A Gazprom Board of Directors’ meeting has commenced at the Company’s Headquarters.

The Board of Directors took into consideration the information on the Gazprom preliminary operating results for 2007, and projected Investment Program, Budget (Financial Plan) and Cost Optimization (Reduction) Program for 2009-2010.

The Board of Directors generally endorsed a draft version of the Company’s 2008 Budget (Financial Plan), Investment and Cost Optimization (Reduction) Programs.

It was decided to adjust the above documents with due consideration of the discussion results and approve them by year-end.

Reference:

The Gazprom Investment Program for 2008 and Projections up to 2010 embrace the most promising investment projects.

In the production sector the major projects are: Bovanenkovskoye, Kharasaveyskoye and Shtokman fields infrastructure development. Field infrastructure will be developed in the Kharvutinskaya area of the Yamburgskoye field, Yen-Yakhinskoye, Urengoyskoye, Zapolyarnoye and other fields.

In gas transportation the major projects are: construction of the Bovanenkovo – Ukhta, Ukhta – Torzhok gas trunklines, as well as construction of the Gryazovets – Vyborg, Pochinki – Gryazovets, Murmansk – Volkhov gas pipelines, construction of the SRTO – Torzhok gas pipeline, expansion of the Urengoy gas transit hub.

Capital investments will also be channeled for the gas fields infrastructure development, gasification of the Irkutsk Region, Kamchatka Krai, and Khabarovsk Krai, upgrading of the major gas production and transportation facilities, technical re-equipment of underground gas storage facilities, accomplishment of design & engineering and geological exploration, as well as production drilling in fields.

The 2008 Long-Term Financial Investment Plan contemplates the participation of Gazprom in the Nord Stream and Sakhalin II projects as well as projects for gas condensate and oil fields development and operation in Russia’s Arctic offshore, including Prirazlomnoye and Shtokman. In addition, the plan provides for assets acquisition, in particular – Beltransgaz shares.

The plan also embraces the funding of field development projects abroad (Republic of Vietnam, Block 112; India, Bay of Bengal), as well as the granting of long-term loans to Gazprom subsidiaries in order to carry out operations in the Yuzhno-Russkoye field, Krasnoyarsk Krai and Caspian Sea offshore.

In accordance with the draft Investment Program, the year 2008 will see the commissioning of 1293 km of gas trunklines and branch pipelines, seven compressor stations at gas pipelines and underground gas storage (UGS) facilities rated at 616 MW, four booster stations, one gas processing facility. It is also scheduled to tie in 84 gas production wells and 19 UGS wells in 2008.

In 2008, 49% of capital investments will be channeled for gas transportation and underground storage projects, 48% – for gas production projects.