The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Vladimir Semashko, First Deputy Prime Minister of the Republic of Belarus.

The meeting discussed the key issues of the bilateral cooperation in the gas sector.

The parties confirmed their commitment to fulfilling the provisions of the contract between Gazprom and Beltransgaz dated December 31, 2006 and stipulating supply and transit of gas for 2007 through 2011.

Background:

On December 31, 2006 Gazprom and Beltransgaz signed the Gas Supply and Transit Contract for 2007 through 2011. The Contract particularly set the price formula starting from January 1, 2008 (which is in line with the price formula for Russian gas supply to Europe) as well as the discounts to the market price for 2008-2010 (0.67, 0.8 and 0.9 respectively). Starting from 2011, Belarus will have gas prices equally profitable versus prices of gas delivered to Europe.

In May 2007 Gazprom and the State Property Committee of the Republic of Belarus signed the Purchase and Sale Agreement for 50 per cent of the shares worth USD 2.5 bln in Beltransgaz. Gazprom will pay the above mentioned sum in equal portions over the next four years. At present, Gazprom holds a 25 per cent stake in the company; in 2010 the transaction will be completed.