The meeting of the Gazprom Board of Directors is in progress at the Company’s Headquarters.

The Board of Directors approved of the work done by the Gazprom executive structures related to development of the energy sector in the Far East.

The Gazprom Management Committee was assigned with securing implementation of the following prioritized projects: construction of the startup complex of the Sakhalin – Khabarovsk – Vladivostok gas transmission system in the 3rd quarter of 2011, the Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to Petropavlovsk-Kamchatsky project – by the end of 2010.

The Management Committee was entrusted with further developing the Gazprom resource base in the Far East and preparing the fields including the Chayanda natural gas, oil and condensate field and the Kirinskoye gas and condensate field for commercial gas production, as well as initiating activities on the following promising projects: development of the Yakutia – Khabarovsk – Vladivostok gas transmission system, creation of natural gas processing and gas chemicals capacities, construction of natural gas liquefaction plants, natural gas and helium underground storage facilities.

The Board of Directors also prescribed to include starting from 2009 the constituents of the Far Eastern and Siberian Federal Okrugs into the Gasification Program for the Russian Federation regions currently implemented by Gazprom.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

The reserves of the Chayanda oil, gas and condensate field in Yakutia, the Kirinskoye natural gas and condensate field, the Sakhalin-3 Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks offshore Sakhalin and Zapadno-Kamchatsky prospect offshore Kamchatka are of key significance for the development of gas supply in the Far East and formation of a unified gas supply system. The Russian Government awarded Gazprom the subsurface use license for the Chayanda oil, gas and condensate field, and Kirinskoye gas and condensate field. Work is already underway to start operations at these sites in 2008.

In accordance with the Russian Government’s resolutions adopted at the September 1, 2008 circuit meeting in Vladivostok, the work is in progress to obtain in 2008 licenses for the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks, and the Zapadno-Kamchatsky prospect.

The Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) is a top priority of the Eastern Gas Program. In pursuance of the order by the Russian Government and the decision by Gazprom’s Board of Directors, the work is currently underway to create this GTS for the purpose of developing gas supply to the Khabarovsk Krai and Sakhalin Oblast, and organizing gas supply to the Primorsky Krai no later than in 2011.

The Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to Petropavlovsk-Kamchatsky project is another prioritized objective of Gazprom in the Far East. In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to implement this project and gave the relevant instructions.

The project stipulates developing a number of small gas condensate fields on the western coast of the Kamchatka Peninsula (the licenses for the subsurface use of the fields’ reserves are held by Kamchatgazprom) and constructing the Sobolevo –

Petropavlovsk-Kamchatsky gas trunkline, as well as distribution networks in Petropavlovsk-Kamchatsky.

The prospects for Gazprom’s participation in the development of the gas and energy supply to Yakutia are primarily related to the Chayanda oil, gas and condensate field development and the Yakutia – Khabarovsk – Vladivostok gas transmission system construction to be later connected to the Sakhalin – Khabarovsk – Vladivostok gas pipeline.

Gazprom invest Vostok (a wholly owned subsidiary of Gazprom) is the investment projects customer for the construction of the Sakhalin – Khabarovsk – Vladivostok and Yakutia – Khabarovsk – Vladivostok gas trunklines.

The Chayanda oil and gas condensate field is located in the Lensky district of the Republic of Sakha (Yakutia). The C1+C2 reserves of the field account for 1.24 tcm of gas and 68.4 mln t of oil and condensate. In accordance with the Russian Federation Government Directive # 493-r of April 16, 2008, the license for the Chayanda oil and gas condensate field was granted to Gazprom.

By now, Gasification Accords have been signed with six Far Eastern regions: the Kamchatka, Primorsky Khabarovsk Krais, the Sakhalin Oblast, the Republic of Sakha (Yakutia), the Jewish Autonomous Oblast. The Gasification Accord with the Amur Oblast is under consideration.

Gazprom has developed the main provisions of the General Scheme of gas supply to and gasification of the Far East Federal District; the development of general schemes for the Far Eastern regions, which signed Gasification Accords, is nearing completion.