INVESTOR PRESENTATION 1H AND 2Q 201529 September 2015

2

DISCLAIMER

This presentation (hereinafter – the “Presentation”) of the Alliance Oil Company (hereinafter – the “AOC”) was prepared exclusively for the information purposes in order to improve the transparency of disclosure of relevant information and materials of AOC and establish a continuous dialogue with investors.

The data contained in this Presentation constitute the confidential information of the AOC group of companies and shall not be disclosed or transmitted to any third parties without the prior written consent of the disclosing party.

The information contained in this Presentation was prepared and provided by the AOC structural departments. These data can be changed with the course of time and are subject to regular update and amendment.

This presentation is not an offer or solicitation of an offer and does not cause creation of any rights or obligations from the AOC and/or potential partners to carry out transactions or to enter into negotiations on cooperation.

The information provided in this Presentation is not an offer or proposition to conclude an agreement.

AOC makes no warranty in respect of the accuracy or reliability of the information contained in the Presentation and accepts no liability for any losses suffered by third parties arising from inaccuracy or unreliability of such information as well as for other negative effects.

1H 2015 Market Environment

3

Indicator 1Н 2015average

1H 2014average

%

Urals, USD/bbl 56.73 106.56 -47%

Brent, USD/bbl 57.95 108.93 -47%

ESPO, USD/bbl 59.77 109.52 -45%

Exchange rate, RUB/USD 57.40 34.98 64%

Indicator 1H 2015average

1H 2014average

%

Naphta, USD/bbl 57.52 104.07 -45%

Diesel Fuel, USD/bbl 71.59 122.22 -41%

Fuel Oil, USD/bbl 51.12 90.34 -43%

1H 2015 results were negatively affected by weak ruble and low crude oil and oil products quotes

RUB/USD

Source: Platts Source: Platts Singapore20

30

40

50

60

70

80

30

40

50

60

70

80

90

100

110

120

Crude Oil Prices and Exchange Rate

Urals average Brent ESPO Kozmino Exchange rate

USD/bbl

30

40

50

60

70

80

90

100

110

120

130

1-Jan-14 1-Apr-14 1-Jul-14 1-Oct-14 1-Jan-15 1-Apr-15 1-Jul-15

Oil Products Price

Naphtha Diesel Fuel (Gasoil 500 ppm) Fuel Oil (HSFO 180)

USD/bbl

4

HIGHLIGHTS FOR 1H 2015 AND 2Q 2015

Indicator 1H 2015 1H 2014 2Q 2015 2Q 2014 Comments

Financial Results

Revenue, MUSD 1,118 1,747 621 886 Decrease due to RUB depreciation

EBITDA, MUSD 150 296 65 150Decrease due to loss-making upstream segment and RUB depreciation

Net Result, MUSD (16) 34 7 58Decrease due to higher MET and higher financial expenses

Operational Results

Production, mboe 9.8 10.3 5.0 5.3 Drilling and production plans amended for more sustainable oil fields development

Refining volumes, mbbl 15.4 15.4 7.5 7.4 Stable volumes

Throughput, mbbl 14.9 15.0 7.2 7.2 Stable volumes

5

1H 2015 STRATEGIC HIGHLIGHTS

Upstream Highlights• Introduced new complex technologies in order to increase current

production level, i.e. implemented horizontal drilling techniques inTatnefteotdacha and continued sidetracking activity in Pechoraneft

• Increased hydrocarbon production by 5% Q-o-Q due to newdevelopment programs and launch of 29 new wells during 1H 2015

Downstream Highlights• Increased light products production by 8% and gasoline production by

20% due to launch of hydro cracker unit in June 2014 and technology process optimization

• Entire produced diesel fuel brought in compliance with Euro 5 quality standard

Financial Highlights

• MUSD 350 Eurobonds partial repayment and prolongation till March 2019

• MRUB 13,500 short-term bank loans prolongation till September andOctober 2015

5

1Н 15 production:

2.7 mboe (27%)1

2Q 15 production:

1.4 mboe (27%)

Timano-Pechora

1H 15 production:

2.5 mboe (26%)2Q 15 production:

1.3 mboe (26%)

Tomsk

UPSTREAM OPERATIONS

Crude Oil and Gas Reserves and Production

6

1Н 15 production:

1.3 mboe2Q 15 production:

0.6 mboe

Khanty-Mansiysk and Yamalo-Nenetsk2

Notes: (1) Percentage in consolidated Alliance Oil Company production.(2) Through the Group’s operations with AROG (Alliance Repsol Oil & Gas), a joint venture with Repsol, which is accounted for under the equity method. (3) As per DeGolyer & MacNaughton as of 31 December 2014.

2P oil reserves: 614.4 mboe3

2P gas reserves: 47.5 mboe

1Н 15 production: 9.8 mboe (average daily: 54,243 boepd)2Q 15 production: 5.0 mboe (average daily: 55,182 boepd)

Alliance Oil Company, consolidated

1Н 15 production:

4.6 mboe (47%)2Q 15 production:

2.3 mboe (47%)

Volga-Urals and Kazakhstan

7

5,15,3 5,3

5,14,8

5,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

UPSTREAM OPERATIONS

Crude Oil and Gas Production

Hydrocarbon Production, mboe

+ 5%

56 129

58 098

57 210

55 726

53 295

55 182

50 000

52 000

54 000

56 000

58 000

60 000

1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

Hydrocarbon Production, boepd

Achieved growth Q-o-Q in all major fields

Implemented 111 well interventions, launched 29 new wells in 1H 2015

UPSTREAM OPERATIONS

Crude Oil Sales

Crude Oil Sales, mbbl

8

2,02,6

2,01,9

4,6 4,5

0,0

3,0

6,0

9,0

1H14 1H15

Export CIS Domestic Intra-group

8.8 9.0

0,9 1,2

1,11,2

2,3 2.0

0,0

2,0

4,0

6,0

2Q14 2Q15

Export CIS Domestic Intra-group

4.4 4.4

Preferential shipment to export due to higher margins

No shipments to CIS market due to weak demand

UPSTREAM OPERATIONS

Crude Netback Prices, USD/bbl

Notes: The netback prices are calculated by deducting VAT, railway and pipeline transportation costs (for Russian domestic sales) or transportation, export duty, brokers’ commission and certain other costs (for export sales) or transportation, brokers’ commission and certain other costs (for CIS countries sales) from the gross price.

Crude Oil Netbacks

58

55

8

19

25

49

51

35

50

49

28

36

0

20

40

60

80

2Q2014 3Q2014 4Q2014 1Q2015 2Q2015

Export CIS Domestic

9

55

22

49

33

0

20

40

60

1H2014 1H2015

Export Domestic

Decreased netbacks in all destinations due to lower prices for crude oil

Reduced export netbacks due to earlier prepaid shipments to offtakers at fixed FX while RUB depreciated significantly since 4Q 2014

Notes: The net prices are calculated by deducting VAT (for Russian domestic sales). 10

UPSTREAM OPERATIONS

Gas Sales and Price

Gas and Gas Liquids Sales, kboe Gas and Gas Liquids Prices, USD/boe

1 2531 121

239 189

0

400

800

1 200

1 600

1H 2014 1H 2015

680

562

120 94

0

200

400

600

800

2Q 2014 2Q 2015

Sold volume of Gas, kboe Sold volume of Gas Liquids, kboe

12,5 11,89,2 7,1 8,4

43,549,0

37,6

27,6 28,5

0,0

20,0

40,0

60,0

2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

12,57,7

44,8

28,0

0,0

20,0

40,0

60,0

1H 2014 1H 2015

Gas, net price, USD/boe Gas Liquids, net price, USD/boe

Decreased sales volumes due to revised field development scheme

Gas and gas liquids economics negatively affected by increase in RUB/USD exchange rate

UPSTREAM OPERATIONS

Crude Oil and Gas Sales

Revenue from Sales of Crude Oil, Gas and Gas Liquids, MUSD

11

6136

73

52

117

81

0

100

200

300

2Q14 2Q15

Export CIS Domestic Intra-group

256

169

12269

132

83

231

152

0

200

400

600

1H14 1H15

Export CIS Domestic Intra-group

498

304

Two main factors contributed to the decrease in revenue from sales of crude oil: decreased netbacks in all destinations due to lower prices for crude oil and reduced export revenues due to earlier prepaid shipments to offtakers at fixed FX rate while RUB depreciated significantly since 4Q 2014

Retail gas stations:

13

The Republic of BuryatiaRefining volumes:1Н 15: 85,069 bopd (1Н 14: 85,303 bopd)2Q 15: 82,821 bopd (2Q 14: 81,617 bopd)

Throughput:1H 15: 14.9 mbbl (1H 14: 15.0 mbbl)2Q 15: 7.2 mbbl (2Q 14: 7.2 mbbl)

Khabarovsk Oil Refinery

DOWNSTREAM OPERATIONS

Assets and Refining volumes

12

Retail gas stations: 18Marine terminals: 2Jet fuel depot: 1

Kamchatka region

Retail gas stations: 280Oil depots: 20Marine terminals: 4Jet fuel depot: 1Railway tankers: 1,440

TOTAL

Retail gas stations: 249Oil depots: 20Marine terminals: 2Railway tankers: 1,440

Far East: Amur, Primorand Khabarovsk regions

DOWNSTREAM OPERATIONS

Khabarovsk Oil Refinery Khabarovsk Oil Refinery connection to ESPO

Oil Products Breakdown in 1H 2015, %

Pumping station No34 (pipeline tie-in point)

On 1 September the Group commenced commercialdelivery of crude oil through the newly launchedconnection to ESPO. It will minimize transportationcosts by approx. RUB 1 bln per month provided fulllaunch of the line.

ESPO-I (length 2,694 km)

ESPO-II (length 2,046 km)

ESPO leg (length 28 km)

Refining volumes, bopd

Refining throughput, mbbl

Light oil products yield,%

13

7,24

7,24

14,98

14,89

2Q 2014

2Q 2015

1H 2014

1H 2015

81 617

82 821

85 303

85 069

2Q 2014

2Q 2015

1H 2014

1H 2015

57,5%

61,0%

57,2%

61,9%

2Q 2014

2Q 2015

1H 2014

1H 2015

35%

18%21%

19%

7%Fuel oil

Marine fuel

Gasoline

Diesel fuel

Others

DOWNSTREAM OPERATIONS

Oil Products Sales

14

1,1 1,3

2,7 2,7

2,32,7

1,31,3

0,0

3,0

6,0

9,0

2Q14 2Q15

Export Bunkering Wholesale Retail

7.48.0

Oil Products Sales, mbbl

3,14,2

5,1 3,8

4,6 5,2

2,52.7

0,0

5,0

10,0

15,0

20,0

1H14 1H15

Export Bunkering Wholesale Retail

15.3 15.9

Reallocation of shipments from bunkering to export in Q1 2015 (effect of decrease in export duty due to tax maneuver and decrease in crude oil price) while flat bunkering volumes in Q2 2015 (due to further increase in crude oil price)

Increased wholesale and retail volumes due to increased share of light products in Khabarovsk Oil Refinery production

15

DOWNSTREAM OPERATIONS

Oil Products Prices

Oil Products Net Prices, USD/bbl

81

71

41

43

5376

73

55

38 41

111 112

82

58

78

137 136

103

85

103

0

50

100

150

2Q14 3Q14 4Q14 1Q15 2Q15

Export Bunkering Wholesale Retail

76

46

40

106

68

136

94

0

50

100

150

1H14 1H15

Export Bunkering Wholesale Retail

Net USD prices decreased primarily due to RUB depreciation for domestic sales (average RUB/USD exchange rate increased Q-o-Q by 50% and H-o-H by 64%) and decrease in quotes for export and bunkering sales

DOWNSTREAM OPERATIONS

Oil Products Sales

Revenue from sales of oil products, MUSD

16

92 70

203

109

259

212

177

133

0

200

400

600

800

2Q14 2Q15

Export Bunkering Wholesale Retail

731

237 195

388

151

482

357

343

247

0

500

1 000

1 500

1H14 1H15

Export Bunkering Wholesale Retail

1,451

950524

Despite increased volumes and increased RUB-nominated prices in the domestic market, total amount of revenue nominated in USD decreased due to dramatic increase in RUB/USD exchange rate

FINANCIALS

17

1H 2014 1H 2015 2Q 2014 2Q 2015

RUB/USD exchange rate, average 34.98 57.40 35.00 52.65

Urals, average 106.56 56.73 107.17 61.09

Revenue 1,747 1,118 886 621

Operating income 145 56 69 16

EBITDA 296 150 150 65

EBITDA Margin 17% 13% 17% 10%

FХ gain/(loss) -13 22 47 41

Profit/(Loss) for the period 34 -16 58 7

Total assets 5,866 3,651 5,866 3,651

Cash and cash equivalents 197 223 197 223

Total debt 2,344 2,181 2,344 2,181

Total cash from operating activities 348 66 -13 53

Total cash used for investments -331 -103 -77 -58

Total cash used in financing activities -100 -59 -131 -2

Profit or loss,

MUSD

Financial position,

MUSD

Cash flows, MUSD

Macro

Revenue Breakdown, MUSD

FINANCIALS

Segment Performance

Notes: Segment revenue is based on total sold volumes including external and intra-group. Segment revenue excludes other income. 18

498 304

1,451

950

0

500

1 000

1 500

2 000

1H14 1H15

Upstream Downstream

Upstream segment revenue decreased primarily due to decreased netbacks in all destinations and reduced export revenues due to earlier prepaid shipments to offtakers at fixed FX rate. In addition, RUB depreciation negatively affected upstream revenue

Downstream segment revenue decreased primarily due to RUB depreciation

256 169

731

524

0

200

400

600

800

1 000

2Q14 2Q15

Upstream Downstream

FINANCIALS

Segment Performance

EBITDA Distribution, MUSD

Notes: EBITDA for Upstream and Downstream segments is based on IFRS financial information. Segment EBITDA is based on total sold volumes including external and intra-group. 19

EBITDA, USD/bbl

243

111 129

68

112

77 64

15

0

100

200

300

1H14 1H15 2Q14 2Q15

Upstream Downstream

23,6

10,8

24,7

13,4

7,35

4,88

8,69

1,82

0

10

20

30

1H14 1H15 2Q14 2Q15

Upstream Downstream

Upstream segment EBITDA decreased due to: - decreased netbacks in all destinations - reduced export revenues due to earlier prepaid shipments to offtakers at fixed FX rate - higher MET as a result of increased RUB/USD exchange rate - RUB depreciation

Downstream segment EBITDA decreased due to:- RUB depreciation - higher crude oil component in the cost of oil products

FINANCIALS

Upstream Economics

20

Notes: (1) Based on total upstream sold volume including external and intra-group; (2) Selling, administrative and other income/expenses, include transportation tariffs and other selling expenses, administrative expenses and other operating income/expense.

Crude Oil Economics, USD/bbl1 1H 2014 1H 2015 2Q 2014 2Q 2015

Revenue 53.66 32.25 54.57 36.47

Production Costs 7.77 5.58 7.85 6.39

Production and Other Taxes 14.68 11.58 14.68 13.01

SG&A and Other2 5.79 3.70 5.14 2.61

EBITDA 25.41 11.39 26.90 14.46

Gas and Gas Liquids Economics, USD/boe

1H 2014 1H 2015 2Q 2014 2Q 2015

Revenue 17.70 10.68 17.15 11.24

Production Costs 1.83 1.36 2.13 1.54

Production and Other Taxes 2.54 2.63 2.08 2.88

SG&A and Other 0.51 0.03 0.32 0.07

EBITDA 12.82 6.65 12.62 6.76

Crude oil economics negatively affected by:- decreased netbacks in all destinations - reduced export revenues due to earlier prepaid shipments to offtakers at fixed FX rate - higher MET as a result of increased RUB/USD exchange rate - RUB depreciation

Gas and gas liquids economics negatively affected by increase in RUB/USD exchange rate

FINANCIALS

Downstream Economics

Notes: (1) Based on total downstream sold volume including external and intra-group; (2) Selling, administrative and other income/expenses, include transportation tariffs and other selling expenses, administrative expenses and other operating income/expense.

21

Downstream Economics, USD/bbl1 1H 2014 1H 2015 2Q 2014 2Q 2015

Revenue 94.86 59.77 98.49 65.46

Refining 4.27 3.35 4.72 3.54

Crude Oil Transportation 16.79 9.97 16.62 11.11

Cost of Crude Oil 44.96 29.35 45.99 36.06

Excise and Other Taxes 5.09 3.31 6.16 3.67

Oil Products Purchased for Resale 7.23 3.95 7.18 3.68

SG&A and Other2 9.17 4.96 9.13 5.58

EBITDA 7.35 4.88 8.69 1.82

Downstream economics negatively affected by:- RUB depreciation - higher crude oil component in the cost of oil products

FINANCIALS

Debt Portfolio

Debt Maturity Profile1, MUSD

Cash on balance MUSD 223

Notes: (1) Future cash flows for the repayment of loan principal. (2) Including interest accrued and net of unamortized issue costs.

Total Debt by currency as of 30 June 2015, MUSD2

22

Total debt of MUSD 2,1812

Net debt of MUSD 1,958

595

280 304

1 047

477

106

608

991

0

200

400

600

800

1000

1200

Within one year Within second year Within years three andfour

Five years and more

As of 31 December 2014

As of 30 June 2015

MUSD 350 Eurobonds

MUSD 500 Eurobonds

350 299

500 500

68631%

69332%

80137%

RUB bonds and bank loans

USD bank loans

USD Eurobonds

Leverage dynamics

Net debt to EBITDA of 3.59: - no breach of covenants - restriction on additional loans and

borrowing

804%

2 10196%

Secured debt

Unsecured debt

2 242 2 344

2 530

2 229 2 151 2 181

1 836

2 148

1 919 1 912 1 935 1 958

2,69

3,25

2,612,87 3,14

3,59

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2 600

2 800

1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015

Total debt, MUSD Net debt, MUSD Net debt/EBITDA