ASSESSMENT OF GAS PRODUCTION INDUSTRY IMPACT ON THE UKRAINIAN ECONOMY

2021 2 The oil & gas industry is fundamental for the functioning of the entire economy of

Domestic output CAPEX* UAH 34 bln 5.5% contribution* UAH 151 bln 2%

of total in of total in OPEX* UAH 72 bln 1% Ukraine* GDP contribution* UAH 97 bln 2.4% Ukraine*

Jobs** 47thousand 0.3% Fiscal contribution*** UAH 86 bln 9%

81% of the oil & gas extraction industry’s output is consumed by other industries

Output of Oil & Gas industry, 2019 Energy Oil Food Gas Transport Metallurgy and heat supply refinery production extraction UAH 81% 34% 18% 16% 7% 6% 6% 4% 3% 7% Intermediate 151 consumption Chemical Other Other bln production production industries ~45% of Ukrainian output

Sources: *SSSU; **Naftogaz Group; Association of Gas Producers of Ukraine; ***Project ‘Rating. Business in numbers’ 3 UAH 1 invested in natural gas production yields long-term effects on

Domestic output GDP Fiscal revenue of products and services 2.86 UAH 1.19 UAH 5.72 UAH Corporate income tax, UAH UAH 0.48 UAH Investment: 1.00 royalties: Direct effects: 1.39 UAH Additional product generated by Final UAH Excise tax and VAT: 0.27 the Development strategy consumption: 0.72 UAH UAH Indirect effects: 3.14 Social contribution: 0.19 Increase in intermediate UAH Net export: 0.62 UAH consumption and fixed asset Dividends*: 0.17 investment in Ukraine * If the projects are implemented by Naftogaz Group and 50% of net UAH income is paid as dividends to the budget Induced effects: Public UAH 1.19 spending: 0.51 UAH Increase in final private and Personal income tax: 0.08 public consumption

The investment impact given on the slide are calculated for the new well, starting with the drilling project. For more details please refer to the "Methodology" section 4 The Ukrainian economy is highly dependent on energy imports. Due to an unparalleled dependence on imports of oil & gas…

The oil & gas industry is second only to retail and wholesale trade in terms of use of its products for intermediate consumption. At the same time, the oil & gas industry’s products are imported the most among top-10 industries

Intermediate Import as % of final Contribution to 2019 consumption as % of the demand for Ukrainian GDP industry’s output industry’s product*

13 Oil & gas industry 2,4% 81% 37% 13,4 1 Retail and wholesale 99% 0.4% trade %

2 Agriculture 9,3% 42% 6%

3 Food production 8,0% 5% 10%

4 Real estate operations 7,0% 40% 2%

5 Transport & warehousing 6,9% 57% 16% Government bodies; 6,7% 10% 3% 6 defence

7 Education 4,4% 3% 0.2%

8 Power & utilities 3,4% 76% 1%

9 Construction 3,3% 45% 0.3% Programming and 3,2% 53% 9% 10 consulting 5 …though Ukraine has the potential to fully substitution gas imports in the case of implementation of new gas production projects

Natural gas reserves (on balance, extractable) Gross gas production, 2019 as at 1 Jan 2020

2% 3% 5% Naftogaz 9% 6% 3% Naftogaz DTEK 8% UNB 778 Private companies ~21 bcm bcm Burisma

Smart Energy Undistributed reserves 78% 86% Other

780 bcm of potential gas reserves are readily accessible for extraction. This ensures up to 25 years of extraction at the target rate of 30 bcm / year

Sources:SSSU; State balance of mineral resources in Ukraine, 2020; Naftogaz Group; Association of Gas Producers of Ukraine 6 CONSERVATIVE SCENARIO: 2021-2030 production only at the fields discovered earlier and actively developed

Operational inputs Effects

Cumulatively over 2021 to 2030, the conservative effects are the sum of the effects of the newly Trade gas production balanced economy per each year and base values*

Base* yoy 2030 2021 – 2030 Cumulative 2021 – 2030 149 bcm GDP UAH UAH UAH 2021 2030 3,561 bln -1.9% 3,493 bln (383) bln

bcm bcm 18.6 11.5 Base* yoy 2030 2021 – 2030 Domestic UAH UAH UAH output OPEX 7,454 bln -1.4% 7,350 bln (616) bln

UAH Base* yoy 2030 2021 – 2030 Cumulative 2021 – 2030 167 bln Fiscal UAH UAH UAH revenue 1,303 bln -2.4% 1,273 bln (106) bln

CAPEX Government revenue continually shrinks when compared with the base level starting from the fourth year that the Baseline scenario unfolds (i.e. 2024) Cumulative 2021 – 2030 UAH 159 bln Base* yoy 2030 2021 – 2030 thous. thous. thous. Yearly average in 2021 – 2030 Jobs 15,719 -1.1% 15,552 (167) compared to x 0.8 yearly average in 2015 – 2019 2021 – 2030 2021 – 2030 Cumulative 2021 – 2030, UAH Expenditures on Total cases net of import 136 bln social activities not defined of benefit not defined

* Base values are accepted at the level of 2018, as of the most recent year for which Input-Output table is available as per Ukrstat. Please refer to Methodology for the details. DEVELOPMENT SCENARIO: 7 2021-2030 implementation of the new large-scale gas production projects by Naftogaz Group and the private companies Operational inputs Effects

Cumulatively over 2021 – 2030, the effects of the Development scenario are the sum of the effects of Trade gas production the newly balanced economy per each year and base values*

Base* yoy 2030 2021 – 2030 Cumulative 2021 – 2030 217 bcm GDP UAH UAH UAH 2021 2030 3,561 bln +2.9% 3,663 bln 441 bln

bcm bcm 18.6 30 Base* yoy 2030 2021 – 2030 Domestic UAH UAH UAH output OPEX 7,454 bln +2.1% 7,611 bln 791 bln

UAH Base* yoy 2030 2021 – 2030 Cumulative 2021 – 2030 248 bln Fiscal UAH UAH UAH revenue 1,303 bln +3.7% 1,352 bln 241 bln

CAPEX Government revenue consistently surpasses the base level from the very first year that the Development strategy unfolds, or 2021 Cumulative 2021 – 2030 UAH 769 bln Base* yoy 2030 2021 – 2030 thous. thous. thous. Yearly average in 2021 – 2030 Jobs 15,719 +1.7% 15,991 273 compared to x 4.1 yearly average in 2015 – 2019 2021 – 2030 2021 – 2030 Cumulative 2021 – 2030, UAH Expenditures on UAH Total cases mln net of import 657 bln social activities 2.0 bln of benefit 22.6

* Base values are accepted at the level of 2018, as of the most recent year for which Input-Output table is available as per Ukrstat. Please refer to Methodology for the details. 8 Net effect of the Development Scenario in 2021-2030 offsets a negative effect of the Conservative scenario and leads to economic growth

GDP GDP Total effect Indirect UAH multiple effect: 330 bln Direct UAH UAH Induced UAH effect 345 bln x 2.4 825 bln effect: 150 bln

Domestic output Output Total effect Indirect UAH multiple effect: 734 bln Direct UAH UAH Induced UAH effect: 366 bln x 3.8 1.4 trillion effect: 306 bln

Fiscal revenue Fiscal Total effect Indirect UAH multiple effect: 57 bln Direct UAH UAH Induced UAH effect: 155 bln x 2.2 347 bln effect: 136 bln

Jobs created Employment Total effect Indirect thous. multiple effect: 239 Direct thous. thous. Induced thous. effect: 22 x 20.2 440 effect: 179

Numbers may not add up due to rounding. More detailed information on the calculation of indicators - in the section Methodology 9 Net effect of the Development Scenario in 2021-2030 offsets a negative effect of the Conservative scenario and leads to economic growth

Increase in domestic output, UAH billion

257 261 227 203 Direct effects 148 112 85 Indirect and induced effects 56 20 38

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Jobs created when compared to 2018, thousand jobs

411 446 440 371 Direct effects 273 212 160 Indirect and induced effects 83 111 40

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Increase in government revenue, UAH billion

74 80 49 57 Direct effects 34 17 23 2 4 8 Indirect and induced effects

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Note: See Methodology section, which describes the approach deployed explaining the approximate effect per annum 10 Potential impact of the Development Scenario on the Ukrainian social sphere in 2021-2030

Direct effect of Forecast investment in social UAH cases of projects on local benefit and infrastructure projects 2.0 bln 22.6 mln residents*

Population Forecast investment Forecast benefit (Focus regions) UAH • Medicines cases Health facilities 468 mln • Modern equipment 7.0 mln • Protective clothing

projects UAH • Playgrounds cases Education 468 mln • School equipment 0.5 mln • Preschool educational buildings mln Naftogaz 12.5 people UAH • Roads cases Infrastructure 624 mln • Strategic buildings 10.5 mln • Gas pipelines

UAH • Medical facilities cases Other • Strategic buildings 4.5 mln

Private Private 433 mln projects

Companies' Companies' • Schools and kindergartens Development scenario of Ukrainian gas production 2021-2030. Key projects 12 Strategic initiatives for the development of the new fields: Naftogaz Group (1/4)

1 PSA Gross natural gas production, bcm 3 Cumulative bcm 2 production 9.4 • First round of PSA agreements won by Naftogaz 0,7 1 0,4 • Field development under PSA (~3,000 m2 of new acreage in ‘oil & gas - - 0,1 regions’ near the largest UGV fields; production to start in 3 to 4 years) 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • EUR: ~50 bcm Cumulative UAH CAPEX, UAH bln OPEX 6.7 bln region structure 12,3 9,6 9,4 9,3 7,8 7,6 5,4 Focus oblasts 15% 65% 2,3 3,7 0,0 Cumulative UAH CAPEX 67.5 bln Other oblasts 20% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: (1) Naftogaz data Source: (1) Naftogaz data (2) EIU

2 Tight gas Gross natural gas production, bcm Cumulative bcm 4 production* 13.4 • Sviatohirsk field and continued development of Naftogaz’s tight gas 3 2 0,7 potential 1 0,0 0,1 0,1 0,4 • EUR: ~43 bcm 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cumulative UAH OPEX 7.5 bln region structure CAPEX, UAH bln 14,4 11,8 12,7 12,4 Kharkiv 9,8 4,9 6,2 3,2 3,7 Focus oblasts 11% 89% 2,0 Cumulative UAH CAPEX 81.1 bln 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: (1) Naftogaz data Source: (1) Naftogaz data Notes: - OPEX does not include rental payments and depreciation charges (2) EIU - Production volumes can be achieved if exploration works are 100 percent successful 13 Strategic initiatives for the development of the new fields: Naftogaz Group (2/4)

3 Yuzivska Gross natural gas production, bcm 5 Cumulative bcm 4 3 production 12.7 • Yuzivska field (conventional and tight gas potential) 2 0,4 • EUR: ~190 bcm 1 - - 0,0 0,2 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cumulative region structure UAH CAPEX, UAH bln 17,4 16,0 15,1 OPEX 12 bln Kharkiv 8,6 8,4 6,6 Focus oblasts 40% Donetsk 1,7 3,0 2,7 0,1 Cumulative UAH Other oblasts CAPEX 79.6 bln 60% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: (1) Naftogaz data Source: (1) Naftogaz data (2) EIU

4 Carpathians Gross natural gas production, bcm 0,8 Cumulative bcm production 2.1 • Development of the Carpathian natural gas resource base 0,6 0,4 • EUR: ~20 – 60 bcm 0,2 - - - - 0,1 0,0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cumulative UAH region structure OPEX bln CAPEX, UAH bln 3.8 Lviv Ivano-Frankivsk 2,4 1,3 1,3 1,4 Focus oblasts 1,2 1,2 45% 35% 15% 5% 0,5 Cumulative UAH - - 0,2 CAPEX 9.3 bln Zakarpattia 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: (1) Naftogaz data Source: (1) Naftogaz data Notes: - OPEX does not include rental payments and depreciation charges (2) EIU - Production volumes can be achieved if exploration works are 100 percent successful 14 Strategic initiatives for the development of the new fields: Naftogaz Group (3/4)

5 Conventional greenfield Gross natural gas production, bcm 0,8 Cumulative bcm 0,4 production 4.2 0,3 • Naftogaz conventional greenfield portfolio 0,4 0,2 • EUR: ~36 bcm 0,1 0,1 0,0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 region structure Cumulative UAH CAPEX, UAH bln Kharkiv Ivano-Frankivsk Zakarpattia OPEX 8.6 bln 4,7 5,0 4,5 4,3 4,2 3,7 Focus oblasts 45% 11% 9% 6% 5% 3% 2,9 3,4 3,2 0,7 Lviv Poltava Chernivtsi Cumulative UAH Other oblasts CAPEX 36.6 bln 21% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: (1) Naftogaz data Source: (1) Naftogaz data (2) EIU

6 Deep horizons Gross natural gas production, bcm Cumulative bcm 3 production 12.6 • Development of layers more than 5,000 metres deep. 2 1,1 1,3 • Flagship project – Shebelynka gas field exploratory well No. 888 0,5 0,8 1 0,1 • EUR: ~37 bcm 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cumulative UAH OPEX bln region structure CAPEX, UAH bln 7.3 Poltava Kharkiv 9,3 9,9 7,5 8,6 8,2 7,8 8,9 5,6 3,7 1,7 Focus oblasts Cumulative UAH 14% 86% CAPEX 71.1 bln 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: (1) Naftogaz data Source: (1) Naftogaz data Notes: - OPEX does not include rental payments and depreciation charges (2) EIU - Production volumes can be achieved if exploration works are 100 percent successful 15 Strategic initiatives for the development of the new fields: Naftogaz Group (4/4)

7 Offshore Gross natural gas production, bcm 8 Cumulative bcm 6 production 14.9 • Black Sea offshore shallow and deep water natural gas potential 4 • EUR: ~200 bcm 2 - - - - - 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 region structure Cumulative UAH CAPEX, UAH bln Odesa OPEX 33.5 bln 55 52 48 46 26 Focus oblasts 100% 16 6,9 0,5 - 1,0 Cumulative UAH CAPEX 250.9 bln 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: (1) Naftogaz data Source: (1) Naftogaz data (2) EIU

8 Other projects Gross natural gas production, bcm Cumulative bcm 0,6 production 2.2 • Active development of natural gas reserves that are currently associated 0,4 with minor (compared to listed herein) licenses 0,1 0,2 - - - 0,0 0,0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cumulative UAH region structure OPEX bln Poltava CAPEX, UAH bln 2.0

Focus oblasts 2,2 92% 2,0 1,9 1,8 2,0 1,6 1,7 0,7 0,4 - Cumulative UAH Other oblasts 8% CAPEX 14.2 bln 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: (1) Naftogaz data Source: (1) Naftogaz data Notes: - OPEX does not include rental payments and depreciation charges (2) EIU - Production volumes can be achieved if exploration works are 100 percent successful 16 Strategic initiatives for the development of the existing fields: Naftogaz Group

9 Momentum growth Gross natural gas production, bcm Cumulative bcm 20 14,6 13,9 12,7 11,7 production 98.2 15 10,3 • Strategic initiatives to sustain and intensify production from fields owned 10 and operated by Naftogaz 5 region structure evolution 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cumulative UAH 2021 2030 OPEX 141.5 bln Kharkiv Poltava Lviv Kharkiv Poltava Lviv CAPEX, UAH bln Focus 23,0 oblasts 55% 38% 4% 1% 51% 39% 6% 1% 15,7 13,1 11,3 9,6 Ivano- Ivano- 7,4 6,1 5,2 4,3 4,5 Cumulative UAH Other CAPEX 100.2 bln oblasts 2% Frankivsk 2% Frankivsk 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: (1) Naftogaz data Source: (1) Naftogaz data (2) EIU

Notes: - OPEX does not include rental payments and depreciation charges - Production volumes can be achieved if exploration works are 100 percent successful 17 Strategic initiatives for gas production development: the private companies (estimate)

10 Private companies’ strategies To assess the effects of the gas sector development on the Ukrainian economy in 2021 to 2030, the following assumptions related to the private Gross natural gas production, bcm companies’ strategies and their KPIs have been made: 8 Cumulative bcm • Production volume, as listed on the diagram to the right 4,9 5,1 5,3 5,5 5,7 6 production 57.6 • Yearly CAPEX is forecast as a ratio to revenue on the basis of the 4 benchmarking analysis conducted over Naftogaz Group data on the 2 Baseline scenario 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Annual OPEX is projected as a product of gross gas output and Cumulative UAH Source: Authors' analysis according to AGPU baseline scenario OPEX per 1,000 m3 of gas produced, based on the benchmark OPEX bln 25.1 derived from Naftogaz Group data on the Baseline scenario CAPEX, UAH bn 7,5 7,9 6,4 6,9 • Naftogaz Group 2018 OPEX structure was applied throughout the 5,3 5,7 6,0 4,5 4,8 forecast period; 3,6 Cumulative UAH • To forecast royalty payments, wells being developed before 1 Jan CAPEX 58.6 bln 2018 represent 100 percent of the total wells in 2020, and the rates of yield of these wells fall at the rates of yearly contraction of Naftogaz 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Group baseline production scenario. It was assumed that wells less Source: Authors' according to Naftogaz Group data and AGPU baseline scenario than 5,000 meters deep represent 80 percent of wells being developed before 1 Jan 2018 and 40 percent of wells being exploited after 1 Jan 2018 region structure • Depreciation charges of existing assets were calculated using Poltava Kharkiv Lviv Naftogaz Group depreciation to revenue ratio. The useful life for new assets is 20 years Focus oblasts 64% 8% 6% 5% 0.1% • region structure is accepted at the 2019 breakdown, calculated per Ukrstat data Ivano-Frankivsk Chernivtsi Other oblasts 18%

Notes: (a) OPEX does not include rental payments and depreciation charges Source: (1) Authors' analysis based on data by Ukrstat (b) Shown as production volumes that can be achieved provided that exploration works are 100 percent successful The effect of the Development Scenario on the Ukrainian regions Potential impact of the Development Scenario 19 on the Ukrainian regions in 2021-2030 Operational input data Effects

Trade natural Contribution to New jobs Spending gas domestic output across all on social industries projects** Focus regions CAPEX* OPEX* production Direct Indirect Induced UAH UAH bcm UAH UAH UAH thous. UAH Kharkiv 125 bln 13 bln 34 190 bln 304 bln 138 bln 169 809 mln

UAH UAH bcm UAH UAH UAH thous. UAH Odesa 132 bln 16 bln 14 72 bln 275 bln 91 bln 175 265 mln

UAH UAH bcm UAH UAH UAH thous. UAH Poltava 19 bln 2 bln 5 29 bln 48 bln 21 bln 20 743 mln

UAH UAH bcm UAH UAH UAH thous. UAH Lviv 10 bln 1.3 bln 3 14 bln 24 bln 10 bln 15 108 mln

Ivano- UAH UAH bcm UAH UAH UAH thous. UAH Frankivsk 3.7 bln 0.6 bln 1.1 6 bln 9.5 bln 4.2 bln 5 58 mln

UAH UAH bcm UAH UAH UAH thous. UAH Chernivtsi 1.4 bln 0.2 bln 0.4 2.3 bln 3.4 bln 1.5 bln 2.5 5.8 mln

UAH UAH bcm UAH UAH UAH thous. UAH Zakarpattia 1.2 bln 0.2 bln 0.3 1.7 bln 2.8 bln 1.4 bln 1.2 4.8 mln

Total, UAH UAH bcm UAH UAH UAH thous. UAH Ukraine 331 bln 37 bln 67 366 bln 734 bln 306 bln 440 2.0 bln *In prices as at 2018 level, net of imports, used for assessment. In nominal terms, CAPEX spent over 2021 to 2030 equals UAH 769 billion and OPEX spent over 2021 to 2030 is UAH 248 billion **Social spending resulting from the Development strategy Kharkiv region: 20 potential impact of the Development Scenario in 2021-2030 Operational input data Effects Contribution to New jobs Trade natural domestic output across all industries CAPEX OPEX gas production Direct Indirect Induced

1 UAH UAH bcm UAH UAH UAH thous. PSA 24 bln 2 bln 6 30 bln 52 bln 24 bln 29

2 UAH UAH bcm UAH UAH UAH thous. Tight gas 40 bln 4 bln 11 58 bln 101 bln 46 bln 56

3 UAH UAH bcm UAH UAH UAH thous. Yuzivska 17 bln 2 bln 5 24 bln 43 bln 20 bln 24

5 Conventional UAH UAH bcm UAH UAH UAH thous. greenfield 10 bln 1 bln 2 12 bln 16 bln 7 bln 9

6 Deep UAH UAH bcm UAH UAH UAH thous. horizons 34 bln 3 bln 10 67 bln 92 bln 42 bln 51

UAH UAH bcm UAH UAH UAH thous. Net strategy 125 bln 13 bln 34 190 bln 304 bln 138 bln 169

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Odesa region: 21 potential impact of the Development Scenario in 2021-2030

Operational input data Effects Contribution to New jobs Trade natural domestic output across all industries CAPEX OPEX gas production Direct Indirect Induced

7 UAH UAH bcm UAH UAH UAH thous. Offshore 132 bln 16 bln 14.1 72 bln 275 bln 91 bln 175

UAH UAH bcm UAH UAH UAH thous. Net strategy 132 bln 16 bln 14.1 72 bln 275 bln 91 bln 175

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Poltava region: 22 potential impact of the Development Scenario in 2021-2030 Operational input data Effects Contribution to New jobs Trade natural domestic output across all industries CAPEX OPEX gas production Direct Indirect Induced

2 UAH UAH bcm UAH UAH UAH thous. Tight gas 4.9 bln 0.5 bln 1.4 7.1 bln 13.0 bln 5.7 bln 5.5

5 Conventional UAH UAH bcm UAH UAH UAH thous. greenfield 1.3 bln 0.1 bln 0.2 1.5 bln 2.2 bln 1.0 bln 0.9

6 Deep UAH UAH bcm UAH UAH UAH thous. horizons 5.6 bln 0.6 bln 1.7 10.8 bln 15.6 bln 6.9 bln 6.5

8 Other UAH UAH bcm UAH UAH UAH thous. projects 7.2 bln 0.8 bln 1.9 9.5 bln 17.5 bln 7.7 bln 7.4

UAH UAH bcm UAH UAH UAH thous. Net strategy 19.0 bln 2.0 bln 5.1 29.1 bln 48.4 bln 21.3 bln 20.3

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Lviv region: 23 potential impact of the Development Scenario in 2021-2030

Operational input data Effects Contribution to New jobs Trade natural domestic output across all CAPEX OPEX gas production Direct Indirect Induced industries

2 UAH UAH bcm UAH UAH UAH thous. PSA 5.6 bln 0.5 bln 1.3 6.8 bln 12.2 bln 5.3 bln 7.4

4 UAH UAH bcm UAH UAH UAH thous. Carpathians 2.3 bln 0.5 bln 0.9 4.6 bln 8.3 bln 3.6 bln 5.0

5 Conventional UAH UAH bcm UAH UAH UAH thous. greenfield 2.2 bln 0.2 bln 0.4 2.7 bln 3.8 bln 1.7 bln 2.3

UAH UAH bcm UAH UAH UAH thous. Net strategy 10.1 bln 1.3 bln 2.6 14.1 bln 24.4 bln 10.5 bln 14.8

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Ivano-Frankivsk region: 24 potential impact of the Development Scenario in 2021-203

Operational input data Effects Contribution to New jobs Trade natural domestic output across all industries CAPEX OPEX gas production Direct Indirect Induced

4 UAH UAH bcm UAH UAH UAH thous. Carpathians 1.8 bln 0.4 bln 0.7 3.6 bln 6.2 bln 2.8 bln 3.4

5 Conventional UAH UAH bcm UAH UAH UAH thous. greenfield 1.9 bln 0.2 bln 0.4 2.3 bln 3.2 bln 1.4 bln 1.7

UAH UAH bcm UAH UAH UAH thous. Net strategy 3.7 bln 0.6 bln 1.1 5.9 bln 9.4 bln 4.2 bln 5.1

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Chernivtsi region: 25 potential impact of the Development Scenario in 2021-203

Operational input data Effects Contribution to New jobs Trade natural domestic output across all industries CAPEX OPEX gas production Direct Indirect Induced

4 UAH UAH bcm UAH UAH UAH thous. Carpathians 0.8 bln 0.2 bln 0.3 1.5 bln 2.4 bln 1.0 bln 1.8

5 Conventional UAH UAH bcm UAH UAH UAH thous. greenfield 0.6 bln 0.1 bln 0.1 0.8 bln 0.9 bln 0.4 bln 0.7

UAH UAH bcm UAH UAH UAH thous. Net strategy 1.4 bln 0.3 bln 0.4 2.3 bln 3.3 bln 1.5 bln 2.5

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Zakarpattia region: 26 potential impact of the Development Scenario in 2021-203

Operational input data Effects Contribution to New jobs Trade natural domestic output across all industries CAPEX OPEX gas production Direct Indirect Induced

4 UAH UAH bcm UAH UAH UAH thous. Carpathians 0.3 bln 0.1 bln 0.1 0.5 bln 1.0 bln 0.5 bln 0.4

5 Conventional UAH UAH bcm UAH UAH UAH thous. greenfield 1.0 bln 0.1 bln 0.2 1.2 bln 1.9 bln 0.9 bln 0.8

UAH UAH bcm UAH UAH UAH thous. Net strategy 1.2 bln 0.2 bln 0.3 1.7 bln 2.9 bln 1.4 bln 1.2

The total effect from each project was calculated as a share of natural gas production in 2021 – 2030 from this project in this particular region, multiplied by the Net strategy effect for the region Numbers may not add up due to rounding Social projects implemented in the regions in 2015-2020 28 Regions: Social projects 2,755,177 Kharkiv region population Social and infrastructure projects in Kharkiv region, UAH'000 2015 2016 2017 2018 2019 2020 Total New village 19,991 18,824 39,195 19,486 3,121 n/a 100,618 Safe village n/a n/a n/a 140 n/a n/a 140 Modern hospital n/a n/a n/a n/a n/a 1,802 1,802 Land of opportunities n/a n/a n/a n/a n/a 1,250 1,250 School of the future n/a n/a n/a 6,225 n/a 498 6,723 Happy childhood n/a n/a n/a n/a n/a 897 897 Naftogaz Group 19,991 18,824 39,195 25,852 3,121 4,446 111,430 Private companies 2,214 3,445 9,613 3,804 2,563 3,456 25,095 Note: Starting from 1 January 2018, gas extracting regions receive an additional 5% of rent paid by oil & gas companies Sources: Naftogaz; Association of Gas Producers of Ukraine; Authors' analysis Development of social UAH33,900 infrastructure and oil and gas complex of Kharkiv Donation to the Myrnyi thousand region UAH1,000 Dim charitable thousand foundation Projects UAH5,000 Dance hall renovation Velykyi thousand UAH100 at the Borivsky Burluk in Kharkiv children’s art centre thousand Water supply system Kharkiv of Andriyivka village Heating system Nova region UAH110 repairs at Ternivskyi Vodolaha Educational Complex Kupyansk thousand Shevchenkove UAH3,500 Funds for two robotics thousand UAH5,000 schools in and the village of Donets 2 thousand Purchase of 1,891 m Krasnohrad of metal-plastic windows Borova for installation in 420 Road repair residential buildings of the UAH7,000 on the street private sector in Balakliya Izyum Ukrainska of and surrounding villages thousand Krasnohrad

Krasnopavlivka Support for the Replacement of windows development of the at the local kindergarten UAH1,600 Naftogaz Group projects UAH62.5 cultural centres in the in the village Areas thousand village of Studenok and Other projects thousand of Cherneschyna of social the village of Yaremivka activity Cities Blyznyuky region centre Reconstruction UAH1,200 of Shativska thousand school 29 Regions: Social projects 1,493,668 Poltava region population Social and infrastructure projects in Poltava region, UAH'000 2015 2016 2017 2018 2019 2020 Total New village 19,000 19,100 34,997 5,790 n/a 3,904 82,790 Safe village n/a n/a 1,708 n/a n/a 1,123 2,831 Modern hospital n/a n/a 350 n/a 210 846 1,406 Land of opportunities n/a n/a 2,100 n/a n/a 1,605 3,705 School of the future n/a n/a 9,871 n/a 160 5,624 15,655 Happy childhood n/a n/a n/a n/a n/a 197 197 Naftogaz Group 19,000 19,100 49,026 5,790 370 13,299 106,585 Private companies 16,289 21,965 26,209 18,204 19,295 18,569 120,531 Note: Starting from 1 January 2018, gas extracting regions receive an additional 5% Energy efficiency of rent paid by oil & gas companies UAH1,000 projects in Water supply system repairs in Yakhnyky village Sources: Naftogaz; Association of Gas Producers of Ukraine; Authors' analysis thousand Central District Hospital UAH280 thousand

Hadyach Reconstruction of the water supply network, UAH2,500 repair of roads and sports ground Projects (Velyki Budyshcha village, district) Pyryatyn thousand UAH3,000 Chornukhy thousand Purchase of multi- in Poltava UAH1,900 functional beds for Lokhvytsia central Water supply construction thousand district hospital and infrastructure development region (Sencha village) Repair of the road UAH3,000 Mala Rublivka- thousand Runivshchyna Orzhytsya Khorol Velyka UAH3,400 Bahachka thousand UAH2,400 Poltava Overhaul of the roof of thousand Lokhvytsia gymnasium Semenivka Renovation of the village house of Purchase of 9 units Novi culture (overhaul of the roof, UAH6,300 of machinery for Sanzhary replacement of windows and front Machukhivska and doors, insulation of the facade, thousand Velykosorochenska Kozelshchyna interior works) and construction of communities a leisure area (Martynivka village, Kobelyaky Karliv district) Naftogaz Group projects Areas of Renovation of local street lighting and social Other projects UAH600 Development of social road repairs in infrastructure and oil and activity Cities UAH19,000 thousand Sokolova Balka gas complex of Poltava region centre thousand region

Secondary school gym UAH800 repairs and insulation of a kindergarten in thousand Sokolova Balka 30 Regions: Social projects 2,545,634 Lviv region population Social and infrastructure projects in Lviv region, UAH'000 2015 2016 2017 2018 2019 2020 Total New village 4,179 5,000 8,386 8,300 995 n/a 26,860 Safe village n/a n/a 650 n/a n/a n/a 650 Modern hospital n/a n/a 1,409 n/a n/a 199 1,607 Land of opportunities n/a n/a 50 79 n/a 372 501 School of the future n/a n/a 150 n/a 80 50 280 Happy childhood n/a n/a n/a 303 32 48 383 Naftogaz Group 4,179 5,000 10,645 8,682 1,107 669 30,281 Private companies 2,550 102 137 319 422 92 3,622 Note: Starting from 1 January 2018, gas extracting regions receive an additional 5% of rent paid by oil & gas companies Sources: Naftogaz; Association of Gas Producers of Ukraine; Authors' analysis

Overhaul of the House Chervonohrad UAH134 of Culture’s roof in the UAH700 village of Boyanichi Projects thousand thousand Overhaul of the surgical Development of social department № 2 of the infrastructure and oil and Kamianka-Buzka UAH4,200 surgical building of the Lviv in Lviv region gas complex in Lviv region thousand Regional Clinical Hospital (Nekrasova street, 4, Lviv) Busk Overhaul of the ‘Start’ sports and recreation Lviv UAH1,100 UAH600 complex (Shevchenko Horodok Zolochiv thousand street, Novoyavorivsk) thousand Peremyshlyany Overhaul of recreational and educational UAH2,800 basements at the church of the Pokrovy Presvyatoi thousand Bohorodytsi (Lychakivska Mykolaiv street, 175, Lviv) Construction of sewage treatment facilities and Reconstruction of the sewage collector system UAH600 first-aid post in the in the village Mizhenets village of Peremozhne thousand Naftogaz Group projects Turka Areas of Repair of the social Other projects UAH4,500 road Kyivets-Bilche- activity Cities Volytsia region centre thousand

Repair of the UAH3,500 Medenichi-Letnya road thousand 31 Regions: Social projects 1,380,770 Ivano-Frankivsk region population

Social and infrastructure projects in Ivano-Frankivsk region, UAH'000

2015 2016 2017 2018 2019 2020 Total New village n/a n/a n/a 300 n/a n/a 300 Land of opportunities n/a n/a n/a 80 n/a n/a 80 Naftogaz Group n/a n/a n/a 380 n/a n/a 380 Private companies 405 484 885 1,542 563 337 4,216

Note: Starting from 1 January 2018, gas extracting regions receive an additional 5% of rent paid by oil & gas companies Sources: Naftogaz; Association of Gas Producers of Ukraine; Authors' analysis

Rohatyn

Halych Projects in Kalush Dolyna Ivano-Frankivsk Ivano-Frankivsk Rozhnyativ Tysmenytsya

Bohorodchany Tlumach Horodenka region Nadvirna Kolomyya Construction of a Snyatyn UAH80 mini football field in the village of Pniv thousand Kosiv

Verkhovyna

Repair of the Nadvirna- Naftogaz Group projects Bystrytsya road within the Areas of UAH300 social Other projects thousand village of Pasichna activity Cities region centre 32 Regions: social projects 903,782 Chernivtsi region population

Social and infrastructure projects in Chernivtsi region, UAH'000

2015 2016 2017 2018 2019 2020 Total New village n/a 75 n/a n/a n/a n/a 75 Naftogaz Group n/a 75 n/a n/a n/a n/a 75 Private companies n/d n/d n/d 100 27 142 269

Note: Starting from 1 January 2018, gas extracting regions receive an additional 5% of rent paid by oil & gas companies Sources: Naftogaz; Association of Gas Producers of Ukraine; Authors' analysis

Zastavna Projects in Sokyryany

Chernivtsi Chernivtsi Vyzhnytsya Novoselytsya region Hlyboka

Putyla

Development of regional infrastructure UAH75 by improving road surfaces in the thousand village of Chereshenka

Naftogaz Group projects Areas of social Other projects activity Cities region centre 33 Regions: social projects 1,246,323 Zakarpattia region – historical overview population

Social and infrastructure projects in Zakarpattia region, UAH'000

2015 2016 2017 2018 2019 2020 Total Safe village n/a n/a n/a n/a n/a 215 215 School of the future n/a n/a n/a n/a n/a 405 405 Naftogaz Group n/a n/a n/a n/a n/a 620 620 Private companies n/d n/d n/d n/d n/d n/d n/d

Note: Starting from 1 January 2018, gas extracting regions receive an additional 5% of rent paid by oil & gas companies Sources: Naftogaz; Association of Gas Producers of Ukraine; Authors' analysis

Overhaul of the roof of UAH405 Tykhyi Secondary School thousand (village of Tykhyi)

Velykyi Bereznyi Reconstruction of street UAH215 lighting in the village of Projects in Bukovets Perechyn Volovets thousand

Zakarpattia Uzhhorod Svalyava Mizhhirya region Mukachevo

Irshava

Berehove Vynohradiv Khust

Tyachiv Rahiv

Naftogaz Group projects Areas of social Other projects activity Cities region centre Social projects of Naftogaz Group 35 Social projects of Naftogaz Group Sustainable cities and communities: New Village Project

Ensuring openness, security, and environmental sustainability of towns and cities

1 Modernising the water supply system in the village of Tsipky

The New Village project enables the reconstruction and renovation of infrastructure facilities in communities in the territories where Ukrgasvydobuvannya operates. As part of the project, modernisation works were carried out on the water supply system in Tsipky village in the Hadiach district of Poltava region. The Company financed the purchase of a water tower connected to the existing 11km long water supply system. This now provides villagers with a centralised, uninterrupted water supply The new water tower has become more than an effective element of the water supply system in the village of Tsipky; it is also an art object. Anton Babenko, an employee of the Poltavagazvydobuvannya, created the first village mural with a branded illustration on the surface area of ​​the water reservoir Children's competition

On completion of the project, a children's drawing contest entitled ‘Water is the source of life!’ was held among young villagers. The contest was held in order to raise awareness about the need for environmental care, preservation and prevention of water pollution in their region New Village Project 2015 – 2020 UAH211 mln

Source: Naftogaz Group 36 Social projects of Naftogaz Group Sustainable cities and communities: Safe Village Project

2 Modernisation of street lighting network

Within the framework of the Safe Village project, networks of street lighting lines have been installed and renovated in 6 communities, including the introduction of energy-efficient technologies. Works in the villages of Zuivtsi, Andriyivka, Vodyana Balka, Rashivka, Karabazivka, Poltava region, and in the village of Bukovets, Zakarpattia region, solved issues with street lighting lines in hazard spots and problem areas The project resulted in notable improvements to daily life of every local resident in these communities. For example, in the village of Zuivtsi, Poltava region, six streets with a total length of 5 km are now equipped with energy-saving lanterns. Additionally, school students received reflective clothing and information boards on traffic safety guidelines as part of the project Safe Village Project Implementing this project goes further than increasing the level of 2017 – 2020 energy efficiency in communities; it creates conditions for the safe and efficient interaction of traffic and pedestrians in low-light conditions, which will significantly reduce injuries and accidents in the long term UAH4 mln

Source: Naftogaz Group 37 Social projects of Naftogaz Group Sustainable cities and communities: Happy Childhood Project

3 Naftogaz Group is a stable partner of communities

The Happy Childhood project is one of the most significant and valuable in terms of supporting and caring for children and the educational institutions they attend. Ukrgasvydobuvannya financed the repair of preschool educational institutions, and the installation of new and renovation of existing children's sports playgrounds One of the first implementations was a pilot project in the village of Kegychivka, Kharkiv region. Vitaliy Chudak, Head of the Regional Development Projects Department, shared: “We want children to grow up strong and healthy. A comfortable, safe playground for leisure is what is needed for the full physical development of children” The purpose of this project is to ensure the availability of a playground Happy Childhood Project in every village where the Company operates, demonstrating the 2016 – 2020 Company’s commitment to providing children's leisure spaces as a priority concern UAH2 mln

Source: Naftogaz Group 38 Social projects of Naftogaz Group Sustainable cities and communities: Land of Opportunities Project

4 Improving the level of cultural development of citizens, their social activity and personal self-development

Land of Opportunities is a project that spans the whole of Ukraine. In all the regions where Ukrgasvydobuvannya carries out its economic activities. Land of Opportunities involves equipping cultural and leisure centres, and supporting sports and cultural initiatives for communities in Poltava, Kharkiv, and Lviv regions. The value of the project is that it aims at improving the level of cultural development of local citizens, their social activity and personal self-development. The Company financed projects to improve the conditions of cultural centres, sports areas, new cultural locations for creative recreation and development One successful example of the project includes the Company actually saving the Myloradivska village club in Kotelevskyi district, Poltava region from collapse by financing the purchase of new equipment; including music devices, a speaker system and stage clothes Land of Opportunities Project The widespread results of this project can be clearly seen in the 2017 – 2020 revival of local folk groups, cultural leisure, and the resulting revival of the village as a whole Funding for the reconstruction of the library roof, a building from 1913 of great historical importance, saved the communal cultural heritage of UAH6 the village of Royakivka, Kharkiv region. This project is an example of mln the Company’s successful cooperation with local governments as each community takes partial responsibility for the installation works

Source: Naftogaz Group 39 Social projects of Naftogaz Group Quality education: School of the Future Project (1/2)

Ensuring comprehensive quality education, and lifelong learning opportunities for all

5 Komyshnyanska School Physics class equipment

In order to implement innovative teaching techniques for local schoolchildren, Komyshnyanska Secondary School in Myrhorod district, Poltava region required extensive re-equipment. The School of the Future project provided the school with all the equipment necessary for a modern physics classroom, including: an interactive EdPro Education Kit with numerous illustrative, animated and creative 3D presentation capabilities, telescope, digital-measuring computer system for teachers, and even furniture (laboratory tables, chairs, boards, etc.) The creation of such educational spaces helps increase students’ interest and involvement in the study of natural sciences, and to promote the academic and scientific potential of the region School of the Future Project 2017 – 2020 UAH23 mln

Source: Naftogaz Group 40 Social projects of Naftogaz Group Quality education: School of the Future Project (2/2)

5 BroBots robotics classes

In cooperation with BroBots Technical Development Centre, Naftogaz Group opened 2 modern robotics training studios. Pupils of secondary school № 2 in Donets and school № 2 in Krasnohrad in Kharkiv region were given the opportunity to develop their skills in modelling and programming technical devices of various complexity. BroBots classes are equipped with modern equipment and materials: electronic components, microcontrollers, microcomputers, programming boards, tools, computers, consumables, laser cutter, 3D printer, soldering stations, projector, ventilation and air conditioning Teaching middle school children computer engineering and School of the Future Project programming skills in robotics classes lays the foundations for future professions that are currently in high demand among both Ukrainian 2017 – 2020 and international companies UAH23 mln

Source: Naftogaz Group 41 Social projects of Naftogaz Group Good Health and Well-being: Modern Hospital Project Ensuring a healthy lifestyle and promoting well-being for all

6 Modern Hospital

Ukrgasvydobuvannya financed 10 central district hospitals in regions where the Naftogaz Group economic activity takes place. These hospitals are the mainstays of the districts’ healthcare system and provide vital general medical care to almost half a million Ukrainians. These facilities can now easily accommodate infected patients who need urgent medical care or hospitalisation

Hospitals received:

Patient Oxygen monitors concentrators

Modern Hospital Project Syringe infusion Protective 2017 – 2020 pumps clothing

Masks and Infrared UAH5 respirators thermometers mln

Source: Naftogaz Group 42 Social projects of Naftogaz Group Social and infrastructure projects 2015 – 2020

Naftogaz Group social and infrastructure projects UAH’000 region 2015 2016 2017 2018 2019 2020 Safe village Zakarpattia - - - - - 215 Lviv - - 650 - - - Poltava - - 1,708 - - 1,123 Kharkiv - - - 140 - - New village Ivano-Frankivsk - - - 300 - - Between 2015 – 2020, Lviv 4,179 5,000 8,386 8,300 995 - Naftogaz Group Poltava 19,000 19,100 34,997 5,790 - 3,904 Sumy - - 300 - - - invested Kharkiv 19,991 18,824 39,195 19,486 3,121 - Chernivtsi - 75 - - - - Modern hospital Lviv - - 1,409 - - 199 Poltava - - 350 - 210 846 UAHmln 250in social infrastructure Kharkiv - - - - - 1,802 initiatives Land of Ivano-Frankivsk - - - 80 - - opportunities Lviv - - 50 79 - 372 Poltava - - 2,100 - - 1,605 Kharkiv - - - - - 1,250 School of the Zakarpattia - - - - - 405 Future Lviv - - 150 - 80 50 Poltava - - 9,871 - 160 5,624 Kharkiv - - - 6,225 - 498 Happy childhood Volyn - 343 - - - - Lviv - - - 303 32 48 Poltava - - - - - 197 Kharkiv - - - - - 897 Total 43,171 43,342 99,165 40,703 4,598 19,034

Source: Naftogaz Group 43 Social projects of Naftogaz Group Charity project: Help to Army

Charitable assistance to army

Ukrgazvydobuvannya provided assistance to the Ukrainian military, with a specific focus on those serving in the combat zone. Backpacks, folding stretchers, tools, electric shoe dryers and gasoline generators: all this will help facilitate soldiers work in combat and training tasks Military unit A0563 is located in the city of Okhtyrka in Sumy region. These engineering troops are also known as ‘pioneers’; so-called because they are the first to enter, monitor, and, if necessary, demine a territory Captain of the Medical Service of military unit A0563 Serhiy Poluda, says: “My unit received 5.11-brand large capacity tactical backpacks, which are suitable for carrying everything necessary for medical care. It will now be easier to organise and provide emergency medical care to our servicemen in the context of combat missions in the Joint Forces Operation zone. We also received tactical folding stretchers as the existing stretchers do not fold and are not easy to use. From now on, a combat medic can take a stretcher with him to perform tasks in the Joint Forces Operation zone and, if necessary, cover long distances. This is especially important for sappers” Military units A1493 and A0989 received the same assistance. Representatives of the Company handed over two chainsaws, two generators, five sets of tools with 216 items, and 31 electric shoe dryers

Charity project: Help to Army Military base Charitable aid, UAH A0563, Okhtyrka city 51,464 A1493, Terentiivka village 38,077 A0989, Mariupol city 37,517 Total 127,058

Source: Naftogaz Group 44 Social projects of Naftogaz Group Charity project: Care and Protection 2020 (1/4)

Care and Protection

Since the spread of COVID-19 in Ukraine, Naftogaz Group has decided to implement the large-scale Care and Protection project to join the nationwide fight against the pandemic. Naftogaz Group has helped low- financed medical institutions and the populations of regions where it carries out its economic activities

Isolation 500,000 gowns 1 Mriya

In partnership with the Ministry of Health of Ukraine, Naftogaz Group implemented the largest charitable project in the country to support Ukrainian hospitals. Medical supplies from China were purchased and delivered to Ukraine, specifically; 500,000 isolation gowns, 700 patient monitors, 50 mobile digital X-ray machines and 50 portable ultrasound devices. The entire list of equipment and materials was formed as a result of repeated consultations with experts and the WHO office in Ukraine in particular, agreed upon with the Ministry of Health of Ukraine. Coordinating with the Ministry of Health, the cargo was distributed free of charge between medical institutions and the leadership of 19 regions of Ukraine. Thanks to the project, 287 Ukrainian hospitals promptly received high-quality, expensive medical equipment for disease diagnosis, as well as tools to help protect doctors

Mobile digital Patient Portable 50 X-ray machines 700 monitors 50 ultrasound devices

UAH589 mln 287 hospitals

Source: Naftogaz Group 45 Social projects of Naftogaz Group Charity project: Care and Protection 2020 (2/4)

2 Charitable assistance to communities

Within the framework of the overall Care and Protection project, Naftogaz Group implemented Charitable Assistance to Communities: the largest initiative in Ukraine in terms of coverage The project team aimed to provide all communities in which Naftogaz Group operates, including local clinics and basic district medical facilities, with the means to prevent the spread of infection The implementation of this project involved overcoming such problems and risks as the resource deficits, wide geography and the danger of movement through the country during a period of active spread of infection, as well as disruption of supplies across the country due to the crisis As a result of the initiative, 236 communities in 11 regions of Ukraine, 60 central district and city hospitals, and district primary health care centres that serve the local population in Naftogaz Group production areas were provided with essential protective equipment, antiseptic and electronic infrared thermometers

11 regions 236 Communities

Source: Naftogaz Group 46 Social projects of Naftogaz Group Charity project: Care and Protection 2020 (3/4)

2 2 Safe External independent evaluation No one could have predicted that COVID-19 would change the way high school examinations take place in Ukraine. A single entrance exam; the External Independent Evaluation, is the main tool for maintaining transparency and integrity in determining learning outcomes and ensuring admission to higher education institutions By working together with the Ministry of Education and Science of Ukraine, the UNICEF Foundation in Ukraine and the Swiss Embassy in Ukraine, Naftogaz Group has provided the safest conditions for exams. Naftogaz Group Ffinanced the purchase of 3.2 million medical masks, more than 20,000 litres of antiseptic and 1,200 isolation gowns for all regions of Ukraine. This meant that Naftogaz Group was able to fully provide 24 regional and departments of education and science with the means of protection and vital disinfectants to ensure the admission campaign was safely, in accordance with all recommendations of the Ministry of Health of Ukraine

thousand litres of antiseptic 3.2 mln masks 20 1,200 isolation gowns

Source: Naftogaz Group 47 Social projects of Naftogaz Group Charity project: Care and Protection 2020 (4/4)

Fighting the pandemic: Care and Protection project UAH'000 Charitable Safe External Repair of assistance to Independent Modern breathing Hospital 20 40 60 80 100 120 UAH'000 Mriya communities Evaluation hospital machines support Chernivtsi 93,461 1,699 650 - - - Lviv 61,148 8,188 1,420 599 639 - Poltava 60,630 7,070 638 1,120 - - Kharkiv 59,503 7,980 1,288 1,001 53 -

Ivano-Frankivsk 57,774 631 700 - 280 - Ternopil 47,931 1,458 375 - - - Rivne 38,089 1,458 480 - 188 - Volyn 36,191 135 398 - 105 - Zakarpattia 33,819 301 596 - 56 - Odesa 17,684 - 818 - 956 - Dnipropetrovsk 17,122 1,861 1,587 - - - Chernihiv 14,440 - 306 - - - Donetsk 14,392 302 538 - 105 - Kyiv 11,866 - 1,819 - 773 7,056 Mykolaiv 11,207 - 355 - - - Sumy 9,272 220 338 - - - Luhansk 3,918 1,356 211 - - - Kherson 184 - 340 - 54 - Charitable Zaporizhzhia - - 805 - 413 - assistance in the Vinnytsia - - 548 - - - fight against UAH653 Zhytomyr - - 428 - - - mln Khmelnytskyi - - 412 - 327 - COVID-19 in 2020 Kirovohrad - - 289 - 179 - Cherkasy - - 181 - 113 2,436 Total 588,631 32,658 15,518 2,719 4,239 9,492 Source: Naftogaz Group 48 Social projects of Naftogaz Group Charity project: Care and Protection 2021

Fighting the pandemic: Care and Protection project 2021 UAH'000 Mriya Charitable assistance to communities Chernivtsi 11,083 4,750 Lviv 11,083 4,750 Charitable assistance Poltava 74,418 31,893 Kharkiv 74,683 32,007 in the fight against Ivano-Frankivsk 11,083 4,750 COVID-19 in 2021 UAH300 Dnipropetrovsk 8,298 3,556 mln Sumy 8,269 3,544 Zakarpattia 11,083 4,750 Total 210,000 90,000

UAH'000 120 000

100 000

80 000

60 000

40 000

20 000

0 Chernivtsi Lviv Poltava Kharkiv Ivano-Frankivsk Dnipropetrovsk Sumy Zakarpattia

Source: Naftogaz Group Social projects: Private companies 50 Social projects: Private companies DTEK Oil&Gas: Selected projects

DTEK Oil&Gas is a reliable partner of communities in the territories of its operations; Machukhivska and Velykosorochenska communities in Poltava region

During the period of 2015 – 2020, DTEK Oil&Gas allocated UAH56.5 million for social projects in Poltava region In cooperation with the local authorities, the company approves annual strategic social partnership plans in three primary areas: • Development of strategically important infrastructure • Energy efficiency in utilities • Healthcare An important aspect of the company's work is maintaining the quality of roads and proper conditions for the provision of social services. Between 2015 – 2020, DTEK Oil&Gas financed road repairs and the renovation of educational institutions for a total cost of UAH16.8 million and UAH7 million, respectively DTEK Oil&Gas social projects 2015 – 2020 Within the framework of a social partnership, nine units of machinery have been purchased for local villages over the last six years of cooperation; including tractors, garbage trucks, dump trucks, vacuum trucks and sanitary vehicles. The total cost of equipment purchased by the company for communal ownership is UAH6.3 million. The implementation of these projects facilitated UAH56.5 the creation of new jobs and established the operation of municipally-owned mln corporations in Poltava region. Local citizens can now benefit from the services provided by the new special vehicles DTEK Oil&Gas also allocated UAH12 million to the renovation of five healthcare facilities and the purchase of modern medical equipment for hospitals in Poltava region

Source: Association of Gas Producers of Ukraine 51 Social projects: Private companies Poltava Petroleum Company: Selected projects

Supporting local communities between 2015 – 2020, JV PPC contributed UAH23.6 million for sustainable development in the region

• In 2019, Poltava Petroleum Company (hereinafter PPC) provided UAH800,000 for gym repairs at the Sokolovobalkivska secondary school, insulation of a kindergarten in Sokolova Balka and renovation of preschool educational facilities in the Nekhvoroschanska community • As part of the PPC’s transport infrastructure reconstruction project in district, PPC provided UAH600,000 for renovation of the local street lighting and road repairs in Sokolova Balka, as well as the installation of bus stops, therefore helping to ensure safe trips to and from school for students of Andriyivskiy lyceum and Nekhvoroschanska secondary school. The company also provided additional charitable assistance to Andriyivskiy lyceum by renting a minibus for its students PPC social projects • As part of cooperation with local communities, and scientific and government agencies, PPC created the Svitlivshchyna nature reserve 2015 – 2020 which contains endangered biodiversity habitats and serves as a nesting area for birds • In 2020, PPC allocated UAH4.7 million to fight the COVID-19 pandemic. UAH23.6 Beneficiaries included City Clinical Multidisciplinary Hospital No.17, which received UAH1.56 million; the Heart Institute Ministry of Health of mln Ukraine, which received UAH390,000; and Alexander Clinical Hospital, which received UAH1.95 million. An additional UAH800,000 was distributed between multiple hospitals in Poltava region

Source: Association of Gas Producers of Ukraine 52 Social projects: Private companies Smart Energy: Selected projects

Playing an essential role in the development of local communities in Poltava and Kharkiv regions

• Energy efficiency projects (Poltava region) The Representative Office of Regal Petroleum Corporation Limited (a part of Smart Energy) has been involved in co-financing Lokhvytsia hospital's energy efficiency projects for the last five years. From 2016 to 2020, the company allocated more than UAH1 million. The projects included installation of solar panels on the roof of the hospital for water heating, replacement of wooden windows with metal-plastic ones, installation of additional solar panels for electricity generation, etc. • Repair of school heating system (Kharkiv region) In 2020, Prom-Energo Product (a part of Smart Energy) allocated UAH110,000 to Ternivskyi Educational Complex, co-financing the ‘Warm building’ project in order to guarantee local children's health, which enabled complete repairs to the heating system in the school Smart Energy social projects building. Children now have the opportunity to study in a more 2015 – 2020 comfortable environment • Repair of water supply system (Poltava region) From 2017 to 2018, the Representative Office of Regal Petroleum Corporation Limited, along with the village council, solved the urgent UAH20.4 problem of water supply to remote streets for the local community of Yakhnyky village in Lokhvytsia district. UAH280,000 was allocated for mln these needs, as well as special water supply pipes. Earlier that year, the company granted an artesian well to the community

Source: Association of Gas Producers of Ukraine 53 Social projects: Private companies Geo Alliance Group: Selected projects

Promotion of socio-economic growth of regions and cooperation with local communities

The company adopts optimal strategies for providing support to the regions, taking into account the specific needs of local communities Within the framework of their agreement on participation in socio- economic development of Lokhvytsia region, the local Central District Hospital received 75 modern medical multi-functional beds equipped with mattresses and side fences, along with 75 mobile bedside tables. Geo Alliance Group also supported the purchase of two new patient carts and ten support suspension holders with clamps for Lokhvytsia CDH. The total cost of the equipment purchased was UAH1.9 million In the small village of Zeleny Kut, Myrhorod district, the premises and heating system of the local feldsher-obstetric station were overhauled at the expense of the company. Now local residents have the opportunity to receive medical assistance in a comfortable environment. Geo Alliance Geo Alliance Group social projects Group also participated in co-financing the purchase of a CT scanner and 2015 – 2020 a digital X-ray machine for Myrhorod District Hospital. The company spent a total of UAH0.9 million on these projects Another important social project realised by Geo Alliance included the UAH32.2 overhaul of the roof of Lokhvytsia Gymnasium No.1. In 2016 – 2017, the company fully financed this project for a total cost of UAH3.4 million. By mln the beginning of the new academic year of 2017, the overhaul of the roof had been completed

Source: Association of Gas Producers of Ukraine 54 Social projects: Private companies Kub-Gas: Selected projects

Kub-Gas continues to invest in CSR projects in the territory of its operation

• Assistance with renovating the dance hall at the Borivsky children’s art centre (Kharkiv region) in 2018 for a total cost of UAH100,000 • Replacement of windows at the local kindergarten in the village of Cherneschyna (Kharkiv region) for a total cost of UAH62,500 • Donation of UAH1 million to the Myrnyi Dim charitable foundation (Kharkiv) which provides financial assistance to soldiers that serve in the combat zone in Eastern Ukraine and the families of seriously wounded or killed soldiers

Kub-Gas social projects 2015 – 2020 UAH1.5 mln

Source: Association of Gas Producers of Ukraine 55 Social projects: Private companies Burisma Group: Selected projects

Burisma Group adheres to the highest standards of CSR by supporting local initiatives and addressing social issues

• Provision of fuel, engine lubricants, vehicles, spare car parts, food, etc. to Poltava’s special police battalion that serves in the combat zone in Eastern Ukraine • Organization of the largest children’s art festival in Ukraine, the Black Sea Games, which is traditionally held in Skadovsk. In 2019, a record number of contestants registered for the competition, and a total of 46 soloists and bands competed in the semi-final • Purchase of modern office equipment and school kits for first- graders at Oleksiyivska secondary school (Kharkiv region) • Construction of a children’s playground in the village of Vodyane, Krasnokutskiy district (Kharkiv region) Burisma Group social projects 2015 – 2020 UAH26.8 mln

Source: Website of Burisma Group Report Roadmap 57 Report Roadmap

Purpose Scope Sought outcomes

To estimate the potential economic • Ukraine as a whole • Job creation, output and GDP growth, and state revenue in the oil & gas sector and social effects of the • Particularly Odesa, Poltava, Kharkiv, • Indirect and induced effects extending to the entire economy of Ukraine Development scenario in the Chernivtsi, Lviv, Ivano-Frankivsk and • Energising social activity and benefits to local communities from the operations natural gas sector Zakarpattia regions of oil & gas producers

Methodology Basis of the analysis

Macroeconomic modelling of long-term equilibrium, based on Leontief’s input - Projects introduced by Naftogaz Group and other producers which, if properly output framework, built in a Social Accounting Matrix (SAM) implemented under normal conditions, will result in the successful substitution of a significant proportion (or potentially all) of Ukrainian gas imports by 2030 Base equilibrium Trade natural gas consumption by source, bcm, Forecast based on the Development scenario Total Scenario’s ~ 30 bcm/ year in total effects inputs = Direct + Macroeconomic shock* Indirect 64% 62% 62% 61% 61% 62% 65% 71% 77% 92% 100% + Induced Rebalancing effect New equilibrium 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Supply from import Supply from domestic production Note: *Macroeconomic shock is the condition of the economy after a scenario’s inputs are injected and before rebalancing to the new equilibrium Source: (1) Naftogaz Group data, data by AGPU

• The economy rebalances to equilibrium annually after introducing a shock. Therefore, the lag in throughput mechanism is ignored • Long-term equilibrium is accepted as at the level of 2018, as per the most up-to-date data from Ukrstat • regions’ effects are based on the SAM for Ukraine as a whole since no regional input - output tables are assembled by Ukrstat Limitations • The Report was based solely on Naftogaz Group assumptions regarding the Development scenario and Conservative scenario • UGV’s cost structure analysis (as per the Base year) has been used to derive overall cost structure as the basis for determining OPEX and CAPEX • Royalty rate is assumed constant for 2021-2030, as per the legislation in force as at the Base year 58 Methodology (1/4)

Applied general equilibrium analysis

We conducted our applied general equilibrium analysis based on models 3) Forming a Social Accounting Matrix (SAM), which includes the following which represent a simplified version of the Ukrainian economy as at the Base accounts: 42 industries classified according to KVED as per Ukrstat, year – the most recent year for which Input-Output table is available as per consumption goods, labour production factor, capital production factor, Ukrstat. The analysis was performed via the following steps: consumers, capital account, government, and external sector. The SAM 1) Applied modelling of all interrelations within the economy among its features the same set of rows and columns for accounts listed above sectors: production industries, consumers, the government and the 4) Calibration of the models’ parameters so they reproduce the Ukrainian external sector (foreign countries). These models are primarily based on SAM for 2018 the input - output framework developed by Leontief (1966). Key 5) Imposition of projects’ incremental inputs onto calibrated parameters and assumptions: recalculation for a new equilibrium of prices and outputs. Project injection a. Labour and capital supply is unitary elastic to demand, meaning 1% is the following: increase in demand translates to 1 percent increase in supply a. Applying a new OPEX structure within the oil & gas industry, as a b. Domestic capital endowment is fixed and additional capital funding is result of adding incremental operating expenses needed to sustain the externally financed, thus affecting the ‘export – import balance’ Development scenario c. Consumption preferences are as of their 2018 level and assumed to b. Applying incremental payroll expenses and forecast Development be fixed scenario EBITDA. Recalibration to a new value added (VA) structure in d. The value added needed to produce one unit of a product is a fixed the oil & gas industry as a result of incremental payroll expenses and ratio of output. This effectively means that all businesses in the expected profitability of the Development scenario economy have variable costs only c. Applying incremental CAPEX (compared to 2018’s level) e. Tax ratios are set at their effective levels as of 2018 d. Applying a new import / domestic structure to the demand in oil & gas f. Public consumption and exports are fixed at 2018 levels sector products. This is done in order to account for a higher demand in domestically-produced natural gas and its substitution for imported 2) Gathering empirical data for Ukraine. This includes, but is not limited to, products the following: 6) The algorithm above is performed separately for each forecast year (from a. The latest available input - output table (2018) 2021 to 2030) under the assumption that long-term equilibrium is achieved b. Budget of Ukraine (2018) immediately after macroeconomic shock is introduced (see p. 5) c. National Accounts data (Ukrstat, 2018) 7) Finally, we compared sought macroeconomic indicators (GDP, domestic output, employment, government revenue) in the base and forecast scenarios 59 Methodology (2/4)

Effects and key metrics The scale of direct, indirect and induced effects is presented in relation to four The following types of effects were calculated: key metrics: 1) Direct effects are the result of expenditures as part of the Development 1) GDP: the total value of goods and services produced within a country’s scenario (OPEX, CAPEX) which manifest in respective domestic natural borders, not accounting for intermediate consumption gas output changes and, consequently, Oil & Gas industry revenues 2) National output: the total value of goods and services produced within a 2) Indirect effects are the change in business activity of the oil & gas country’s borders. This also includes intermediate consumption sector’s suppliers and their suppliers, as well as a spillover effect in associate businesses up the value chain 3) Employment: measured in terms of headcount and including all job types i.e. employed and self-employed in Ukraine 3) Induced effects pertain to changes in business activity in all other industries as a result of a) incremental household spending of their 4) State revenues: the fiscal impact of royalties, dividends of state-owned Labour and Capital income and b) incremental public spending as a result companies, Corporate Income Tax, taxes on products (VAT and excises), of changes in the government revenue Personal Income Tax and Social Security Contributions

To estimate the long-term effects from UAH 1 investment in natural gas production and investment multiples analysis was performed. It assumes investment into a typical conventional natural gas well with initial CAPEX in the first two years of the well and a 20-years decline in the natural gas rate, based on Naftogaz Group data. The multiples given on the page 3 are incremental.

Typical well input profile

Unit Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 UAH Revenue mln - 109 212 193 174 157 133 124 118 110 107 104 102 101 99 98 97 96 95 94 Trade gas mcm production - 16.2 30.1 26.0 22.7 20.1 16.4 14.7 13.3 12.1 11.1 10.3 9.5 8.9 8.3 7.8 7.3 6.9 6.6 6.2 OPEX UAH incurred mln 785 11.1 10.1 9.5 8.8 7.4 6.8 6.4 6.1 6.4 6.2 6.1 6.0 5.9 5.8 5.7 5.6 5.6 5.5 5.5 CAPEX UAH incurred mln 595 760 ------

Source: Naftogaz Group data 60 Methodology (3/4)

Budget for social and infrastructure projects Direct effect of each project on local residents Social and charitable investments for 2021 were estimated based on We assume that all citizens and foreign nationals benefit from social and Naftogaz Group social spending budget infrastructure projects (for example, through the use of public roads, hospitals and schools that were constructed or repaired by Naftogaz Group). In this The yearly budgets for social spending for 2022 to 2030 were forecasted Report we calculated the amount of direct effect (on local residents who with a through the maximum allowable amount of funding (hereinafter MAAF) high level of confidence will benefit from implemented projects). The formula. Budgets are dependent on wells’ production increase investments that will be allocated through the period from 2021 to 2030 are MAAF for social and infrastructure projects was calculated through the the sources of direct effect. Investments in social projects will affect following formula: communities over a term longer than the span of the Development scenario (10 years). In this Report, the projected numbers embrace that long term 푀퐴퐴퐹 = 푃푅퐼 × 푌 × 푃 × 퐾, where effect 푃푅퐼: the projected absolute increase in the gross production rate of wells per In order to avoid double counting of unique local residents affected by social period projects, the number of cases of benefit (hereinafter NC) was calculated 푌: number of periods The projected number of cases when local residents will benefit from social 푃: the sale price of natural gas, oil, and gas condensate on the date of and infrastructure projects were estimated based on analysis of Naftogaz decision-making without taking into account rent payments Group historical (2015 to 2020) impact from identical projects 퐾: funding ratio, which is equal to 0.5 percent Number of cases forecast The assumption was made that the investors implementing the Development 푁퐶 = 푀퐴퐴퐹 × 푘, where strategy would adhere to similar principles 푘: coefficient that describes how many persons will benefit from UAH1 Yearly funding was allocated to specific projects (consistent with the UN’s investment (derived from previously completed projects), i.e. 푘 = number of sustainable development goals) according to Naftogaz Group management cases of benefit from the project / investment in the project (UAH) forecast: The number of historical cases of benefit was calculated for each group of • Good health and well-being (goal №3): 30 percent of total funding projects and for each oblast separately • Quality education (goal №4): 30 percent of total funding • Sustainable cities and communities (goal №11): 40 percent of total funding. 61 Methodology (4/4)

'Quality education' project group NC forecast 'Sustainable cities and communities' project group NC forecast 푁퐶 = (푆 + 푇) × 푌, where 푁퐶 = 푃 × 푅 × 푌, where 푆 : current number of students 푃 : number of local residents in the town where the project took place 푇 : number of teachers 푅 : percentage of residents who enjoyed newly built or reconstructed public facilities (yearly): 푌 : number of amortisation years for the capital investment 'Good health and well-being' project group NC forecast Type of the facility R 푁퐶 = 퐵 × 퐹 × 푉 × 푌, where Strategic 100% High importance 70% 퐵 : the number of hospital beds in the hospitals that benefited from the Medium importance 50% projects Low importance 10% 퐹 : maximum hospital bed turnover (number of patients yearly), the rate being different for each medical department 푌 : number of amortisation years for the capital investment 푉 : vacancy rate 푌 : number of amortisation years for the capital investment Due to data scarcity for hospitals located in small towns and feldsher-obstetric stations, the Number of Cases was estimated according to the following formula: 푁퐶 = 퐻 × 푃 × 푌, where 퐻 : historical number of visits (for feldsher-obstetric stations) or number of persons hospitalised (for hospitals) in the oblast, divided by population 푃 : number of local residents in the town where the project took place 푌 : number of amortisation years for the capital investment If data were not available, then the formula for the 'Sustainable cities and communities' project group was applied General annexes 63 Glossary (1/2)

’000 Thousand External Independent Examination for admission to universities in Ukraine AGPU Association of Gas Producers of Ukraine Evaluation Odesa region, Poltava region, Lviv region, Ivano-Frankivsk region, 31 December 2020. The period before Analysis date is considered Focus regions Analysis date Chernivtsi region, Zakarpattia region, Kharkiv region historical, the period after Analysis date is implied as forecast GDP Gross domestic product Base year 2018 Happy childhood Project realised by Naftogaz Group Operation scenario for oil & gas sector in 2021 to 2030 assuming Help to Army Project realised by Naftogaz Group Conservative scenario Development scenario is not implemented Change in business activity of the oil & gas sector’s suppliers and bcm Billion cubic metres Indirect effects the spillover effect in associated businesses up the value chain bln Billion CAPEX Capital Expenditures Change in business activity in all other industries (excluding the oil Induced effect & gas industry and its suppliers) as a result of increased Carpathians The Carpathian Mountains household spending of Labour and Capital income Direct effect of realised social and infrastructure projects on local Complex of military, organisational and legal measures of Cases of benefit residents; it is calculated as a number of cases when local residents Ukrainian law enforcement agencies, with the aim of counteracting benefit from these projects per period Joint Forces Operation the activities of illegal Russian and pro-Russian armed groups in CDH Central District Hospital the war in eastern Ukraine Charitable assistance to Project realised by Naftogaz Group Land of opportunities Project realised by Naftogaz Group communities MAAF Maximum allowable amount of funding CIT Corporate Income Tax Mln Million Company NJSC Naftogaz of Ukraine Modern hospital Project realised by Naftogaz Group Gas that can be extracted either through naturally occurring Conventional gas Mriya Project realised by the Naftogaz Group pressure or pumping mechanisms Naftogaz Group NJSC Naftogaz of Ukraine COVID-19 Coronavirus disease 2019 The amount of natural gas coming to the surface per unit of time CSR Corporate Social Responsibility Natural gas rate of yield from a well A complex of initiatives in oil & gas sector, introduced by Naftogaz NC Number of cases of benefit Group and private producers, aimed at gradual gas import Development scenario substitution in 2021 to 2030 and achievement of energy Development projects for new natural gas fields in Ukraine in independence by 2030 Net strategy 2021-2030, implied as Development scenario less Conservative scenario The result of expenditures as part of the energy independence Devleopment scenario (OPEX, CAPEX) which manifest in New village Project realised by Naftogaz Group Direct effects respective domestic natural gas output changes and, consequently, region Administrative division of Ukraine Oil & Gas industry revenues Industry of gas and oil extraction, classified as a B06 industry by Estimated ultimate recovery, sum of estimated proved reserves of a Oil & Gas industry the official Ukrainian Governmental code of classification of EUR resource and cumulative prior production economic activities (KVED) 64 Glossary (2/2)

OPEX Operating Expenses Other regions Ukrainian regions other than Focus regions PIT Personal income tax

Poltavagazvydobuvannya Subsidiary of Naftogaz of Ukraine

PSA Production Sharing Agreement Repair of breathing Project realised by Naftogaz Group machines Safe External Project realised by Naftogaz Group independent evaluation Safe village Project realised by Naftogaz Group SAM Social Accounting Matrix School of the Future Project realised by Naftogaz Group Shebelynka Ukrainian natural gas field An economic event in one context that occurs because of Spillover effect something else in a seemingly unrelated context SSSU, Ukrstat State Statistics Service of Ukraine Sviatohirske field Ukrainian natural gas field thous. Thousand UAH Ukrainian hryvnia Ukrgasvydobuvannya, Subsidiary of Naftogaz of Ukraine UGV Natural gas resources found in unusual geological locations, which Unconventional gas therefore require special extraction technologies (usually horizontal drilling and/or hydraulic fracturing). Includes tight gas. UNICEF United Nations International Children’s Emergency Fund Value added is a composite factor of production generated by Value added (VA) labour and capital production factors which, when combined in fixed proportions with material inputs, yields output VAT Value added tax WHO World Health Organization yoy Year-over-year Yuzivska field Ukrainian natural gas field 65 Sources of information

Methodology Information from public sources (continued) . Cardenete, M.A., A.I. Guerra and F. Sancho (2012), Applied General equilibrium: . Burisma Group (https://burisma-group.com) an Introduction, 2nd edition. London: Springer Texts in Business and Economics Laws, resolutions, regulatory documents, and standards . The Tax Code of Ukraine Information provided by Naftogaz Group . Financial and business data on historical performance and forecast inputs for Conservative scenario and Development scenario . Data and methodology on existing and prospective social activities . Other information, comments and breakdowns on the provided information, etc. Information from public sources . The database of the Economist Analytical Department, Economist Intelligence Unit (EIU), (www.eiu.com) . The State Statistics Service of Ukraine (www.ukrstat.gov.ua) . Verkhovna Rada of Ukraine (www.rada.gov.ua/) . United Nations Department of Economic and Social Affairs (https://sdgs.un.org) . Center for Health Statistics of the Ministry of Health of Ukraine (http://medstat.gov.ua/eng/main.html) . State Educational Information System of the Ministry of Education and Science of Ukraine (https://mon.isuo.org/) . The Fiscal State Service of Ukraine (www.sfs.gov.ua/) . Association of Gas Producers of Ukraine (https://agpu.org.ua/en/) . Project “Rating. Business in numbers” (https://rating.zone/) . State balance of mineral resources in Ukraine, 2020 (http://geoinf.kiev.ua/) 66 Limitations of the Report

Disclaimer This presentation was prepared by Naftogaz Group based on various information sources including data provided in the framework of the KPMG’s assistance in developing the research and analysis methodology. The presentation contains professional judgments of market players and experts regarding the impact of gas production development on the economy of Ukraine – 1) undoubtedly, different professionals using different set of assumptions and sources of data may come to different outcomes and projections, including outcomes which may differ from those presented herein, 2) the methodology applied is intended for long-term forecasting and operates the concepts of industry and national economy, and thus relies on a number of approximations and hypothesis and hence has limited accuracy for the projection of outcome of a particular project or a particular year. Neither we nor experts involved in the preparation of this presentation assume responsibility for any decisions made by a third party - should any party choose to rely on or refer to this presentation, they do so by their own responsibility and at their own risk.