In Munich yesterday as part of gala events marking 35 years of Russian natural gas supply to Germany, OAO Gazprom Deputy Board Chairman Alexander Medvedev and E.ON Ruhrgas AG Board Chairman Bernhard Reutersberg signed a memorandum of understanding to create a joint venture that will concern itself with issues of energy conservation and effective energy use.

The company will work to implement advanced energy-saving technologies, including with the use of renewable energy sources, and consult major European clients in matters pertaining to efficient resource use.

According to the memorandum, the parties will form a joint working group to identify and analyze potential areas of cooperation.

The companies expect to begin creating the JV in 2009.

“Ensuring stable gas supply and working to increase energy efficiency are two sides of the same coin. By opening this new stage in our cooperation, Gazprom and E.ON Ruhrgas once again confirm that conserving natural resources and protecting the environment are not only always in our line of sight, but are also priorities. We hope that our experience in this sphere will be useful for many people,” said Alexander Medvedev.

Background:

The German company E.ON AG is Europe’s largest private electric power and gas concern. Since February 2003 E.ON Ruhrgas AG (until July 1, 2004 Ruhrgas AG) has been the subsidiary of E.ON AG responsible for the group’s gas business in Europe, including production, sales, transport and storage of natural gas.

E.ON Ruhrgas AG is the largest foreign shareholder of OAO Gazprom.

The foundation of cooperation between OAO Gazprom and E.ON Ruhrgas AG was laid in the early 70s. Ruhrgas has become one of the first large purchasers of Russian gas in Western Europe.

A memorandum of understanding between OAO Gazprom and E.ON AG cementing the companies’ understandings about the future intensification of cooperation in the sphere of strategic projects was signed on July 8, 2004. Besides their traditional spheres of cooperation in the area of gas supply, the companies will work on joint projects in the production, transport and marketing of gas, as well as electric power.

On October 2, 2008 OAO Gazprom and E.ON AG signed an agreement on joint participation in the project to develop the Yuzhno-Russkoye oil and gas field. According to the agreement, E.ON AG will receive 25% minus one ordinary registered share in the charter capital of OAO Severneftegazprom and thus take part in the development of the Yuzhno-Russkoye field. Gazprom will receive 49% of ZAO Gerosgaz, which owns 2.93% of the company, giving Gazprom the full property rights to this stake.

On February 29, 2008 OAO Gazprom and E.ON AG signed a memorandum of understanding on the joint construction and operation of a gas turbine power station near Lubmin (Germany).