0 St. Petersburg JUNE 28, 2018 DISCLAIMER This presentation was - PowerPoint PPT Presentation

GAZPROM’S FINANCIAL AND ECONOMIC POLICY PRESS CONFERENCE 0 St. Petersburg JUNE 28, 2018

DISCLAIMER This presentation was prepared by Gazprom (hereafter “the Company”) . It contains corporate information for investors. This presentation does not constitute an offer to sell or a solicitation of any offer to purchase any shares or other securities for equity participation in the Company, or a subscription for such. The presentation and information contained herein, as well as the fact of the display or publication thereof, cannot be regarded in connection with any contract or investment decision. The information contained herein should not be construed as investment advice. The Company made every effort to ensure that the facts contained in this presentation would be reliable and the opinions voiced herein would be reasonable and impartial. However, no guarantees or assurances, either expressed or implied, are provided as to the accuracy and completeness of the information or opinions contained or reviewed herein on behalf of the Company or any of its shareholders, directors, officials, employees or any other persons. None of the Company’s directors, shareholders, officials, employees or any other persons assume any responsibility for any losses that may occur as a result of using this presentation or its contents in any form or in any other way relating to this presentation. This presentation may contain forward-looking statements. Such forward-looking statements include the following: the data that are not accomplished facts; statements of the Company’s intentions; and suggestions or current expectations in relation to, inter alia, the Company’s operating results, its financial condition and liquidity, prospects, growth, strategy, and development of the industry the Company operates in. Due to being related to future events and depending on the circumstances that may occur in the future, forward-looking statements inherently involve risks and uncertainties. The Company wishes to advise that it provides no guarantees for forward-looking statements to be realized and that the actual operating results, financial condition and liquidity, as well as the development of the industry the Company operates in, may differ essentially from the projections or suggestions contained or implied in the said forward-looking statements. Furthermore, regardless of whether the Company’s operating results, financial condition and liquidity, as well as the development of the industry the Company operates in, conform with forward-looking statements contained herein, such results and circumstances do not reflect the results and circumstances of the future periods. The data and statements contained in this presentation are relevant as of the time of its display and are subject to change without prior notice. No party is under legal obligation to update and amend the data contained herein. By attending this presentation, you agree to abide by the limitations mentioned above. 1 1 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

FUNDAMENTAL ASPECTS OF FINANCIAL POLICY Oil price Gas export price RUB to USD exchange rate USD/bbl USD/1,000 m 3 70 RUB/USD 65 250 232 70 64.2 60 197 197 58.3 56.9 53 200 60 50 44 50 150 40 40 100 30 30 20 20 50 10 10 0 0 0 ACTUAL 2017 BUDGET 2018* ACTUAL Q1 2018 ACTUAL 2017 BUDGET 2018* ACTUAL Q1 2018 ACTUAL 2017 BUDGET 2018* ACTUAL Q1 2018 Key priorities of financial policy • • Conservative approach to budget planning Risk reduction measures • • Precise ranking of investment projects Effective debt management • • Optimization of operating expenditures Well-balanced dividend policy *approved by Board of Directors 2 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

GAZPROM GROUP’S KEY FINANCIAL INDICATORS (IFRS) +7% RUB bln 6,546 6,111 2016 2017 6 000 , 4 000 , +11% -25% 2 000 1,468 , 1,323 952 714 0 (2) (1) (3) Revenue Adjusted EBITDA Net profit +23% USD bln 112 2016 2017 120 91 80 +27% -14% 40 25 20 14 12 0 (2) (3) (1) Revenue Adjusted EBITDA Net profit (1) Net of excise tax, VAT and customs duties (2) EBITDA is adjusted by changes in asset impairment reserves (3) Annual profit attributable to shareholders of Gazprom 3 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

KEY INVESTMENT PROJECTS IN GAS BUSINESS Gazprom Group’s Investment Program for 2018 Other lines of business 3% Power generation Gazprom’s Investment 3% Gas Program Oil 74% 21% Other gas business activities Major projects under Gazprom’s Investment Program for 2018 (incl. l. VAT) T) Gazprom’s Investment Program BOVANENKOVSKOYE OIL, GAS AND for 2018 GRYAZOVETS – CONDENSATE FIELD SLAVYANSKAYA CS RUB 1,279 BLN LNG PLANT AT RUB 67 BLN RUB 99 BLN PORTOVAYA CS RUB 46 BLN (INCL. VAT) NORD STREAM 2 POWER OF SIBERIA CHAYANDINSKOYE Ukhta RUSSIA RUB 115 BLN OIL, GAS AND RUB 218 BLN CONDENSATE FIELD St. Petersburg UKHTA – TORZHOK 2 RUB 116 BLN Gryazovets RUB 48 BLN Torzhok Moscow Greifswald (Germany) GERMANY AMUR GPP Blagoveshchensk RUB 89 BLN TURKSTREAM Anapa RUB 182 BLN Kiyikoy (Turkey) CHINA TURKEY 4 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

PRIME COST DYNAMICS Prime cost of gas transmission 2 Prime cost of gas production 1 RUB/1,000 m 3 RUB /1,000 m 3 per 100 km 1,955 1 800 , 1,601 1,549 60 1 500 , 1,100 722 722 677 677 1 200 , 40 900 65.0 64.6 64.7 600 20 872 872 880 880 845 845 300 0 0 2015 2016 2017 2015 2016 2017 Unit cost of gas production (1,000 m3) Severance tax • In 2017, prime cost of gas transmission across • In 2017, 4% reduction of gas production cost (net of severance tax) Russia grew by less than 1% was attained • Growth in overall production cost caused by severance tax dynamics 1 Prime cost of gas production – costs for production of 1,000 m 3 of marketable gas by 7 major gas producing subsidiaries of Gazprom 2 Prime cost of gas transmission – costs for transmission of 1,000 m 3 of gas per 100 km by Gazprom’s gas transmission subsidiaries (within Russian Federation) 5 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

TAX PAYMENT STRUCTURE AND DYNAMICS RUB bln Dynamics of tax payments by Gazprom Group, RUB bln 1 000 , 884 800 664 618 602 600 400 260 256 240 237 228 149 200 120 96 94 54 0 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Severance tax Customs duties Excise tax Profit tax Property tax VAT Others* Breakdown of Gazprom Group’s tax payments in 2017, % 10% Severance tax 6% 35% VAT 9% Excise tax Customs duties Profit tax Property tax 4% Others* 26% 10% * Other taxes, insurance payments, personal income tax 6 6 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

CENTRALIZED MANAGEMENT OF GAZPROM GROUP’S LIQUIDITY SINGL GLE E TREASUR SURY OF GAZPR PROM OM GROU OUP Centralize tralized manageme ment t of Intra ra-Gr Group oup liquid idit ity y Consoli olidat atio ion of Gazpr zprom om Manag nageme ment nt of Gazp zprom om Gazprom Group’s cash manag nageme ment nt Group’s payment operations Group’s financial risks flo lows ws  expansion of cash  development of corporate  creation of single  uniform principles of pooling system dealing at Gazprom transaction processing financial risk comprising accounts of Group center for Gazprom Group management Gazprom Group’s  expansion of list of  full control of cash  establishment and companies based within treasury instruments for movements on Gazprom monitoring of quotas for and beyond Russia managing idle cash Group’s accounts servicing banks  introduction of advanced  enhancement of financial  efforts to ensure  introduction of additional banking technologies for discipline transparency of Gazprom legal oversight cash flow and transaction Group’s settlements procedures (compliance management control), including for external financing 7 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018

DEBT BURDEN Net profit adjusted by bank deposits 1 Gazprom’s credit ratings RUB bln 6 000 , 1.4 1.5 , 1.5 Rating Outlook 1.1 BBB – 0.9 4 000 , Fitch *** positive 1 (Investment level) 1,491 1,199 1,530 1,083 Baa3 2 000 , , 0.5 Moody's positive (Investment level) 2,068 1,952 1,831 1,747 0 0 BBB – 2015 2016 2017 Q1 2018 S&P *** stable (Investment level) CASH AND CASH EQUIVALENTS, INCL. DEPOSITS 1 NET DEBT ADJ. * NET DEBT ADJ./EBITDA ADJ. Dagong AAA stable 1 Net debt adjusted for bank deposits disclosed as Other Current and Non-Current Assets ACRA AAA (RU) stable * In dollar terms Gazprom Group’s debt repayment schedule ** *** Gazprom’s credit ratings are limited by sovereign credit rating of Russian Federation USD bln • Conservative financial policy 21 22,1 18 • Comfortable level of debt burden 15 15,2 12 9 • Liquidity cushion (cash, cash equivalents and bank 8,4 6 deposits) 6,5 3 4,5 0 • Access to debt financing 2018 2019 2020 2021 After 2021 ** As of late 2017 (according to IFRS) 8 GAZPROM’S FINANCIAL AND ECONOMIC POLICY, JUNE 28, 2018