The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Boris Ebzeyev, President of the Republic of Karachayevo-Cherkessiya.

The parties discussed the current issues of the bilateral cooperation, placing a focus on possible inclusion of the Karachayevo-Cherkesskaya Republic into the Gasification Program for the Russian Federation Regions.

Alexey Miller pointed to the necessity to pay off the Republican gas debt and to enhance the payment discipline.

Background:

The five-year Agreement of Cooperation between Gazprom and the Government of the Republic of Karachayevo-Cherkessiya was entered into in April 2002 and extended in April 2007. The Accord on Gasification was inked in September 2004.

In 2008 Gazprom supplied around 0.9 billion cubic meters of gas to consumers of Karachayevo-Cherkessiya. Supplies for the current year are projected at 1.26 billion cubic meters.

Natural gas penetration in the Karachayevo-Cherkesskaya Republic accounts for 70.9 per cent including 81.2 per cent in cities & towns and 60.9 per cent in rural area (throughout Russia – 62, 67 and 44 per cent respectively).

As of April 1, 2009 Karachayevo-Cherkessiya’s gas debt to Gazprom totaled RUB 862.78 mln. The bulk of the debt is owed by the population and agroindustrial enterprises.