The Gazprom Management Committee approved the adjusted draft versions of the Company’s Investment Program and Budget (Financial Plan) for 2009.

The draft versions of the above mentioned documents will be submitted to the Board of Directors for endorsement.

According to the draft version of the Investment Program, the total amount of investments will make up RUB 761.53 billion, which is a RUB 158.91 billion decrease if compared to the Investment Program approved in December 2008. Meanwhile, the adjusted amount of capital investments will make up RUB 488.25 billion (a RUB 211.63 billion decrease if compared to the Investment Program approved in December 2008), long-term financial investments will account for RUB 273.28 billion (a RUB 52.72 billion increase if compared to the Investment Program approved in December 2008).

The adjusted draft version of the 2009 Budget provides for a RUB 407.9 billion decrease in the total amount of cash income and revenues down to RUB 3.3 trillion; and a RUB 126.8 billion decrease in liabilities, expenditures and investments down to RUB 3.68 trillion. According to the adjusted draft version of the Budget, financial borrowings will grow by RUB 214.9 billion up to RUB 304.9 billion. A rise in the borrowings amount is caused, in particular, by the necessity to exercise the option to acquire a 20 per cent stake in Gazprom neft. The Budget surplus will account for RUB 0.5 billion.

The adjustment of the draft versions of the 2009 Budget and Investment Program is stipulated by the influence of objective external factors formed in the environment of a global financial and economic crisis. The major of them are a drop in gas demand on Gazprom’s target markets and gas price changes. In addition, the parameters of the draft version of the Company’s 2009 Budget were adjusted on the basis of the evolving macroeconomic indicators.

The adjusted draft version of the Gazprom 2009 Investment Program was shaped with due regard to the Company’s top-priority objectives together with cost minimization.

Background:

The adjusted draft version of the Company’s Investment Program for 2009 provides for extension of the commissioning schedule for a number of production facilities. In particular, startup complexes of the Bovanenkovo field and the Bovanenkovo – Ukhta gas trunkline system will be commissioned in the third quarter of 2012 instead of the third quarter of 2011 due to an expected drop in gas demand.

The market situation made it necessary to cut investments in developing gas production, processing and underground storage facilities, as well as in executing the integrated upgrading and technical modernization program for the gas transmission facilities for 2007–2010.

Meanwhile, the draft Investment Program provides for increased investments in the top-priority projects execution: Gryazovets – Vyborg, SRTO – Torzhok and Pochinki – Gryazovets gas pipelines construction.

The Company increased investments in the projects of strategic importance for the Russian Federation implemented under the federal authorities’ instructions and required for the Russian regions gasification. In particular, a provision was made to increase capital investments in the Sakhalin – Khabarovsk – Vladivostok and Dzhubga – Lazarevskoye – Sochi pipelines construction. In addition, increased investments were allocated for the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

The 2009 Long-Term Financial Investments Plan provides for the Company’s participation in the Shtokman and Prirazlomnoye fields development and operation, the Sakhalin II project, as well as the Nord Stream gas pipeline construction abroad. Project financing abroad was also taken into consideration.

Expenditures for acquisition of the rights to use subsurface resources were not included in the Investment Program since, as a result of Gazprom’s accounting methods adjustment, they are reflected in the Company’s Budget as part of the Gazprom Administration costs for the core business activities.