R.S.Yarullin JSC « Tatneftekhiminvest-Holding »

1. «ABOUT THE STATE AND DEVELOPMENT PROSPECTS OF GAS AND PETROCHEMICAL COMPLEX OF THE REPUBLIC OF TATARSTAN» R.S.Yarullin JSC «Tatneftekhiminvest-Holding»

2. Petrochemical clusters of Russian Federation. Project of the development of Russian gas- and petrochemical industry to 2030 year. North-West Volga region Caspian West-Siberian Gas and oil refinery centers Base Monomers Production – 1st Stage (to 2020 year) East-Siberian Far Eastern Base Monomers Production – 2ndStage (from 2020 year) • Petrochemical clusters will provide: • Minimization of the logistic costs • Maximal profits on size effect • Cooperation of industrial centers from oil refinery to final products production Production of final petrochemical products Local products pipelines network Possible routes of the mainproduct lines

3. Economical clusters of the Republic of Tatarstan Petrochemicalcluster Machine-building cluster Electro-energeticcluster

4. Gas & Petrochemical Complex (GPCC)- priority of industrial policy of Tatarstan Oil extraction Oil refining Chemistry & petrochemistry + + GPCC ratio in the economy of RT 6,8% 33,5% 65% 92%

5. Main enterprises of Gas and Petrochemical Complex of the Republic of Tatarstan Nefis Cosmetics Tatneft-NK-oil Kazan fat plant Refinery (Taif-NK) Kazan Synthetic Rubber Plant Nizhnekamskneftekhim Karpov Chemical Plant Kazanorgsintez MendeleevskAzot NizhnekamskShina Quart NizhnekamskTechuglerod Khiton

6. Main natural resources of the Republic of Tatarstan Explored reserves of oil 6,57 billionbbl Oil production 233,6 mln. bbl/year Explored reserves of natural bitumen 18,25billion bbl

7. Volumes, growth rate of oil production in Tatarstan

8. Implemented investment Projects of GPCC of RT, within the Framework of the development Program

9. Application of Scientific Developments in the Enterprises of GPCC of RT

10. «TANEKO»: Construction of the Complex of Oil Refining and Petrochemical Plants Construction of New Complex consisting of Oil Refining and Petrochemical plants with the capacity of 7mln. tons/year (100% sour oil) with further development of petrochemical cluster on its base • Total cost -130,3 billion rub. • Contractor -JSC“KamaGlavStroi” • International Financial • Consultant of the Project- • BNP Paribas

11. Construction of EP-1000JSC «Nizhnekamskneftekhim» Greenfield Project of the first in Russian Federation Ethylene production Plant with the capacity of 1 mln.tons/year (EP – 1000), using the advanced technology

12. Integrated Complex «Аmmonia» (Mendeleevsk city) Initiator - CJSC «Tatgazinvest» Licensor - Haldor Topsoe Equipment Supply Contractor – Mitsubishi Heavy Industries Coordinator - Sojitz Corporation Investments – 973 million USD Payback period - 7 years 717 th.t 717 th.t PROJECT CAPACITY 380 th.t 230 th.t

13. Gas to Olefines complex UOP(Honeywell) company process Methanol-to-Olefines Natural Gas Ethylene Propylene Syngas MTO Methanol • Feedstock: Natural gas 2,6 billion.m3 • Production: Polyethylene400th. ton Polypropylene 700th. ton

14. Investment projects

15. Dynamics of production in gas and petrochemical complex of Tatarstan (forecast) Oil refining Chemistry and Petrochemistry Oil extraction

16. Innovative projects realization conditions Platform for innovative projects in the Republic of Tatarstan Low-capacity production Large-capacity production Innovative company creation SEZ «Alabuga» Technopolis «Himgrad» Technopark «IDEA»

17. Special economic industrial zone ALABUGA The “Alabuga” special economic zone is situated at the Kama industrial center with the population of 1 mln. people. Kamaz Naberezhnie Chelny Niznekamsk Niznekamskneftekhim Airport

18. SEZ “ALABUGA” Tax concessions for the participants Interest rate 20,0% 15,5% 2,2% 0% 1,5 % 0% 0 roubl. • Tax • Profit tax • For residents • 2. Land tax • For residents • 3. Property tax • For residents • 4. Motor vehicle tax • For residents Depends on the type and capacity of a vehicle

19. Residents of SEZ “Alabuga”: Projects in the field of GPCC Production of non-woven material-spunbond • capacity 10 th. t/year • commissioning in July 2009 • investments 30-50 mln.EURO • employees 68 . JVon the production of fibreglass • capacity 20,7 th. t/year • commissioning in November 2010 • investments 63,6 mln.EURO P-DTATNEFT –ALABUGA Fiberglass • capacity100 th. components of seats /year • commissioning July 2, 2009. • investments : SsangYong, UAZ PATRIOT, Fiat, KamAZ, ElAZ JVon the production of automobile seats DAEWON SOLLERS ELABUGA JV on the production of service gases • capacity 200 tliquid oxygen& liquid nitrogen/day • commissioning in 1–st half of 2011 • investments 35 mln.EURO

20. Volume of investments • Project Implementation period • Payback period • Volume of production • Tax proceeds • Number of employees • Number of residents 12,5 bill. roubles. 10 years 6-7 years 16 bill.roubl./year 3 bill.roubl./year 10 000 200 companies Khimgrad industrial park, Kazan city

21. Cluster scheme of perspective development directions of Gas & Petrochemical Complex of Tatarstan

22. Center of Nanoscale Technologies on the basis of JSC “Innovative technopark “IDEA” The Centre will provide services for the preparation of samples for research, carrying out of researches on the center’s equipment, prototyping, attracting of highly qualified personnel for researches, project management, evaluation and formalization of processes. Created in conjunction with GC «ROSNANO» Investments: 3,2 billonroubles • Center activities: • chemical and technological researches; • synthesis of nanomaterials • preparation of thin metal films; • construction of nanostructure; • synthesis of carbonic nanomaterials and its diagnostics; • creation and study organic solar cells; • production of membrane and electrode units of Fuel Cells.

23. Creation of scientific relations of GPCC of RT Leipzig Un. Ferrara Un. STC BASF Dresdener Un. Institute of Petrochemical Synthesis n.a. Topchiev Institute of physical& chemical researches n.a.Karpov BNII of Oil Refining Florida Un. Institute of Chemical Physics STC Basell Academy of Sciences of RT VNIIUS Moscow physical & technical Institute Moscow State University IOPC n.a. Arbuzov KSC RUN TatNIPIneft Institute of synthetic polymers n.a. Enikolopov Novosibirsk Institute Catalysis Kazan Technical University Kazan Technological University RCTU n.a. Mendeleev Institute of aerospace instrument making ТATARSTAN Moscow State Academy of fine chemical technology Soyuzkhim-promproject Kazan Federal University R&D Center n.a. Keldysh STCof enterprises of GPCC of RT SSTC of RT VNII of organic synthesis Institute of metallurgy & science of materials n.a. A.A. Baikov RAN STC LG Paris Un. Irkutsk Institute of Chemistry n.a. Favorsky Institute of high molecular compounds Institute of synthetic polymers n.a. Enikolopov STC Mitsui N.Karolina Un. Chemtura Corporation

24. The largest educational centers of the Republic of Tatarstan «Kazan (Volga region) Federal University» National research Universities: «Kazan State Technological University» Kazan State Technological University has signed memorandum of cooperation with the Russian Fund of Development in the creation of the Center for development and commercialization of new technologies (Fund “Skolkovo”). This opens new prospects for innovative development of the republic. «Kazan State Technical University»

25. JSC “Tatneftekhiminvest-holding” invites you to cooperation All information on production, investment and innovation potentials of gas and petrochemical sector is concentrated in JSC “Tatneftekhiminvest-holding”. Welcome to cooperation. Our contact information: Ershov st.,29, Kazan 420061, Tatarstan, RF Tel./fax: (843) 273-07-43, 272-73-27

26. СПАСИБО ЗА ВНИМАНИЕ THANK YOU FOR YOUR KIND ATTENTION THANK YOU FOR YOUR KIND ATTENTION!