Enhancing Effectiveness of APG Utilization and Expanding APG Processing – Strategic Goals of SIBUR Holding JSC

1. Enhancing Effectiveness of APG Utilization and Expanding APG Processing – Strategic Goals of SIBUR Holding JSC Presentation for the round-table discussion on APG utilization in Russia

2. OWN FEEDSTOCK-BASED BUSINESSES ALLOW SIBUR TO DEVELOP PETROCHEMICAL OPERATIONS IN A PROFITABLE MANNER SIBUR Holding Gas Processing Enterprises

3. WESTERN SIBERIA HAS A HIGH-CAPACITY INFRASTRUCTURE FOR APG PROCESSING Urengoy - Chelyabinsk Urengoy-Surgut Gubkinsky GPP NyaganGPP Vyngayakhinskaya CS Vyngapurovskoye GPP Muravlenkovsky GPP Urengoy-Center Vyngapurovskaya CS VaryeganskayaCS Belozerny GPP Surgutsky CSP Surgutsky GPP NV GRES C GRES Nizhnevartovsky GPP Parabel-Kuzbass • Notes: • Shown in the flow chart are only major constituents of transport infrastructure of Sibur feedstock-based businesses and Gazprom-used units: SIBUR Holding gas processing plants and compressor stations Product pipelines Yu.-BalykskyGPP Gas pipelines Loading rack Gas mainlines and other Gazprom units GPPs and CSPs (condensate stabilization plants) of third parties Tobolsk Neftekhim

4. EXPANSION OF APG PROCESSING IS HINDERED BY OBJECTIVE DIFFICULTIES… Current situation Consequences/ Risks Major gas processing facilities were build in the 70-80s: • Gubkinsky GPP 1989-90 • Muravlenkovsky GPP 1989-90 • Nizhnevartovsky GPP 1975-80 • Belozerny GPP 1980 • Yuzhno-Balyksky GPP 1980 • NyaganGPP 1989-90 • Product Pipeline“Nizhnevartovsky GPP – Yuzho-BalykskyGPP” 1976 • Project planning 1- 1.5 years • Construction 2.5- 3 years Worn-out capital assets High maintenance costs and limited potential for enhancement of the existing facilities’ efficiency High capital intensity of the sector High construction costs of new transportation and operating facilities, long pay-off periods Long lead times of project implementation Risks related to changes in price and technological issues of the project

5. …HOWEVER SIBUR HOLDING KEEPS ON INCREASING THE APG VOLUMES PROCESSED SIBUR Holding strategy 2011 stipulates a vast expansion of gas processing facilities in Western Siberia APG intake by SIBUR Holding processing facilities bnm3/year 20.40** 13.94* 13.20 12.26 10.92 8.53 2002 2003 2004 2005 2006 2011 • * Estimatesfor 2006 • ** Provided the planned development program is fully implemented • Source: SIBUR Holding JSC

6. MAJOR PROJECTS FOR THE INCREASE OF APG INTAKE BY SIBUR HOLDING ENTERPRISES Increase of APG intake by gas processing facilities*bnm3/year Project Expansion of Yuzhno-Balyksky gas processing complex Expansion of Nizhnevartovsky gas processing complex Construction of Vyngapurovsky gas processing plant Modernization of Nyagangazpererabotka production facilities Total 2.0 2.0 2.0 0.5 6.5 • * Provided the planned development program is fully implemented • Source: SIBUR Holding JSC

7. APG PROCESSING PROJECTS CALL FOR COOPERATION BETWEEN SIBUR HOLDING, GAZPROM AND OIL COMPANIES Oil companies’ area of responsibility Gas processing enterprises’ area of responsibility Gazprom area of responsibility Gas processing plant Compressor station Main gas pipeline Pressure residue gas pipeline Gas gathering infrastructure Gas fractionation plant Oil fields NGL pipeline • Oil companies, gas processing companies and Gazprom need to collaborate to increase APG processing: • Oil companies need guarantees regarding intake of APG to invest in gas gathering infrastructure • Expansion of gas processing facilitiesrequires positive outlook on future APG supplies and residue gas marketing on the part of gas processing companies • Certainty in sustainability of gas resources is needed for Gazprom to expand gas transportation system

8. SIBUR HOLDING IS ACTIVELY COOPERATING WITH OIL COMPANIES AND GAZPROM ON GAS PROCESSING Partners Partnership Status • In early 2007, SIBUR Holding and TNK-BP Holdingwill form a JV on base of Nizhnevartovsky and Belozerny gas processing complexes, which will allow coordinate activities for the increase of APG gathering by oil companies and its intake and processing by gas processing enterprises Joint Venture • Talks regarding extension of cooperation on APG utilization at Yamalo-Nenetsky AO (Muravlenkovsky GPP and Vyngapurovsko-Vyngayakhinsky region) are in progress • Talks regarding extension of cooperation on APG utilization at Gubkinsky GPP are in progress • Close cooperation within the project on Yuzhno-Balyksky GPP expansion has been organized Long-Term APG Supply Agreement Arrangements on residue gas intake by gas transportation system • Negotiations on additional access to gas pipeline Urengoy-Chelyabinsk for intake of extra residue gas from Nizhnevartovsky and Yuzhno-Balyksky GPP are soon to be finalized

9. INCREASED APG PROCESSING WILL IMPROVE ECOLOGICAL SITUATION AND HELP DEVELOP THE NATIONAL PETROCHEMISTRY – A HIGH VALUE ADDED SECTOR SIBUR Holding Projects on Petrochemical Operations Development • SIBUR Holding has worked out a program on the development of petrochemical operations, which aims to enhance the processing of domestic hydrocarbon feedstock.Execution of this program will help increase the share of high-technology operations in the GDP, which is a strategically important issue, and decrease dependency on import • Successful execution of this program is deemed impossible without expansion of own feedstock base – production of liquefied petroleum gases (LPG) from APG processing products. Virtually all LPG produced from additional volumes of processed APG will go into new SIBUR Holding petrochemical projects Additional LPG demand will approximate 1.5 mlnt/year

10. GOVERNMENT CAN OFFER SUBSTANTIAL SUPPORT TO GAS PROCESSING AND GAS & CHEMICAL PROJECTS Tools of Support Investment Fund of the Russian Federation • Attracting Investment Fund means (cheaper than commercial credit funds) for joint financing of projects on construction of capital intensive infrastructure for APG production and transportation of gas processing products Special Economic Zones • Establishment and development of high-technology refineries and petrochemical operations in special economic zones (SIBUR Holding - the first enterprise registered in a special economic zone that was established on base of Tomskneftekhim LLC).Moreover, the Company’s participation in establishing and operating industrial SEZs at other RF regions is under consideration at the moment Tax benefits, reimbursement of costs and other types of government support • Consider tax benefits and reimbursement of costs related to strategic projects on APG processing and development of oil refining and gas processing

11. THE GOVERNMENT SHOULD EMPLOY AN ARRAY OF MEASURES TO HELP ENHANCE THE EFFECTIVENESS OF GAS PROCESSING AND GAS & CHEMICAL PRODUCTION • Possible lines of national policy in the field of APG utilization: • State-regulated APG use aims to: • Ensure a maximal volume and extent of APG processing; • Decrease environmental impact to the minimum; • Create favorable conditions for APG processing to obtain petrochemical feedstock; • Assist in the development of Russian gas and petrochemical sector to create new jobs, improve export ratio by decreasing feedstock share and increasing the share of downstream value-added products • Inducing enhancement of industrial and environmental safety during production, processing and transportation of APG • Creating economic conditions and legislative basis for the development of APG processing and transportation facilities The government is required to create favorable and sufficient conditions (legal, economic, and financial) on the federal and regional level to accelerate development of gas processing and gas & chemical sectors • Federal level: • Regional level: • Developing and implementing national policy in the field of APG utilization • Executing the RF policy in the field of APG utilization at a corresponding region