COMMODITY
EXCHANGE SALES

In 2013, Gazprom Neft continued to trade petroleum products on the Russian commodity markets in order to ensure fair and transparent pricing, as well as to improve sales of those products.

Gazprom Neft is a co-founder of CJSC Saint Petersburg International Mercantile Exchange (SPIMEX) and has traded petroleum products regularly on this platform since November 2009.

In 2013, the Company sold over 2.29 million tonnes of exchange-traded petroleum products, a year-on-year increase of 10%. The total exchange-traded sales of the Company in 2013 were 10.2% of the petroleum product output (in 2012 – 7.5%).

The change in the share of exchange-traded sales in 2013 was due to the specification and formalisation of regulators’ requirements for exchange trading, as a result of the Joint Decree of the Russian FAS and Ministry of Energy, which came into effect on 16 June 2013.

At year-end 2013, the Company was ranked second among Russian VIOCs in terms of volume of exchange-traded sales of petroleum products (in 2012 it was ranked first) due to market changes in 2013 connected with the acquisition of TNK-BP by Oil Company Rosneft.

In the reporting year, the Company also started trading oil on the exchange. 100,000 tonnes of crude oil were purchased in the Oil Section of SPIMEX.

In 2013, the Company adopted the new terms of the SPIMEX General Exchange, which includes the requirement to exchange commodities with exchange trading organizations at balance sites and the specification of exchange commodities produced outside Russia, in Customs Union states.

In 2013, according to the regulators’ requirements, the Company registered over 16,600 off-exchange transactions, the equivalent of 12% of the total number of off-exchange transactions registered by the SPIMEX. Following the amendments to the law, the Company upgraded its automated off-exchange transaction registration system and started registering petroleum product export transactions. Gazprom Neft was the first company in the Russian market to register crude oil transactions on the SPIMEX in June 2013.

The Company carries out its exchange activities in accordance with the requirements of the Joint Decree of the Russian FAS and Ministry of Energy that took effect in June 2013, and the applicable instructions and explications of the FAS of Russia and provisions of the Company’s Trading Practices approved by the FAS.

Source: Company data

Company’s petroleum product exchange-traded sales, 2013