Gazprom’s Headquarters has hosted a working meeting between Alexey Miller, Chairman of Gazprom’s Management Committee and Alexander Volkov, President of the Udmurt Republic.

The parties addressed the implementation of a Cooperation Agreement between Gazprom and the Udmurt Republic, placing a focus on Gazprom’s involvement in the construction of gas supply infrastructure in the Republic as well as on the need of speeding up the review process of a gas supply agreement by Udmurtia’s authorities.

Alexey Miller and Alexander Volkov pointed to last year’s progress in gas arrears clearance on the part of Udmurt consumers as well as to a high level of gas payments standing at 100.3 per cent by the start of 2006. In this regard the parties underlined the importance of maintaining the account settlement dynamics.

Special emphasis was placed on gas supply throughout Russia during sharp colds.

Alexey Miller underscored that Gazprom was piping gas to Russian consumers in the full amount and strict compliance with the gas supply agreements sealed. To provide uninterrupted gas deliveries, primarily, to the residential sector, Gazprom had switched from 16 January to a schedule stipulating the conversion of industrial customers to reserve fuels. Subject to annual endorsement by regional authorities, said schedule obliges industrial gas consumers to have reserve fuels during the autumn-winter heating season.

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Gazprom and the Udmurt Republic entered into the Cooperation Agreement in September 2005.

Over 2004 Gazprom provided Udmurtia with some 2.9 bcm of gas and roughly the same amount is slated for this year.

In accordance with its programs on gas supply to Russian regions over 2003 to 2005, Gazprom spent some RUR 590 mln to construct gas supply infrastructure in the Udmurt Republic. This year the company is resolute to be identically aggressive in this direction.

The natural gas infrastructure of the Udmurt Republic is currently developed by 55 per cent of maximum gas demand, including by 70.2 per cent in cities, towns and localities, and 20 per cent in rural area. The same Russia-averaged parameters account for 53, 60 and 34 per cent, respectively.

Over 2005 Udmurtia’s natural gas debt to Gazprom has reduced RUR 98 mln to RUR 5.3 mln as of 1 January 2006.