Robust performer in times of market turmoil

Gazprom Investor Day

February 2009

1

Disclaimer

1

This presentation has been prepared by OJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. The information in this presentation should not be treated as giving investment advice. Care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable. However, the contents of this presentation have not been verified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of the Company or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

The information in this presentation includes forward-looking statements. These forward-looking statements include all matters that are not historical facts, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, including, without limitation, the risks and uncertainties to be set forth in the prospectus, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods.

The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. No person is under any obligation to update or keep current the information contained herein.

By attending the presentation you agree to be bound by the foregoing limitations.

2

Today’s Speakers

Corporate and Financial Overview Andrey KruglovDeputy Chairman of Gazprom Management CommitteeHead of the Department for Finance and Economics

Strategy

Global Energy Markets

Ukraine Dispute

Vlada RusakovaMember of Gazprom Management CommitteeHead of Strategic Development Department

Alexander MedvedevDeputy Chairman of Gazprom Management CommitteeDirector General of Gazprom Export

Sergey KupriyanovPress Secretary of Chairman of Gazprom Management Committee

Part 1. Strategy

Vlada Rusakova

Member of Gazprom Management Committee Head of Strategic Development Department

4

0

20

40

60

80

100

120

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

4

Price Conditions Included in Long-Term Strategy

Source: CERA, Company data.

Brent(US$)

Nominal oil prices

Actual oil pricesOptimistic forecast zone

Forecast zone for long-term planning

$ 80

$ 60

$ 45

$ 45.5 (mean value of actual oil prices)

Gazprom’s long-term strategy is based on conservative price scenarios

$ 35

55

Global Energy Consumption

Source: BP Statistical Review of World Energy June 2008.

Economic cycle influences short-term growth rate of global energy consumption

Declines in economic activity do not influence long-term tendencies of energy consumption growth

(2)

0

2

4

6

8

10

1975 1979 1983 1987 1991 1995 1999 2003 2007

Energy Consumption Rate Gas Consumption RateGDP Growth Rate

(%)

0

2 000

4 000

6 000

8 000

10 000

12 000

1975 1979 1983 1987 1991 1995 1999 2003 2007

Energy Consumption Gas Consumption

(mln toe)

Rate of Energy Consumption and GDP Growth Global Energy Consumption

Global energy consumption grows at a stable rate in the long-term

6

Gas

Other

Nuclear

Hydro

Oil

Coal

Coal

OilHydro

NuclearOther

Gas

6

Projections of Global Energy Demand

Volumes of Global Energy Consumption

Global gas demand will continue to growStructure of Energy Consumption

Gas competitive advantagesLarge reserves baseDeveloped infrastructureEnvironmentally clean type of fuel

Energy demand Changes in energy demand

Factors taken into account in short-term planning

Factors taken into account in long-term planning

2007 2030E

Population increase, global economy growth

Energy efficiency and energy saving

2007

2030E

21%

22%-25%

7

New Markets 7 %

Domestic Market 49 %

European Market 29 %

CIS and Baltic States Market

15 %

Target Markets 2020

Gazprom’s guaranteed contracts and agreements underpin a significant part of future gas demand

15%

8 %

68%

New volumesContracted volumes and existing agreements

88

Specifics of Gas Industry

Gas business is characterised by

Long life span of production capacities

High capital coefficient

Slow response of production processes

Consumer contracts ~ 25 – 30 years

Field development period ~ 30 years

Life time of gas transportation facilities ~ 50 years

Long-term planning – necessity of gas business

99Notes:(1) STI – strategic target indicators.

Planning Process in Gazprom

Strategic planning

Short-term planning

Medium-term planning

Investment Program and Budget for

1 YEAR

BUDGETFOR 3 YEARS

STI (1) OF FIRSTLEVEL

DEVELOPMENT PROGRAM OF GAZPROM

STI OF SECOND LEVEL

INVESTMENT PROGRAMFOR 3 YEARS

BUDGETFOR 1 YEAR

INVESTMENT PROGRAMFOR 1 YEAR

List of priorityprojects

Indices of the Program

MONITORING AND CONTROLLING (INDICES, STI, KPI)

Factindices/KPI

Factindices/KPI

Feedback

KPI

Current planning to meet long-term goals

Investment Program and Budget for

3 YEARS

Program for10 YEARS development

Development Strategy for 25 YEARS

10

60

40

Gazprom – leader in global gas business

C3+D165.8

C220.4

A+B+C147.7

Accumulated Production

14.7

Largest Gas Supply System in the World

Gas Business: Main Factors of Success

Gazprom’s Reserves – 30 tcm(1), (2)

Total Russian Resources(1)

17

83

World Russia

Total: 249 tcm

Note:(1) Source: company data, 2007(2) АВС 1, excluding new licences.

11

Expected Gas Production and Capital Expenditure Programs

0

100

200

300

400

500

600

700

2008 2015E 2020E

Currently Existing Projects New in Nadym-Pur-Taz Region

Shelf Yamal Peninsula

Gas Production

≥ 620 bcm

0

100

200

300

400

500

600

700

800

2006-2010E 2011-2015E 2016-2020E

Exploration Production Transportation Processing Other

Capital Expenditure (Annual Average)

(bcm) (Bn RR p.a.)

Gazprom continues investing in business development

12

80

130

180

230

280

330

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E0

20

40

60

80

100

120

140

Oil Prices vs. Upstream Capital Costs Indices

Source: CERA, Gazprom.

100

Significant correlation between oil prices and capital costs means a reduction in CAPEX as a result of falling oil prices

Market terms for CAPEX reduction

Upstream Capital Costs Index (left axis) Oil Price, $/bbl (right axis)

($/bbl)(Index)

13

Major existing pipelinesFields

Yamal-Europe pipeline (Torzhok-Germany section)SRTO-Torzhok pipelineExpansion of gas transportation system in the Urengoi regionKasimovskoye UGSF-CS Voskresensk pipelineCS Sokhranovka-CS Oktyabrskaya pipelinePochinki-Izobilnoye pipeline (Petrovsk-Frolovo-Izobilnoyesection)Gryazovets-Vyborg pipelineNord Stream projectSouth Stream projectMurmansk-Volkhov pipelineCaspian Costal pipelinePochinki-Gryazovets pipelineBovanenkovo-Ukhta-Torzhok pipeline

Major Projects Development

Transportation:SRTO – Torzhok(CS(1) at Ukhta-Gryazovets section)

SRTO-Ural(CS at Right Khetta-Tayozhnayasection)

Pochinki-GryazovetsNord StreamYamal-Center(Bovanenkovo-Ukhta and Ukhta-Gryazovets sections)

Murmansk-Volkhov

Production:Zapolyarnoye field (Valanginian deposits)

Bovanenkovskoe field (Senoman-Aptian deposits)

Urengoiskoye field(Achimovsk formation)

Shtokmanovskoye field

Severo-Kamennomisskoyefield

Priority ProjectsPriority Projects

Notes:(1) Compressor Stations.

14

IGP IGP

0

100

200

300

400

500

600

2000 2003 2007

Gazprom IGP

14

Independent Gas Producers (IGP)

Russian gas industry development program till year 2030 prioritisesfields development

(bcm)

Gas Resources in Russia (2007)

Gas Production in Russia

Gas Consumption in Russia

(bcm)

0

150

300

450

2008E 2020E

IGP IGP

Increase of Independent Producers’ Market Share

2008E 2020E

63%

IGP

21%

Source: Company data.

20-30%19.6%

State UndistributedFund

16%

15

Current Gazprom Group Structure

Notes:* Under construction.

Improved management and transparency

GAZPROM

PRODUCTION

TRANSPORTATION

STORAGE

PROCESSING

SALES

TRANSITION FROM THE STRUCTURE BASED ON TERRITORIAL PRINCIPLE TO BUSINESS ORIENTED

DIVERSIFICATION

Production, transportation,

processing, storage

Production

Distribution

Production, transportation,

storage

GAZPROM

GAS BUSINESS

GAZPROM ENERGETICA *

GAZPROMNEFT

16

9.5%

Oil Business Development

Gazprom Neft – high business efficiencyOil Production(1) Refining(1) Gazprom Neft Share in Total

Gazprom Production(2)

(mln t per year) (mln t per year)

Financial Results

Return on Average Capital Employed (ROACE) – 35% (FY2007)

EBITDA per Barrel – 32,2 USD / bbl (9m 2008)

Reserves Replacement Ratio - 247% (FY2007)Active development of both Gazprom and Gazprom Neft oil reserves

Investment program for oil business development is covered by cash flow of Gazprom Neft

Upstream and Downstream JVs with domestic and international majors

15%

2007

2020E

50 55

1622916

46,3

0

20

40

60

80

100

2008 2015E 2020ENew FieldsGazprom's Oil FieldsGazprom Neft's Oil Fields

28 31 40

17

36

0

20

40

60

80

100

2008 2015E 2020ERussia Abroad

46

7593

2848

76

Notes:(1) Including Gazprom Neft share in equity investees (2) Combined crude oil, natural gas, gas condensate

17

1 3501 605

1 001

0

600

1 200

1 800

2007 2015E 2020E

Power Generation Sector

Generation Capacity Under Control

12,7

35,4

44,2

0

10

20

30

40

50

Major Rational for Entering Energy Business

Additional value created

Further vertical integration

Attractive levels of margin in the sector

Revenue stabilisation

Entering into related businesses

Diversification of product base

Significant sector upside

Liberalisation of electricity market

Guaranteed and growing demand for electricity

(1)(GW)

Notes:(1) OGK-2, OGK-6, Mosenergo, TGK-1.

Electricity Demand

(Bn kilowatt-hour)

(1)

2007 2008E 2014E-2020E

Expected efficiency growth

18

82%

4%14%

Expected segmentation of group’s net income by 2020

Gas Business – the Number One Priority for Gazprom

2020

Oil PowerGas

Part 2. Global Energy Markets

Alexander Medvedev

Deputy Chairman of the Management Committee of Gazprom, General Director of Gazprom Export

20

International Growth Strategy

Expand export markets’ share, build strong positions in all energy markets

Securing Export Revenues

Securing Export Revenues

Improving Reliability andFlexibility of Gas

Supplies

Improving Reliability andFlexibility of Gas

Supplies

Developing International Upstream Business

Developing International Upstream Business

European MarketEuropean Market

FSU MarketFSU Market

Market and Product Diversification

Market and Product Diversification

• Nord Stream• South Stream• Prikaspiysky pipeline• UGSFs

Sustaining Market Share• Long-term contracts with take-or-pay

obligations as a base • New opportunities in liberalised market

(gas trading, portfolio optimisation)Transition to Market Principles• Market pricing• Access to end-customers• Minimisation of transit risks

• Vertically Integrated Oil Business (Gazprom Neft & NIS) • LNG • Electricity sales• Carbon trade

• Latin America• Africa • Asia

21

156

162

169 170179

280

409

269262192

145

150

155

160

165

170

2005 2006 2007 2008E 2009E

(bcm)

0

100

200

300

400

500

US$/mcm

Volume Average European Price

Europe: Traditional Key Market

Gazprom Other Suppliers

Strong position in the European marketGazprom Group European Sales Prices and

Volumes (1)

0100200300400500600700

2005 2010E 2020E

Local Production Net Import

European Market (2)

bcm p.a.

Gazprom Gas in European Consumption (3)

2007 2020E

Austria 2027

Croatia 2010

Italy 2020

Long-term oil-indexed take-or-pay contracts

Gas supply contracts signed and extended during the last 2 years

Stable Revenue Source

Romania 2030

Slovakia 2028

Slovenia 2017

26% 35%

(1) Source: Factual data – company Annual report, Forecasts – management estimates.(2) Source: International Energy Agency, October 2008.(3) Source: Cedigaz and company forecast. Includes only exported volumes.

22

FSU: Transition to Market Principles

Major Cooperation Projects in Central Asia

Market adjustment to European prices

Gazprom Group FSU Sales Prices and Volumes (1)

(US$/mcm)(bcm)

101

77

10188

7511189

61

159

198

0

20

40

60

80

100

120

140

2005 2006 2007 2008E 2009E0

50

100

150

200

250

Volume Average FSU Price

Negotiated formula-based pricing in sales and purchase contracts with all FSU countries

Gradual transition to parity with European net-back sales prices by 2011 (already accomplished in trade with Baltic states)

Transit agreements based on market principles

Payment discipline reinforced with Ukraine in the new 10-year SPA agreement

Topical Issues

Narrowing the Gap between European and FSU Prices

Gas purchases from Turkmenistan: could reach 70-80 bcm annually from 2009 to 2028

Long-term gas purchases from Uzbekistan from 2003 to 2012, could reach 30bcm from 2010

Cooperation in modernisation of gas transport capacity “Central Asia – Centre” pipeline

Agreement for processing and marketing of Karachaganak gas from 2007 to 2022, volumes over 7bcm from 2009

0

20

40

60

80

100

2007 2008E 2009E 2010E 2011E

%

Average European Price Average FSU Price

(1) Source: Factual data – company Annual report, Forecasts – management estimates.

23

functional1980601(2)10(4)Beltransgas

functional20070.871.2Haidachfunctional19931.04.8Rehdenfunctional20050.250.3Humbly Grove

(4)Bcm

on time2011>1600(5)>30(5)CCP(7)

~902(6)

1223

1213

1258(3)

1538(2)

Length, km

on timeon time

functional

functionalneeds upgr.

Status

201155Nord Stream201531-47(5)South Stream

200316Blue Stream

199933Yamal – Europe1967143(1)Ukraine

Start-up

Capacity, bcmaProjectOperational and prospective pipelines and

main UGSFs in Europe

Diversification of transportation routes and usage of underground gas storage facilities

Increasing Efficiency and Flexibility of Gas Deliveries

Operational pipelines

Prospective pipelines

E

Humbly Grove

Rehden

Haidach

Main underground gas storage facilities

(4) Capacity available to Gazprom.(5) Preliminary data. (6) Subsea part (estimates).(7) Caspian Costal Pipeline.

(1) Estimates of Ukrtransgas.(2) Longest transportation distance.(3) Belarus + Poland.

24

Increasing Efficiency and Flexibility of Gas Deliveries: Nord Stream

Notes:(1) Offshore section, two pipelines, preliminary estimates.

Guaranteed export gas supplies through diversification of the transportation routes

NORWAY

SWEDEN

DENMARK

GERMANYPOLAND

LITHUANIA

LATVIA

RUSSIA

ESTONIA

FINLAND VyborgBaltic Sea

North Sea

Nord Stream

Greifswald

Ownership Structure

2011 (first pipeline)Operational Start

55 bcmCapacity (two pipelines)

1,223kmLength

~ EUR 7.4 bln (1)Capital Investment

Tallinn

Helsinki

St. Peterburg

Novgorod

Goteborg

København

Stockholm

HamburgBremen

Aalborg

Esbjerg

Ringkøbing

BELARUS

Gasunie

E.ON 20%Gazprom 51%

BASF 20%

9%

25

Increasing Efficiency and Flexibility of Gas Deliveries: South Stream

end of 2014 - 2015Operational Start31 – 47 bcmCapacity

1300km to Austria, + 990km to GreeceLength

EUR 15-20 blnEstimated Capital Investmentend of 2014 - 2015Operational Start

31 – 47 bcmCapacity902kmLength

EUR 4 bln +Estimated Capital Investment

50%Eni S.p.A

50%Gazprom

Participants

Q.= 31 bcm/year

Russia

Onshore Part Offshore Part

Guaranteed export gas supplies through diversification of the transportation routes

GreeceHungary

Negotiations with Austria and Slovenia under way

SerbiaBulgariaIntergovernmental Agreements signed with

26

Market and Product Diversification

Power generation projects in Europe as added value to the long-term gas sales

Power trading operations in key European markets

Power generation projects in Europe as added value to the long-term gas sales

Power trading operations in key European markets

Gas supplies to end-users through Gazprom’s subsidiaries and affiliate companies in UK, France, Germany, Italy, Czech Republic, etc.

Other regions under considerations

Gas supplies to end-users through Gazprom’s subsidiaries and affiliate companies in UK, France, Germany, Italy, Czech Republic, etc.

Other regions under considerations

Liquefaction projects: Sakhalin-2 and Shtokman

Spot LNG operations

Building LNG portfolio from other projects

Liquefaction projects: Sakhalin-2 and Shtokman

Spot LNG operations

Building LNG portfolio from other projects

Gazprom trading companies registered in all European gas hubsCurrent spot trading activities in UK, France, Netherlands, Belgium Trade volume increase from 4 to 25 bcm in last 4 years

Gazprom trading companies registered in all European gas hubsCurrent spot trading activities in UK, France, Netherlands, Belgium Trade volume increase from 4 to 25 bcm in last 4 years

Worldwide activitiesCDM/JI projects origination and portfolio management

EUA/CER swap deals and sales in Europe

Worldwide activitiesCDM/JI projects origination and portfolio management

EUA/CER swap deals and sales in Europe

Power

Gas Trading

New Regions

LNG

CO2

NEW MARKETS and SEGMENTS to

INCREASE VALUE and DIVERSIFY RISKS

NEW MARKETS and SEGMENTS to

INCREASE VALUE and DIVERSIFY RISKS

Asia-PacificNew export markets for Russian pipeline gas and LNG

North AmericaDevelopment of gas M&T business including LNG operations support

Asia-PacificNew export markets for Russian pipeline gas and LNG

North AmericaDevelopment of gas M&T business including LNG operations support

Retail

27

Market and Product Diversification: LNG – Sakhalin-2 and Shtokman

Shtokman Project Sakhalin-2 Project

71.0(3)Gas production, bcm p.a.31.0(2)Gas condensate reserves, mln t

2013Start of pipeline deliveries Project Outlook

Project Potential

7.5 mln t2014

3.7(2)Gas reserves, tcm

Start of LNG supply LNG plant capacity

Notes:(1) Gazprom will continue to hold 100% shares of Sevmorneftegas and all rights for marketing.(2) Russian reserves classification ABC1+C2.(3) Can be potentially extended to 95 bcm p.a.

Phase 1 Participants (1)

Total 25%

Statoil Hydro24%

Gazprom 51%

0

20

40

60

2013E 2015E 2020E

bcm

9.6 mln tLNG plant capacity

90,000 bpdCurrent oil production capacity (yearly production)

>170(2)Extractable reserves (crude oil, gas condensate, mln t)

February 2009LNG plant start-upProject Outlook

Project Potential

Japan, Korea, USA

March 2009

>600(2)Extractable reserves (gas, bcm)

First LNG cargo

100% LNG contracted

LNG LNG LNG

Project Shareholders

Gazprom 50%+1Shell 27.5%-1

Mitsubishi10%

Mitsui12.5%

LNG LNG LNG

28

Building International Upstream Business

— Gazprom’s traditional regions.

— New regions with upstream positions.

Latin AmericaVenezuela

• Exploration: • Urumako-1, Urumako-2• Oil projects of National Oil

Consortium• Certification: Ayacucho-3 • MoU with PDVSA on Blanquilla Este project

(LNG)

Bolivia• Exploration:

• Acero gas project • Sunchal gas project

AsiaIndia

• Exploration:• Block 26 (PSA with GAIL)

Vietnam• Exploration: Blocks 112, 113, 129-132 (JV with Petrovietnam)

AfricaLibya

• Production: 49% in oil concessions С96 and С97 • Exploration:

• Licence area 19 (PSA, blocks 1-4) • Licence area 64 (PSA, blocks 1-3)

Nigeria• МоU with Ministry of Energy/NNOC

Algeria• Exploration: Licence area El Assel(blocks 236b, 404a, 405b1)

Strong focus on geographical expansion and building upstream positions globally

Part 3. Ukraine Dispute

Sergei Kupriyanov

Press Secretary of the Chairman of Gazprom Management Committee

30

Reliable Gas Deliveries to Europe

30

40 Years(1) of Impeccable Operating Track Record

August 19981973 August 1991 1993 1994

Russian Financial Crisis

World Oil Crisis Break-up of the Soviet Union

Russian Parliamentary Coup

Rouble Crashes

Source: Gazprom, International Energy Association, Loanware and Bondware.(1) Total gas sales in foreign markets excluding FSU.

bcm

Despite any crisis Gazprom has always and will in the future fulfil its export obligations

020406080

100120140160180200

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

31

Progress in Gas Negotiations in 2009

32

Secured Gas Transit to Europe

Ukraine resumes gas deliveries to Europe.20

Jan 2009

Two long-term separate contracts of Russian gas transit to European customers and gas delivery to Ukrainian customers in 2009-2019 are signed between Gazprom and Naftogaz.

Transit charge: USD1.7 per 1000 cu m per 100 km in 2009, transition to market European price starting from 2010.

Gas delivery price to Ukraine: common European price formula with reduction factor as of 0.8 for 2009, transition to market European price starting from 2010.

Separate long-term contracts of Russian gas transit to European customers and gas delivery to Ukrainian customers are additionalguarantee of security of energy supply to European customers.

19 Jan 2009

Agreement which provides for a transition of Russia-Ukraine gas relationship to transparent European gas pricing principles starting from 2009 is reached. Negotiations were held by Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Julia Timoshenko.

18 Jan 2009

Guaranteed Gas Deliveries to Europe

BELARUS

UKRAINE

BLACK SEA

LATVIA

ESTONIA

RUSSIAN FEDERATION

SWEDEN

DENMARK

BULGARIA

ALBANIA

TURKEY

GEORGIA

CASPIAN SEA

HUNGARY

ROMANIA

POLAND

NO

RWAY

FINLAND

NORWEGIAN SEA

GREECE

BARENTS SEA

LITHUANIA

CZECH

SLOVAKIA

BOSNIA & HERZ.CROATIA

MONTENEGRO

MOLDOVA

StockholmOslo

Bergen

Polyarnyy

Murmansk

København

L’viv

OdesaChişnäu

PoltavaKharkov

Zaporizhzhia

Mariupol

NovorossiyskBucrueştiPleven

Sofia

TiranëMACEDONIA

Kumanovo

Athina

Thessaloniki

Craiova

Braşov

Bräila

Suceava

Istanbul

Izmir

Koceali

Eskişeher

Samsun

Erzurum

ŞanliurfaMersinKayseri

TrabzonHopa ARMENIA

Sochi

AzerbaijanAnakara

Sokhumi

K’ut’alsi

IRAN

AZERBAIJAN

Baku

TabrizArdabil

RUSSIA

Krasnodar

Rostov-na-Donu

Groznyy

Elista

Astrakhan

Elista

Stavropol

Akhtubinsk

Akhtubinsk

Novoshakhtinsk

MOSCOW

Kolomna

Ryazan’TulaOrel

Lugansk

Bryansk

NovgorodNizhniy

Novogord

Tcherepovets

Gryazovets

Perm

Arkhangel’sk

Syktyvkar

Samara

Zlatoust

Ekaterinburg

Vorkuta

Sankt-PeterburgHelsinkiTurku

Vantaa

Espoo

Vyborg

Trondheim

Gotland

Jönköping

KИïB

Minsk

OrshaDaugavpils

Liepäga

Klaipeda

KaliningradGdańsk

KaunasBydgoszcz

Szczecin

Olsztyn

Slupsk

WroclawWarszawa

BudapestAUSTRIA

Torzhok

Ukhta

Gryazovets

Kruzenshternskoye

Shtokmanovskoye Bovanenkovskoye

Ukrainian dispute settlement

Nord Stream

Yamal-Europe

Ukraine

South Stream

Blue Stream

Part 4. Corporate and Financial Overview

Andrey Kruglov

Deputy Chairman of Gazprom Management Committee Head of the Department for Finance and Economics

34

Operating Update and Outlook for 2009

300

350

400

450

500

550

2007 2008E 2009E

13 12 14

444643

2007 2008E 2009EGazprom Gazprom Neft

Gas Production Total Gas Sales Volumes (1)

Oil and Gas Condensate Production (2)

(1) Head company data, management estimates. (2) Including Gazprom Neft share in equity investees’ production.(3) Gazprom Neft figure for 2009 includes 3,2 mln t at Nafta Industria Serbia (NIS) refineries

Oil Refining(3)

(bcm)

(mln t)

12 12 13

26 28 31

2007 2008E 2009EGazprom Gazprom Neft

(bcm)

(mln t)

Reduction scenarios

under review

Reduction scenarios

under review

300

350

400

450

500

550

2007 2008E 2009E

Reduction scenarios

under review

Reduction scenario

under review

35

Current Market Conditions

Brent and Urals Oil Prices Forecast

Positive Effect on Revenue from Hypothetical 1% Rouble Weakening (3)

Current budget: $50 Urals

Alternative budget scenarios: $40, $30, $25 Urals

Short term resistance to oil price volatility due to long-term contracts structure

Assuming $40 Urals

Total RUB depreciation from November 2008 till now is 23%(4)

Revenue and OpEx are predominantly in different currencies

(1) Budget has been approved by the Board of Directors on 23 December 2008.(2) Minister of Economic Development 2009 oil forecast as of the latest Government session on 19 January 2009. (3) Consolidated figures, preliminary results, annual 1% calculated value of rouble depreciation.(4) As of MICEX rouble exchange rate to dual currency basket from 7 November 2008 till 1 February 2009.

(US$/bbl)

20

30

40

50

60

70

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

Brent Urals

$50(1) Urals

$41(2) Urals

Source: Bloomberg as of January 27, 2009; average of broker estimates.

$30 Urals$25 Urals

0

10

20

2009E 2010E 2011E

(RR Bn)

36

Financial Strategy in Times of Market Turmoil

Strategy Guidelines

Operating and Investment Activities Financial Activities

Debt and Borrowings

ManagementCash PoolingBudgeting

CapEx Management

Financial Investments Management

OpEx Management

Working Capital Management

Reduction of accounts receivable

Reduction of inventories

Management of accounts payable

Projects feasibility in

crisis environment

Assessment of opportunity for raising funds

Reduction of OpEx Budget scenarios

based on $25, $30 and $40 oil price

forecasts

Internal cash management

Self-funding

Execution monitoring

Projects prioritisation

Cost cutting program

Tightening of operating, investment and financial activities of the Group in the context of world economic turmoil

Optimisation of gas purchasing

Reduction of non-core activities

(advertisement, sponsorship etc.)

Reduction of financial

investments

Payments monitoring

Usage of internal finance resources

Refinancing of expensive debts

Control over Group borrowings

Optimisation of headcount

37

Natural Hedging

44% 40% 47% 52%

19% 25%23% 19%

51%

21%

37% 35% 29% 27% 27%

1.7%1.8%1.8%

2004 2005 2006 2007 2008E

USD EUR RR Other

82% 73%62% 64%

13% 23%31% 31%

57%

33%

4%5%7%4%5% 6%

2004 2005 2006 2007 2008E

USD EUR RR Other

19%35%

3%1% 15%2%

83%65%

81%96%99%

2004 2005 2006 2007 2008E

USD EUR RR Other

Debt Currency Breakdown

(%)

OpEx Currency BreakdownRevenue Currency Breakdown

Investment Program Currency Breakdown

40% 41% 43% 46%

2% 1% 3% 2%

42%

2%

56%52%54%58%59%

2004 2005 2006 2007 2008E

USD EUR RR Other

(%)

(%)

(%)

Source: Head company, management estimates.Notes: (1) Other includes GBP, BYR, JPY currencies.

(2) Other includes SEK and JPY currencies.

(1) (1)

(1) (2)

38

0

5

10

15

20

25

30

35

2003 2004 2005 2006 2007 1H2008

Long-term debt (fixed interest rate) Long-term debt (floating interest rate)Short-term debt (fixed interest rate) Short-term debt (floating interest rate)

$13,3 bln$13,4 bln

Robust Debt Strategy

Debt maturity profile: focus on longer maturity

Export secured debt: keep to a minimum level(1)

Diversification of debt financing sources

Control over cost of debt

Debt-to-equity ratio of no more than 40%

Debt Strategy

Notes:(1) 2.3% as of 30 June 2008. (2) Excluding promissory notes. (3) Exchange rate as of the end of the respective period.

36,0% 26,8% 19,6%30,3% 33,9% 27,9%

14,4%

9,3% 16,6%11,6% 12,7%

10,6%

23,1%31,3% 39,1% 25,3% 18,7%

22,0%

26,6% 32,6% 24,7% 32,8% 34,7% 39,5%

2003 2004 2005 2006 2007 1Н2008

Less that 1 year 1-2 years 2-5 years More that 5 years

Debt Maturity Profile (2)

(% of debt)

1H 2008: Cash Alignment with Short-Term Debt (2), (3) Debt with Fixed and Floating Rate (2), (3)

($ bln)

Cash & cash equivalents + short-term investments

Short-term debt

3939Notes: (1) Exchange rate applied as at the end of the respective period.

Balanced Approach to Managing Leverage

Improving Leverage Level

Total Debt Dynamics(1)

1,3x1,4x 1,4x

0,8x

1,4x

0,7x

11,6x

20,8x22,0x

16,0x14,6x

10,0x

2003 2004 2005 2006 2007 1H2008

Net Debt / Adjusted EBITDA Adjusted EBITDA / Interest Expenses

17,722,3

33,241,0

61,5

47,6

2003 2004 2005 2006 2007 1H2008

(US$ Bn)

40

Funding for Next 12 Months

> 100%148%

110%123%

99%92%

2004 2005 2006 2007 1H2008 2008E

- RUB 3.8 trlnLiabilities, expenditures and investments

- RUB 90 blnFinancial borrowings

- RUB 0.5 blnBudget surplus

- RUB 3.72 trlnCash income and revenues

Cost of Debt Financing (2)

Self Funding (1)

Recent Debt Refinancing

Budget 2009*

Notes(1) Operating CF/Cash CapEx ratio.(2) Excluding promissory notes.(3) OAO Vnesheconombank.

* Non-consolidated figures. Includes only head company

4

5

6

7

8

9

2003 2004 2005 2006 2007 2008EWeighted average fixed interest rateWeighted average floating interest rateWeighted average interest rate

(%)

GAZPROM• Dec 2008 - $153 mln loan from VEB(3)

(LIBOR+5%, maturity 2009)

GAZPROM NEFT • Dec 2008 - $750mln credit line facility signed with VEB

(LIBOR+5%, maturity 2009-2010)

• Jan 2009 - $375mln loan from VEB(10,75%, maturity 2010)

41

Major lines of cost cutting

Cost Management – Strong Discipline in Place

Additional cost cuttings:

0,0

2,0

4,0

6,0

8,0

2008* 2009*

Exploration works SalariesSocial InsuranceMarketing, audit, engineering Advertising and sponsorshipResearch and development Subsidiaries' assetsOther

0

10

20

30

40

2008* 2009*

Materials Gas for technical needs

Salaries Capital lease

Taxes Insurance

Capital repairs Other

Subsidiaries’ Overheads (1),(2)Head Company Overheads (1)

Note:* As approved by Board of Directors(1) Expenses for 2008 are converted into US$ using average 2008 exchange rate, for 2009 using the rate of RR31,9, as approved by Board of Directors, and for 2009 (due to RR weakening)

using the rate of RUB35,1, as forecasted by the Ministry of economic development.(2) Excluding a number of subsidiaries consolidated after the privatisation of OAO Gazprom, in particular, Gazprom Neft, Mosenergo, OGK-2, OGK-6, Stimul, Purgaz.

due to further RRweakening

Headcount optimisationSocial cost managementSale of non-core assets

(bn US$)

(29%)

~(10%)

(24%)(bn US$)

due to further RRweakening

~(10%)

42

Cash Pooling

Cash Pooling

Setting up internal cash management in the Russian

subsidiaries

Monitoring of subsidiaries’cashflows

Setting up international pool with foreign subsidiary companies’

participation

Mobilisation of Group’s internal funds

Optimisation of mutual settlements within the Group

Improvement of free cash management

Reduction of Group’s external borrowings

We estimate significant positive effect from cash pooling system implementation

43

Working Capital Management

7,4 7,59,0

13,116,0

19,7

2003 2004 2005 2006 2007 1H2008LTM

Trade Receivables (1),(2) Accounts Receivable Turnover

Accounts receivable

Improvement of receivable turnover and prevention of liquid funds freezing:

Tightening of FSU payment discipline

Prepayment for gas delivered to Russian consumers

Gazprom reduction of prepayments to suppliers and contractors

Notes:(1) Including bad debt provisions and long-term trade receivables.(2) Exchange rate as of the end of the respective period

4,95,9

7,5

8,9

7,68,4

2003 2004 2005 2006 2007 1H2008LTM

(times a year)($ bln)

44

0

10

20

30

40

2006A 2007A 2008E 2009E

Investment Program – Projects Prioritization

Gazprom’ Investment Program (1) ($

bln

)

$23.5

$33.6$38.1(2)

Priority Projects for 2009

Production:

- Zapolyarnoye field

- Yamal Peninsula (Bovanenkovskoye field)

- Urengoiskoye field

- Shtokmanovskoye field

- Severo-Kamennomisskoye field

Transportation:

- Nord Stream pipeline

- Pochinki-Gryazovets pipeline

- Yamal-Center (Bovanenkovo-Ukhta and Ukhta-Gryazovets pipelines)

Notes:(1) Amounts for 2004-2007 include all capex and long-term financial investments of Gazprom Group. Amounts for 2008 include Gazprom’s investment program (CapEx and long-term financial

investment) and investment programs of Gazprom Neft, Sibur Holding and Mosenergo. Amounts for 2009 include Gazprom’s investment program and investment programs of Gazprom Neft, Mosenergo, OGK-2 and OGK-6. Amounts for 2008-2009 do not include investment programs of a number of subsidiaries consolidated after the privatisation of OAO Gazprom, in particular, Stimul, Purgaz.All CapEx and long-term financial investment figures converted in US$ at exchange rates as of the end of respective period and at the rate of RUB35.1 for 2009 according to forecasts of Russian Ministry of Economic Development.

(2) Long-term financial investments for 2007 include acquisition of Sakhalin-2, Mosenergo, Beltransgaz and power generating companies.

$26.2

2009 (budgeted) 2009E

Represents ~ 90 % of Group’s investment program

Head CompanyGazprom Group

$29.0Reduction planunder review

Transportation CapEx Gas production CapExOil and gas cond. production CapEx Refining CapExDistribution CapEx Electricity CapExOther CapEx Long-term financial investments

45

1 180 1 354

2 452 2 771

3 645

1 6992 1692 0431 9091 784

2006 2007 2008 1Q2009E 2Q2009E 3Q2009E 4Q2009E 1Q2010E 3Q2010E 2011E After 2011

Domestic Gas Market – Key Future Value Driver

22%

40%

6%6%1%

15%

10%

Power indusrty

Mettalurgy

Agro chemistry

Cement industry

Households

Utility sector

Other

Domestic Gas Sales Volumes (1),(2)

Domestic Wholesale Price Growth for Industrial Consumers (3)

Domestic Gas Sales by Consumer Types in 2008E (1)

160

180

200

220

240

260

280

300

2006 2007 2008E 2009E

(bcm)

Netback parity

with export sales+25%

+13%+5% +7%

+13%

+7%+6,2%

(RR/mcm)

+40%

(1) Management estimates. (2) Head company.(3) Price history – company data. The decision to increase regulated gas prices for 2009 quarterly was approved by the Government Decree №413-е/11 on December 24, 2008.

Reduction scenarios

under review

46

SupermajorCombined

Major EmergingMarkets Combined

102,6

36,6

63,053,7

39,047,8

26,717,8

46,3 47,2

23,419,931,0

23,9 20,6 19,212,1 7,7

14,6

26,8

13,3

49,1

ExxonMobil

Petrochina RoyalDutch Shell

Chevron BP Total Petrobras Sinopec ENI Gazprom Rosneft

EBITDA Net income

Gazprom - Unique Investment Opportunity(U

S$ B

n)

8,5x7,7x

5,3x6,2x 6,6x

5,4x6,6x

10,9x

4,6x3,6x 3,5x3,6x 3,5x

2,5x 2,7x

4,x2,9x

3,9x 3,9x

2,4x 2,6x 2,4x

ExxonMobil

Petrochina RoyalDutch Shell

Chevron BP Total Petrobras Sinopec ENI Gazprom Rosneft

P/E EV/EBITDA

Source: FactSet

Source: FactSet

Notes:(1) Companies ranked by market capitalisation. Source: Bloomberg as of February 2, 2009.(2) Based on financials for the last 12 months ending 2Q`2008 for Gazprom and last 12 months ending 3Q`2008 for other companies.(3) Source: companies annual reports. Includes 2007 total proved reserves. Reserve life in years based on 2007 proved reserves and 2007 production.

91 bboe(12 yrs) 80 bboe

(19 yrs)

118 bboe(33 yrs)

Total Reserves and Reserve Life(3)Last 12 Months EBITDA and Net Income – International Majors (1) (2)

$ Bn 389 260 143 127 116 107 89 84 74 32148Mkt Cap

Comparative P/E and EV/EBITDA (1)(2)

Gazprom Investor Day

6 February 2009