Nord Stream – Current Status And Progress Achieved So Far

1. Nord Stream – Current Status And Progress Achieved So Far Russian Economic and Financial Forum in Switzerland Paul Corcoran, Financial Director, Nord Stream AG – Zurich, 17 March 2008

2. A NEW NATURAL GAS SUPPLY ROUTE FOR EUROPE • 1,220-kilometre-long offshore natural gas pipeline across the Baltic Sea • Two parallel pipelines with a total capacity of 55 bcm per year • Connecting Western European natural gas network with Russian gas reserves • From Germany, natural gas can be transported to Denmark, the UK, the Netherlands, Belgium, France and other countries

3. Domestic production Existing imports/agreements Additional gas import requirement Nord Stream SIGNIFICANT CONTRIBUTION TO SECURITY OF SUPPLY Additional gas imports needed 712bcm Import gap 230 bcm ~ 175 530 bcm 55 75% 59% Imports EU domestic gas production 2015 2005

4. THE NEW SHAREHOLDER STRUCTURE Advantages of the new structure • Operational and technical expertise of Gasunie in the construction and operation of pipelines • Strengthening of wider European character of Nord Stream 51% 51% 24,5% 20% 24,5% 20% - 9% Current Future 4

5. COMPLIANCE WITH INTERNATIONAL LEGAL FRAME • United Nations Convention on the Law of the Sea (freedom of the high seas includes freedom to lay submarine cables and pipelines) • Espoo Convention (international consultation process), Council Directive 97/11/EC of 3/3 1997 • European Directive on Environmental Impact Assessment • Cooperation with the Helsinki Commission – HELCOM

6. STATUS OF INTERNATIONAL CONSULTION PROCESS INVOLVING ALL BALTIC SEA STATES • Consultation process started in April 2006 • Formal inter-governmental Notification in November 2006 • Regular meetings within the Espoo framework • Updated status documentation delivered in October 2007 • Distribution of draft transboundary EIA report to involved country authorities in December 2007 • Final transboundary EIA report currently being finalised

7. NATIONAL APPROVAL PROCESSES • Nord Stream is subject to national legislation in each of the countries through which it passes: Finland, Sweden, Denmark and Germany (‘Parties of origin’) and Russia • Example of Sweden • Submission of application documents to Swedish government on 21 December 2007 • First official response of Swedish government on 12 February 2008 requesting additional information • Submission of applications in Russia, Denmark, Germany and Finland to follow

8. 220 bar 100 bar PIPELINE DESIGN • Two pipelines, almost in parallel, with an inner diameter of 1,153 mm, and a design pressure of up to 220 bar • Steel wall thickness in the range of 26.8 mm to 41.0 mm • Concrete coating with a thickness ranging between 60 mm and 110 mm to give added weight sufficient to stabilize the pipeline on the seabed • Midway service platform to facilitate pipeline maintenance and inspection by “intelligent pigging”

9. ECONOMIC IMPACT FOR EUROPEAN SUBCONTRACTORS • A great volume of business generated for various supplier companies all over Europe • All contractors selected on the basis of competitive tenders • Subcontractors for environmental studies and technical design • Environmental Impact Assessment (EIA) prepared by Rambøll, Denmark • Environmental studies carried out by Marin Mättinek (MMT), Sweden, and Institut für Angewandte Ökologie (IfAÖ), Germany • Technical engineering conducted by Snamprogetti, Italy 9

10. MAJOR SUPPLY CONTRACTS CONCLUDED • Conclusion of supply contracts and Letters of Intent important steps towards efficient and timely project implementation • Supply agreementsare concludedfor the first pipeline: one million tons of steel pipes are ordered • Europipe (Germany) to supply 75% – order value 1.2 bn EUR • OMK (Russia) to supply 25% – order value 0.4 bn EUR • Further tender will be issued for 2nd pipeline • Letter of intent has been signed with SAIPEM (Italy) for pipe-laying contract • Letter of Intent for logistics (concrete coating, pipe storage, transport) due to be signed with EUPEC in March • Locations: Mukran (D), Kotka, Hanko (FIN), Slite and Karlshamn (SW) • Order value ca. 650 mio EUR 10

11. STRUCTURE OF FINANCING • Financing structure • 30 per cent of project costs by equity contributions from shareholders • 70 per cent financed externally through limited recourse finance (lenders to be determined in the near future) • Financial advisors chosen • Société Générale • ABN Amro • Dresdner Kleinwort • Currently, framework of bank participation is being prepared • Support of export credit agencies also an option 11

12. TIMEFRAME MEETS EU’S NEEDS FOR GAS 1997-1999 2005-2006 2007-2008 2006-2009 2009-2010 2011 2011-2012 2012 Key issues in 2008 • Detailed technical planning for construction work • Completion of Environmental Impact Assessment • Finalization of contracts for key investments (pipes, logistics, pipe lay) • Determination of external project financing • Ongoing dialogue with authorities in the Baltic Sea region Commiss-ioning Line 1 Commiss-ioning Line 2 EIA & Approvals Feasibility Study Conceptual Design Detailed Design Laying Line 1 Laying Line 2 12

13. Contacts Nord Stream AG Grafenauweg 2 6304 Zug / Switzerland Phone: +41 (0) 41 766 91 91 www.nord-stream.com Paul Corcoran Financial Director paul.corcoran@nord-stream.com 13