Gazprom’s Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Nikolai Vinogradov, Governor of the Vladimir Oblast.

The parties addressed the progress with the Agreement of Cooperation between Gazprom and the Vladimir Oblast Government as well as the implementation of the regional gasification program.

A special focus was put on the need of settling the existing natural gas debt of the Vladimir Oblast consumers.

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Gazprom and the Vladimir Oblast Government entered into the Agreement of Cooperation in September 2002 and the Accord on Gasification was signed in November 1999.

In 2007 Gazprom supplied the regional consumers with some 3 bcm of gas and roughly the same volumes are slated for this year.

As at January 1, 2008, the regional consumers had no debts for the delivered gas. Advance payments equaled RUR 52.3 mln. However, as at May 1, 2008, the debt reached RUR 236.5 mln.

Natural gas penetration in the Vladimir Oblast makes up 69.3 per cent including 84.3 per cent in cities, towns and settlements and 23.5 per cent in rural areas. The identical figures throughout Russia average 62, 67 and 44 per cent respectively.

Over 2003 through 2006 Gazprom invested over RUR 1.4 bln to gasify the Vladimir Oblast, with RUR 490 mln committed for the same purposes in 2007.

In 2008 Gazprom will allocate another RUR 490 mln to gasify the region. The funds will be channeled to complete existing gas pipeline construction projects as well as to perform design & survey work and initiate the construction of eight new gasification facilities.

At the same time, the Vladimir Oblast authorities fully complied with their commitment to prepare consumers for gas deliveries, with 171.7 km of gas distribution networks built, 10,357 households prepared for gas deliveries and 20 gas fired boilers taken into operation.