The Management Committee considered the progress with implementing the Plan of Actions for the execution of the Gazprom construction business de-monopolization concept.

The Gazprom core business divisions were tasked with further executing the Plan of Actions, as well as improving tender and non-tender procedures in the construction contract system.

Background:

On February 25, 2008 the Gazprom Board of Directors approved the Company’s construction business de-monopolization concept, as well as the Plan of Actions for its implementation. The Concept ensured further development of tender procedures in Gazprom and its subsidiaries as well as creation of a methodological and legal basis securing higher tender efficiency.

The Concept goal is to enhance the efficiency of Gazprom’s core activities and optimize costs related to the Company’s construction contracts.

During the Concept implementation Gazprom introduced a competition-based practice for distribution of construction and installation works as well as the practice of restricting a share of orders per single contractor in the aim of reducing technological and financial risks.

In order to optimize its management structure Gazprom stepped actions aimed at unbundling structural construction units from the structure of gas production and transmission subsidiaries into existing construction enterprises.