Today at the Gazprom Headquarters Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee held a meeting on the placement of orders for the supply of goods, performance of works and rendering of services for Gazprom and its subsidiaries.

Participating in the meeting were Management Committee Members of Gazprom: Oleg Aksyutin, Head of the Gas Transportation, Underground Storage and Utilization Department, Yaroslav Golko, Head of the Investment and Construction Department, Igor Fyodorov, Director General of Gazprom komplektatsiya as well as heads and experts from Yamalgazinvest and specialized subsidiaries of Gazprom Administration.

The meeting participants discussed the current progress with the placement of orders for performance of building & installation, design & exploration works, supply of equipment and rendering of services through contest-based procedures in line with the 2009 Gazprom Investment Program.

It was noted that the Company strictly adhered to the resolution adopted as part of the state anti-crisis measures to ensure the preferred awarding of contracts for the supply of goods and rendering of services to domestic suppliers. The meeting emphasized the need to further improve competitive procedures including the optimization of procedure duration.

Based on the meeting results Gazprom’s specialized subdivisions and subsidiaries were authorized with the relevant tasks.

Background:

The Provision on preferentially contest-based awards of contracts for the supply of goods, completion of works and rendering of services for Gazprom and its subsidiaries (hereafter the Provision) was endorsed by Company’s Board of Directors in July 2004.

Pursuant to the Provision, tender procedures are organized by the Gazprom Contest Commission (organizes and coordinates the activities of the Gazprom administration units and the Company’s subsidiaries related to the contest-based contract awarding) and the Tender Committee of Gazprom or its subsidiaries (an executive body set up by the tender initiator for the purpose of the tender).

In November 2008 in line with the state anti-crisis measures the Board of Directors tasked the Management Committee to ensure the preferred awarding of contracts for the supply of goods and rendering of services to domestic suppliers.

In December 2008 The Board of Directors adopted the following amendments in the Provision proposed by the Russian Economic Development Ministry:

- in case the prices for domestic and foreign (listed separately) goods are compared during the tender, the latter will be subject to a 15 per cent increase;

- the supplier of foreign goods will be able to win the bid in case it offers at least a 15 per cent lower price than the one set by the customer;

- in case the prices are at the same level, the supplier of domestic goods is preferred;

- the application containing no country of origin for a good is not admitted for the bid.

The duration of amendments expires on December 31, 2010.