1. The Russians are Coming? The Russians are Here With Cash! 5 th Annual USRCCNE Russian Financial Markets Conference 3 May 2007 John I. Huhs

2. 1 Russian FDI flows and net capital outflows, $ billion Sources: Central Bank of Russia, UNCTAD (2005b)

3. 2 Development of OFDI stock from Russia, year-end, $ million 20002001200220032004 Direct investments abroad20,14144,21962,34890,873103,692 Equity capital and reinvested earnings 18,47042,16758,35786,53296,804 Other capital1,6712,0533,9924,3416,888 Source: Central Bank of Russia

4. 3 Outward and inward FDI stocks of selected economies, as of 31.12.2004 Outward FDI stock, $ mln Inward FDI stock, $ mln Outward/inward FDI stock ratio, % World9,732,2338,895,279109 European Union5,189,7384,023,935129 United Kingdom1,378,130771,658179 Germany833,651347,957240 Finland80,93655,946145 Poland2,66161,4274 North America2,387,9821,777,678134 United States2,018,2051,473,860137 Canada369,777303,818122 Asia1,088,5411,375,59279 -Japan370,54496,984382 -China38,825245,46716 South America115,456353,96933 Russia103,692114,92690 Source: UNCTAD (2005a), Central Bank of Russia, (2005)

5. 4 The largest foreign acquisitions by Russian companies, 2004-2005. Acquiring company Target companyCountryNature of businessShare, % Value, $ mln LukoilNelson ResourcesKazakhstan/ Canada Oil exploration & production1002 000 Norilsk NickelGold Fields LtdSouth AfricaGold mining201 200 SeverstalLucchini GroupItalySteel products62574 RusAlQueensland Alumina Ltd AustraliaAlumina refinery20460 VimpelComKar-TelKazakhstanMobile telecommunications100425 Evraz HoldingsVitkovice SteelCzech Republic Steel products100287 VimpelComBuztel and UnitelUzbekistanMobile telecomunications100275 LukoilTeboil and Suomen Petrooli FinlandPetroleum marketing100270 Lukoil-USA795 petroleum stations from ConocoPhillips 100266 VimpelComUkrainian Radio Systems UkraineMobile telecommunications100254 MTSUzdunorbitaUzbekistanMobile telecommunications74121 Source: Company and media sources.

6. 5 Geographic distribution of cross-border M&A purchases by Russian companies 2002-2004 Source: UNCTAD cross-border M&A database

7. 6 Russian top 10 companies ranked by foreign assets, as of 1.1.2005 CompanyIndustryAssetsSales TotalForeignTotalForeign GazpromOil and gas104 982…36 42216 149 LukoilOil and gas29 76110 66333 84526 428 Norilsk NickelNon-ferrous metals13 6322 6187 0335 968 Russian AluminumNon-ferrous metals11 5002 1655 4504 440 Mobile TeleSystemsTelecommunications5 5811 2143 887995 VimpelComTelecommunications4 7808522 14745 SeverstalFerrous metals5 9196666 6483 954 RosneftOil and gas25 98731952753 438 OMZHeavy engineering901347524272 UES of RussiaElectrical energy40 61321124 493441 Source: Company information

8. 7 Overview on Lukoil’s foreign assets Type of assetsCountries Oil & Gas production and explorationAzerbaijan, Columbia, Egypt, Iran, Iraq, Kazakhstan Petroleum retailingBulgaria, Cyprus, Czech Republic, Estonia, Finland, Greece, Kazakhstan, Latvia, Lithuania, Moldova, Poland, Romania, Serbia-Montenegro, Turkey, Ukraine, UK, USA Petrochemical productionBulgaria Investing & servicesBulgaria, Canada, Columbia, Cyprus, Denmark, Egypt, Kazakhstan, Lithuania, Netherlands, Saudi-Arabia, UK, Ukraine, USA, Yemen Source: Company information

9. 8 Principal foreign subsidiaries of Norilsk Nickel CountryCompanyNature of businessNN Share, %Estimated value, $ mln BelgiumNorgem SAMarket agent51n.d. ChinaNorilsk Nickel AsiaMarket agent100n.d. Great BritainNorimet Ltd Norilsk Nickel Europe Ltd. Market agent 100 320 n.d. LuxembourgNorilsk Nickel FinanceBond issuer100n.d. South AfricaGold Fields Ltd.Mining201100 SwitzerlandNorilsk Nickel Holdings SA Metal Trade Overseas SA Investment holding Market agent 100 30 220 USAStillwater Mining Company Norilsk Nickel USA Mining Market agent 55 100 540 n.d. Sources: Company information

10. 9 JHUHS@LLGM.COM WWW.LLGM.COM Tel.: 1 (415) 951-1100 QUESTIONS?QUESTIONS? The Russians are Here... With Cash!