On 15 February 2008 OAO Gazprom issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) for the first nine months of 2007.

 Changes in the accounting treatment of NPF Gazfund significantly impacted the consolidated financial information of OAO Gazprom for the nine months ended 30 September 2007.  In connection with the latest developments in the legislation regulating investment of pension reserves, the Group took a decision to terminate consolidation of NPF Gazfund as a subsidiary in the consolidated financial statements starting from the first quarter of 2007. As a result of the change in the accounting treatment, investment assets of the fund are recorded by the Group as pension plan assets in accordance with IAS 19 ‘Employee Benefits’. Primarily the change has impacted the following items: short-term financial assets, other non-current assets, provisions for liabilities and charges, minority interest and treasury shares.  Subsidiaries of OAO Gazprom where NPF Gazfund holds an interest (such as OAO Gazprombank, OAO Sibur Holding and their subsidiaries) continue to be consolidated by the Group.

 The aggregate effect of NPF Gazfund deconsolidation results in recognition of income of RR 44,692 million in the line “Deconsolidation of NPF Gazfund” in the consolidated interim condensed statement of income and the increase in equity of RR 111,015 million in the line “Deconsolidation of NPF Gazfund”.

 The table below presents the unaudited consolidated interim condensed statement of income for the nine months ended 30 September 2007 and 2006. All amounts are presented in millions of Russian Roubles, unless otherwise stated.

Sales (net of excise tax, VAT and customs duties) increased by RR 78,741 million or 5%, to RR 1,660,069 million in the nine months ended 30 September 2007 compared to the nine months ended  30 September 2006. More detailed information on our sales for the nine months ended 30 September 2007 and 2006 is presented in the table below.

 Net sales of gas increased by RR 54,062 million, or 5%, to RR 1,062,398 million in the nine months ended 30 September 2007 compared to the nine months, ended 30 September 2006. This increase was primarily due to higher FSU and domestic prices for gas.

 Net sales of natural gas to the Far Abroad decreased by RR 7,884 million, or 1%, to RR 596,347 million in the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006. This is explained primarily by the fact that the volume of gas sales decreased by 1% or 1.7 bcm.

 Net sales of natural gas to FSU countries increased by RR 33,091 million, or 21%, to RR 190,374 million in the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006. It is explained by 27% increase in average realized prices (net of excise tax, VAT and customs duties) which was partially offset by the fact that the volume of gas sales decreased by 5% or 3.5 bcm.

 Net sales of natural gas in the domestic market increased by RR 28,855 million, or 12%, to RR 275,677 million in the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006. It is explained primarily by 15% rise of domestic price for gas established by the Federal Tariffs Service, which was partially offset by a 4% or 8.1 bcm reduction in the volume of sold gas.

 In the nine months ended 30 September 2007 net sales of crude oil and gas condensate decreased by RR 23,093 million, or 16% compared to the nine months ended 30 September 2006. The decrease in the sales of crude oil and gas condensate is due to Gazprom Neft’s activities: in the nine months ended 30 September 2007 net sales of crude oil decreased by RR 22,994 million, or 18%, to RR 103,159 million compared to the same period of 2006. The decrease was caused by the fact, that more oil was used to produce refined products.

 Operating expenses increased by RR 150,330 million, or 15%, to RR 1,163,243 million in the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006.

 The main component which accounted for the major part (or 55%) of the increase in operating expenses was purchased oil and gas. This increase is primarily related to the increase of prices for gas purchased in Middle Asia, mainly for further reselling. Other items of operating expenses (except for purchased oil and gas) increased by 8% in the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006.

 Profit attributable to equity holders of OAO Gazprom decreased by RR 16,028 million or 4% to RR 426,268 million in the nine months ended 30 September 2007 compared to the nine months ended 30 September 2006.

 In the first six months of 2007 the Group acquired 50% plus 1 share of Sakhalin Energy Investment Company Ltd. for RR 192,330 million (USD 7,450 million) and increased shareholding in OAO Mosenergo to controlling interest. These transactions had no material effect on the consolidated statement of income for the nine months ended 30 September 2007.

 Our net debt balance (defined as the sum of short-term borrowings, current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities, net of cash and cash equivalents and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) decreased by RR 224,379 million, or 28%, from RR 807,814 million as of 31 December 2006 to RR 583,435 million as of 30 September 2007. This decrease can be explained by a significant increase of our cash and cash equivalents in bank accounts primarily due to temporary placement of funds in OAO  Gazprombank from third parties.

 More detailed information ontheIFRS consolidated interimcondensedfinancialinformation for the nine months ended 30 September 2007 can be found on OAO Gazprom web site (www.gazprom.ru).