The Board of Directors’ meeting is underway at the Gazprom Headquarters.

The Board of Directors has heard a report on the progress with the remuneration system for Gazprom’s top executives.

The Board of Directors endorsed the Provision on the Annual Bonus System for Gazprom Top Executives and the Provision on the Remuneration of Gazprom Top Executives in Corporate Shares.

The Board of Directors entrusted the Management Committee with organizing the work to pay out annual bonuses based on performance results, starting from year-end 2006, as set out in the endorsed Provision on the Annual Bonus System for Gazprom Top Executives.

Reference:

In March 2006 the Gazprom Management Committee endorsed a draft Provision on the Annual Bonus System for Gazprom Top Executives and a draft Provision on the Remuneration of Gazprom Top Executives in Corporate Shares.

The Gazprom top executives remuneration system is mainly targeted at:

• meeting Gazprom’s business objectives set by its stockholders by attracting personal interest of each top executive in the Company’s success;
• employing and retaining top officials whose professionalism and business efficiency prove indispensable for the Company;
• achieving more rational structuring of personnel business schedules by activity directions in accordance with Gazprom’s strategic aspirations.