www.ueex.com.ua

UEEX was created in April 2010 as an innovative project of Ukrainian specialists of the exchange industry, as well as financiers, lawyers, economists, IT specialists, whose main purpose is launching and functioning of spot and forward markets, exchange trading of energy and electricity in Ukraine. Main trading sections: Oil products, Liquefied gas (LPG), Natural gas, Coal products, Insolvent banks property sale. Trading with State Company PAT "Ukrgasvydobuvannya" take place in a separate section. UEEX introduced a new trading tool – differentials trading and a number of services for market participants. As of today on the UEEX is being traded: 15-20% of all Ukrainian LPG market 3-5% of all Ukrainian oil products market 5-6% of all Ukrainian coal market Ukrainian market is premium for importers The Exchange offers an opportunity to sell resource "just-in-time"

Ukrainian Energy Exchange is a leader in the exchange services market of Ukraine

The mission of CE "UEEX": creation of reliable, transparent and effective mechanism of market-based energy trading on the domestic and external market of Ukraine taking into account specifics and peculiarities of the country and increase energy security of the country.

Ukrainian Energy Exchange is a member of: European Business Association

Working directions

PAT "Ukrgasvydobuvannya"

LPG Oil products

Oil & gas condensate

Oil products electronic trading

Auctions for the sale of LPG for population

needs

Coal products

Insolvent banks property sale

Developing directions

Electrical energy

Auctions for the sale of LPG in the domestic

market

Natural gas (Intra-Day and Day-Ahead Market)

Natural gas (private)

Sales volume

> 22 billion UAH

oil products 940 thousand tons LPG 280 thousand tons coal 1,8 million tons

Concluded

> 13000 contracts

Registered

600 companies

100% of contracts concluded on the Exchange ended with real delivery of products

natural gas 100 million cubic meters oil 41,5 thousand tons raw material 10 thousand tons

Realized:

Ukrainian Energy Exchange – leader on the exchange services market of Ukraine

Trading sessions

> 500

4

Main customers of UEEХ

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797

170

0

100

200

300

400

500

600

700

800

900Gasolines

Total production

UEEX sales

21,3%

714

156

0

100

200

300

400

500

600

700

800Diesel Fuel

Total production

UEEX sales

1475

280

0

200

400

600

800

1000

1200

1400

1600

LPG

Market balance

UEEX sales

15% 21,8%

31,3

1,65

0

5

10

15

20

25

30

35

Coal

market balance

UEEX sales

6%

373258

136500

197000

0

50000

100000

150000

200000

250000

300000

350000

400000Total sales

Spot Forward (TERM) Import/export

1 100 1 000

2 500

1 100

3 700

100 700

150

8 100

600

9 100

4 400

100

14 500

7 000

5 900

5 000

150

5 600

100

5 000

Exchange volumes of sales, thousand cubic m

Natural gas

Starting 2017 CE "Ukrainian Energy

Exchange" began to hold natural gas trading

on the forward conditions. Resource is sold

by large companies and global players.

Developing trading in natural gas on the

terms of the forward with discount /premium

to spot price that enables hedging of the

guaranteed volume of deliveries with a

binding price formula (basis for the

introduction of futures).

UEEX trading instruments

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Contracts on the spot conditions (exports, imports, domestic market ) Contracts on the forward conditions(exports, imports, domestic market) for a period of month, quarter, six months, year Forwards on the differentials (TERM contracts) (export, imports, domestic market ) Spot contracts and Differentials (spot and forward) with reference to quotes from Thomson Reuters, Platts and Argus,

where the participants are trading at a premium /discount on the date of delivery /payment

In the fall of 2016 UEEX was the first in Ukraine to hold trading of TERM contracts with reference to the quotes from Platts and Argus on the domestic market and for export.

www.ueex.com.ua

From 2017 UEEX has joined the system ProZorro.Sale. Electronic platform of UEEX on realization of insolvent banks property connected to the ProZorro.Sale. - https://sale.ueex.com.ua/

Sale property of insolvent banks

The process of insolvent banks withdrawal from the market is continuing in Ukraine for several years and may last until 2024. Of the total number 85 of 182 banks deemed insolvent. The carrying value of the assets of insolvent banks estimated at $ 16 billion.

0

500000

1000000

1500000

2000000

2500000

3000000

Sale of insolvent banks property

www.ueex.com.ua

Trading results are published by the international news agencies and Ukrainian industry publications, in particular in

respect of petroleum products and natural gas, such as Thomson Reuters, Argus, Oilnews, Nefterynok.

Exchange quotations

Market monitoring tools

www.ueex.com.ua 10

Price quotation Thomson Reuters

www.ueex.com.ua

Market monitoring tools

Main monitoring tools: - Exchange quotations - Netbacks Today CE "Ukrainian Energy Exchange" in conjunction with Thomson Reuters has been working on the creation of netback for the Ukrainian market of petroleum products and LPG.

The following state bodies use UEEX quotes as price references: State Fiscal Service of Ukraine, the National Anticorruption Bureau of Ukraine, the Antimonopoly Committee of Ukraine, Ministry of Energy and Coal Industry of Ukraine and others.

Due to the fact that the Ukrainian market is the premium for the non-resident exporters of petroleum products into Ukraine and the fact that the market is very sensitive to the prices on the adjacent markets, seasonal demand and maintenance at plants, it is advisable to develop and implement an internal index for the Ukrainian market.

www.ueex.com.ua

Services Buyer has the opportunity to schedule shipment of products purchased in the system of "Electronic queue" and calculate the cost of oil products and liquefied gas delivered by auto using "Trucking calculator".

UEEX offers everyone the opportunity to subscribe for updated exchange quotations.

Separately UEEX publishes on its website an informer with the results of trades. This informer can be downloaded to display on your own website.

Also Mass Media has the opportunity to be accredited to access the PP "BETS" with the status of "Observer" and to the trading room of the exchange.

The exchange provides its clients with access to analytical information that is available in personal account on the website.

Specialists of the exchange conduct training in PP "BETS" for new bidders and improve the overall level of qualification of current members. Special free training program at the Training center have been developed by UEEX.

www.ueex.com.ua

Trucking calculator - delivery guarantee

Electronic Trading System

Anonymity of participants and absence of any contact among them until completion of trading eliminates any possible corruption schemes. Software Product "Electronic Exchange Trading System" (PP BETS) has been developed by leading UEEX and IT specialists who have deep knowledge and experience in developing exactly electronic exchange platforms. When developing PP BETS was taken into account feedback from participants in various commodity markets, as well as domestic and international experience of electronic exchange trading.

CE “UEEX" has its own modern electronic trading system - a scalable complex of information technology solutions, which provides the interaction between buyer, seller, the exchange and clearing bank through electronic channels of communication at all stages of exchange transaction conclusion.

The server part of the PP BETS is allocated in a modern data center, which meets the requirements Uptime Institute Data Center Site Infrastructure Standard TIER III.

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Electronic Trading System

CE Ukrainian Energy Exchange operates a clearing system and a risk management system of transactions executed on the Exchange. In particular, it collects collaterals from the participants of the Exchange before the trading session and establishes trading limits accordingly. Also, the Exchange also uses "e-line" SW to monitor implementation of obligations under transactions.

100% of transactions concluded on the Exchange ended in a real supply of goods.

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Electronic Trading System

Trading is performed in the form of a counter-anonymous auction

Trading in the Internet on the base of Electronic Trading System (ETS)

ETS works within the limits of participants’ collateral

Prices are formed solely on the basis of supply and demand in the course of trading

Trading modes: - Auctions - Spot trading - Forward contracts trading - Derivatives trading - Differentials trading

www.ueex.com.ua

Electronic queue (a delivery monitoring tool) At CE Ukrainian Energy Exchange operates a system of control for shipments from oil depots and factories. PP "E-queue" allows to get to monitor shipments online, control balances and to document warehouse stock. The system has the ability to integrate all accounting systems of the enterprises

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www.ueex.com.ua

Success factors

Free & equal access to all comers

Transparent competitive conditions for participants

Clear bases and criteria for pricing

High quality products

Clear delivery terms

The Exchange’s tasks

Establishment of exchange trade of short-term contracts - Intra-Day Market and Day-Ahead Market in the domestic market, on

interconnectors and storages

To launch futures energy market

Development of tools for the introduction of derivatives trading and risk management mechanisms and implementation of exchange

transactions clearing in the spot market and the derivatives as well as OTC contracts (OTC Deals)

To increase stakes of exchange energy markets up to 15% of the market

To ensure functioning of competitive, liquid and transparent energy markets for the formation of indicative prices in energy

markets and improve the investment climate and image of Ukraine

Korosten’

Mukachevo

Ports

www.ueex.com.ua

Thank you for being with us on an irrevocable path of progress and change for the better!

CE "UEEX" team