The Gazprom Management Committee approved the report on economic expediency evaluation for the participation of Gazprom and its subsidiary companies in the equity capital of sci-tech companies.

The meeting pointed out that all Gazprom’s sci-tech companies yielded profit. Besides, application of the Group’s R&D achievements in Gazprom’s subsidiaries produced in 2005–2009 the actual economic effect of RUB 4.6 billion, with RUB 1.7 billion in 2009.

The report will be submitted to the Gazprom Board of Directors for consideration.

Background:

Gazprom’s sci-tech sector comprises 13 research and engineering companies focused on sci-tech issues of efficiency, reliability and safety assurance in Gazprom’s businesses. The companies operate in the following areas:

- research activities (Gazprom VNIIGAZ, Gazprom promgaz, NIIgazeconomika, Podzemgazprom, TyumenNIIgiprogaz, Podzemgidromineral Science and Production Center, Ecological and Analytical Center for the Gas Industry, TsKBN, SevKavNIPIgaz;

- design (Giprospetsgaz, Giprogaztsentr, VNIPIgazdobycha);

- engineering (Gazprom razvitiye).

As of January 1, 2010 Gazprom’s sci-tech companies employed 9,579 people including 123 Doctorate degree and 639 PhD holders. Over the activity period of the Company’s sci-tech sector, the unique scientific schools have been created including in geology, field development and multi-level gas transmission systems. Personnel of the sci-tech companies have a vast practical experience – every fifth employee has more than a 20-year track record in the gas industry.

By early 2010 Gazprom’s sci-tech companies held 429 patents for inventions, useful models and commercial prototypes. Gazprom Group’s orders accounted for 85 per cent of the entire scope of  work performed by sci-tech companies in 2009.

The comprehensive economic expediency evaluation for the participation of Gazprom and its subsidiary companies in the equity capital of  sci-tech companies is based on the economic performance analysis for each company and qualitative assessment of the benefits made to Gazprom.