Ufa hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Rustem Khamitov, President of the Republic of Bashkortostan.

The parties addressed the progress in implementing the Cooperation Agreement signed by Gazprom and the Republic.

After the meeting Alexey Miller and Rustem Khamitov stated that agreements had been reached to further promote the cooperation. Taking into account the scale and variety of cooperation areas between Gazprom and Bashkortostan, the Cooperation Agreement will be signed annually instead of a five-year term as the case was before, with all mutual obligations to be formulated in detail.

Alexey Miller noted that Gazprom had great industrial and social plans for Bashkortostan. At present, a polyethylene production complex and a carbamide granulation unit are under construction at Salavatnefteorgsintez and a number of new processing capacities are to be created. Gazprom transgaz Ufa shows good operating results and will ramp up the gas transmission volumes. As was agreed with the Bashkir President, Gazprom would allocate extra funds for the Gasification Program and would continue intense efforts aimed at creating commonly available sports facilities as part of the Gazprom to Children program.

Consideration was also given to the issues related to the equipment being purchased by Gazprom from the Ufa Engine-Building Production Association.

Background:

Gazprom and the Republic of Bashkortostan entered into the Cooperation Agreement in June 2003 (extended on June 5, 2008) and into the Gasification Accord – in June 2003.

Natural gas penetration in the region accounts for 83.4 per cent including 90.8 per cent in cities and towns and 71.2 per cent in the rural area.

Between 2006 and 2009 Gazprom invested RUB 1.26 billion in the gasification development in the Republic of Bashkortostan.

In 2010 RUB 200 million were allocated for the same purposes. The funds were channeled to complete the construction of three inter-settlement gas pipelines.