М ] ф 18th Annual Meeting of the American-Russian Business Council Deputy Minister of Finance Russian Federation Alexander Novak October 21, 2010 San Francisco

М ] ф Main Indicators, seasonally adjusted (index 2008=100) 2 2 GDP Industrial Production Investments Retail Trade

М ] ф Seasonally adjusted GDP Growth Rate 3 3

М ] ф Developed Countries, GDP Growth Rate (related to Q4 2006) 4 4

М ] ф 5 5 The recovery of investment activity sharply shifted into low gear in 2010

М ] ф 6 6 index 2008=100, seasonally adjusted Consumption is the main driver of growth in Retail trade turnover is supported by the population income growth and reduction of the savings rate…

М ] ф Contribution to domestic demand growth, % YoY 7 7 ….at the same time domestic demand growth has become more import oriented

М ] ф Oil prices provided for the most part of the post-crisis growth. Dependence of the economy on oil grew significantly. 8 8 % USD/barrel share of the oil and gas sector grew from 14% of GDP in 1998 to 21% of GDP in share of oil and gas revenues in the federal budget grew from 15% in 1998 to 47% in 2008.

М ] ф % GDP growth is likely to stabilize at around 4% during the next 3 years 9 9

М ] ф 10 In the forecast period labor productivity growth will be comparable with the wages growth.

М ] ф % % Improvement of the energy efficiency and structural changes in the economy will provide for decline in the energy intensity of the economy by 2-3% annually. 11

М ] ф Urals, USD/barrel61, GDP, %-7,94,04,23,94,5 Inflation, % Dec/Dec8,88, ,5-5,5 Manufacturing, %-9,37,63,93,84,9 Investment, %-16,22,510,03,57,4 Real wage, %-3,54,93,54,04,7 Real disposable income, %2,34,43,6 4,2 Exports, bln. USD Imports, bln.USD

М ] ф 13 Federal Budget Revenues (bln. rub.) -20,9% +7,1% +12,5% +7,5% +9,2% 112% USD bln. 373,1230,5258,6290,0309,6334,8

М ] ф 14 Federal Budget Revenues (real terms, 2008 = 100%) 100,0% 72,7% 72,1% 76,2% 77,2% 80,0%

М ] ф 15 Federal Budget Expenditure (bln. rub.) +27,6% +5,9% +4,2% +5,4% +8,3% USD bln.304,6303,5336,6349,5366,1392,8

М ] ф 16 Federal Budget Expenditure (real terms, 2008 = 100%)

М ] ф 17 Deficit (Proficit) of the Federal Budget (% of GDP)

М ] ф 18 Sources for Federal Budget Deficiency Payment (bln. rub.) USD bln.-73,0-78,0-59,5-56,5-57,9

М ] ф 19 Volume of Borrowings (bln. rub.) Net borrowings 56,9315,4933,91 432,91 651,81 636, Borrowings, USD bln. 10,916,441,863,373175,0 Payments, USD bln. 8,66,411,116,319,322,2 Net borrowings, USD bln. 2,310,030,747,053,852,8

М ] ф 20 Privatization Revenues of the Federal Budget (bln. rub.) USD bln. 0,270,070,239,89,010,0

М ] ф ,5 млрд. руб ,7 млрд. руб ,8 млрд. руб ,3 млрд. руб ,7 млрд. руб ,9 млрд. руб ,2 млрд. руб ,8 млрд. руб. 875,4 млрд. руб ,3 млрд. руб ,4 млрд. руб ,4 млрд. руб ,8 млрд. руб ,9 млрд. руб ,5 млрд. руб ,7 млрд. руб ,5 млрд. руб ,0 млрд. руб. Russian Federation Volume of Debt % of GDP 23,2% 14,2% 9,0% 7,2% 6,5% 8,3% 11,0% 13,6% 16,0% 18,0% 778,5 bln.rub ,3 bln.rub. 875,4 bln.rub ,4 bln.rub ,9 bln.rub ,5 bln.rub ,2 bln.rub ,7 bln.rub ,8 bln.rub ,2 bln.rub ,7 bln.rub ,4 bln.rub ,4* bln.rub ,0* bln.rub ,4* bln.rub ,3* bln.rub ,4* bln.rub ,4* bln.rub ,3* bln.rub ,1* bln.rub. * Forecast as of Oct. 6, 2010

М ] ф Budget Allocations on Innovative Development Programs (bln. rub.) Federal Special Vehicle on Innovations 454,4604,3630,4668,3 USD bln. 15,019,820,521,6 in % compared to the previous period133,0104,3106,0 plus: Innovation Center of Skolkovo 15,022,017,1 USD bln. 0,50,70,6 Projects of the President’s Special Commission on Modernization and Technological Development of the Russian Federation 5,010,0 6,3 USD bln. 0,20,3 0,2

М ] ф Thank you for your attention!