At a working meeting held today at Gazprom’s headquarters, the Company’s Management Committee Chairman, Alexey Miller, met the Governor of the Astrakhan region, Anatoly Guzhvin.

Mr. Miller and Mr. Guzhvin discussed the results of and prospects for future cooperation in implementing the Program of Gas Supply System Development in the Astrakhan region. In particular, the parties focussed on completing the construction and commissioning (in 2004) of the 2nd line of the Leninsk-Znamensk-Akhtyubinsk gas pipeline at the Znamensk-Akhtyubinsk section.

A. Miller and A. Guzhvin also discussed the budget of the Astrakhan region. It was pointed out that tax redistribution between the Federal and regional budgets could increase (according to the amendments to the tax legislation) Astrakhangazprom’s combined tax burden in 2004, while the regional revenues were likely to decrease.

A. Miller and A. Guzhvin paid special attention to the operation of gas distribution companies in the Astrakhan region. The parties discussed Gazprom and the RF Federal Energy Commission’s policy on imposing supply and sales charges and on encouraging gas consumers to conclude direct contracts with gas suppliers.

“We proposed Gazprom to establish an integrated gas distribution company in the Astrakhan region. Thus, as all the region’s gas consumers will get fair tariffs, we will be able to increase pricing transparency and to invest in the gas industry modernization. We are fully determined to meet challenges in 2004,”- said Anatoly Guzhvin.

Reference:

Natural and liquefied gas deliveries to the Astrakhan region account for 88.3 %, inclusive 93.6% to the cities and 77.4% to rural settlements.

Under Gazprom’s Capital Investments Plan for 2003, the Company channeled RR 150 million for constructing the 2nd line of the Leninsk-Znamensk-Akhtyubinsk gas pipeline at the Znamensk-Akhtyubinsk section.

Under Gazprom’s Draft Plan on Capital Investments for 2004, the Company will allocate RR 88.2 million for completing the construction and commissioning the 2nd line of the Leninsk-Znamensk-Akhtyubinsk gas main and RR 104 million for constructing the Astrakhan region gas distribution network.

Gas consumers’ indebtedness for gas supplied diminished from RR 191.7 million (as of January 1, 2003) to RR 146.3 million (as of December 1, 2003). In January-November 2003, payments for current gas deliveries amounted to 102.9%.

DIVISION OF RELATIONS WITH MASS MEDIA