The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Alexander Berdnikov, Head of the Republic of Altai, Chairman of the Altai Government.

The parties reviewed the progress with the Cooperation Agreement. Special attention was paid to the regional gasification efforts. It was noted that inter-settlement gas pipelines in the region were built on schedule and synchronization schedules for construction operations met the deadlines.

Alexey Miller and Alexander Berdnikov noted the importance of gasification to improve the environmental situation in the Republic. In particular, between 2007 and 2010, 27 boiler houses were converted to gas allowing the region to reduce annual coal ash emissions by 5 thousand tons.

The parties discussed Gazprom’s plans to participate in developing the regional retail market of petroleum products.

The meeting also focused on the reconstruction of Anokhin National Museum of the Republic of Altai sponsored by Gazprom at the moment. From 2008 to 2010 the Company spent RUB 250 million for the reconstruction, from 2011 to 2012 it is planning to allocate another RUB 447 million. The Museum is anticipated to be opened in 2012.

Background

Gazprom and the Government of the Republic of Altai signed the Cooperation Agreement in 2006 and the Gasification Accord in 2011 (the previous Accord was valid from 2006 to 2010).

The average gasification level in the Republic of Altai is below 1 per cent. Between 2007 and 2010 Gazprom invested RUB 1.5 billion in the regional gasification efforts. The funds were used to develop the General Scheme for Gas Supply and Gasification of the region as well as to build inter-settlement gas pipelines to Gorno-Altaisk and the Maima village with the total length of 153 kilometers.

In 2011 the Company is allocating RUB 500 million to construct inter-settlement gas pipelines to reach the following villages: Souzga, Manzherok, Kyzyl-Ozek, Biryulya and Alexandrovka (Maima District) with the total length of 65 kilometers.

Between 2007 and 2009 Gazprom built and put into operation a section of the Smolenskoye – Gorno-Altaisk gas main, a gas distribution station in Gorno-Altaisk and other facilities with a view to develop gas supply to the Republic of Altai.