The Board of Directors’ meeting has adjourned at Gazprom’s Headquarters.

The Board of Directors reviewed information on the activities aimed at bringing gas supply (purchase and sale) contracts between subsidiary and affiliated companies of Gazprom and Russian consumers in line with the legislation in force.

The Management Committee was entrusted with organizing the work to bring the terms of gas supply (purchase and sale) contracts between subsidiary and affiliated companies of Gazprom and Russian consumers in line with the new regulations covering payments for heat and natural gas.

The Board of Directors also took note of information on the work being done to raise operating efficiency and optimize (reduce) costs of Gazprom neft.

Background:

Gas supply contracts were concluded with Russian consumers in accordance with the Russian Government’s Directive No. 294 “On Approval of the Electric Power, Heat and Natural Gas Payments Regulations” dated April 4, 2000. The Regulations set out the rules for making advance payments when settling natural gas accounts, except for several consumer groups including the population, budget-sponsored companies and utilities.

The Russian Government’s Directive No. 816 dated October 17, 2009 introduced changes in the Directive No. 294 dated April 4, 2000. The new Directive identifies the payment timeframe and regulations for natural gas consumed by certain consumer groups.