The Board of Directors’ meeting has been initiated at the Gazprom Headquarters.

The Board of Directors took note of the information submitted by the Management Committee with regard to Gazprom’s provision of nondiscriminatory access to the Unified Supply System (UGSS) capacities for independent gas producers.

Taking part in the Board of Directors’ meeting were Vagit Alekperov, President of LUKOIL, Viktor Vekselberg, Executive Director for Gas Development of TNK-BP, Leonid Mikhelson, Chairman of the Executive Board of NOVATEK, Vladimir Makeev, Director General – Chairman of the Management Board of NGK ITERA, Sergey Kudryashov, First Vice President of NK Rosneft, Anatoly Golomolzin, Deputy Head of the Russian Federal Antimonopoly Service and Stanislav Svetlitsky, Deputy Energy Minister of the Russian Federation.

The Board of Directors emphasized that access should be granted based on the principles aimed at meeting Gazprom’s obligations concerning reliable gas supply to Russian Federation consumers, stable operation and development of the Unified Gas Supply System, development of federal gas fields and fulfillment of international gas export commitments.

The Board of Director’s Members were informed that Gazprom jointly with the relevant ministries and agencies, executive authorities concerned and other organizations was developing a draft Decree of the Russian Federation Government “On the Provision of Nondiscriminatory Access to Gas Transmission Networks of the Russian Federation” in conformity with the Russian Federation Prime Minister Vladimir Putin’s assignments.

The meeting pointed out that a well-balanced approach was needed to resolve the issue of changing the existing order of nondiscriminatory access to the gas transmission system and to secure a reliable and uninterrupted functioning of the UGSS.

The Management Committee was tasked to further work on improving the mechanism of nondiscriminatory access to the UGSS capacities for independent gas producers, taking into account the need to transit to gas prices equally profitable for Gazprom on the domestic and foreign markets, as well as to adopt and implement the General Scheme for the Russian gas industry development up to 2030.

Background:

Gazprom’s activities in relation to the provision of nondiscriminatory access to the Unified Gas Supply System for independent companies was arranged pursuant to the Regulations for the preparation and issuance of authorizations for independent company access to Gazprom’s UGSS, approved by the Gazprom Order dated June 30, 2005.

The number of independent companies with access to Gazprom’s UGSS for gas deliveries to consumers rose from 6 (1998) to 33 as of October 20, 2008. The number of submitted applications grew 17 times versus 1998 to 237 in 2007.

As of October 20, 2008 Russian gas transmission volumes allowed for independent companies rose up from 25.2 bcm in 1998 to 57.6 bcm.