Retail Network

Rosneft had retail business in 41 regions of Russia at the end of 2010, from Murmansk in the north to the North Caucasus in the south, and from Bryansk in the west to Sakhalin Island in the east. Rosneft sells gasoline, diesel fuel and lubricants through its retail network.

As of December 31, 2010, Rosneft marketing subsidiaries owned 142 operating tank farms with a capacity of 2.7 mln cubic meters. The Company’s network of operating filling stations consisted of 1,728 stations in ownership or leased, and 72 stations operating under the Rosneft brand through franchising agreements. Owned and leased filling stations were equipped with 124 car washes, 953 shops and 107 cafes. There were small-scale vehicle repair and servicing facilities at 91 of Rosneft’s filling stations.

Demand for petroleum products from retail consumers revived in 2010, boosting product sales at Company filling stations by 10% to 5.26 mln tonnes. Sales growth was also due to an increase in the number of stations under Rosneft ownership. Average daily product sales per station were 8.7 tonnes, which is 9% more than in 2009.

Rosneft pursued work on optimization of its retail business, withdrawing inefficient filling stations and tank farms, acquiring and building stations with high efficiency, and upgrading and rebranding existing outlets. The Company sold, closed or mothballed 16 stations in the course of the year, while 33 new stations were built and 66 were refurbished.

In the future Rosneft plans further expansion of its service station network in regions adjacent to Company refineries, particularly in Siberia and the Far East, as well as on promising markets in Moscow, Saint Petersburg and other Russian largest cities.

In 2009 the Company became a General Partner of the 2014 Olympic Games in Sochi, and began work to design a main-road filling station network in Olympic format, incorporating the Olympic insignia. ‘Olympic’ filling stations will offer an extended range of services. The precise range and volume of services will depend on specific needs at each filling station. The stations will be located along main road arteries leading to Sochi, and also in Sochi itself. The Olympic network will extend from Leningrad and Smolensk regions via Tver, Moscow, Tula, Voronezh, Lipetsk and Rostov regions to Krasnodar Territory. In addition to classic filling stations, floating stations will be built. Studies for the project were carried out in 2010 and construction work began on a number of Olympic filling stations.