By Alexander V. Berezikov Member of the Advisory Board , Deputy Chairman of the Expert Council

1. RUSSIAN GAS SOCIETY The Eurasian Unified Energy Market Generating: Cooperation & Regulation Problematic AspectsReported at the 3rd Russian Indian Forum for Trade & Investments(Moscow, September, 29th, 2009) By Alexander V. Berezikov Member of the Advisory Board, Deputy Chairman of the Expert Council

2. EurasianEnergySectorin the Post-Crisis Period • Globalization process of the energy market is going further on. Cross-dependence of the energy producing, transiting and consuming countries; • Geography of oil & gas production fields is changing. «Light oil & gas» epoch is coming to the end; • Imbalance of the globe energy infrastructure is increasing:the major resource fields are located far from the main consumption centers. 90% of the world GDP is produced in the countries importing the energy resources. That arises a hot issue of supporting the global energy safety; • Increasing of natural, technological disasters and system failures including those due to the «human factor», infrastructure depreciation, terrorism and sabotage; • Negative affecting of fuel and energy economic sector in continuing; • Considerable scale of the energy poverty is still remain: 2 billion of the planet population cannot afford to make use of the energy services on acceptable terms.

3. Eurasian Energy Utilization Russia Europe India BP Statistical Review of World Energy 2008 • The European countries and China show the major energy resources demand 29% and 26% respectively; • The Eurasian countries shows an 85% growth of the world fuel and energy resources growth, including Chinaof 50% and Indiaof 7,1% (2000-2007)

4. Energy Production and Stocks 5% 8% 5% 31% 81% 51% 243,3 186,7 162,9 303,9 491,3 354,7 1201,9 651,0 BP Statistical Review of World Energy 2008

5. Eurasian Oil Trade Mio t World Oil Outlook 2008 The major trade volumes of the energy resources are based on the interregional trade between the East, South, South-East Asian countries and the Middle East countries (oil and LNG) and Australia (coal), and oil and gas deliveries from Russia to Europe.

6. Key Issues of the Security of Energy support in Eurasia • In a long- and mid-term prospective period China and India will dominate in a regional energy demand structure. Such demand will provide 30% demand of the Eurasian demand; • Energy resources providing of the largest Eurasian economics has becoming a fundamental basis of their national energy security; • India and China shall be involved in establishing of the new World Energy Regulations; • Geographical supply and demand imbalance requires and intensive inter-regional oil & gas trade; • Energy transport infrastructure disunity prevents the closer inter-regional energy integration, as well as available inter-state contradictions; • Trend to GHG emission reduction may radically affect the fuel & energybalance of the countries of a region where coal utilization prevails.

7. Unified Gas Supply System of Russia – Crossing Eurasia UGSS includes 155 000 km gas mains and branch pipelines, 268 compressor stations and gas-pumping units with a total power of 44.8 mln kW of gas pumping units, 6 gas processing and gas condensate complexes, 24 UGS facilities.

8. Russian Eastern Gas Program • The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator; • The resources of the Krasnoyarsk, Irkutsk, Sakhalin and Yakutia gas production centers will play the key role in the developing of the Program.

9. Cooperation with India • On October 3, 2000 Gazprom and GAIL entered into the Production Sharing Agreement on Block 26 in the Bengal Bay with the Government of the Republic of India The Agreement stipulates hydrocarbon prospecting, exploration, production and marketing; • The aggregate reserves are estimated at 375 million tons of fuel equivalent.

10. Eurasian Energy Forum • The Eurasian Energy Forum (EEF) is a voluntary union of energy companies and non-commercial organizations involved in the unified energy production/ supply/ utilization network; • The EEF concept was discussed by the representatives of the largest energy companies at the Working Meeting in Moscow in July,1st, 2009. This Meeting was arranged by the Russian Gas Society.30 largest energy companies of Austria, Belorussia, Great Britain, Hungary, Germany, Holland, Italy, South Korea, Norway, Poland, Russia, Ukraine, Finland, France, Japan, and the officers of Azerbaijan, Kazakhstan and South Korea Embassies participated in this Meeting; • Decisions on forming an International Working Group to convoke the 1st Eurasian Energy Forum and establishing the EEF were taken at the Working Meeting. It is scheduled for December, 2009, in Moscow; • Such decisions were initiated by the Russian Gas Society, uniting more than 130 Russian and foreign members; • The EEF elaborates and presents expert recommendations to the legislative and executive bodies of those countries which are represented at the Forum. Such recommendations have respect to the major security issues and the Eurasian energy developing, i.e.: • New international energy regulations concept; • Preventing and conflict settlement mechanism in a network of producing – transitting – utilizing companies; • Common investment access principles in respect of production/ transit and energy resources allocation projects; • International energy balance and approved transport infrastructure developing to form; • Technical standards and regulations on ecology, safety and labour protection; • Alternative energy developing and energy saving technologies developing;