Vladimir Yakunin President of Russian Railways

1. Railway Development As A Key Factor Of Tourism Market Growth Vladimir Yakunin President of Russian Railways Merano, Italy, 14 April 2011

2. Share of long-distance rail transport in total international passenger transportation and key factors for rail tourism growth Passenger transportation market in 2010 (number of passengers) International service Incl. CIS andthe Baltic States Annually, over 20 million passengers use the international rail service Incl.other countries • Key factors for rail tourism growth: • Greater speed • More affordable prices • Geographic accessibility of the service and infrastructure development • Development of sales channelsand greater customer awareness • Better quality and a wider range of services • Development of intermodal and passenger transportation • Enhanced service reliability and safety • Transfer to a visa-free regime 2 | Railway Development As A Key Factor Of Tourism Market Growth

3. Rail transport on the tourism market Advantages of rail tourism • choice of class and cost depending on the type of carriage and train category • high reliability, safety and environmental friendliness Opportunities for development of rail tourism • Russia’s huge tourism potential • transfer to a visa-free regime • Government interest in developing the recreational and tourism infrastructure • 2014 Olympics and the 2018 FIFA World Cup the largest European and the world’s second largest railway network connecting major tourist destinations and attractions traditional regular service (whatever the weather) high capacity high level of comfort 3 | Railway Development As A Key Factor Of Tourism Market Growth

4. Rapid and high-speed rail service • High-speed rail network today • High-speed • internal service: • St Petersburg – Moscow and St Petersburg– Nizhny Novgorod • international service: • St Petersburg – Helsinki • Up to20 high-speed trains every day,approx. 2 million passengers transported • Intermodal Aeroexpress service connecting the capital with Moscow airports –182 trains a day • 416 long-distance trains now have shorter turnaround times in Russia 4 | Railway Development As A Key Factor Of Tourism Market Growth

5. Development of high-speed rail servicein light of the 2018 Football Championship St Petersburg Yaroslavl Yekaterinburg N. Novgorod Moscow Kaliningrad Kazan Saransk Samara LEGEND existing express passenger rail service high-speed rail passenger service (300 – 400 km/h) being organised express passenger rail service (160 – 200 km/h) being organised improved speed passenger rail service (70 – 90 km/h) being organised city – airport intermodal passenger service planned city – airport intermodal passenger service 2 – 5 hour passenger rail service Population density in constituent entities of the Russian Federation: over 60 per sq. km between 30 and 60 per sq. km between 10 and 30 per sq. km less than 10 per sq. Km population of cities, millions 2018 World Cup host cities Volgograd Rostov-on-Don Krasnodar Sochi 5 | Railway Development As A Key Factor Of Tourism Market Growth

6. Development of the international passenger service • Russian Railways transports passengers to 20 countries of Europe and Asiaalong 54 international routes, to 11 CIS and Baltic states • 17 regular long-distance international trains and91 regular trains to CIScountries • In September 2010, a new Moscow – Nice –Moscow regular service was launched from Russia via Belarus, Poland, Czech Republic, Austria, Italy and France • High-speed St Petersburg – Helsinki service Allegro started. The train covers the same distance in 3.5 hours (compared to 5.5 hours previously) 6 | Railway Development As A Key Factor Of Tourism Market Growth

7. Modern intermodal transport & transfer hubs (TTH) Key advantages of intermodal TTH: • More comfort for passengers using different types of short and long distance transport, including commuter trains • Shorter change-over time between types of transport, resulting in a shorter time en route • Higher population mobility • More efficient transport services 7 | Railway Development As A Key Factor Of Tourism Market Growth

8. Transport hubs Tomsk Yurga Kemerovo Vladivostok MOSCOW NOVOSIBIRSK Omsk Kirov Chita Irkutsk Khabarovsk Yekaterinburg Novokuznetsk Barnaul • The choice of location for a transport hub is determined by the following factors: • geopolitical (for example, the centre of an economic region) • infrastructure in place • market size • New hubs will help increase the traffic volume by 30% -40%and improve the service 8 | Railway Development As A Key Factor Of Tourism Market Growth

9. New channels for passengers to buy tickets for international travel Second half of 2011: Ticket offices in Russia Internet-based for services to Finland, Italy and France Ticket offices in Eastern and Western Europe Internet-based for services to the CIS and the Baltic States E-registration of passengers for services to Latvia 9 | Railway Development As A Key Factor Of Tourism Market Growth No need to queueat self-service kiosks or ticket offices

10. Greater passenger awareness • We are working hard to improve passenger awareness of the Company’s services: • In August 2010, the Common Information and Service Centre was launched: 8 800 775 00 00 • Information about services and tariffs is regularly updated on the website: www.rzd.ru • The latest news and major events are brought to the public’s attention in the media • Advertising and information support is provided • Our cooperation with travel agencies plays a special role in promoting our services through introduction of rail travel in travel packages 10| Railway Development As A Key Factor Of Tourism Market Growth

11. Tariff streamlining • An integrated system of discounts for the Moscow – Nice service: • - Adult Single • - Adult Family • - Child (under 12 y.o.) • - Adult Senior • - AdultSenior-Single • - Student Junior (12y.o. – 26y.o.) • - Student Junior-Single • Group (for groups of 6 or more) • “Global prices” for the Venice and Parisservices • InSeptember 2011, asagreedwithFinnishRailways, weplantostartsellingticketsat “globalprices” onthethrough-servicewithFinland 11 | Railway Development As A Key Factor Of Tourism Market Growth

12. Higher service quality • For the first time, the ISO 9001:2008 quality management system according tothe MoodyInternational certification system has been introduced in the premium segment of the passenger service • Common highest service standards were introduced on 11 trains from Vladivostok (Okean deluxe train) to St Petersburg (KrasnayaStrela train); the service is being regularly improved • Two depots that meet the ISO 9001:2008 “Depot Service” requirements received international TÜVSUDcertificates • To improve the quality of catering services, new technologies are being introduced for long-distance trains (transfer to LongLifeFreshFood technology, which will help replace the full cooking cycle with cooking using pre-processed food in restaurant carriages) 12 | Railway Development As A Key Factor Of Tourism Market Growth

13. Rolling stock replacement • Long-distance: • Replacement of second-class sleeping carriages is a priority owing to the high demand for this service • 501 new passenger carriages purchased in 2010 • Approx. 500 carriages to be acquired in 2011 • 200 RICcarriagesto be produced in cooperation with Siemens for the first time in Russia and purchased by 2015 • In 2010, a contract for delivery of 50 double-decker carriagesin 2013. These will operate in a Moscow – Adler pilot. • Negotiations with Spanish Talgofor 7 train sets for the high speed Moscow – Berlin and Moscow – Kiev services 13| Railway Development As A Key Factor Of Tourism Market Growth

14. Thank you!