The Board of Directors’ meeting has come to an end at Gazprom’s Headquarters.

The Board heard a report on the Management Committee’s corporate dividend policy activities.

The Board ratified amendments to the Regulations for the deal execution and the Regulations for Gazprom’s interaction with its equity companies.

The Board also agreed on the loan transaction issue.

Reference:

Approved by the Board of Directors on 24 April 2001, the Gazprom’s Dividend Policy Guidelines fix the distribution priority for the net profit realized over the reporting year.

Part of earnings accounting for not less than 2% of the Company’s capitalization but not exceeding 10% of the net profit arisen is earmarked as dividends.

From 50% to 75% of the net profit is reserved for technical upgrading, state-of-the-art technologies, research & development, current assets and other identical purposes.

Another part of the net profit is earmarked as reserve fund (in accordance with the Articles of Association – not less than 5% of the authorized capital).

The rest is equally earmarked as dividends and production & social development reserves.

The resolution on the annual dividend amount and allocation method is adopted by the Shareholders’ Meeting on the Board of Directors’ recommendations. The dividend amount can not exceed the figure recommended by the Board.

Over 2004, RUR 16 bln (RUR 0.69 per share) was paid out as dividends based on Gazprom’s 2003 operating achievements.

The Regulations for the deal execution and the Regulations for Gazprom’s interaction with its equity companies were endorsed by the Board of Directors on 27 September 2002. To optimize the approval procedure for a string of transactions and actions by Gazprom and its subsidiaries, both Regulations were later on amended.

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