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Investor Presentaiton

11 • Energy security being assured beyond Russia Diversified energy mix and reserves allow the phase out of all Russian energy imports Imports of Russian natural gas to Estonia ended in April 2022. Estonia has reduced natural gas usage (including replacing it with local shale oil) and set up a natural gas strategic reserve to mitigate further risks With a strong renewable energy sector and large oil shale reserves (and the technology to process it into energy products), Estonian energy import dependency is amongst the lowest in Europe¹ • Diversification efforts are already showing results, as Estonia can now import LNG from the Lithuanian and Finnish LNG terminals. Estonia has also built a backup location for the Finnish LNG terminal (based on a floating storage and regasification unit) For the 2021-22 season, subsidy schemes were established for all household energy consumers and enterprises. For the 2022-23 season, the government again provided subsidies for all household consumers (electricity, gas, district heating) Baltic Sea incidents in 2023 have impacted crucial regional infrastructure, including the Balticconnector gas pipeline between Estonia and Finland, and two communication cables. The Balticconnector gas pipeline was suspended due to an unexplained pressure drop during a severe storm in October 2023. As a result, Elering, the Estonian system operator, ensured uninterrupted gas supply to Estonian consumers through Latvia. Investigations are ongoing, but most probably the pipeline was damaged by an anchor of a Hong Kong-flagged vessel. The pipeline is expected to be repaired by April 2024 subject to ice conditions of the sea. The full operational capacity of the internet cable connecting Estonia and Sweden has been restored² Energy import dependency (2022)³ Total energy supply by product (2022) Source: Eurostat Oil and petroleum Electricity products 2% Non-renewable waste 1% Peat and peat products 0% Natural gas 6% Renewables and biofuels 28% 2% Russian energy import share diminishes4 1,500 1,000 500 Oil shale and oil sands 61% 100% 80% 60% 40% 20% 80% 60% 40% 20% 0% Sweden Romania Estonia Latvia Finland Czechia Denmark Poland Croatia France Slovenia Hungary Germany Slovakia Portugal Lithuania Belgium Spain Austria 0 2016 2017 2018 Source: Eurostat Source: Eurostat Note: (1) Eurostat; (2) This information is subject to change as investigations progress; (3) Share of total energy needs of a country met by imports; (4) Energy imports include transit of energy to third countries REPUBLIC OF ESTONIA MINISTRY OF FINANCE 2019 2020 Natural gas (m. m3) (lhs) Oil and solid fossil fuels (k. tonnes) (Ihs) Oil and solid fossil fuels (% from Russia) (rhs) Natural gas (% from Russia) (rhs) 2021 0%
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