The Management Committee has reviewed and largely approved the by-laws regulating the remuneration system for Gazprom’s top executives.

Appropriate business units of Gazprom were entrusted with updating the by-laws with information on Sibneft and submitting those for the approval by the Board of Directors in the first quarter of 2006.

The remuneration system will incorporate two components including an annual bonus system and share allocation program projected to ensure the motivated and balanced achievement of Gazprom’s short-, mid- and long-term objectives.

Reference:

The remuneration system for Gazprom’s top executives is mainly targeted at:

 - meeting Gazprom’s business challenges (set by its shareholders) by raising personal interest of each top manager in the Company’s success;

 - recruiting and retaining top executives whose competence and efficiency are of importance to the Company;

 - streamlining the laborforce performance by business segments in accordance with Gazprom’s strategic aims.