1. Presentation by Anatoly Chubais Chief Executive Officer RAO «UES of Russia» to the 18th World Energy Congress (round table) Buenos Aires

2. 2 668,000 employees 623 bn kWh of electricity generated - 72% of Russia’s total generation 2.7 mn km of power transmission lines - 96 % of Russia’s total length 407 thermal and hydropower plants with installed capacity of 156,000 MW RAO «UES of Russia» in the country’s energy sector

3. 3 Modern business procedures International audit Corporate governance International accounting standards Budgeting Business planning Бизнес- планиро- вание Separate accounting New management - three years’ positive performance

4. 4 Payment in cash, % 0 20 40 60 80 100 120 Q1 98 Q2 98 Q3 98 Q4 98 Q1 99 Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 112 Significant increase in cash collection Supply management: solving the non-payment problem 1722 48 92 101 New management - three years’ positive performance

5. 5 Investments increased *) All 1999 figures are adjusted for the Rouble purchasing power as of 12/31/2000 Compared with 1999, cash investments in 2000 grew by the factor of 4.5 - from RUR 2.0 bn to RUR 9.2 bn, for 2001 investments are estimated at RUR 11 bn RUR bn 2.0 9.2 0 10 1999 2000 2001 11.0 New management - three years’ positive performance

6. 6 Third year of international audit by PricewaterhouseCoopers: profit based on 2000 year results *) All 1998 and 1999 figures are adjusted for the Rouble purchasing power as of 12/31/2000 -100 20 19981999 2000 -80 -60 -40 -20 0 7.9 - 28.2 - 91.3 Operating profit of the Group, RUR bn * 1998 reports reflected the loss from economic ageing which affected the Group’s performance In 2000 the Group for the first time posted an operating profit of RUR 7.9 bn and net profit of RUR 0.5 bn. Net profit of the Group, RUR bn -500 -100 0 100 - 11.9 - 532.3 19981999 0.5 2000 New management - three years’ positive performance

7. 7 Changing the power sector structure with transition to the market 2001 2006-2008 Generation LV Grid Supply RAO «UES of Russia» holding CDU Regional energos HV Grid Power plants Independent generating company HV Grid LV Grid Consumers

8. 8 Short-term investment program of RAO «UES of Russia» 230.0450 gas Baltic states32.5215gas Europe437.0900gas investment, US$ mn fuel type capacity to be installed, MW export capabilities Kaliningrad co-gen plant-2 Surgut thermal plant Krasnodar co-gen plant Upper Volga hydroplant cascade Ivanovo thermal plant Dzerzhinsk co-gen plant Schekino co-gen plant North-Western co-gen plant Pskov thermal plant 31.2195hydro 273.6gas 37.6150 gas 275.8900gas 177.7345gasTurkey166.8474gas Berezov thermal plant-1 113.5700coal Scandinavia Japan96004000gas Sakhalin thermal plant

9. 9 In accordance with economic growth forecasts by 2010 power consumption level shall grow by 20-35% Long-term investment capabilities: generating companies Deregulation State regulation Competitive market 100 150 200 250 20002003 2010 Capacity requirements Capacity adjusted for resource exhaustion bn kWh 191 246 Free market share in power generation Necessary investments - over US$ 35 bn 196 214