ENERGY FOR PEOPLE - JSC Gazprom Neft

JSC GAZPROM NEFTANNUAL REPORT2009Ruble vs. US DollarExchange Rate andInflationA substantial part of the Company’srevenues from sales of crude oil andpetroleum products is denominatedin US Dollars, while most of theexpenses are settled in Russian Rubles.Accordingly, any Ruble appreciationto the US Dollar negatively affects theresults of the Company’s operations,though this is partially offset by Rubledenominated revenue from sales inRussia. In 2009 Ruble depreciatedagainst the US Dollar in nominal terms,which positively affected the Company’smargins. In order to mitigate the effectsof fluctuation in Ruble – US Dollarexchange rate the Company is engagedin using derivative instruments. Refer toNote 16 to the Consolidated FinancialStatements.The following table comprisesthe information on exchange ratemovements and inflation during theperiods analyzed:2009 2008 2007Consumer Price Index (CPI), % 8,8 13,3 11,9Producer Price Index (PPI), % 13,9 (7,0) 25,1Ruble/US dollar exchange rate as of the end of the period 30,24 29,38 24,55Average Ruble/US dollar exchange rate for the period 31,72 24,86 25,58Real appreciation (depreciation) of the Ruble against the US dollar, % 5,7 (5,3) 20,0Nominal period average appreciation (depreciation) of the Ruble against the US dollar, % (21,6) 2,9 6,3Source: the Central Bank of the Russian Federation, the Federal State Statistics Service.TaxationThe following table provides information on average enacted tax rates specific to the oil and gas industry in Russia for theperiods indicated:Change , %2009 2008 2007 2009–2008 2008–2007Export customs dutyCrude oil (US$ per tonne) 179,93 355,08 206,70 (49,3) 71,8Crude oil (US$ per barrel) 24,55 48,44 28,20 (49,3) 71,8Light and middle distillates products (US$ pertonne) 133,54 251,53 151,59 (46,9) 65,9Fuel oil (US$ per tonne) 71,92 135,51 81,64 (46,9) 66,0Mineral extraction taxCrude oil (RUR per tonne) 2 299,00 3 329,09 2 472,69 (30,9) 34,6Crude oil (US$ per barrel) 9,89 18,27 13,19 (45,9) 38,5Natural gas (RUR per 1,000 cm) 147,00 147,00 147,00 – –Crude oil export customs dutyrateExport customs duty rate per tonne ofcrude oil is established on a monthlybasis by the Government of the RussianFederation. The actual rate is based onthe average Urals price in the periodfrom the 15th calendar day in the monthto the 14th calendar day of the followingmonth (monitoring period). The rate iseffective on the first day of the comingmonth after the monitoring period.The Government sets export customduty rates according to the followingformulas:Quoted Urals price (P),USD per tonneMaximum Export Custom Duty Rate0 — 109,50 0%109,50 — 146,00 35.0% * (P – 109.50)146,00 — 182,50 12.78 USD + 45.0% * (P – 146.00)>182,50 29.20 USD + 65.0% * (P – 182.50)73