The Gazprom Headquarters keeps hosting the Board of Directors’ meeting.

The Board of Directors approved the changes in the Provision on preferentially contest-based awards of contracts for the supply of goods, completion of works and rendering of services for Gazprom and its subsidiaries. The changes had been proposed by the Russian Economic Development Ministry.

The Management Committee was tasked to ensure that the suppliers of domestic goods were preferred in case of awarding contracts for the supply of goods for Gazprom and its subsidiaries.

The following changes were made in the Provision:

- in case the prices for domestic and foreign (listed separately) goods are compared during the tender, the latter will be subject to a 15 per cent increase;

- the supplier of foreign goods will be able to win the bid in case it offers at least a 15 per cent lower price than the one set by the customer;

- in case the prices are at the same level, the supplier of domestic goods is preferred;

- the application containing no country of origin for a good is not admitted for the bid.

The changes expire on December 31, 2010.

Background:

The Provision on preferentially contest-based awards of contracts for the supply of goods, completion of works and rendering of services for Gazprom and its subsidiaries (referred to as the Provision) was endorsed by the Board of Directors in July 2004.

Pursuant to the Provision, tender procedures are organized by the Contest Commission (organizes and coordinates the activities of the Gazprom administration units and the Company’s subsidiaries related to the contest-based contract awarding) and the Tender Committee of Gazprom or its subsidiaries (an executive body set up by the tender initiator for the purpose of the tender).

In November 2008 in line with the state anti-crisis measures the Board of Directors tasked the Management Committee to ensure the preferred awarding of contracts for the supply of goods and rendering of services to domestic suppliers.