1. Financing Transportation Investments In Russia: What Are The Opportunities And Challenges?

2. Percentage, % 1 Russian GDP Index Russian Industrial Production Index Economic Status of Russia in 2000-2030 Percentage, %

3. Foreign Trade Turnover MIO. $USD. 2 Russian Foreign Trade in 1995-2006

4. 3 Cargo, total Coastal Cargo Foreign Cargo Cargo, total Coastal Cargo Foreign Cargo Russian Ports Ports of Neighboring Countries Russian Ports Ports of Neighboring Countries Turnover of Russian Foreign Cargo Dynamics of Cargo Turnover in Russian Seaports and in Seaports of Neighboring Countries

5. 4 Mln.Tons Cargo Turnover in Russian Seaports 2000-2010 Cargo Turnover in Russian Seaports 2000-2010

6. 5 Mln.Tons Cargo Turnover at Seaports Railway Stations in 2000-2010 Cargo Turnover at Seaports Railway Stations in 2000-2010

7. Estimated Estimated Estimated Estimated Estimated Level of motorization Trucks Buses Passenger cars Growth of Car and Truck Population & Motorization Level in Russia

8. 4 Perspective Development of Transport Infrastructure in Russia

9. Program (Sub-Program) 2007200820092010 TOTAL:206 882 690,00262 974 587,50274 249 481,7016 068 354,10 Federal Program Modernizing of Transport System of Russia (2002- 2010 )"191 621 000,00247 429 200,00260 077 000,00 Federal Program Housing" in 2002-201063 500,00155 000,00175 798,70187 798,70 Federal Program Global Navigation System"840 760,00993 730,00966 900,00996 450,00 Federal Program State Border of Russian Federation (2003-2010)"1 258 830,001 417 050,001 367 050,001 834 210,00 Federal Program Raising of Traffic Awareness in 2006 - 2012"300 000,00350 000,00 920 000,00 Federal Program Federal Development Program of the Kaliningrad Oblast by 2010"250 520,00306 970,00114 473,00200 428,00 Federal Program Social-Economic Development of Kuril Islands (Sakhalin Oblast) in 2007-2015"880 400,00910 000,00650 500,00673 400,00 Federal Program Restoration of Economics and Social Realm in Chechnya (2002 and following years)"0,00 Federal Program Providing of Nuclear and Radiation Control in 2008 and until 2015 "0,00169 800,00246 500,00280 700,00 Federal Program Complex Measure Against Drug Trafficking and Illicit Trade in 2005 - 2009"15 000,0014 500,008 500,000,00 Federal Program Economic and Social Development of Far East and TransBaikalia in 1996-2005 until 2010 "25 000,00118 000,00112 000,0096 000,00 EXTRA-PROGRAM PART11 627 680,0011 110 337,5010 180 760,0010 879 367,40 (K.RUR) Financing of Transport Infrastructure Development from State Budget (Federal Programs)

10. Federal Program Modernization of Russian Transportation System (2002-2010), (BLN. RUR) Federal Program Modernization of Russian Transportation System (2002-2010), (BLN. RUR)

11. Total 2,3% GDP Breakdown of Federal Program Resources

12. Investment Fund Special Economic and Seaports Zones State Development Corporation (VEB) Russian Venture Companies: Russian Shipbuilding Company, United Aircraft Construction Company Techno Parks New PPP Tools In Russia

13. Investment Fund State Development Corporation (VEB) Goals & Objectives ToolsProjectsTBD construction of infrastructure development of innovation system financing of state owned objects grants to the regions participation in equity insurance arrangements 20 projects approved (amount of state investments – 343,9 Bln. RUR) Projects incl «construction stage» - 1 373,8 Bln. RUR Raise the attraction of concessions Establishing of regional Investment Funds diversification of the economy development of innovation infrastructure, Special Economic Zones Exports Support Support of Medium and Small businesses loans guarantees equity participation insurance arrangements agreements with business and regional authorities increase by 2012 of loan portfolio up to 850 Bln. RUR, 30% of this amount on PPP conditions capitalization legal base small business support State Development Institutions

14. Main trends boosting Transport Infrastructure Investments Common growth of Russian economy (+7% p.a.) Growth of Export and Import Cargo flows (+10% p.a.) Growth of Containerization (+17% p.a.) High demand in new Transport Infrastructure against the critical retirement level of existing assets (65%+) Market liberalization in Rail transports: Rolling stock, Depots, Locomotives Huge Investments Needs in Russian Transportation Infrastructure

15. Dynamics of Russian Railway Cargo Turnover, Bln. Ton/Km. CAGR – 5 % Source: INFO Line

16. Dynamics of Containerized Cargo Turnover in Russia, Mln. TEU Dynamics of Containerized Cargo Turnover in Russia, Mln. TEU CAGR - 17% Source: Russian Department of Statistics, Evaluation KIT Finance

17. Perspective Investment Sectors in Transport Infrastructure of Russia Perspective Investment Sectors in Transport Infrastructure of Russia Federal Projects (State Budget) Regional Projects (PPP) Private Sector Projects Ring Road, Saint-Petersburg 2014 Olympic Games Facilities, Sochi Western High Speed Diameter, Orlovsky Tunnel, Saint-Petersburg Toll road Moscow-St.Petersburg Railroad Krasnoyarsk-Tuva Sea Ports (North, South, Far East) Network of National Industrial Parks Network of Intermodal Container Terminals

18. Private projects: Financing Instruments PPP State Development Corporation (VEB) International Credit Organizations (IFC, EBRD) Direct Financing from Commercial Banks Private Infrastructure Funds Strategic Capital Investors

19. Private Transport Infrastructure Projects Seaports in Russian Federation: Saint-Petersburg, Ust-Luga, Novorossiysk, Nahodka East-Line: Domodedovo airport (Moscow) MLP, NLC - Networks of warehouses: 15 objects in Russia and Ukraine Eurasia-Logistic - Industrial and logistics parks network: 6 projects in Russia in Progress Eurosib - Intermodal container terminals network: 8 terminals in Russia in Progress

20. Case study: Infrastructure project of the Eurosib 15 objects: First phase - 6 terminals Second phase - 9 terminals Total investments: 13 Bln. RUR (approx $500mln) Total capacity: 750 000 TEU p.a. End of the 2008: 3 terminals in operations with turnover capacity of 140 000 TEU p.a. Network of Intermodal Container Terminals

21. 4, 7 млн.чел. 10, 2 млн. чел. 1,3 млн. чел. 1, 5 млн. чел. Terminal Network 1 st phase: Locations

22. CityInvestments (Mio. RUR) Operating since (1 st stage) 2 nd stage*Full Capacity Predportovy (St.Petersburg)721,53Q 2006-2009 Shushary (St.Petersburg)1301,42Q 2008-2010 Novosibirsk1665,12Q 2008-2010 Zabaikalsk522,12Q 2009-2011 Moscow1652,14Q 20093Q 20102011 Yekaterinburg1267,31Q 20113Q 20122013 TOTAL: 1 st phase7129,6 * 2-nd Stage – extension of container yard and warehouse complex Terminal Network 1 st phase: Investments and Terms of Operations

23. Terminal Network after 2 nd phase: Locations Хабаровск

24. City Investments (Mln. RUR) Operation since (1 st stage) 2 nd stage*Full Capacity Novorossiysk 253,33Q 2008- 2010 Kaliningrad 557,32Q 2011- 2013 Krasnoyarsk 443,93Q 2010- 2012 Irkutsk 515,14Q 2011- 2013 Chelyabinsk 515,04Q 2011- 2013 Samara 847,53Q 2010- 2012 Rostov-on-Don 981,23Q 20113Q 2013 2015 Kasan 847,44Q 2010- 2012 Khabarovsk 845,12Q 20123Q 2013 2014 TOTAL: 2 nd phase 5805,9 * 2 ND Stage –extension of container yard and warehouse complex Terminal Network 2 nd phase: Investments and Terms of Operation Terminal Network 2 nd phase: Investments and Terms of Operation

25. Project Management: key factors for success Right choice of a perspective region: precise forecasting of regional needs in Intermodal terminals service, target clients focus Right choice of a land plot: logistics + infrastructure aspects Right choice of Technology design on projecting phase Supply of the hookup to railroad and utility networks: strong cooperation with local authorities Start-up phase, adjusting of operating procedure

26. 2006 1, 5 2,0 2,9 200820052007 Eurosib Group CAPEX, BLN. RUR 3,8 16 years of experience in the Russian Transportation

27. Eurosib – Provider for Investors in Russian Transport Infrastructure Eurosib – Provider for Investors in Russian Transport Infrastructure Infrastructure Funds Eurosib Group - Investment Provider High Effectiveness of Investments in Transport Infrastructure of Russia Strategic Investors

28. Thanks for your Attention !