On 30 August 2011 OAO Gazprom issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) for the three months ended 31 March 2011.

The table below presents the unaudited consolidated interim condensed statement of comprehensive income prepared in accordance with IFRS for the three months ended 31 March 2011 and 2010. All amounts are presented in millions of Russian Roubles.

Sales (net of excise tax, VAT and customs duties) increased by RR 362,420 million, or 38%, to RR 1,316,747 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010. More detailed information on our sales for the three months ended 31 March 2011 and 2010 is presented in the table below.

Net sales of gas increased by RR 257,609 million, or 42%, to RR 869,969 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010. This increase was primarily due to higher volumes of gas sold in FSU, Europe and other countries which was enhanced by the increase of average realized prices in RR terms (including excise tax and customs duties) for sales in all geographical segments.

For the three months ended 31 March 2011 net sales of gas to Europe and other countries increased by RR 112,785 million, or 39%, to RR 398,533 million compared to the three months ended 31 March 2010. This mainly results from the increase of average realized prices in RR terms (including excise tax and customs duties) by 14% which was enhanced by the increase of the volume of gas sold by 12%, or 4.9 bcm.

Net sales of gas to FSU countries increased by RR 111,565 million, or 119%, to RR 205,394 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010. The increase of sales in this segment is explained by the increase of volumes of gas sold by 72%, or 12.2 bcm, which was enhanced by the increase of the average realized prices in RR terms (including customs duties, net of VAT) by 8%.

Net sales of gas in the domestic market increased by RR 33,259 million, or 14%, to RR 266,042 million in the three months ended 31 march 2011 compared to the three months ended 31 March 2010. This is explained primarily by the increase in the average domestic price for gas set up by the Federal Tariffs Service.

Net sales of refined products increased by RR 61,342 million, or 40%, to RR 214,887 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010.The increase was due to the increase of volumes sold and increase of prices for refined products.

Net electric and heat energy sales increased by RR 19,139 million, or 20%, to RR 112,536 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010. The increase in electric and heat energy sales is explained by the increase in the tariffs for electric and heat energy.

In the three months ended 31 March 2011 net sales of crude oil and gas condensate increased by RR 12,761 million, or 29%, to RR 57,345 million compared to the three months ended 31 March 2010. The increase in net sales of crude oil and gas condensate primarily resulted from the Gazprom neft activities: net sales of crude oil increased by RR 9,859 million, or 26%, to RR 48,362 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010. The increase of gas condensate sales was primarily due to the increase in the average realized prices and volumes of gas condensate sold.

In the three months ended 31 March 2011 net gas transportation sales increased by RR 3,649 million, or 15%, to RR 28,796 million compared to the three months ended 31 March 2010. The increase in net gas transportation sales was primarily due to the increase in the tariffs for transportation of gas for independent gas suppliers.

Operating expenses increased by RR 203,079 million, or 33%, to RR 817,909 million in the three months ended 31 March 2011 compared to the three months ended 31 March 2010.

Major item in the total amount of operating expenses is "Purchased gas and oil" which increased by RR 132,622 million. The increase in cost of purchased gas relates to the increase in volumes and increase in prices of gas purchased from third parties within Russian Federation and abroad.

In the three months ended 31 March 2011 our profit for the period attributable to owners of OAO Gazprom totaled RR 467,969 million which is RR 143,016 million, or 44%, higher compared to the three months ended 31 March 2010.

Our net debt balance (defined as the sum of short-term borrowings, including current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities, net of cash and cash equivalents and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) decreased by RR 30,493 million, or 4%, from RR 870,993 million as of 31 December 2010 to RR 840,500 million as of 31 March 2011. This can be explained by the decrease in long-term and short-term borrowings mainly due to appreciation of RUR against USD and EURO.