The Board of Directors reviewed information on the planned amount of investment in research work and technology upgrading from 2011 through 2015 and on Gazprom’s venture fund for innovative technologies.

The Company’s Management Committee was tasked to inform the Board of Directors about the actual investment level reached in these fields at the end of 2011.

Background:

In January 2010 Russian President Dmitry Medvedev issued orders to build up innovative activities and raise the technology development level in the companies with state participation.

In pursuance of these orders Gazprom elaborated an action plan envisaging prioritized investment in R&D activities in a number of fields. These include energy saving technologies, LNG, GTL, fuel cell energy, new generation diagnostic complexes for investigation of the gas industry facilities, offshore hydrocarbon production facilities, as well as simultaneous oil and gas deposits development in oil, gas and condensate fields along with gas processing.

R&D financing proposals related to the above mentioned fields will be incorporated in Gazprom’s 2011 budget.

Moreover, it is planned to involve Gazprom’s venture fund for innovative technologies in large R&D projects financing.

The pilot portfolio of the fund consists of nine projects aimed at new equipment designing for the key gas production and transmission facilities scheduled for construction or reconstruction within 3 to 7 years.

The amount of funds required to retrofit Gazprom’s facilities under operation is specified under the reconstruction and retrofitting programs implemented by the Company on an ongoing basis and is incorporated in Gazprom’s investment program.