The Gazprom Board of Directors approved the work being done by the Company on interaction with investors and shareholders. The Gazprom Management Committee was tasked to take further steps for streamlining these actions.

It was noted that Gazprom was gradually building up successful relationships with representatives of the investment community. The Company is devoted to becoming more clear for investors and shareholders, making the business highly transparent and protecting interests and rights of the stakeholders.

The Company carries out important activities to maintain and promote a constructive dialogue with the investment community, i.e. arranges regular conference calls about the released IFRS consolidated results. In addition, Gazprom's representatives take part in investor conferences organized by top international investment banks.

It is important that Gazprom's executives cut the middleman when interacting with the business community. The Company annually holds Investor Days and gives the most thorough and detailed answers to all questions during these events. The latest Investor Day was a success in London and New York (March 3 and March 5). These events drew a lot of attention from portfolio managers and analysts of the world's respectful investment funds and banks.

The information about Gazprom's activities is disclosed to the public in strict compliance with the Russian law. In addition, the efforts are being made to issue more supplementary information, which will help to have a true and fair view of the latest events and achievements as well as of the Company's development policy. For instance, in 2013 Gazprom did some improvements to the Russian and English versions of the website, to make it more informative.

In late 2013 Gazprom conducted an independent audit of the corporate governance practice, including the obligations to shareholders and information disclosure. The results showed that the Company maintained high corporate management standards, which were continuously streamlining.

Gazprom pays a lot of attention to attracting new investors. In December 2013 the Moscow Exchange transferred Gazprom's shares from the Non-Listed Securities Register to the Quotation List A Level 2 (QL A2) – a milestone event for the whole Russian stock market. The listing reform, whereby the Lists A1 and A2 will be unified, is due next year and Gazprom's shares will be added to the top quotation list. As a result, a greater number of Russian investors, including companies managing pension savings and insurance reserves, will be able to trade the Company's shares.

As of today, the Company concentrates efforts on transferring its shares from the QL B to the QL A2 at the Saint Petersburg Exchange.

The scope of trading operations with Gazprom's shares is expanding. In February 2014 trading in American Depositary Receipts (ADRs) representing Gazprom's shares started at the Moscow Exchange, enabling professional participants of the Russian securities market to deal with ADRs based on REPO terms.

The Company will continue to advance the interaction with investors and Gazprom's shareholders. The Company plans to reduce the publication timing for financial statements and increase the amount of additional information disclosed on Gazprom's investment projects in order to be consistent with the best practices of the corporate governance system. Gazprom will carry on its contribution to improving the national legislation as well as developing Russia's investment climate, protecting shareholders' and ADR owners' rights.

Gazprom's efforts aimed at interaction deepening with the investment community and shareholders will result in attracting more investors and strengthening the Company's leadership position in the global energy market.

Background

Russia's Government held 50.23 per cent of Gazprom's shares, ADR owners – 25.79 per cent, other shareholders – 23.98 per cent, as of late September 2013. Over 400 institutional investors in 40 countries worldwide own Gazprom's ADR. The majority of investors into ADRs are represented by the USA and the UK funds (46 and 19 per cent respectively of the total volume of the Company's ADRs).

Foreign investments in Gazprom's ADRs account for some 36 per cent of the total investment volume in Russia's oil and gas sector and some 2 per cent – in the global oil and gas industry.