The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Alexander Zhilkin, Governor of the Astrakhan Oblast.

The parties reviewed the progress with the Agreement of Cooperation, particularly the issues of the Oblast gasification. It was noted that much had been done in this area. From 2004 to 2011 Gazprom invested over RUB 2 billion in regional gasification efforts. It helped increase the average level of the Oblast gasification to 75.6 per cent (by 6.1 per cent). The identical figure throughout Russia averages 63.1 per cent. The parties stressed that during the mentioned period the gasification level in the rural area had been increased by 16.3 per cent and had reached 63.2 per cent which was much higher than Russia’s average of 46.7 per cent.

Between 2012 and 2013 the gasification rates will also be high.

Alexey Miller and Alexander Zhilkin discussed the issues of the Astrakhan gas complex operation and the possibility of processing capacities development in the region. In particular, the prospects for constructing a polyethylene production complex were examined. It was noted that pre-investment studies were underway at the moment as part of the project.

During the meeting the parties paid attention to Gazprom’s participation in the social development of the Astrakhan Oblast. From 2001 to 2010 the Company allocated over RUB 5 billion for the above mentioned purposes, including reconstruction of the children’s recreation center and the oil and gas laboratory of the Astrakhan State Technical University as well as upgrade of the Volga River embankment. The parties noted that in 2012 design and construction operations would be launched to build a modern versatile center on the embankment.

Background

The Agreement of Cooperation between Gazprom and the Astrakhan Oblast Government was signed on April 19, 2006; the Accord on Gasification – in March 2000.

Between 2006 and 2010 Gazprom allocated RUB 56.8 billion of capital investments to implement projects in the region with RUB 23.1 billion slated for 2011.