The Board of Directors has endorsed a restated Gazprom Investment Program and Budget (Financial Plan) for 2007.

In accordance with the endorsed updates in the Investment Program, total investments will amount to RUR 779.36 bln, RUR 249.98 up on the Investment Program approved in December 2006. At the same time, capital investments will account for RUR 335.5 bln (RUR 25.06 bln down on the Investment Program approved in December 2006), with long-term financial investments to make up RUR 443.86 bln (RUR 275.04 bln up on the Investment Program approved in December 2006).

Under the endorsed updates in the Budget, overall cash income & revenues will amount to RUR 2,311.39 tcm, RUR 255 bln down on the Budget approved in December 2006. Total cash liabilities, expenditures and investments will climb RUR 126 bln to RUR 2,782 tcm, with financial borrowings to total RUR 420 bln. The increase in borrowings has been driven by the need of financing oil and gas fired power generation asset acquisitions. The volume of borrowings intended for Gazprom’s day-to-day operations will remain unchanged at RUR 90 bln.

The cash surplus will account for RUR 312 bln.

The need to amend and update the Investment Program and Budget is due largely to the acquisition of shares in Sakhalin Energy, Beltransgaz and Mosenergo, as well as due to the enforcement of updates in the list of investment projects and the volume of investment. The Budget updates also stem from smaller gas sale volumes on the heels of the exceptionally warm winter 2006/2007, and from the changes in the macroeconomic parameters.

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The Gazprom Investment Program for 2007 embraces the most promising investment projects.

In the production sector the major projects are: pre-development of the Kharvutinskaya area in the Yamburgskoye field, Bovanenkovskoye and Kharasaveyskoye fields, development of the Shtokman and Prirazlomnoye fields. The work will continue on pre-development of the Yen-Yakhinskoye, Urengoyskoye, Zapolyarnoye and other fields.

In gas transportation the major projects are: construction of the SRTO – Torzhok gas pipeline, expansion of the Urengoy gas transit hub, expansion of the gas transportation system in northwestern Russia, so as to feed gas into the Nord Stream gas pipeline inclusive, as well as construction of gas branch pipelines and distribution stations, upgrading of gas transportation facilities.

Capital investments will also be channeled for upgrading the major gas production facilities, technically re-equipping underground gas storage sites, performing design & engineering and geological exploration, carrying out production drilling in fields.

The Long-Term Financial Investment Plan for 2007 contemplates earmarking finance for field exploration and development projects abroad (in the Republics of Tajikistan and Kyrgyzstan, Block 112 in the Republic of Vietnam, Bay of Bengal in India, Ustyurt region in the Republic of Uzbekistan).