The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Oleg Dubina, Chairman of the Board of NAK Naftogaz Ukrainy.

The parties discussed the issues surrounding payment by NAK Naftogaz Ukrainy for natural gas supplies. With due regard to the public holidays, an agreement was reached to transfer the payment date for December supplies from January 7 to January 11, 2010.

In addition, the meeting discussed the issues related to the amount of gas supply and transit in the first quarter of 2010.

Background:

On January 19, 2009 Gazprom and NAK Naftogaz Ukrainy signed two separate contracts:

- the purchase and sale contract over 2009 to 2019;

- the contract on volumes, terms and conditions of natural gas transit via Ukraine over 2009 to 2019.

Under the contracts, starting from January 1, 2010 Gazprom and NAK Naftogaz Ukrainy will calculate the gas price and the gas transit rate in full compliance with European standards.

Due to the financial and economic crisis the gas consumption level in the Ukraine declined. Over 11 months of 2009, only some 22.5 billion cubic meters of gas was purchased versus the contractual obligations amounting to 35.9 billion cubic meters.

On November 24, according to the agreements reached during the negotiations between the Prime Ministers of Russia and Ukraine, Gazprom and NAK Naftogaz Ukrainy signed addenda to the Natural Gas Purchase and Sale Contract of January 19, 2009. Pursuant to the addenda, the annual gas quantity contracted for 2010 made up 33.75 billion cubic meters. The signed documents stipulated no penal sanctions related to the amount of gas consumption by NAK Naftogaz Ukrainy in 2009.