The Gazprom Headquarters keeps hosting the Board of Directors' meeting.

The Board of Directors took notice of the information on the efficiency of key financial investments made by Gazprom in electric power generation industry based on the 2008 operating results.

The Company's Management Committee was entrusted to organize work aimed at further enhancing the efficiency of financial investments in the electric power sector.

The meeting participants noted that despite the global crisis influence on the profitability of electric power producers, their earnings and capitalization could significantly increase in the long run. This resulted from the Russian Federation Government plans to continue liberalization of the wholesale electric energy market and from the development of Russia's power capacity market under transparent investment return conditions.

Background:

In April 2007 the Gazprom Board of Directors approved the Company's Electric Power Generation Strategy. The development of Gazprom Group's electric energy business provides, in particular, for the acquisition of stakes in power generating companies, construction of new power generating facilities, as well as promotion of energy distribution and supply network operation.

In 2007–2008, as a result of the electric power industry reform in Russia and participation in additional share issue by power generating companies, Gazprom Group substantially achieved its strategic goals to enter the electric power generation business.

Gazprom Group owns the following major assets in Russia's electric power sector: Mosenergo (53.47 per cent), TGC-1 (28.7 per cent), OGK-2 (44.4 per cent), OGK-6 (42.9 per cent).

In August 2008 the Gazprom Board of Directors made a decision to consolidate the stakes in TGC-1 and Mosenergo on the books of Gazoenergeticheskaya kompaniya (since May 2009 – Gazprom energoholding).

Currently, the major assets of Gazprom energoholding are as follows:

- a 53.47 per cent stake in Mosenergo (TGC-3);

- a 28.7 per cent stake in TGC-1;

- a 8.34 per cent stake in INTER RAO UES;

- a 10.49 per cent stake in MRSK Holding;

- a 10.49 per cent stake in RAO Energeticheskiye Sistemy Vostoka;

- a 3.97 per cent stake in FGC UES (jointly with TSENTRENERGOHOLDING);

- a 99.2 per cent stake in TSENTRENERGOHOLDING owning, in particular, a 44.4 per cent stake in OGK-2;

- a 42.9 per cent stake in OGK-6.

Eventually, all the assets acquired and new construction projects will be consolidated on the basis of Gazprom energoholding.

Today Gazprom Group is the largest electric power producer, the leading electric power suppler and the second largest heat producer in Russia.

So far, the energy assets of Gazprom Group have exerted a considerable synergizing effect on the natural gas business. In particular, the Group is capable of gaining extra profit through diversification of the fuel balance in electric power industry depending on the hydrocarbon prices behavior (via prompt redistribution of the fuel balance at coal and gas power stations). In addition, electric power purchase costs are optimized by Gazprom Group members through direct electric power supply contracts made.