billion m3 Sales, USD billion

22 Gazprom: New Horizons Nord Stream

Norway Finland

Sweden Vyborg Helsinki

Stockholm St. Petersburg Volkhov Tallinn Baltic Sea Estonia RUSSIA

North Sea Valdai m o Denmark d g n i Riga K Torzhok Latvia d Copenhagen e t i n am U tre d S Lithuania Nor Greifswald Vilnius Netherlands Bremen Kaliningrad Amsterdam London Poland Minsk Brussels Berlin Belgium Belarus Warsaw Luxembourg Germany Prague Paris Czech Republic Kiev France Ukraine

23 Gazprom: New Horizons South Stream

Slovakia Kiev Austria Vienna Bratislava

Budapest Ukraine Moldova

Hungary Kishinev

Slovenia Sea of Azov Ljubljana Romania Zagreb Croatia Anapa Russia Bosnia and Herzegovina Belgrade Bucharest Constanza Sarajevo

Serbia Varna Montenegro

Podgorica Sofia Adriatic Sea Skopje Bulgaria Macedonia Italy Tirana

Albania

Otranto

Greece Turkey Athens Ionian Sea

Route options Route option 1: Russia – Bulgaria – Serbia – Hungary – Austria Gas pipeline route common to all the above options Route option 2: Russia – Bulgaria – Serbia – Hungary – Slovenia Route option 4: Russia – Romania – Serbia –… Pipeline branches Route option 3: Russia – Bulgaria – Serbia – Hungary – Austria and Russia – Bulgaria – Greece – Italy To Croatia from Serbia

24 Gazprom: New Horizons Gas Marketing

Gas sales Average gas sale price (net of VAT, excise tax and duties), (net of VAT, excise tax and duties), RUB billion RUB per 1,000 m3

2,500 8,000 2,091.4 2,164.0 1,971.5 7,000 6,416.5 2,000 356.5 450.1 6,000 5,483.7 371.2 1,500 5,000 1,260.6 1,099.2 3,693.9 1,105.0 4,000 1,000 3,000 2,000 500 614.7 474.3 494.9 1,000 0 0 2008 2009 2010 2008 2009 2010

Russia Beyond FSU FSU states

25 Gazprom: New Horizons Oil and Derivatives Production

Oil and gas condensate refining, Oil derivatives production by Gazprom Group, million t million t

50.2 39.7 50 40 44.3 35.3 40.1 31.1 40 30

30 20 20

10 10

0 0 2008 2009 2010 2008 2009 2010

26 Gazprom: New Horizons Power Generation

Power produced by Gazprom Group’s generating Heat produced by Gazprom Group’s generating companies, billion kWh companies, million Gcal

175.1 106.9

138.5 109.3 73.4 67.1

2008 2009 2010 2008 2009 2010

27 Gazprom: New Horizons Environmental Efficiency of Natural Gas

СО2 emissions by vehicles Fuel cost per daily run 200 to 220 km, EUR

100% 25 100 25

75% 20 75

15 50 11 10

25 5

0 0

Gasoline Natural gas Gasoline Natural gas vehicle vehicle vehicle vehicle

Average CO2 emissions by natural gas vehicles are 25% lower versus gasoline vehicles

28 Gazprom: New Horizons Golden Age of Gas

Global consumption of primary energy carriers, thousand t (fuel equivalent)

4,500 Oil 4,000

3,500 Coal 3,000 Natural gas 2,500

2,000

1,500

1,000 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

29 Gazprom: New Horizons Speech by Alexey Miller, Chairman of the Management Committee, OAO Gazprom

Gazprom: New Horizons

Annual General Shareholders Meeting. June 30, 2011