A Board of Directors’ meeting has commenced at the Gazprom Headquarters.

The Board heard a report on the Gazprom preliminary operating highlights over the 1st half of 2006 and approved the restated Gazprom budget (financial plan) and investment program for 2006.

Under the approved budget, overall cash income & revenues (taking into consideration the account balance as of the start of the reporting period) will make up RUR 2,211.39 bln, RUR 370.69 bln up on the financial plan endorsed in February 2006. Total cash liabilities, expenditures and investments will account for RUR 2,298.43 bln, RUR 367.87 bln up on the financial plan endorsed in February 2006. Financial borrowings will remain unchanged totaling RUR 90 bln. Cash surplus at the end of 2006 is projected at RUR 0.93 bln.

The need to make amendments in the budget is driven by macroeconomic changes (US dollar rate), conjunctural changes (growth of hydrocarbon prices) and a number of production & financial forecasts made by Gazprom.

In accordance with the approved investment program, total investments have been increased by RUR 63.04 bln to RUR 373.14 bln including capital investments by RUR 46.51 bln to RUR 324.93 bln and long-term financial investments by RUR 16.53 bln to RUR 48.21 bln.

Capital investments have been primarily boosted to secure in 2006 timely commissioning of paramount gas transmission infrastructure and initiate the construction of key facilities scheduled to be brought online at a later stage. In particular, extra investments have been earmarked to execute the Yen-Yakhinskoye, Zapolyarnoye and Yuzhno-Russkoye field development projects, to implement paramount measures to technically develop the Bovanenkovskoye and Kharasaveyskoye fields as well as to execute projects included in UGSS and gas production infrastructure upgrading programs and other projects.

Furthermore, when shaping the investment program, Gazprom has taken into consideration the Program on synchronized commissioning of gas production and transmission capacities between 2007 and 2010, which is currently under review.