Russian Investments Abroad Economic and Financial Forum in Switzerland Zurich, March 18, 2007

2 Renova Group’s profile Renova Group is a strategic investor and shareholder in a number of leading Russian and international companies of the oil, metallurgical and chemical industries, as well as in telecommunications, construction and energy sectors, e.g. TNK-BP, United Company “Russian Aluminum”, Integrated Energy Systems (IES), OC Oerlikon. The value of Renova assets under management exceeds €11 bln.; Renova Group is active in 34 Russian Regions as well as in more than 10 countries throughout the former USSR, Europe and Africa. OUR PARTNERS

3 Russia: new outlook for the West Russia-Europe XXI century: Cooperation? Competition? We have changed!  Evolution of the Russian legislation, aiming at reaching international standards  Redirection of National Economy from raw materials to high-tech  A new generation of Russian Managers  Education in international business standards GLOBALISATION + TRENDS FOR QUALITATIVE CHANGES = PROMOTION OF ENTERPRENEURSHIP IN RUSSIA  Commitment to turn Russian companies into international players  Import of high technologies, development of industries with higher end product value  Access to the new markets and expansion within the existing ones 

4 Issues and solutions  Subjective factor - «…We are not welcome here….» 1.Russian capital as well as that of the other BRIC countries faces difficulties with international expansion 2.Forced limitation of Russian presence in the international business  Objective factor –Difficulties with expansion for Russian capital 1.Russian capital lacks experience in acquisition of considerable assets abroad 2.Legal and cultural specifics of M&A transactions 3.Insufficient experience in state protectionism 4.Traditional fear of Russia in the West 5.European companies facing problems when entering Russian market Possible solution: efficient partnerships

5 Efficient partnership experience (1): technologies Oerlikon is the recognized international leader in semiconductors production, vacuum systems, data storage (60% of all CDs and DVDs and 80% iPod are produced with Oerlikon equipment) and innovative space technology. Oerlikon is the exclusive supplier of the inter- satellite navigation systems and equipment for NASA and Arianespace program, an official partner of Intel, AMD, Philips, Infineon and others Starting point  The company is easily adapted to operation within different cultures and traditions  Clear business development strategy in Russia  Lack of technologies applied by the company and a strong demand for them in Russia  Synergies achieved by Oerlikon entering the Russian market Entering the business 1.No conflict entry: Deliberate waiver of a minority financial investor’s position in favor of a strategic one 2.Participation strategy discussion: Agreeing of OUR ROAL in implementation of Oerlikon initiatives with the other shareholders of the company 3.Open participation: Partnership

6 Efficient partnership experience (2): Energy Avelar owns 100% in Energetic Source Avelar owns 100% in Energetic Source Established in 1999 Large Italian retailer Power generation projects 100% Sales Gas Energy Power generation Power generation Renova Group (Avelar) Investment in alternative energy in Europe Example of a partnership between Russian and European companies: - Actively developing sector in both Europe and Russia -Western technology, Russian capital and expertise Investment in wind power generation Investment in solar power generation Investment in biomass power generation

7 Efficient partnership experience (3): USA, RSA RENOVA U.S. Holdings Limited – Joint Investment fund with the American partners focused on alternative renewable energy projects. United Manganese of Kalahari (‘UMK’) – One of the largest mining projects. Pursuant to the local laws investment in development of mineral resources has to be effected in cooperation with the local partners representing the native population of the country. In this case our partnership investment strategy is governed by both our willingness and the rule of law.

8 And finally… …Believe my experience – the shortest way to the Russian market is to go hand in hand with a good and reliable partner. Having entered Russia with one transaction you would soon face the same result I did in Switzerland: upon completion of the Oerlikon deal the number of investment proposals and ideas received by our Zurich office increased dramatically... Victor Vekselberg