Sales of Petroleum Products

In 2013, in its petroleum product sales segment, the Company completed a phase of activity to expand the scale of its business and build a strong brand name. Gazprom Neft owns one of the most developed sales networks in Russia. In 2013, the Company again became the largest supplier of light petroleum products in its regions of operation, with a 21.6% share. The Company intends to be among the leaders in Russia and the CIS in terms of retail sales and filling station network efficiency by 2025. Achieving this goal will require greater operational efficiency.

The Company sells petroleum products in Russia and CIS countries mainly through its 15 subsidiaries (15 petroleum product suppliers). These subsidiaries and affiliates specialise in large- and small-scale wholesale through tank farms and retail marketing via a chain of filling stations.

As of the end of 2013, the Company’s petroleum product supply entities operated 60 owned and leased tank farms. 7.6 million tonnes of petroleum products were sold through tank farms in 2013. Petroleum product sales volumes through large-scale wholesale totalled 0.9 million tonnes in 2013.

Petroleum product sales on the Russian domestic market through filling stations and tank farms in 2013 increased by 2% year-on-year, to 14.5 million tonnes.