A Board of Directors’ meeting is being held at Gazprom’s Headquarters.

The Board of Directors took into account information on Gazprom’s participation in implementing investment projects in Central Asia and acknowledged the expediency to continue activities targeted at carrying out long-term natural gas deliveries from the aforementioned region to Russia and third countries.

Reference:

New contractual and legislative requirements have taken effect lately to promote cooperation in the gas industry between the Russian Federation (represented by Gazprom) and Central Asia. Gazprom adopted and started implementing Cooperation Agreements with Turkmenistan, Uzbekistan, Kyrgyzia and Tadzhikistan. The Agreements envisage gas procurement and transmission, rehabilitation and development of gas transmission facilities, implementation of joint gas extraction projects and development of new fields.

The Turkmen and Uzbek gas deliveries are planned to grow from 42 to 54 bcm in 2004-2006 and to 80-90 bcm, by 2010.

Gazprom’s fulfillment of the present-day gas procurement and transit contractual obligations is linked to the need to upgrade the existing and bring into operation new gas transmission facilities in Turkmenistan, Uzbekistan, Kazakhstan and Russia.

The 1st stage of the Project targeted for 2004-2006 envisages expanding the throughput of the Central Asia – Center Gas Transmission System as well as taking a range of preparatory measures to construct new gas pipelines. First of all, Gazprom will have to resolve the issue of investments to be channeled for upgrading the capacities at the Uzbek section of the Central Asia – Center GTS, restricting the total GTS throughput.

The 2nd stage of the Project targeted for 2006-2008 envisages further upgrading the existing gas transmission system and constructing new gas pipelines with the view of increasing the Central Asia – Center GTS throughput up to 90 bcm per annum. For the time being, Gazprom is thinking over several options to finance the Central Asia – Center GTS Upgrading and Development Project.

In addition, Gazprom started implementing a handful of joint investment projects in Central Asia, aimed at rehabilitating and developing local gas facilities. In particular, the Company adopted an Agreement to keep on developing the Shakhpakhty field and is making arrangements to sign an agreement to explore and develop the Uzbekistan-situated Ustyurt region’s fields.

DIVISION OF RELATIONS WITH MASS MEDIA