INTER RAO UES and Rosneft have concluded a contract on the supply of up to 875 billion cubic metres of gas. The contract envisages annual supplies of up to 35 bcm of Rosneft-produced gas to the power plants of INTER RAO - Electric Power Plants (or any other INTER RAO UES power plants) beginning on 1 January 2016 and running through 31 December 2040 on a take-or-pay basis. 32.3 bcm of gas is to be supplied in 2016.

Under the agreement, natural gas and dry stripped gas will be supplied from oil fields, which will allow Rosneft to significantly increase associated petroleum gas utilisation.

This contract has been approved by the boards of directors of INTER RAO UES and Rosneft.

Rosneft President and Chairman of the Management Board Igor SECHIN said: "Rosneft has significant reserves of gas and producing and selling this gas is a priority in terms of generating additional profit for Rosneft shareholders. Concluding an agreement to supply gas directly to Russia's largest generating utilities is the most effective way to monetise our reserves. It will also guarantee fuel supplies for power generation on transparent terms."

"Our partnership with Rosneft, a global oil and gas major, is strategic in nature and will guarantee stable supplies of fuel to INTER RAO UES' power plants," said Boris KOVALCHUK, Chairman of the Management Board at INTER RAO UES. "This contract is designed to guarantee stability for our company in the long term and will allow us to considerably improve the efficiency of power generation in Russia."

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INTER RAO UES Group is a diversified energy holding working in various segments of Russian and international electric power industry. INTER RAO UES is a leading exporter and importer of electric energy in Russia actively increasing electricity generation and sales, and developing new lines of business. INTER RAO UES focuses its corporate strategy on making the company a global energy enterprise and a key player in the international energy market. INTER RAO UES Group owns and operates approximately 28 MW of installed power generating capacity. www.interrao.ru

JSC Rosneft Oil Company is the leader of Russia's petroleum industry, and ranks among the world's top publicly traded oil and gas companies, both in terms of oil reserves and production. Total proved hydrocarbon reserves as of December 31, 2011, estimated 2 519 million tones of oil and 850 billion cubic meters of gas. Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals. Corporate structure of Rosneft embraces more then 530 subsidiaries, including 17 production assets, 7 big oil refineries, 4 marine terminals, and about 1700 service stations in 44 Russian regions. Rosneft is widely engaged in exploration and production across all key hydrocarbon regions of Russia. The company also participates in various projects in Kazakhstan, Germany, China, Algeria, Venezuela, and UAE. The offshore zones exploration projects in the Black sea and Arctic shelf have particular significance in Rosneft's development strategy. The company is on the list of strategic enterprises of the Russian Federation. www.rosneft.ru

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

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