Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman, held a meeting on the changes in the Company’s corporate structure. The meeting was attended by the general directors of Gazprom’s gas production and transmission subsidiaries and members of the working groups for developing Gazprom’s corporate structure.

A. Miller pointed out that “Gazprom had mostly fulfilled the core tasks targeted for the 1st phase of the Company’s restructuring: developing the governance structure, regulatory procedures and the parent company’s budgeting system. Gazprom is shifting over to the 2nd phase of restructuring, which includes improving the Company’s performance as a vertically-integrated organization as well as optimizing the subsidiaries’ core business management structure”.

In order to achieve these objectives, Gazprom is setting up specialized units within the subsidiaries combining gas production and processing with gas transmission and storage. The structural changes are expected to completely differentiate financial flows in the gas and liquid hydrocarbon production, transmission, processing, underground storage and marketing.

In addition to focusing on the core business activities, Gazprom plans to establish independently functioning service agencies, distribution networks and social infrastructure facilities as well as to separate business and non-business operations in the telecommunications sector.

All the necessary decisions and legal acts on the structural changes are to be produced and adopted within 2004.

DIVISION OF RELATIONS WITH MASS MEDIA