A meeting of the Gazprom Board of Directors proceeds in the Gazprom Headquarters.

The Board of Directors took into consideration the information on the activities aimed at the organization of stock exchange trading.

The Company’s Management Committee is tasked to continue activities with the purpose of the stock exchange trading organization and Mezhregiongaz electronic trading platform development.

Reference:

Presently, stock exchange technologies are within certain limits applied in natural gas trading at Mezhregiongaz electronic trading platform.

Gazprom as well as independent producers sell gas at Mezhregiongaz electronic trading platform (ETP) since November 2006 in compliance with the Russian Government Directive “On Experimental Gas Sales via an Electronic Trading Platform” and Russia’s Ministry of Industry and Energy Order “On Experimental Gas Trading via an Electronic Trading Platform”.

As part of the experiment Gazprom was enabled to sell at free prices up to 5 bcm of gas. Independent producers could sell the same gas volume at free prices. Since January 1, 2008 approved for ETP gas volume was increased to 7.5 bcm.

In 2007 Mezhregiongaz sold 7.04 bcm of gas via ETP. At that, 4.26 bcm (61percent) came from Gazprom and 2.78 bcm (39 per cent) – from independent producers. NK Rosneft, NOVATEK and LUKOIL became major gas traders at ETP. 1279 bargains were recorded for 2007 at ETP. The most intense activity was showed by electric power plants, that were established following the reform – wholesale and regional generating companies. Gas was sold in 31 RF constituents. The largest volumes were sold in Perm Krai, Samara Oblast, the Republic of Bashkortostan. In average, resulting from sales at ETP in 2007 the Federal Tariff Service (FTS) prices surplus came to 36.9 per cent.

As at March, 24 the total sales volume at ETP in 2008 made up nearly 2.7 bcm.

Issues related to the organization of stock exchange trading are situated at the first stage of consideration. Therefore, the Board of Directors discussed at its meeting the fundamental issues and measures to be taken for the implementation of this mission as well as further development of electronic trading patterns.

It is essential, that two structures (ETP and stock exchange) could perform efficiently supplementing each other. In such a case, their functions should be clearly separated.

Stock exchange is a more sophisticated structure. Here, mainly financial instruments are traded - futures contracts above all, with real gas deliveries under the participants’ preference, when contract terms begin.

The most important structure in stock exchange trading is an entity, that makes clearing payments. On the basis that all transactions should be held in compliance with Russia’s legal system and in Russian currency, the priority orientation at domestic clearing centres is considered.

Among the most important phases of stock exchange trading organization –granting by the Russian Federation Government the right to Gazprom and its affiliated companies, as major gas producers and suppliers, to sell gas at stock exchange at market prices as well as providing stock exchange performance with appropriate gas resources.

With a view to organize trading futures and option contracts on commodities and to develop several regulatory legal acts, the Provisional Working Committee for Stock Exchange Trading Organization was founded in Gazprom.