Viktor Olersky, the Deputy Minister of transport of the Russian Federation. Yury Melenas Permanent Representative of THE RUSSIAN FEDERATION to IMO

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Viktor Olersky, the Deputy Minister of transport of the Russian Federation Yury Melenas Permanent Representative of THE RUSSIAN FEDERATION to IMO September 26, 2013 September, 2013

Legal regulation Federal law of 28-th of July 2012 No. 132-FZ «On amending certain legislative acts of the Russian Federation in the part of the state regulation of trading navigation in the water area of Northern sea route» Navigation in the waters of the Northern sea route, the historically established national transport communications of the Russian Federation, is carried out in accordance with the generally recognized principles and norms of international law, international treaties of the Russian Federation, this Federal law, other Federal laws and issued in accordance with them other normative legal acts Order of the Government of the Russian Federation of 15-th of March 2013 No. 358 Federal state institution «The Northern sea route Administration» was created and attributed to the management of Federal Agency of maritime and River transport Order of Ministry of transport of Russian Federation of 17-th of January 2013 No. 7 «About approval of Rules of navigation in the water area of Northern sea route» Procedures and requirements for vessels engaged in shipping in the water area of Northern sea route established

Zero meridian 180 meridian Northern polar circle 1

Appendix 1 NSR Depth Chart Vilkitskogo Strait Barents Sea Laptev Sea Kara Sea East Siberian Sea Kara Gate Strait Longa Strait

Sounding works 22 476 km of sounding works carried out by September 2013 (planned for 2013 34 600 km) Legend: sounding works 2011 sounding works 2012-2013 the main route of Northern sea route the alternate route of Northern sea route About 205 thousand kilometers of the survey planned to be done by 2019. As a result of sounding works in 2011 and 2012 the route to the North of the Novosibirsk Islands was surveyed, allowing the passage of vessels with deep (up to 15 m) draft; The sounding works allowed large-capacity tankers of Aframax class navigate in the water area of Northern sea route for the first time in history.

The use of wind turbines and solar panels as autonomous power sources 2012 2013-180 autonomous power sources were installed on the navigational objects in the Northern sea route area

Resources for Search and Rescue operations in the Arctic zone of the Russian Federation (State Marine Rescue Service SMRS) Мурманск Icebreakers with emergency and rescue equipment Provideniya Branch SMRS Murmansk Кандалакша Ледоколы с АСИ и МСП Pevek Анадырь Branch SMRS Arkhangelsk Branch SMRS Amderma (after 2014, with the increase of cargo transportation) Varandey Naryan-Marr Branch SMRS Dixon 2013 Dixon Dudinka Hatanga Branch SMRS Tiksi 2013 Tiksi Branch SMRS Pevek 2013 Зеленый Мыс Branch SMRS Provideniya 2013

Scheme of dislocation of Maritime Rescue Coordination Centre (MRCC) and Maritime Rescue Sub-Centres (MRSC) in the Arctic zone Кандалакша Мурманск The search and rescue region of MRCC Murmansk The search and rescue region of MRCC of Dixon October 2012 Провидения Онега Архангельск Певек Анадырь Мезень Нарьян-Мар Варандей September 2012 Диксон August 2011 Зеленый Мыс MRSC Pevek Дудинка Хатанга MRCC Dixon Тикси MRSC Tiksi

Nuclear Ice-breakers Fleet and Further Development

Nuclear Ice-breakers Fleet of Russia Nuclear ice-breakers of Arktika type: Propulsion Capacity 54 MW; Water displacement 23000 t; i/b Rossia 21.12.1985 i/b Sovetsky Soyuz 29.12.1989 i/b Yamal 28.10.1992 i/b 50 Let Pobedy 23.03.2007 Nuclear Ice-breakers of Taimyr type: Propulsion Capacity 35 MW; Water displacement 21000 t; i/b Taimyr 30.06.1989 i/b Yaygach 25.07.1990

Average Operational Period of Nuclear Ice-breakers (with Nuclear Power Plant resource of 150-175 000 hours) Name Year entered into service Тaimyr 1989 Vaygach 1990 Rossiya 1985 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Sovetskiy Soyuz 1989 Yamal 1992 50 Let Pobedy 2007 Commission of Universal Nuclear Ice-breakers (IB-60 type) 1 st IB-60 2017 2 nd IB-60 2019 3 rd IB-60 2021 - Linear ice-breakers operational period - Low-draught ice-breakers operational period - If prolonged up to 175 000 hours - If prolonged up to 175 000 hours - New universal ice-breakers operational period 13

Universal Nuclear Ice-breaker

Nuclear ice-breaker of new generation Length overall DWL length Breadth overall DWL breadth 173,3 m 160,0 m 34,0 m 33,0 m Draught of the ice-breaker: for a long work on Northern Sea Route - 10,5 m for periodically work in shallow water - 8,7 m 1. Ice-breaker type: Universal nuclear turbo-electric ice-breaker with propulsion capacity on the shafts of 60 MW. 2. The purpose of universal nuclear ice-breaker: Leading convoys and single vessels year-round in the Western part of the Arctic. Ice-breaker assistance in the shallow parts of the Yenisei river (Dudinka) and the Gulf of Ob. Towing of ships and other floating facilities in ice and open water. Providing rescue operations in ice conditions and clear water. 3. Maximum thickness of the pack ice overcoming ice-breaker at speed of 1,5-2 knots at full capacity of power plant is 2.9 m 4. Autonomy and the cruising range: provisions - 6 months, the cruising range is unlimited. 5. The crew of ice-breaker - 75 people. 6. Lifetime 40 years. Due to the ability to change the draught, the new ice-breaker will be able to replace the «Arctic»-type ice-breakers and shallow-draught «Taimyr»-type ice-breakers. The keel of the first ice-breaker was laid in November 2012. In accordance with the Decree of the Government of the Russian Federation dated August 19, 2013 No. 715 State Corporation ROSATOM has allocated funds from Federal budget for construction of two more serial universal nuclear icebreakers.

Total of Transit Voyages in 2010-2013 Total Volume of Transit Cargo, t Total Number of Transit Voyages 2010 2011 2012 2013* 111 000 820 789 1 261 545 489 653* 4 (2 of them in ballast) 34 (10 of them in ballast) NSR Transit 2012 Cargo 46 (13 of them in ballast) 31* (11 of them in ballast) Cargo Type Number of Cargo Volume Cargo Volume Volume, t Displacement, t Vessels Eastbound, t Westbound Liquid 26 894 079 661 326 232 753 Bulk 6 359 201 262 263 96 938 Frozen Fish 1 8 265 8 265 Ballast 6 472 075 Repositioning 7 78 351 Total: 46 1 261 545 550 426 923 589 337 956 * As per beginning of September 2013

First Commercial Transit Voyage of a non-russian flag vessel via the Northern Sea Route mv Beluga Fraternity & mv Beluga Foresight in 2009 Saved more than 3000 miles and 10 days compared to the Suez Canal 3 2 5 4 1 1. 21.08.2009 left p. Vladivostok, Russia 2. 31.08.2009 joined by ice-breaker «50 Let Pobedy» 3. 03.09.2009 ice-breaker Rossiya joined the convoy 4. 07-11.2009 offshore discharging in Novyy Port / port of Yamburg 5. 16.09.2009 exit from the NSR in the West

Transit Voyages 2010 SCF Baltica: NSR period: 16.08 27.08.2010 (10,5 days) Tanker deadweight:117000 tons Cargo: 70000 tons of gas condensate Nordic Barents: NSR period: 8 days Bulker deadweight:43372 tons Cargo: 41000 tons of iron concentrate 4 transit voyages were made in 2010 Total amount of transit cargo: 111 000 tons In ballast: 2 voyages

The Latest Transit via NSR December 16-25, 2010 The voyage by Swedish supply ice-breaker Tor Viking II escorted by nuclear ice-breaker Rossiya was made a month after the official completion of summerautumn navigation on the NSR. This successful transit voyage made in late December proved that it is possible to extend the period of Arctic navigation on the NSR to winter months.

Escorting of mt Perseverance on the NSR in 2011 Eastbound Voyage: Tanker deadweight: 75000 tons Cargo: 61000 tons gas condensate NSR navigation period: 30.06 15.07.2011 (14,9 days) Average speed: 7,6 knots Return Voyage: Tanker deadweight: 75000 tons Cargo: 64000 tons jet fuel NSR navigation period: 09.09 16.09.2011 (8 days) Average speed: 13,7 knots

Escorting of mt Vladimir Tikhonov on the NSR The Largest Vessel ever transited through the NSR Tanker deadweight: 160 000 tons (Suezmax) Cargo: 120 000 tons gas condensate of JSC NOVATEK NSR navigation period: 23.08 30.08.2011 Average speed: 14,0 knots

Escorting of mv Sanko Odyssey on the NSR The First Panamax Bulk Carrier that transited NSR Bulker deadweight: 75 000 tons (Panamax) Cargo: 66 500 tons of iron ore by JSC EUROCHEM NSR navigation period: 03.09.2011 10.09.2011 Average speed: - 13,7 knots

NSR Convoy July 2012 Mv Nordic Odyssey, ttb Vengeri, mt Marilee, mv Kapitan Danilkin escorted by ice-breaker Yamal and Vaygach July 12 22, 2012

LNG Ob River in Transit via NSR LNG Ob River Ice Class 1A (Arc 4) Displacement 116 325 t Cargo Capacity: 149 755 m3 Flag: Marshall Islands Ballast: Westbound 08-16.10.2012 Laden: Eastbound 09-18.11.2012 134 738 m3 LNG

Comparative Analysis of Cost Efficiency for NSR and Suez Canal Transit Cost Efficiency of LNG tanker Ob River laden voyage via NSR The slide is provided by Gazprom Marketing & Trading

Estimated Economic Efficiency for LNG tanker voyage via the Northern Sea Route Hammerfest -Tobata Suez NSR Difference Distance 12100 m 6100 m 50% Time (maximum speed)* 26 days 17 days 35% Time (optimal speed)** 39 days 21 days 54% Fuel Consumption Cost Efficiency*** Maximum Speed* 53% Optimal Speed**** 55% Remarks: * For the purpose of evaluation the average speed of 19.5 knots was used, except for the voyage via NSR (2450 m), where the average speed was 12 knots. ** For the purpose of evaluation the average speed of 19.5 knots was used, except for the voyage via NSR (2450 m), where the average speed was 12 knots. *** Estimated economic efficiency for the transit via NSR compared to the transit via Suez Canal **** For the purpose of Suez Canal transit evaluation maximum speed of 19,5 knots was used. For the purpose of NSR transit th optimal speed of 13 knots was used. The slide is provided by Gazprom Marketing & Trading

Future plans for cargo flow through the Northern Sea Route Hammerfest Murmansk Transit min.10 mln. tons LNG from Yamal p-la 15 mln. tons p. Sabetta 10 mln. tons of oil Beaufort Sea Narvik Oulu p. Vitino Primorsk, Ust-Luga Total turnover on the Northern sea route: 2010 1,8 million tn. (of them transit 0,11 million tn.) 2011 3,25 million tn. (of them transit 0,83 million tn.) 2012 3,87 million tn. (of them transit 1,2 million tn.) Qingdao Inchon Petropavlovsk- Kamchatsky Busan Hokkaido Kobe Prince Rupert Vancouver West-East LNG(p. Sabetta, Hammerfest) Iron Ore (Murmansk, Narvik) Crude Oil (Primorsk) Gas condensate (Ust-Luga, p. Vitino) East-West Coal (Prince Rupert, Vancouver) Fish (Petropavlovsk-Kamchatskiy, Hokkaido) Light oil products (Busan, Inchon) Seasonal container cargoes (Busan, Hokkaido) Total: min.10 mln. transit tons per year + 15 mln. LNG from p. Sabetta + 10 mln. tons of oil from Novyy Port

Yamal LNG Port Sabetta Construction Site

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