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December 20, 2005

Results of the working meeting between Alexey Miller and Vladimir Chub

Today at Gazprom headquarters Alexey Miller, Chairman, Gazprom Management Committee, held a working meeting with Vladimir Chub, Governor of Rostovskaya oblast.

The parties discussed cooperation prospects in the natural gas industry. The issues of Gazpromís acquisition of Rostovskaya oblast Administrationís share in Chernishkovsky-Morozovsk branch gas pipeline were discussed, as well as the possibilities in acquiring branch gas pipelines and gas distribution stations built in 2003-2005 and paid for by the regional budget.

One of the main topics of the meeting was the gasification of Rostovskaya oblast in 2006-2007, which is a part of the Russian Federation regional gasification program up to the year 2007. In 2006, in this respect, the construction of high pressure pipeline and gas distribution station at Kovalevka-Rostov-on-Don, Grai-Voronets-Ternovaya-Kashari branch gas pipeline and other facilities in Rostovskaya oblast will be completed. Proletarskaya dictatura gas distribution station construction is among other projects planned for construction in 2007.

The Administrationís participation in the oblastís gasification was highly praised at the meeting. In the past three years, construction of 2100 km of gas distribution networks was financed by the local budgets.


The five year cooperation agreement between the Administration of Rostovskaya oblast and Gazprom was signed in September of 2002.

In 2005, Gazprom will supply about 6.9 bcm of gas to the consumers of Rostovskaya oblast.

Rostovskaya oblast gasification rate is 59.2%, including 70.3% in towns and cities, and 33.1% in rural areas. The corresponding numbers for Russia are 53%, 60% and 34.7%.

In 2004 Gazprom invested more than RUR 60 million in Rostovskaya oblastís gasification, and another RUR 130 million will be invested in 2005.

As of December 1, 2005, Rostovskaya oblastís consumers owe about RUR 570 million in past dew payments foe gas already supplied, a decline of RUR 116 million compared to January 1, 2005. The past dew payment coverage in 1994-2004 is 63.24% (in Russia the overall figure is 20.1%).




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