On 7 July 2006 OAO Gazprom issued its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS).

During the period from December 2003 to June 2006, the International Accounting Standards Board (“IASB”) revised 17 of its standards and issued 7 new standards. The financial statements were prepared in accordance with the new and revised IFRS standards which were effective from 1 January 2005 and are relevant to operations of the Group. Moreover, the Gazprom Group early adopted IFRS 6 Exploration and Evaluation of Mineral Resources (from 1 January 2005).

A significant factor affecting the consolidated financial statements prepared in accordance with International Financial Reporting Standards for the year ended 31 December 2005 is the acquisition of OAO Sibneft, recently renamed OAO Gazprom Neft, in October 2005. The operational results of OAO Sibneft and its subsidiaries were included in the Group’s consolidated financial statements from the date when control over OAO Sibneft was established.

The table below presents the audited consolidated statement of income for the year ended 31 December 2005 and 2004. All amounts are presented in million Russian Roubles, unless otherwise stated.