An official visit of Gazexport’s delegation headed by Alexander Medvedev, Gazprom’s Management Committee member and Gazexport’s Director General, to Ankara was held on November 19.

During the visit, at the meetings which took place at the Ministry of Energy of the Republic of Turkey and at the headquarters of the state pipeline company Botas, the negotiations with the Turkish partners on Russian gas supply to Turkey and on previously unsettled issues over the Blue Steam gas pipeline project were finalized.

Dr Hilmi Guler, Minister of Energy and Natural Resources, and Mr. Mehmet Bilgic, Botas’ Director General, represented the Turkish party at the negotiations.

In the course of negotiations, a new unified price for all Russian gas contractual deliveries to Turkey was agreed. The price agreed reflects current situation on the Turkish energy market, on the one hand, and doesn’t exceed Gazexport’s export prices, on the other hand.

Thus, mutually advantages prerequisites for deepening successful cooperation between the parties in supplying Russian gas to Turkey and for consecutive decision-making on the matters in concern.

During the negotiations, the parties:

• Amicably resolved all unsettled issues and eliminated all preconditions for arbitration
• Maintained all gas supply volumes contracted
• Created additional preconditions to increase gas consumption flexibility
• Created a mechanism for encouraging Turkish consumers to take off increased gas volumes
• Settled tax issues related to the Blue Stream gas pipeline construction.

The outcome of the negotiations sets preconditions for further successful cooperation between the parties in the fields of gas supply and investments.

Prospects of further cooperation between the parties in the gas industry will be discussed at the meeting of Alexey Miller, Gazprom’s Management Committee Chairman, with the leaders of the Republic of Turkey and of the Botas company, scheduled for December 2003.

DIVISION OF RELATIONS WITH MASS MEDIA