A working meeting was held today between Alexey Miller, Chairman of the Company's Management Committee and Nikolai Merkushkin, President of the Republic of Mordovia.

The parties discussed the progress with the Cooperation Agreement, particularly Gazprom's activities to upgrade the gas transmission system in the Republic. The meeting participants highlighted that in 2010 Gazprom had been putting much effort in reconstructing the Saratov – Gorky gas trunkline (one of the first in Russia) at the Pochinki – Saransk section.

The meeting also addressed Gazprom's possible participation in the social projects in Mordovia.

Background:

The Cooperation Agreement between Gazprom and the Government of the Republic of Mordovia was inked in 2006, the Gasification Accord – in 2003.

In 2010 (as of October 1) Gazprom allocated RUB 690 million to reconstruct the Saratov – Gorky gas trunkline at the Pochinki – Saransk section.

Between 2006 and 2008 Gazprom committed RUB 415 million to gasify the Republic of Mordovia. In 2009 the Company invested RUB 100 million to complete construction of five inter-settlement gas pipelines with the total length of 39 kilometers.

The gasification level of the Republic of Mordovia is at 88.2 per cent, with up to 97.7 per cent in cities and towns, and up to 76 per cent in the rural area. The identical figures throughout Russia average 63.2, 67.5 and 45.5 per cent respectively.