Yesterday the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Bernhard Reutersberg, Chairman of the Executive Board of E.ON Ruhrgas AG.

The parties addressed the current issues and the development prospects for the Russian-German cooperation in the gas industry. In particular, they gave a high appreciation to the progress with the arrangements reached within the agreement on asset swap between Gazprom and E.ON Ruhrgas and stressed the importance of timely constructing the Nord Stream intended for diversification of Russian gas supplies to Europe.

In addition, Alexey Miller and Bernhard Reutersberg discussed the state of affairs on the European gas market. It was stressed that according to the updated information of September, the demand for Russian gas was flattening out.

Background:

E.ON AG is Europe’s largest private electric power and gas concern. E.ON Ruhrgas AG (before July 1, 2004 Ruhrgas AG) since February 2003 has been a subsidiary of E.ON AG and is responsible for the group’s gas business in Europe, including production, marketing, transportation and storage of natural gas.

E.ON Ruhrgas AG is the largest foreign shareholder of Gazprom.

Cooperation between Gazprom and E.ON Ruhrgas began in the early 1970s. Ruhrgas became one of the first largest purchasers of Russian gas in Western Europe.

On October 2, 2008 Gazprom and E.ON AG signed the Agreement on joint participation in the project to develop the Yuzhno-Russkoye oil and gas field, in June 2009 – the Agreement on asset swap in natural gas production and marketing.

Pursuant to the Agreement Gazprom will receive a 49 per cent stake in Gerosgaz, a 2.93 per cent stake holder in the Company. As a result of the arrangement Gazprom will obtain the full property rights to this stake. In its turn, E.ON will receive a 25 per cent stake in the charter capital of Severneftegazprom. Thus, the company’s share will make up 25 per cent minus three ordinary registered shares and three preferred non-voting shares.

E.ON AG also partners with Gazprom in the Nord Stream gas pipeline construction.