Gaining Momentum Investor Day

February 2010

1 , London, New York Disclaimer

This presentation has been prepared by OJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. The information in this presentation should not be treated as giving investment advice. Care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable. However, the contents of this presentation have not been verified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of the Company or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The information in this presentation includes forwardlooking statements. These forwardlooking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forwardlooking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forwardlooking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forwardlooking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. No person is under any obligation to update or keep current the information contained herein. By attending the presentation you agree to be bound by the foregoing limitations.

2 Today’s Speakers

Vlada Rusakova Growth Strategy Member of Gazprom Management Committee Head of Strategic Development Department

Alexander Medvedev Strong and Growing Customer Base Deputy Chairman of Gazprom Management Committee Director General of Gazprom Export

Andrey Kruglov Solid Financial Position Deputy Chairman of Gazprom Management Committee Head of the Department for Finance and Economics

Vadim Yakovlev : Oil Business Development Deputy Chairman of the Management Board and CFO of Gazprom Neft

Denis Fedorov Gazprom Energoholding: Power Generation Head of Gazprom Directorate for Development of Power Generation Sector and Business Development Power Generation Marketing, General Director of Gazprom Energoholding

3 Part 1. Growth Strategy

Vlada Rusakova

Member of Gazprom Management Committee

Head of Strategic Development Department

4 New Energy Strategy of 2030

Primary Energy Resources Energy Resources Export GDP Energy Intensity (1) Mtoe Mtoe 3,4% 2 000 800 4,4% 1 000 96.6% 600 50% 95.6% 32% 43% 85% DECREASE 43% 0 400 53.2% 61.3% 1 000 46.8% 200 68% 57% 38.7% 2008 2030 2 000 0 2008 2030 2008 2030 Production Import Consumption Export Oil, oil products, coal and other Gas

Total Final Consumption

Oil Other Other Oil Coal Coal 10% 14% 22% 18% 19% GAS : 19% INCREASE IN VOLUME, 53% SHARE REDUCTION 45%

Gas Gas 2008 Source: Energy Strategy of Russia 2030 2030 1. Compared to 2005 levels

5 Growth Strategy Indicators for Russian Gas Industry Development by 2030

885940 bcm Production Transportation Export in 2030 100% 100% 100%

50% 39% 50% 50% 23% 20% 2% 3% 0% 0% 0% 2008 2030 2008 2030 2008 2030 Share of new regions Share of new pipelines Share of Asia

100% 100% 100%

Production growth Production 50% 50% 50% 27% 26% 3342 % 17% 15% 4% 664 bcm 0% 0% 0% 2008 2030 2008 2030 2008 2030 in 2008 Share of independent producers Share of reconstructed length Share of LNG Source: Energy Strategy of Russia 2030

6 Growth Strategy General Plan of Russian Gas Industry Development 2030

Key highlights:  Identification of main drivers of gas industry development (production, transportation, refining volumes; investment forecast for reconstruction and new facilities)  Identification of key factors that will ensure effective development of the gas industry  Risk assessment and mitigation through administrative decisions  Recommendations to the State on how best to support the development of the gas industry

General plan specifies the most effective way for gas industry development

7 Growth Strategy Gas Demand Outlook

Russia 600 bcm

USA and FSU Countries 400

1 000 1 000 bcm bcm 200 800 800 600 600 0 400 400 2008 2010 2015 2020 200 200 0 0 North East Asia

2008 2010 2015 2020 2008 2010 2015 2020600 bcm

400

200

0 2008 2010 2015 2020

Alternative Forecast

Source: Gazprom, CERA, IEA, Cedigaz, EC, IEEJ, MOCIE, EIA

8 Growth Strategy Gazprom’s Supply Volumes to Target Markets

Europe and other countries (1) FSU countries (1) Russia

600 bcm 600 bcm 400 bcm 500 560

411 402 400 400 320 345

200

200 160 200 140 90 100 85 55

0 0 0 2008 2009E 2030E 2008 2009E 2030E 2008 2009E 2030E

Possible growth of supply due to gas demand increase LNG New contracts/ volumes to Asia Pacific Region,. pipelineincl gas Other FSU Baltic States Gazprom Independent Gas Producers Contracted volumes to Europe

1. Net export

9 Growth Strategy Gas Production Scenarios

bcm bcm

700 700

600 650

500 600 550 400 500 300 450 200 400

100 350

0 2008 2009E 2010E 2015E 2020E 2030E 2008 2009E … 2030E

Gydan peninsula Eastern and Far East Arctic Shelf fields New fields in NadymPurTaz Currently existing projects

Production Alternatives Gazprom mobilises reserves and develops its production and transportation system in response to market demand without creating excess capacity

10 Growth Strategy Major Projects Development

11 Growth Strategy Expansion of Gas Chemicals Production

Significant Change in Gas Components

1 000 bcm

750 46% 59% 63% 24% 500 76% 250 54% 41% 37% 0 2008 20162020 20212025 20262030 Methane gas Gas with high content of ethane, propane, butane

Volumes of Gas Processing Products (1)

60 mln ton 50 40 30 20 10 0 2008 2010E 2015E 2020E 2025E 2030E

1. Excluding Salavatnefteorgsintez

12 Growth Strategy Planned Capital Expenditure

Planned CAPEX (annual average) Planned CAPEX (2010 2030 in total) bln RR p.a. Shtokman 800 Yamal Eastern Siberia and Far East Development of Transportation System Reconstruction in Transportation 600 Reconstruction in Production Others

10% 21% 400

5% 30% 200 16%

7% 0 11% 20102016 20172023 20242030

Exploration Production Transportation Processing Others

13 Growth Strategy Innovation Megaproject «Yamal»

Efficiency of Innovations Exceeds the Efficiency of Any Other Project Trunk Gas Pipeline Network Creating Transportation Infrastructure on the Yamal peninsula BovanenkovoUkhta Unique combination of technical specifications: Мостовой п-ов Ямал Obskaya Bovanenkovo railway bridge crossing the Yuribei river Карское море – 115 Bnm 3/ year production capacity железнодорожной The world's longest bridge built north of the Arctic Circle Бованенковское – 11.8 MPa (120 atm.) transportation pressure ст .Бованенково Cost effectiveness as a result of bridge construction – RUR 1.1 bln КС 1 Байдарацкая Республика – 1100 km length (2 routes), 1420 mm diameter КС Ярынская Коми 2 ст .Сохонто разъезд Хралов КС 3 Гагарацкая Baydaratskaya Bay subsea pipeline 71 km Печора ст .Паюта

КС 4 Воркутинская а б КС 5 Усинская ст .Обская у Cost to Gazprom of developing innovative solutions for the project г я ка КС Интинская с 6 б О КС 7 Сынинская – RUR 1.3 bln КС 8 Чикшинская КС 9 Малоперанская Обь Ямало -Ненецкий ст .Ухта автономный округ Rate of Return – 1526% a year Field Development and Infrastructure Construction HighStrength 1420 mm 11.8 MPa (120 Atm.) Rated Pipes

Трубы СистемаMultizone structure development system. Use of Highstrength and coldresistant pipes with high steel Использованиеwells with insulated pipes. Use of horizontal and с высокимviscoplasticity. No risk of extended damage to the gas трубамиmultihole wells Отсутствиеpipeline. There is no world practice of using K 65 strength многозабойныхDecreasing the spacing beween adjacent production газопровода(Х80) grade pipes for gas pipelines with such characteristics. wells from 40 m to12 m to cut infrastructure Concreteencased pipes with external reinforcedplastic 3,0 2,5 Уменьшение класса 2,0 1,5 1,0 insulation for Baydaratskaya Bay 0,5 0,0 -0,5 construction costs -1,0 -1,5 -2,0 -2,5

-3,0 -3,5 -4,0

-4,5 -5,0 -5,5 -6,0

Использованиепарожидкостных Use of Permafrost Soil VapourLiquid Thermal Stabilisation NewНовые Technologiesтехнологии for сваркиWeldingвысокопрочных HighStrength ThickWalled Pipes with Strength Systems Grades up to К85 ( Х80) СнижениеDecrease in steel intensity of the foundations by up to 5060% Strength and coldresistance of welds exceeds parameters and costs by 50%. Two to threefold reduction of construction of international peers. International standards are at the до 50duration foundation of the technology. The expected cost Двух Ability to control thermal conditions of effectiveness as a result of construction of one pipeline MG permafrost soil bases Bovanenkovo–Ukhta exceeds RUR 500 MM

14 Growth Strategy Gazprom – A Company Focused on Innovation Gazprom is a leader in R&D in Russia.

R&D Expenditure, 2008 $MM R&D Expenditure/ Revenue, 2008 1,400 1,200 1,000 800 600 400 200 0.0 0.1 0.2 0.3 0.4

Royal Dutch Shell

Total Exxon Mobil Gazprom

GDF Suez E.ON Rurhgas Norilsk nikel Source: Gazprom, Companies annual reports

15 Growth Strategy Development of Gazprom’s Innovation Potential Growth of Innovation Potential – Increased Competitive Advantage – Foundation for Economic Stability in the Future Innovative Technological Development GAZPROM Innovative Technological Development GAZPROM Only several large Russian Ongoing exploration R&D activities  Ongoing exploration R&D activities  companies, one of which is Gazprom, Creation of corporate research institutes and venture funds  Creation of corporate research institutes and venture funds  have reached the level of innovative Engagement of specialty research teams  Engagement of specialty research teams  technological development Diversification toward hightech  Diversification toward hightech  fastgrowing market segments fastgrowing market segments Ongoing active patent and licensing work  Ongoing active patent and licensing work 

Modernisation Modernisation Equipment upgrades, creation of new preassembled production lines and technologies, Equipment upgrades, creation of new preassembled production lines and technologies, Innovation Maturity Levels creation of research units, ongoing search for new unoccupied market niches, deployment of creation of research units, ongoing search for new unoccupied market niches, deployment of automated engineering systems National report "Innovative development as automated engineering systems the basis for accelerated growth of the economy of the Russian Federation", Market Innovations Moscow: The Association of Managers, 2006 Market Innovations Development of marketing and distribution networks, establishing logistics chains and Development of marketing and distribution networks, establishing logistics chains and marketing policies, ongoing process of upgrading and extending the product mix marketing policies, ongoing process of upgrading and extending the product mix

Organisational and Management Innovations Organisational and Management Innovations Economic sustainability and active government support for innovations are Structuring of relationships between divisions, introduction of planning and budgeting, Structuring of relationships between divisions, introduction of planning and budgeting, key to accelerating the process management of human resources, computerisation of management information processes, management of human resources, computerisation of management information processes, deployment of ERP systems deployment of ERP systems

16 Growth Strategy Russian Gas Industry Experienced Stable Growth Despite Volatile Environment

Length of High Pressure Pipelines, ths km Gas Production Wells 180 9000 160 8000 140 7000 120 6000 100 5000 80 4000 60 3000 40 2000 20 1000 0 0 1973 1978 1983 1988 1993 1998 2003 2008 2009E 1973 1978 1983 1988 1993 1998 2003 2008 2009E Gas Production, bcm Gazprom ’s Gas Export to Europe, bcm 700 180 Source: Company data Company Source: 600 160 140 500 120 400 100 300 80 60 200 40 100 20 0 0 1973 1978 1983 1988 1993 1998 2003 2008 2009E 1973 1978 1983 1988 1993 1998 2003 2008 2009E 1973 August 1991 1993 1994 August 1998 2008 Breakup of the Soviet Russian Parliamentary World Oil Crisis Russian Financial Crisis Asian Financial Crisis World Financial Crisis Union Crisis

EXPERIENCE CONFIDENCE RELIABILITY

17 Growth Strategy Gas Business: Main Factors of Success

THE LARGEST GAS SUPPLY SYSTEM IN THE WORLD GAZPROM’S RESERVES GLOBAL 33.1 tcm RUSSIA

18% 69%

TOTAL RUSSIAN RESOURCES 248.6 tcm Accumulated production A+B+C1 C2 C3+D 14,7 47,7 165,8 20,4

WELLDEFINED LONGTERM STRATEGY SUSTAINABLE CLIENT BASE DEVELOPMENT

STRATEGIC LONGLONGTERMTERM PROGRAM CONTRACTSCONTRACTS FOR GAS BUSINESS DEVELOPMENT ΣΣ≥ ≥33 tcm tcm

18 Growth Strategy Part 2. Strong and Growing Customer Base

Alexander Medvedev

Deputy Chairman of Gazprom Management Committee

Director General of Gazprom Export

19 European Market: Current and Future Prospects for Gazprom’s Business

Gazprom Group Sales to Europe bcm $/mcm – Decline of local gas production and strong demand for 184 190 as the cleanest fossil fuel will create ideal 200 175 600 156 162 169 conditions for increasing Gazprom’s share in the European 150 160 450 161 154 156 153 140 market. We estimate company’s share to increase to 32% 100 407 300 296 326 by 2020 50 262 269 150 192 – Minimum Annual Quantities of gas in Gazprom’s portfolio of 0 0 long term contracts ensure deliveries of 3.1 trillion cm of gas 2005 2006 2007 2008 2009E 2010E to Europe in 20102035. At current contractual prices it Gazprom Export Volumes Gazprom Trading Volumes guarantees revenues of around $1,000 bln Average European Price

Expected Gazprom’s Share of the European Market 2010 2015 2020

28% 30% 32%

68% 72% 70%

Gazprom Other Suppliers

Source: International Energy Agency, Eurostat, National Statistics Bodies, Gazprom estimates. 20 Strong and Growing Customer Base European Gas Demand Forecast

European Gas Consumption, Production Spot and Long Term Contract Prices Deviation and Imports in 2008 and 2009 (1),(2) $/mcm 400 Change, Change, 2008 2009E bcm % 117 $/mcm 200 200 $/mcm Consumption (bcm) 600.7 560.0 40.7 6.8%

Local Production (bcm) 320.0 302.3 17.8 5.6% 0 9 9 9 9 9 9 9 9 9 9 9 9 0 '0 0 0 '0 0 '0 '0 '0 '0 '0 0 '0 '1 Imports (bcm) 280.7 257.8 22.9 8.2% n b' r' r y' n l g p t v' c n a e a p a u Ju u e c o e a J F M A M J A S O N D J Source: International Energy Agency estimates nominated in TJ, Eurostat, National Statistics Bodies, Gazprom estimates. NBP (Fact and Futures) BAFA (Fact and PIRA Forecast)

Medium Term Gas Demand Forecasts (2008 = 100%) LongTerm Consensus Forecast for European Gas Demand

2008 2020 2030 110 850 100% 750 713 100 669 650 601 90 550

2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E n S s S s GE IEA io U zie GE IEA U ons. A s ERA E IGA oga igaz A ERA E IGA oga C R is C O ur ed R C O ur E m D E C E D E CERA PIRA Wood Mackenzie McKinsey AV acken AV om EIA M EIA C od EU 1. European NonFSU countries. Wo 2. Using conversion factor of 37MJ/cm. 21 Strong and Growing Customer Base FSU Market and Central Asian Gas

Gazprom Group FSU Sales Prices and Volumes (1) Narrowing the Gap between European and bcm US$/mcm FSU Export Prices 150 300 273 – Divergence between European and FSU export prices is expected 101 120 97 97 208 240 decrease from 30% in 2009 to 16% in 2010 77 90 159 66 180 111 53 – In 2011 European and FSU export prices will reach parity for 60 61 89 120 Custom Union nonmembers. Custom Union members are not 30 60 subject to export duty 0 0 2005 2006 2007 2008 2009E 2010E Volume Average FSU Price

Central Asian Gas Purchases Major Cooperation Projects in Central Asia bcm – December 2009 – agreement with AK Uztransgaz and Lukoil Overseas Supply and Trading Ltd. on deliveries in 2010 up to 17.2 80 64.2 66.2 bcm of gas from Uzbekistan 58.0 60 – December 2009 – amendment to longterm contract with State 35.0 39.6 Concern Turkmengas to resume in January 2010 purchases of 40 20.3 Turkmen gas of up to 30 bcm annually in 20102012 20 – October 2009 –agreement with Azerbaijan for purchasing annually 0.5 bcm of gas in 20102015 0 2005 2006 2007 2008 2009E 2010E – May 2007 – 15 year contract for purchasing gas from . Expected volume in 2010 – 12.6 bcm 1. Source: Factual data – company Annual report, Forecasts – management estimates. 22 Strong and Growing Customer Base Diversifying Transit Risks and Ensuring Reliable Supply

Nord Stream South Stream FINLAND SLOVAKIA Baltic NORWAY Sea AUSTRIA HUNGARY SWEDEN MOLDOVA UKRAINE

CROATIA ROMANIA ESTONIA

South North RUSSIA am LATVIA Stre Sea DENMARK BULGARIA d or MACEDONIA N m rea LITHUANIA St GREECE TURKEY GERMANY POLAND

Nord Stream: Offshore Part South Stream: Onshore Part

Gazprom (51%), BASF (20%), Agreements Bulgaria, Hungary, Greece, Serbia, Slovenia Participants E.ON (20%), Gasunie (9%) Length 1,300 km to Austria + 990 km to Greece Length 1,223 km South Stream: Offshore Part 55 bcm Participants Gazprom (50%), ENI (50%) Capacity (Phase I 27.5 bcm + Phase II 27.5 bcm) Length 902 km 2011 Phase I Operational Start Capacity up to 63 bcm based on FEED 2012 Phase II

23 Strong and Growing Customer Base LNG Demand in North America and AsiaPacific

LNG LNG LNG Yamal Shtokman

LNG LNG LNG Sakhalin

LNG LNG LNG

USA GasDemand Gap AsiaPacific Gas Demand

800 1 000 700 29 102 800 184 235 292 600 600 500 400 bcma bcma 400 200 300 0 2010 2015 2020 2025 2030 2006 2010 2015 2020 2025 2030 Fields in OperationPipeline Imports New Gas (Inc. LNG) Other NonOECD Asia South Korea Japan India China

Source : Pace Global, 2009 Source : Energy Information Administration, 2009

24 Strong and Growing Customer Base Chinese Gas Demand

400 52%

300 43% Gas demand (bcm) 37% 200 13% Import dependency 100

0 2005 2010 2015 2020 2025

Source: Wood Mackenzie, 2009

• Expected gas demand growth of 300% by 2030 from 105.8 bcm to c. 330 bcm

• Gas share in Chinese energy demand should grow from current figure of 3.4% to 810% in 2030 At the end of 2009 Gazprom and China National Corporation signed basic Heads of • Import dependence is inevitable pipeline and LNG supplies contracted from Agreement for gas deliveries and are now Australia, Malaysia, Turkmenistan, Qatar, Indonesia, Yemen, and others cannot increase substantially working on the Commercial Agreement. • Considering its projected market growth, Russian gas is the only long term sustainable solution Gazprom and Chinese National Petroleum Company are in intensive negotiations over the contract for volumes comparable to current China consumption

25 Strong and Growing Customer Base Environmental Benefit and Cost Competitiveness of GasFired Power Generation

The Investment Costs of Achieving Different Levels of GHG 900 Reductions in Europe by Displacing CoalFired Power Generation

solar 800 GHG saved by replacing 50% of hard coal-fired 700 plants in the EU27 with gas- fired CCGT & costs for equivalent CO2 saving 600 through use of other technologies wind onsh 500 Total additional cut in GHG required to 400 achieve EU target nuclear Investment in US$ bn US$ in Investment 300

200 gas 100

0 10 30 50 70 90 110 130 150 170 190 210 230 250 270 290 310 330 350 370 390 410 430 450 470 490 Million tonnes of CO2e saved

26 Strong and Growing Customer Base Energy Security and GasFired Power Generation

Comparison of Capital Investment Costs and Reliability In Meeting Peak Load by Technology

7 000

6 000

nuclear 5 000 solar

4 000 biomass

3 000 High reliability Low cost Capital investment US$/ KW US$/ investment Capital 2 000

wind gas 1 000

0

% % % % % % % % % 0% 5 0% 5% 0% 5% 0 10 15% 20 25% 3 35 40% 4 50 55% 60 65% 7 75 80% 8 90 95% 10 Availability at winter system peak

27 Strong and Growing Customer Base Part 3. Solid Financial Position

Andrey Kruglov

Deputy Chairman of Gazprom Management Committee

Head of the Department for Finance and Economics

28 Sales and Production Recovery

Monthly Gas Exports to Western Europe Monthly Gas Exports to FSU (1) bcm bcm

10 15

6

5 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 2009 2007 2008 2009 Source: Company data Source: Company data Monthly Gas Sales in Russia Gazprom Monthly Gas Production bcm bcm 50 55

40 45 30 35 20 10 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2008 2009 2007 2008 2009 Source: Company data Source: Company data 1. Including operations of RosUkrEnergo in 2007 and 2008 29 Solid Financial Position Financial Performance, $ bln

(21%) (22%) – Global gas demand drop followed by 13% decrease in volumes of gas sold to main $33 $31 markets in 9M09 resulted in sales down by $27 $26 $102 Sales $23 $80 22% yoy. – 21% sales decrease in 3Q09 mainly relates to decline in sales of oil and gas condensate since world prices in reporting period were 3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09 lower then in previous year

(50%) (46%) – Increase in 9M09 operating costs is 17% mainly associated with purchased oil and $14 $46 gas costs growth. (1) $10 $10 Adj. EBITDA $6 $7 $25 – Costs of purchased oil and gas increase in 9M09 primarily relates to the increase in the gas purchase price from Central 3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09 Asian suppliers

12% (43%) (6)% $28 – 3Q09 profit for the period increase mainly $5,2 $6,2 $5,8 $16 relates to decrease of income tax rate Profit for the period (2) $3,0 $1,3 from 24% to 20% and to nontaxable profits and losses dynamics.

3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09

Exchange rates applied as for the end of the respective period

1. EBITDA calculated as operating profit plus depreciation and impairment provisions for assets (includes impairment provisions of accounts receivable and prepayments, assets under construction, investments and other longterm assets and inventory obsolescence) except for impairment provisions for accounts receivable and prepayments. 2. Profit for the period attributable to owners of OAO Gazprom. 30 Solid Financial Position Measures and Results of 2009 Financial Strategy

Strategy Guidelines

Operating and Investment Activities Financial Activities

Financial Debt and CapEx OpEx Working Capital Investments Budgeting Cash Pooling Borrowings Management Management Management Management Management

Usage of Reduction of Reduction of Budget scenarios Reduction of Internal cash internal Self funding financial accounts based on OpEx management financial investments receivable $25, $30 and $41 oil price forecasts resources

Projects Projects feasibility in Optimisation of Management of Payments Refinancing of Cost cutting program prioritisation crisis gas purchasing accounts payable monitoring expensive debts environment

Assessment of Control over Execution Optimisation of Reduction of Reduction of opportunity Group monitoring headcount inventories noncore assets for raising funds borrowings

31 Solid Financial Position Cost Control Measures (Parent Company)*

Price Reductions for Materials and Equipment in 2009 Materials and equipment purchasing Pipes 22% Gas pumping equipment 5% RR 14.5 bln (12%) 2009 Processing equipment 10 20% 2009 Capital construction Cost control Shutoff valves 12% savings goals were Spare parts for gas compressor units and stations 5 12% from price primarily Maintenance of gas compressor unit drives 5 7% reduction Repair and maintenance regarding: Airplane and turbine oils 47%

Labour Cost Management Labour Cost Reduction of staff hiring (yoy) 90%

Price optimisation for goods, services, construction and assembly works (decreasing coefficient 0.8) RR 11.7 bln Substitution of domestic supplies for imported materials and equipment savings 2010 plan Program Extension of the gas and energy saving programs of cost Reduction of production costs (per unit, yoy) 4% optimisation: Reduction of transportation costs (per unit, yoy) 1%

2010 of OAO Gazprom is expected to increase (yoy) 2x * According to management accounting 32 Solid Financial Position Working Capital Management

Accounts Receivable Turnover times a year 12 9.5x 8.9x 8.2x 9 7.5x 7.6x 5.9x 6 4.9x

3 2003 2004 2005 2006 2007 2008 9m2009 LTM

IMPROVEMENT IN WORKING Priority for domestic supplies in materials and CAPITAL MANAGEMENT equipment purchasing for construction projects New Measures RR 30 bln in Working Reduction of advance payments for materials and increase Capital equipment in Company Management turnover Obligatory tendering process for supplies and service purchased contracts

33 Solid Financial Position OAO Gazprom Investment Program

2009 Investment Program Adjustment and 2010 Investment Program (1) RRRR bln bln 920. 4 1 000 761.5 752.6 220.6 Purchase of 20% 138.5 of Gazprom Neft 138.8 500 139.6 699.9 613.8 483.5 0 2009 Initial 2009 Revised 2010 CapEx LongTerm Financial Investments

2010 Priority Investments

Comprehensive Other Major Eastern Gas Program Development Program in Yamal Transportation and Production Projects

Shtokmanovskoye and CenomanianAptian deposits of the SakhalinKhabarovskVladivostok Prirazlomnoye fields, Bovanenkovskoye field, pipeline, Nord Stream, BovenenkovoUkhta pipe line Gas supply to the Kamchatka Region PochinkiGryazovets, DzhubgaLazorevskoyeSochi pipe lines

1. Totals may not sum due to rounding 34 Solid Financial Position Debt and Liquidity Management

Credit Ratings Credit Metrics (1)

1.7 1,7 A3 1.6 Baa1 Baa1 1.4 1.4 1,4 Baa2 Baa2 1.1 BBB 0.9 BBB BBB 0.8 0.7 Baa3 BB+ BBB BB+ Investment Grade BB BB BB

Jan05 Jul05 Jan06 Jul06 Jan07 Jul07 Jan08 Jul08 Jan09 Jul09 Jan10 2005 2006 2007 2008 9m 2009 LTM

S&P Fitch Moody's Total Debt / Adj. EBITDA Net Debt / Adj. EBITDA

Total and Net Debt Debt Management Measures  Works on interest rates reduction $55 $59  Financing with insurance coverage $47 $45 $12 $10 $12 $10  Introduction of the new European Commercial Papers (ECP) Program $49 $35 $35 $43  Liquidity management: introduction of cashpooling system

41 subsidiaries and 14 branches involved 2008 1Q09 1H09 9M09 Earnings from fund allocation in the System increased by 40% Net Debt Cash&Cash equivalents Potential volume of preferential credits accumulated in the Pool amounts to RR25 bln 1. Calculated as per the end of the respective period 35 Solid Financial Position Sources of Additional Revenues

Gas Sales Breakdown and Price Liberalisation

18% 19% – Price liberalisation principles in gas deliveries to the FSU 23% countries are expected to be implemented by 2011 (1) 38% – Significant price increase expected due to the liberalisation 59% 43% of the Russian market by 2014 – Profit from domestic gas sales is to reach appx. RR70 bln Revenue 2009E Revenue 2014E in 2009 Europe Russia FSU Average FSU Export Price Growth Domestic Wholesale Price Growth for Industrial Consumers $/mcm RR/mcm Gazprom’s proposal to link “Net Back” to +31% domestic prices to European European Sales (3) “Net Back” +31% 273 >4 800 +43% (2) 208 +15% 3 795 +25% +27% 3 300 (2) +16% +46% 159 +25% 2 870 +11% +15% 2 495 1 970 111 1 699 89 1 354 61 1 064 1 180 2005 2006 2007 2008 2009E 2010E 2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E 2014E

1. Except Armenia 2. Pursuant to “General assumptions and forecast of social and economic development in Russia 15% annual price growth for the period from 2010 to 2012” designed by the Russian Ministry of Economic Development in July 2009 3. According to Ministry of Economic Development oil price forecast of $76 Urals 36 Solid Financial Position Enhancement of IT Systems

– Creation of a unified IT environment

– Improvement of information transparency

– Closer monitoring of investment projects

– Reduction of preparation period for financial reports

37 Solid Financial Position Dividend Policy

Dividend Policy Parent Company Net Profit (Russian Accounting Standards) 1. Company development: 75% of parent company net profit (RAS). No allocation to the reserve fund, as it was formed from allocation of previous years 7.5% Dividends 2. Dividends: 2% of market capitalisation, but not more than 10% 15% of parent company net profit (RAS) 75% 3. Remaining part: 15% of parent company net profit (RAS) is 10% equally distributed between the dividend payment and company 10% development

Historical Dividends RR per Share Pursuant to the Russian 2.66 Government’s 2.54 Directive

1.50 1.19 0.69 0.44 0.36

2002 2003 2004 2005 2006 2007 2008

38 Solid Financial Position Potential for Further Value Growth

Gazprom Share Price Performance vs Russia’s MICEX Oil & Gas Index RR 254 RR 190 RR 24 Buy 400 3 Hold

350 Current Share 2010 Consensus 300 Price Target Price

250

200

150

100 Rebased to Gazprom share price share to Gazprom Rebased

50 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Source: Bloomberg,Source Bloomberg Interfax MICEX Oil&Gas Index Gazprom share price 2009 Investors’ Concerns 2010 Investors’ Concerns Mitigation

Transit conflict with Ukraine and concerns on conflict Ukraine paid in full for Russian gas in January 2010 recurrence in the beginning of 2010 Most of the permissions for alternative transport routes have been received Sharp production decline in the 1H 2009 Production rebound in 2H 2009 due to increase in European sales and colder winter Speculations on longterm contracts revision No significant revision of longterm contracts Decrease in export prices due to low oil price Improving oil price throughout 2009 From January 1, 2010 the price for industrial consumers was increased by 15%, Uncertainty over price liberalisation in Russia implying 26% yoy average price growth Decrease in Central Asian gas purchases and more favorable contract terms with Expensive Central Asian gas to influence revenue Central Asian countries

39 Solid Financial Position Part 4. Oil Business Development

Vadim Yakovlev

Deputy Chairman of the Management Board

CFO of Gazprom Neft

40 Gazprom Neft at a Glance

UPSTREAM REFINING MARKETING 2009 2009 2009 Combined consolidated production 1 Total Refining – 34.2 mln tonnes 1 489 retail outlet stations in Russia, 47.9 mln tonnes per year per year (687 kbpd): the Balkans and CIS (962 kbpd): 27.4 mln tonnes own subsidiaries 9 Bunkering facilities in Russia 33 mln tonnes own subsidiaries 6.8 mln tonnes equity 6 airport filling terminals and 14.9 mln tonnes equity affiliated units Overseas trading unit in Austria affiliated units

Source: Company data. 1. Including Gazprom Neft share in equity investees and recently acquired assets

41 Oil Business Development Oil Business Development within Gazprom Group

NIS (51%) Gazprom acquired 75% Acquired 50% stake (55%) New retail network rebranding acquisition stake in Sibneft in Tomskneft acquisition campaign launched

October September December May April February June July September December 2010-2014

2005 2006 2007 2008 2009

Launch of largescale projects to ensure longterm development and business growth

Gazprom oil strategy is J V «Moscow NPZ Holdings B.V.» Ruble Bond Issue Gazprom Neft Wins Tender approved by BOD established to manage Reopening of the domestic on Iraqi Badra Oil Field Moscow market after the crisis Development Start of Gazprom oil assets integration process Special entity “Gazprom Neft –Yamal” is created UPSTREAM DOWNSTREAM

New blocks development in traditional Increasing refining capacity of existing producing regions assets (reconstruction )

Gazprom oil assets integration: Novy Port, Orenburg fields Expansion of retail network in Russia and Expansion into new producing regions: abroad Messoyaha, Kuyumba

42 Oil Business Development Gazprom Neft Strategic Goals in Figures: 100 70 40

100 MM tonnes of oil equivalent - production Reserve life- not less than 20 years

Share of production fields in the initial stage of exploration not less than 50% Large scale business development provides for the highest Total Shareholder Return among Russian oil 70 MM tonnes – oil refining companies while maintaining in Russia – up to 40 MM tons its leading position in business in Europe – up to 30 MM tons effectiveness among vertical Increase of yield of light HC products up to 77% integrated oil companies in Increase of processing depth up to 90% Russia

40 MM tonnes – sales of oil products via premium channels in Russia and abroad 12 MM tons – retail sales at fuel filling stations (8,2 MM tons in Russia and CIS) 18 MM tons – sale of products business units - Aero (jet fuel), lubricants p (packed oils),bitumen, petrochemistry 10 MM tons – small wholesales to large ultimate users

Source: Company data. 43 Oil Business Development Crude balance 2020, MM tones/year

Western Europe Russia – The Company’s target is to refine at least 50 per cent of export oil volumes 10 90 Overseas oil – Refining capacity needs to be resources Russia’s expanded in Europe as a core resources oil trade market: Exports

44 – Eastern Siberia’s oil 40 resources have priority for Refining in 0 27 deliveries via ESPO Russia pipeline. According to the Refining Shelf, Nenets Ministry of Energy, in 2020 district, Yamal production in Eastern Siberia will hit 80 mm tones 48 57 0 6 per year and will fill ESPO 25-30 Western Eastern Siberia Siberia – The resources originating Belorussia 2,2 from Western Siberia, Offshore, NAO and YaNAO NIS 7,3 will be exported to the New refining Western Europe (Primorsk, 15-20 assets 14-19 Novorossiysk, “Druzhba”) From Eastern Siberia to Crude Oil Sales Asian Pacific Region 6 Production 2009E Production 2020E

44 Oil Business Development Gazprom Neft’s Key Financials, $ mln

(31%) (42%) 34% $28 717 $10 307 – Oil price fluctuations drove revenues up Revenues (1) $7 087 $16 596 Revenues $5 998 $4 242 $5 269 qoq and down yoy

3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09

(34%) (48%) 21% – Export customs duty, mineral extraction $8 164 tax and continuing RUR appreciation EBITDA (2) $2 752 $4 280 constrained EBITDA growth $1 501 $1 823 $416 $957 – High refining volume in crude balance supported quarterly EBITDA growth 3Q08 4Q08 1Q09 2Q09 3Q09 9M08 9M09

(47%) (54%) $5 201 (29%) $1 593 $2 375 – FX gain as well as gain from Sibir $1 196 $846 Net Income $335 Energy acquisition in 2Q09 hampered qoq net income growth in 3Q09 -$543 9M08 9M09 3Q08 4Q08 1Q09 2Q09 3Q09

Source: Company data. 1. Revenues for 2007 and 13Q08 were adjusted for excise tax that was previously excluded (2007 –$ 0.7B; 1Q08 – $0.2B, 2Q08 $0.3B; 3Q08 $0.8B) 2. EBITDA includes the Company’s share in EBITDA of its equity affiliates (Slavneft , Tomskneft and Salym Petroleum Development) 45 Oil Business Development Operational Performance Crude Output (MM Tonnes) Refining (MM Tonnes)

47.9 34.2 + 20.0% 43.1 46.3 + 3.5% + 7.4% 2.4 + 9.2% 28.5 6.1 5.7 26.1 5.4 3.3 10.6 3.3 6.8 9.8 9.5 6.8 6.3 0.7 2.9 32.7 30.8 29.9 16.5 18.4 18.4

2007 2008 2009E 2007 2008 2009E

Own Production NIS Slavneft (1) Tomskneft (1) Sibir Energy NIS Yaroslavl Moscow

Crude Oil Sales (MM Tonnes) Oil Products Sales (MM Tonnes)

20.5 19.0 19.2 + 6.7% - 7.3% 32.1 0.9 29.0 +10.7% 1.6 0.2 26.7 2.5 3.3 3.6 + 8.6% 18.1 13.4 15.7 1.7 15.1 16.3 15.2 1.9 1.9 11.4 11.4 12.3

2007 2008 2009E 2007 2008 2009E

Crude export Crude export to CIS Crude domestic Export Export to CIS Domestic

Source: Company data. 1. Production figures include 50% of Slavneft and Tomskneft 46 Oil Business Development Gazprom Neft has Strong Reserves Upside Potential

Resources and Reserves (1) ABC1 Reserves revisions & additions (MM boe), as of Dec 31, 2008 (mln t) as of Dec 31, 2009 • 118% 3-year reserve replacement ratio 1950 excluding acquisitions and 20 000 divestments (PRMS based) Possible 319 1 844 3P 1850 Proved reserve life 1750 • maintained at 21 years 15 000 1650 Probable 115 1 525 • ABC1 reserves figure as of 1550 Dec 31, 2009 (Russian 10 000 classification) suggests 1 410 1450 substantial improvement Proved* in reserves volume 1350 5 000 1250 • Gazprom assets to be transferred to Gazprom Neft 1150 will increase the As of Revisions As of Licenses Potential 0 Dec 31, And Dec 31, from Company’s reserves even 2008 Acquisitions 2009 Gazprom further

Source: Company data Source: Company data

1. Reserves include Gazprom Neft’s share in Reserves of its equity affiliates (Slavneft and Tomskneft)

47 Oil Business Development High Refining Cover – Gazprom Neft’s Key Competitive Advantage

Gazprom Neft’s vs. European refining margin (1) , 35 $/bbl Omsk 30 Moscow 25 • Gazprom Neft’s netbacks at YANOS 20 domestic refineries steadily Europe 15 outperform those of crude exports (except for a unique 10 situation in 1H09) 5

0 -5 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09E • Given Russiaspecific fiscal stimulus for processing, Gazprom Neft has 80% Gazprom Neft’s refining cover evolution substantially increased its 75% refining exposure (Refining to 70% Production) over the past two 65% years in order to fully exploit 60% the high global crude pricing environment 55% 50% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09E

1. Source: Company data, IEA, European refining margin states for average Europe NW cracking refineries processing Urals, operating costs are assumed at $2/bbl

48 Oil Business Development Gazprom Neft is Accelerating its Downstream Facilities Upgrade Program

2009 Midterm goals by 2012 By 2012 Omsk, Yaroslavl Diesel HydroTreating Installation of: and Moscow refineries Omsk Unit launched; Technological CondensateTreating Unit Diesel Hydro-Treating, should all meet Euro 4 upgraded; Gasoline Hydro-Treating and standards Fuel Dehydration Unit Installed; Isomerization Units Isomerization Unit construction +750,000 tpa started high-octane gasoline Strategic goals by 2020: • Quality upgrade StrategicMoscow goals by 2020: program (Euro 5) Installation of: • Quality upgrade program (Euro 4,5) Gain control • Substantial Diesel Hydro Reforming improvement in the • Substantial Currently Gazprom Neft is improvement in the Unit, Catalytic Cracking sophistication & Company’s actively developing MNPZ’s and Isomerization Units efficiency of the downstream facilities upgrade program sophistication Company’s downstream facilities • Refining depth >90% Fiveyear upgrade Installation of: Moscow Yaroslavl program approved; Diesel HydroTreating Unit Primary Distillation, Catalytic Cracking and Source: Company data. upgraded; Isomerization Units Hydrogen Production and Isomerization Units +550,000 tpa construction started high-octane gasoline

Source: Company data.

49 Oil Business Development Expansion of Oil Products Marketing New Products Sales via Premium Channels (1)

(2) Sales region Aero fuelling (‘000 tonnes) 847 New asset 2009 111% 5% 807

402 Murmansk UstLuga 2008 2009 2010E Archangelsk Bunkering (‘000 tonnes)

Belorussia 1 419 1 406 64% 1%

Serbia 858

Khabarovsk 2008 2009 2010E Italy

Kazakhstan Lubricants (‘000 tonnes) Kirgizia 79 Novorossiysk Chelyabinsk region 26% 63 25% Bunkering +40 gas stations 50

Airports 2008 2009 2010 – Aero fuelling – Largest jet fueling terminals operator in Russia, new fueling terminals in Bryansk, Tomsk, Chita, new fueling terminal in Moscow (Sheremetievo) – constructioninprogress – Bunkering – Largest volumes in Russia, expansion into new regions (Black Sea), Ust Luga bunkering – Lubricants – Acquisition of Lubricants Plant in Italy (Bari) February 2009, production of new oils: 50 in Russia and 40 in Italy – Retail network At the end of September 2009 own retail network (including NIS and Sibir) totaled 1,489 gas stations

Source: Company data. 1. Premium channels – sales from tank farms, terminals, filling stations, fueling terminals and packed oils sales 2. Volume decline as Government bodies impose new regulations with respect to jet fuel pricing which makes this activity less attractive

50 Oil Business Development New Retail Brand: Bringing the Idea to Life

Rebranding Campaign Key Figures

2009 2010E 2011E 2012E Total

Number of rebranded filling stations 208 Full implementation 300 229 200 937 179 Limited implementation

Average volume turnover (th.t/ day) 8.8 9.0 9.6 10.5

51 Oil Business Development Debt Profile: Shifting from Short Term to Long Term Financing; Maintaining Investment Grade Ratings Long Term Debt Maturity Profile as of Net Debt/EBITDA, Gearing September 30, 2009 (1) % US$MM 1,20 30% 311 0,90 20% 1 169 1 056 0,60 311 10% 0,30 650 235 0,00 0% 2006 2007 2008 3Q09 166 113 Net Debt/EBITDA (LHS) Gearing (RHS) 2010 2011 2012 2013 2014 Debt Structure as of September 2009 Credit Ratings

% BBB/Baa2 18% 13% Investment Grade BBB/Baa3 BB+/Ba1

45% BB/Ba2 BB/Ba3 37% 87% B+/B1 B/B2 B/B3 2003 2004 2005 2006 20072008 2009 (2) ST Bridge LT Foreign Currency (USD, EUR, RSD) RUR S&P Moodys

Source: Company data. 1. Maturity profile due to refinanced bridge repayments ($857 mln) 2. Bridge facility was refinanced under the long term basis in December 2009 52 Oil Business Development New Assets NIS Development

2009 2014 % Achieved Operating Proved reserves, MM toe 13 14 +8% and Financial Results 2009 Production, MM tones 0.7 1.4 +100%

• 4.4% Production growth Refining, MM tones 2.7 4.5 +67% in 2009 vs.2008 Euro diesel production, MM tones 0.19 1.7 +795% • Euro diesel production launched Domestic market share increase to 29% from 8% Sales through own retail network, MM tones 0.6 1 +67%

• Refineries modernization Sales through partners’ network, MM tones 1 + 100% program launched Export sales, MM tones 0.32 0.7 +119% • Headcount structure optimization - Lifting costs,$/boe $13 $9 +44% (9.7%) from 2008 Processing costs,$/t $40 $25 38% • Debt structure optimization: Decrease of short term debt to 25% n 2009 from 85% in 2008 Unit sales, per gas station, tone/day 3.4 6.3 +85%

Source: Company data.

53 Oil Business Development New Assets Sibir Energy Contribution

95% 92% 93%

Product Production Refining sales

8% 7% 5%

Source: Company data Gazprom Neft Sibir Energy

Sources: Company data, Public sources

54 Oil Business Development Part 5. Power Generation Business Development

Denis Fedorov

Head of Gazprom Directorate for Development of the Power Generation Sector and Power Generation Marketing

General Director of Gazprom Energoholding

55 Gazprom Generation Assets: Position in Russia and Globally

Installed Capacities (1) Power Generation Volumes (1) (GW) (bln kWh)

150 127 800 615 610 94 600 441 100 74 395 64 400 253 47 43 42 39 39 50 36 36 185 180 180 163 149 200 91 13 13 12 12 11 11 75 51 49 48 41 0 0 AEP EDF Enel AEP EDF Enel RWE Duke RWE E.ON Duke E.ON Fortum Fortum KEPCO Endesa Endesa Tenaga Endesa KEPCO Endesa CEZ AS Tenaga CEZ AS Iberdrola Energias Energias Iberdrola Southern Gazprom Scottish & Gazprom Scottish &

Gazprom share in Russia’s Installed Capacity (1) Gazprom share in Russia’s Power Generation Volumes

Other 123 GW 17% (2)

16% 164.6 bln Other 36 GW kWh 827.4 bln kWh Inter RAO RysHydro 8% RosAtom 11% 18 GW 10% 25 GW 23 GW Sources: State Statistics Committee, Company Data, System Operator of UES 1. 2008 data 2. 2009 data 56 Power Generation Business Development Role of the Power Generation Business for Gazprom Group

Gazprom Group 9M09 Revenue, Generation companies’ shares in the Group’s $mn 9M09 sales revenue, $mn

Power (1) $1 003 $4,560 Generation 6% $2,587

$970

Power Generation assets share in the Group’s Power generation companies’ market capitalisation (2) market capitalisation, $mn (2)

$4 843 Power Gazprom (3) Generation Group 3% $2 301 $815 $1 087

Sources: Company data, Bloomberg 1. , OGK2 and OGK6 results only. TGC1 results are not consolidated in the Group’s 9M09 IFRS results 2. As of 14 January 2010 3. Accounting for Gazprom Group share in Mosenergo, TGC1, OGK2, OGK6 57 Power Generation Business Development Structure of the Group’s Power Assets

Core generation Assets NonStrategic Assets

3.9% OAO FGC UES of Russia OAO 53.5% Mezhregionenergo 8.5% Adler TPP sbyt OAO Inter RAO UES

10.5% OAO MRSK Holding 51.8% 10.5% OAO RAO Far East Energy OOO Systems Kaliningrad TPP2 Gazpromenergo 5.3% 50.3% OAO TGK11

4.4% OAO TGK12 ZAO Kaunas 4.9% 50.3% OAO TGK13 TPP

5.0% OAO TGK5

5.3% OAO OGK5

58 Power Generation Business Development Consolidation of the Group’s Strategic Generation Assets as Part of OOO Gazprom Energoholding

In 2009 Gazprom Board of Directors’ decision on consolidation of generation assets as part of OOO Gazprom Energoholding was implemented

– Largest TGK in Russia by installed electricity and thermal power generation capacities – Services about 70% of the electrical and thermal power market in Moscow region – Installed capacity – 11,918.3 MW and 34,900 GCalhr – Installed capacity utilisation ratio – 65% – Average year of facilities commissioning – 1985

– Key power generation company in Northwestern Federal District – Includes 55 power generation stations – Hydro power stations share in generation volumes – around 50% – Installed capacity – 6,313 MW and 14,362 GCalhr – Installed capacity utilisation ratio – 49% – Average year of facilities commissioning – 1973

– Includes 5 State District Power Stations, about 70% of generation capacities located in the Ural Federal District – №2 among wholesale generation companies by utilisation ratio – 65% – Installed capacity – 8,695 MW – Average year of facilities commissioning – 1975

– Includes 6 State District Power Stations, about 40% of generation capacities located in Central UES – №2 by power generation capacities and №2 by thermal power generation capacities among wholesale generation companies – Installed capacity – 9,052 MW – Utilisation ratio – 49% – Average year of facilities commissioning – 1975

59 Power Generation Business Development Operational and Financial Results and Estimates

Power, Heat, mln Power, Heat, mln $mln (1) bln kWh GCal bln kWh GCal 3,685 3,227 65.4 64.3 62.4 61.7 531 284 70 17

2008 Generation Volume 2009E Generation Volume 2008 2009E Revenue EBITDA Net Income 1,368 26.9 26.9 1,143 26.7 273 26.3 129 35 86

2008 Generation Volume 2009E Generation Volume 2008 2009E Revenue EBITDA Net Income 1,380 1,348 49.8 47.2

106 28 2.3 2.4 21

13 2008 Generation Volume 2009E Generation Volume 2008 2009E Revenue EBITDA Net Income

1,439 1,384 38.9 29.0 178 76 80 4.4 4.4

2008 Generation Volume 2009E Generation Volume 200828 2009E Source: Company data Revenue EBITDA Net Income 1. Exchange rates used for conversion as of the end of corresponding periods 60 Power Generation Business Development LongTerm Capacity Market Mosenergo capacity revenues - Currently the formation of the longterm capacity 100% market in Russia is being finalised 11.9% 80% 35.6% - Recently a methodology for determining economic feasibility of generation companies’ bids for sale of 60% 88.1% 40% capacities has been approved, making the pricing 64.4% mechanism more transparent 20%

0% - Introduction of new capacities results in higher Capacity Capacity revenue

operational margins: Old capacity New capacity

 In 2010, average old capacity tariff for Mosenergo is expected to be RR132 thousand/MW per month. TGC1 capacity revenues Average new capacity tariff is expected to be 100% 3.7% RR 533 thousand/MW per month 15.6% 80%  In 2010, average old capacity tariff for TGC1 is expected to be RR87 thousand/MW per month. 60% 96.3% Average new capacity tariff is expected to be 40% 84.4% RR422 thousand/MW per month 20%

0% Capacity Capacity revenue

Old capacity New capacity

Source: Company data.

61 Power Generation Business Development Investment Outlook: 20082010 Commissioning

– Gazprom Group is #1 in Russia by generation capacity commissioning Gazprom Group share in Russian generation in 20072009 capacity commissioning, 2008 – In 2009, installed capacity of the Group’s generation assets was increased by 215 MW – In 2010, Gazprom is set to increase its generation capacity by up to 1.8 GW 91% Capacity Increase, Capacity Increase Other 905 MW MW Total, MW 2008

Mosenergo 875 905 TGC1 30 Gazprom Group share in Russian generation 2009 capacity commissioning, 2009

TGC1 215 215 2010 (Plan)

TGC1 823 22%

Mosenergo 436 Other 215 MW 1,819 OGK6 110

Kaliningrad TPP2 450

Source: Company data

62 Power Generation Business Development Investment Outlook: Commissioning of New Facilities

– Gazprom Group’s adjusted investment program for power generation provides for installed capacity increase from 36.8 to 44.8 GW that will ensure that the Group keeps its leading position in the sector – The total CAPEX until 2020 is set to amount to RR 315 bln

Current Capacity (1) Planned Capacity After Facilities Commissioning by 2020 (2) 44.8 GW (3)

36.8 GW +25% 14.9 (3)

11.9 (3) +22% 7.7 6.3 +17% (3) 10.2 8.7 +15% (3) 10.4 9.1

0.8 +50% 1.6

Source: Company data 1. 2009 data 2. As of 14 January 2010 adjustments to the investment programmes have not been approved by the government 3. Figure does not include decommissioning of capacities 63 Power Generation Business Development Potential for Value Creation

Market values of power generation companies per capacity unit, $/kW (1) – OOO Gazprom Energoholding is one of the largest OGK6 90 energy companies in Russia OGK2 127

KEPCO 321 – Its largescale investment program will permit the

TGK1 368 Company to maintain the leading position in the

Mosenergo 414 sector Enel 580 – The holding’s generation assets are located in the EDF 692 regions with stable energy consumption patterns Tenaga Nasional 863 – Complete liberalisation of the electricity market in E.ON 1 087 Russia is expected by 2011 Iberdrola 1 146 – Launch of the longterm capacity market justifies Endesa Chile 1 160 economic viability of Gazprom’s investment program Cia. Paranaense de Energia 1 287

Energias de Portugal 1 289 – OOO Gazprom Energoholding companies are Scottish & Southern Energy 1 649 fundamentally undervalued in comparison with the

CEZ AS 2 408 global peers

0 500 1 000 1 500 2 000 2 500 3 000

Sources: Bloomberg, Company Data 1. As of 18 January 2010 64 Power Generation Business Development Conclusions

Andrey Kruglov

Deputy Chairman of Gazprom Management Committee

Head of the Department for Finance and Economics

65 Ready for the Next Step

Consumers Capacity Demand Recovery in Europe Unmatched Reserve Base Economic Growth Forecast Unique Transportation System in Russia

Gaining Momentum!

Financials Development

Cost control Projects Access to capital Export Regions Selffunding Business Segments

66 Conclusions