The Gazprom Headquarters today hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Anatoly Chubais, Chairman of the Management Board of UES of Russia.

The meeting addressed issues in respect of securing gas supply to new power generation facilities of UES of Russia, including to the 2nd block of the North-West CHP; entering into long-term contracts for the supply of natural gas to power generation facilities; supplying gas to power plants covered by the investment program of UES of Russia; concluding an agreement between UES of Russia and Mezhregionenergosbyt.

The parties agreed on the basic principles for the conclusion of long-term contracts and confirmed the volumes of gas supply to power companies: 162.9 bcm in 2007, 166.9 bcm in 2008, 174.8 bcm in 2009 and 186 bcm in 2010 as laid down in the Russian Federation Government Protocol ?42 of November 30, 2006. The volume of natural gas to be supplied by Gazprom is 103 bcm, with extra volumes to be purchased from independent gas producers and at the Mezhregiongaz trading point. The parties also agreed that under the 2006-07 contracts gas would be delivered at the price fixed in Item 3 of the Russian Federation Government Protocol ?42 of November 30, 2006, with additional gas to be supplied based on an agreement between the parties.

The parties achieved the accord that the mainstay of the long-term contracts was the “take or pay” principle coupled with the right of UES of Russia, subject to the availability of technical capacity, to re-distribute uncommitted gas between its power facilities and re-schedule deliveries over subsequent periods.

The parties decided to set up a Joint Headquarters to expeditiously interact when performing repair work in summer and during cold spells in winter. The aim is to promptly solve issues as regards gas deliveries to power plants of UES of Russia and the reliability of energy supply to the Unified Gas Supply System taking account of future peak loads during autumn/winter 2007-08 and anticipated energy consumption growth. The Joint Headquarters will be co-chaired by Boris Posyagin, Head of the Gazprom Central Production & Dispatch Department and Viktor Pauli, Member of the Management Board, Chief Technical Inspector of UES of Russia.

Alexey Miller and Anatoly Chubais constructively discussed the UES of Russia restructuring scheme approved by the company’s Board of Directors on March 2, 2007 and confirmed their readiness to jointly work on details of the scheme.