1. The 21st Baltic Sea Parliamentary Conference Energy, Ecology and Social Welfare: Cooperation for a Sustainable Development of the Baltic Sea Region Saint Petersburg, Russian Federation, 26 – 28 August 2012 Conference Venue: Mariinsky Palace, Grand Hall PILOT FINANCIAL INITIATIVE (PFI). A NEW PROJECT FOR REGIONAL COOPERATION AND SUSTAINABLE DEVELOPMENT Daniil Algulyan Elected Chairman of the PFI Steering Committee Head of the KfW Representative Office in Moscow

2. © KfW KfW Bankengruppe presents itself Frankfurt am Main244 60 years of KfW Financing with a public mission Promotional bank of the Federal Republic of Germany Founded in 1948 as Kreditanstalt für Wiederaufbau Shareholders: 80% Federal Republic, 20% federal states Headquarters: Frankfurt am Main Branches: Berlin, Bonn and Cologne Representative offices: around 70 offices and representations worldwide Balance sheet total at end 2011: EUR 494.8 billion Financing volume 2011: EUR 70.4 billion Around 4,763 employees (2011) Best rating: AAA/Aaa/AAA

3. © KfW KfW Bankengruppe presents itself Frankfurt am Main322 A bank with a wide array of functions Promotion of developing and transition countries International business Promotion construction of new housing and modernisation as well as education Promotion SMEs, business founders, start-ups Financing municipal infrastructure projects and global loans Germany/Europe agency business for Federal Government We promote Germany International project and export finance We ensure internationalisation We promote development Promotion of environmental and climate protection Business Area Mittelstandsbank Business Area Privatkundenbank Business Area Kommunalbank Business Area Export and Project Finance Business Area Promotion of Developing and Transition Countries Domestic promotion

4. © KfW KfW Bankengruppe presents itself Frankfurt am Main4 Worldwide presence over 70 representative offices KfW employees

5. © KfW KfW Bankengruppe presents itself Frankfurt am Main5 Reliable partner for the Baltic Sea Region (BSR) Portfolio in the BSR (without Germany): 7.5 bn EUR Supporting economies in transition in the 90-ies and in the beginning of this century: KfW was mandated by the German Federal Government to coordinate the Transform technical assistance program, which was successfully implemented in following countries of the region: Estonia, Latvia, Lithuania, Poland, Russia Current activities in the Eastern part of BSR: - More than 30 active finance projects in Estonia, Latvia and Lithuania - Activities in the Baltic sea territories of Russia gain increasing importance within KfW portfolio, incl. infrastructure projects (Pulkovo airport), trade and export finance, SME support Key sectors: - Environment and Renewable Energy - Small and Medium-sized Entrepreneurs - Infrastructure and Transportation - Energy supply

6. © KfW KfW Bankengruppe presents itself Frankfurt am Main6 Pilot Financial Initiative (PFI) General information Memorandum of Understanding (MoU) on PFI was signed at the Baltic Sea States Summit in Stralsund, Germany, 31 May 2012 Initial PFI Partners: Council of the Baltic Sea States (CBSS) Secretariat, Russian promotional bank Vnesheconombank and KfW Key sectors: - PPP (special attention to a climate friendly urban infrastructure, waste treatment) - Innovation and modernisation projects of the small and medium-sized enterprises Structure of financing: KfW (upon mandate of the German Federal Foreign Office) intends to provide Vnesheconombank with long-term loans, for on-lending to projects. It is envisaged that the PFI will be extended to other financial institutions from the CBSS region joining the PFI as well. Non-financial cooperation and know-how transfer: conferences, seminars, trainings Pilot geographical regions: in the first phase Russian parts of the South Eastern Baltic Sea Area and on North West Russia, but shall be expanded to other parts of the BSR, depending on interest, and depending on accession by additional partner financial institutions to the PFI.

7. © KfW KfW Bankengruppe presents itself Frankfurt am Main7 Pilot Financial Initiative (PFI) Phase I SME Finance structure Vnesheconombank group SME Local banks partners of the program KfW Local banks partners of the program Local banks partners of the program Promotional Long-term Loans

8. © KfW KfW Bankengruppe presents itself Frankfurt am Main8 Pilot Financial Initiative (PFI) Phase I. PPP Finance structure Vnesheconombank group PPP projects (Waste treatment) KfW Promotional Long-term Loans PPP projects (Water and Energy) PPP projects (Local transport)

9. Thank you for your attention