Alexander Ryazanov, Deputy Chairman, Gazprom Management Committee has chaired a Regional Policy Commission meeting.

The Commission reviewed the Gazprom Group’s domestic natural gas sales in the first half of 2005.

It was noted during the meeting that the Russian Federation consumers had been supplied with a total of 180.4 billion cubic meters of gas, an increase of 3.9 billion cubic meters over the same period in 2004, with 155.4 billion cubic meters delivered by the Gazprom Group (86.1% of the total).

At the same time, the first half of 2005 saw an increase in the RF consumers’ total gas debt to the Gazprom Group, with overall gas payments accounting for 94.7% (versus 95.3% recorded over the same period of 2004) and payments by household consumers reaching 92.7%, as compared to 88% in 2004.

The Commission authorized Mezhregiongaz to use every administrative and technical measure to improve the payment discipline, and recommended the company to reach debt restructuring agreements with the Russian Federation constituents having largest gas arrears by the end of 2005.

Ultimately, the Commission underlined the need to aggressively introduce innovative gas tracking tools.

DIVISION OF RELATIONS WITH MASS MEDIA