Gazprom’s Headquarters host a Board of Directors’ meeting. The Board of Directors took into account information on allocating the Company’s additional resources (budgetary surplus).

Reference:

Gazprom elaborated and adopted the Budget Regulations representing a collection of documents that govern the timing and sequence of building, reviewing, approving and controlling the execution of Gazprom’s intra-corporate budgets.

The Budget Regulations also determine the corporate priorities in allocating additional funds remaining at the start of the year targeted and in allotting budgetary surplus while executing the budget.

Gazprom’s budget for 2004 has been built based on different scenarios recommended by the RF Government and envisages a RUR 10.8 billion surplus.

In case the Company achieves budgetary surplus while executing the 2004 budget, these additional resources are planned for financing capital investments and expanding the investment program as well as for minimizing Gazprom’s liabilities (including for making anticipated debenture payments, buying out promissory notes, repaying credit indebtedness and etc.).

Under the Budget Regulations, Gazprom’s budgetary surplus allotment is vested in the Company’s Board of Directors, based on the Management Committee’s recommendations.

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