A Board of Directors’ meeting has taken place at Gazprom’s headquarters.

The Board of Directors has taken notice of the information on the implementation results of the Company’s investment program for 2008.

It was emphasized that the investment program execution in 2008 enabled Gazprom to reach the preset strategic targets (reserve replenishment volumes and coefficient, gas production and sales levels). The Company implemented the gas balance for Russia, fulfilled its gas supply commitments to Russian and foreign consumers, secured reliable operation of the Unified Gas Supply System of Russia and built up explored gas, gas condensate and oil reserves as scheduled.

The Board of Directors took account of the information on the evaluation of nominees for Gazprom’s auditors for performing statutory annual audit of the Company’s financial and economic activities.

Consideration of the items on risk management in Gazprom as well as on the execution status of long-term contracts for gas supply to industrial consumers in Russia was rescheduled to the next meeting of the Board of Directors.

Background:

The restated 2008 investment program of Gazprom was endorsed by the Board of directors in July 2008. Total investments were identified at RUB 821.66 billion including capital investments – RUB 531.2 billion and long-term financial investments – RUB 290.46 billion. The investments were committed as scheduled.

In gas production investments were primarily made into the construction of gas production and transmission facilities on the Yamal Peninsula, the building sites offsetting a decrease in gas production from Cenomanian deposits and ensuring output buildup as well as into the Comprehensive Program for the reconstruction and technical re-equipment of gas production facilities between 2007 and 2010. In addition, investments were channeled for financing offshore operations inside Russia.

In gas transmission investments were used for implementing major targeted programs embracing synchronized commissioning of priority transmission capacities, reconstruction and technical re-equipment of gas transmission facilities between 2007 and 2010, underground gas storage operations in Russia between 2005 and 2010 as well as gasification of Russian regions.

A scheduled amount of investments was channeled into gas processing projects as well as sulfur-rich gas treatment for transportation purposes.

As a result, Gazprom largely fulfilled its capacity commissioning plan for 2008. In future, this will enable the Company to achieve the preset reserve replenishment targets and maintain production, transportation and underground storage capacities at a required level.

The 2008 investment program execution will allow Gazprom to effectuate fully and timely reliable gas deliveries to Russian and foreign consumers and enhance the hydrocarbon by-product quality in the short- and long-term.

In 2008 Gazprom stepped actions for import substitution of acquired goods and services. The share of domestically manufactured goods and products in Gazprom’s procurement structure for 2008 amounted to 92 per cent. The efforts made by the Company to cut construction costs secured lower hydrocarbon reserve buildup costs versus the leading Russian and foreign petroleum companies. It is also worth of mention that the increasing upstream investments of Gazprom were accompanied by production growth by contrast to a number of world oil and gas giants.

The long-term financial investment plan implemented by Gazprom allowed the Company to meet the challenges set for 2008 as part of the activities aimed at expanding the resource base and fulfilling license agreements, constructing alternative gas transport routes as well as shaping gas industry infrastructure in eastern Russia and setting the stage for prompt socioeconomic development of this region.

Furthermore, Gazprom’s broader presence in the Russian power industry achieved in 2008 became another effective step on the way of implementing the strategy pursuing conversion into a global energy company.