The Gazprom Management Committee considered information on ROSUKRENERGO AG business activity.

Reference:

Set up in July 2004 as a 50/50 joint venture of Gazprombank and Raiffeisen Investment AG’s wholly owned subsidiaries, the Swiss-registered company ROSUKRENERGO AG.

Pursuant to the February 26, 2006 Decision of the Gazprom Board of Directors, on December 27, 2006, Gazprom signed an Agreement on acquisition of a 50 per cent stake in ROSUKRENERGO AG from Gazprombank (a Gazprom subsidiary).

ROSUKRENERGO AG started its business activity on January 1, 2005. The company’s main business activities are the following:

• Purchase of Central Asian gas, its transportation via Uzbekistan, Kazakhstan, Russia and selling-off at the Russian-Ukraine border;
• Gas pumping and storage at the UGS facilities of Ukraine;
• Central Asian and Russian gas deliveries to Eastern Europe.

ROSUKRENERGO AG has a long-term contractual base for natural gas marketing, supply and transit, with respective logistic and financial gas marketing and supply schemes developed. This has predetermined the logic of inviting the company to participate in joint projects with Gazprom.

In July 2005, ROSUKRENERGO AG participated in the deal to sell-off 7.8 bcm of questioned gas destined for Ukrainian UGS facilities. The deal resulted in the company’s purchasing 5.25 bcm of said gas from Gazprom.

In January 2006 ROSUKRENERGO controlled the situation related to the gas deliveries to Ukraine as well as gas transit via the country’s territory to European consumers. Pursuant to the tripartite Agreement of January 4, 2006, between Gazprom, Naftogaz Ukrainy and ROSUKRENERGO on settling differences in the gas sector, the taken actions enabled in the interest of each party involved. The major result was the foundation of 50/50 joint venture Ukrgaz-Energo between ROSUKRENERGO and Naftogaz Ukrainy for the purpose of selling Ukraine-imported gas directly to industrials.

Additionally, the Agreement enabled Gazprom to eliminate Europe’s gas transit dependence on Ukrainian gas deliveries as well as exclude Naftagaz Ukrainy’s indebtedness for gas delivered. Gazprom received an opportunity to sell released gas at market prices.

ROSUKRENERGO’s participation in selling Central Asian gas to Ukrainian consumers enabled Gazprom as a co-owner to receive one-half of the profit (earlier owned by intermediaries) on gas supplied to Ukraine’s consumers.