Gazprom’s Headquarters keep hosting the Board of Directors’ meeting.

The Board of Directors heard a report on the implementation of the Gazprom Group’s non-core and inefficient asset divestiture plan.

The Board of Directors ordered the Management Committee to produce proposals on the improvement of non-core and inefficient asset divestiture regulations. Said proposals are due for submission to the Board of Directors in December 2004.

Making respective amendments is indispensable to optimize the non-core asset divestiture process, in particular, to speed up asset disposals, ensure prompt decision-making and receive effective returns on Gazprom and its subsidiaries’ investments.

Reference:

RUR 3 billion were earmarked by a resolution of the Board of Directors to meet Gazprom’s 2004 non-core and inefficient asset divestiture target. Over the 1st 8 months of the current year, the plan was overfulfilled by 13%. As a result of the non-core and inefficient asset divestiture, Gazprom and its subsidiaries received a total of RUR 3,392 billion (RUR 2,612 and 0.78 billion, respectively).

The work on the divestiture and alienation of the Gazprom Group’s non-core assets included in respective registers is still underway, with other non-core assets, for instance, facilities undergoing construction, considered as non-core, being disposed of, as well. Before 2004-end, over RUR 150 million are planned to be received from the divestiture of facilities still undergoing construction. These facilities are being estimated at a market-based value and Gazprom is involved in the talks with potential buyers.

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