Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Leonid Markelov, President of the Mariy El Republic have sealed a five-year Cooperation Agreement.

Under the Agreement, key joint businesses of Gazprom and the Government of the Mariy El Republic will be as follows:

· Expanding gas deliveries to localities;

· Developing capacities spurring wider use of compressed and liquefied gas as motor fuel;

· Developing and introducing gas saving technologies;

· Ensuring environmental safety and rational nature management.

The parties will jointly step up measures aiming to improve the Republican energy basket and use alternative energies on a larger scale.

Gazprom will, on its part, provide reliable natural gas deliveries to the consumers of the Mariy El Republic given the United Gas Transmission System capacities, gas quotas annually allocated throughout Russia, adequate gas demand and consumers’ payments.

Reference:

Gazprom and the Mariy El Republic first sealed a Cooperation Agreement in April 1999.

In 2004, Gazprom supplied Republican customers with 1.25 bcm of gas and roughly the same amount is slated for 2005.

The natural gas supply infrastructure of the Mariy El Republic is developed by 65.1% of maximum demand, including by 85.3%, in cities and towns and 24.3%, in rural area (the identical Russia-averaged parameters account for 53%, 60% and 34.7%, respectively). In accordance with its programs on gas supplies to the RF constituents over 2004, Gazprom channeled RUR 38.66 mln to construct gas distribution grids in the Mariy El Republic.

Starting 2002, the Republican customers’ natural gas debt has reduced RUR 145.9 mln to RUR 458 mln, as of 1 May, and current gas payments account for 95.6%.

DIVISION OF RELATIONS WITH MASS MEDIA