The Board of Directors’ meeting is underway at the Gazprom Headquarters.

The Board of Directors approved the adjusted versions of the Gazprom 2009 Investment Program and Budget (Financial Plan).

The Company’s Management Committee was tasked to organize the work aimed at executing the above mentioned documents.

According to the adjusted version of the 2009 Investment Program, the total amount of investments will make up RUB 761.53 billion, which is a RUB 158.91 billion decrease if compared to the Investment Program approved in December 2008. Meanwhile, the adjusted amount of capital investments will make up RUB 483.48 billion (a RUB 216.4 billion decrease if compared to the Investment Program approved in December 2008), long-term financial investments will account for RUB 278.05 billion (a RUB 57.48 billion increase if compared to the Investment Program approved in December 2008).

The adjusted version of the 2009 Budget approved provides for a RUB 407.9 billion decrease in the total amount of cash income and revenues down to RUB 3.3 trillion; and a RUB 126.8 billion decrease in liabilities, expenditures and investments down to RUB 3.68 trillion. According to the adjusted version of the Budget, financial borrowings will grow by RUB 214.9 billion up to RUB 304.9 billion. A rise in the borrowings amount is caused, in particular, by the necessity to exercise the options to acquire a 20 per cent stake in Gazprom neftand a 51 per cent stake in SeverEnergia. The Budget surplus will account for RUB 0.5 billion.

The adjustment of the 2009 Budget and Investment Program parameters is stipulated by the influence of objective external factors formed in the environment of a global financial and economic crisis. The major of them are a drop in gas demand on all the target markets of Gazprom, and gas price changes. In addition, the parameters of the Company’s 2009 Budget were adjusted on the basis of the evolving macroeconomic indicators.

The adjusted version of the Gazprom 2009 Investment Program was shaped with due regard to the Company’s top-priority objectives together with cost minimization.

Background:

The Company’s adjusted Investment Program for 2009 provides for extension of the commissioning schedule for a number of production facilities. In particular, due to an expected drop in gas demand, the first startup complexes of the Bovanenkovo field and the Bovanenkovo – Ukhta gas trunkline system will be commissioned in the third quarter of 2012 instead of the third quarter of 2011.

The market situation made it necessary to cut investments in developing gas production, processing and underground storage facilities, as well as in executing the integrated upgrading and technical modernization program for the gas transmission facilities for 2007–2010.

Meanwhile, the Investment Program provides for increased investments in the top-priority projects execution, including the Gryazovets – Vyborg, SRTO – Torzhok and Pochinki – Gryazovets gas pipelines construction.

The Company increased investments in the projects of strategic importance for the Russian Federation implemented under the federal authorities’ instructions and required for the Russian regions gasification. In particular, a provision was made to increase capital investments in the Sakhalin – Khabarovsk – Vladivostok gas pipeline construction. In addition, increased investments were allocated for the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

The 2009 Long-Term Financial Investments Plan provides for the Company’s participation in the Shtokman and Prirazlomnoye fields development and operation, the Sakhalin II project, as well as the Nord Stream and the South Stream projects execution. Project financing abroad was also taken into consideration.

Expenditures for acquisition of the rights to use subsurface resources were not included in the Investment Program since, as a result of Gazprom’s accounting methods adjustment, they are reflected in the Company’s Budget as part of the Gazprom Administration costs for the core business activities.