The Gazprom Management Committee examined the progress with the experiment for gas marketing through the Mezhregiongaz Electronic Trade Platform.

The Management Committee positively evaluated the progress with the experiment and tasked the Gazprom core business units and Mezhregiongaz to continue cooperation with the executive federal authorities on the experiment development in 2008. Particularly, the meeting discusses the increase of gas volume in 2008 where the gas volume sold by Gazprom and its affiliated companies at non-regulated prices must not exceed 7.5 bcm.

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In September 2006 the Government of the Russian Federation approved the Order stipulating marketing of limited amount of Gazprom gas through the Electronic Trade Platform (ETP) at the non-regulated prices within the experiment. The experiment foresees marketing of Gazprom gas in amount of 5 bcm during 2006-2007 and the same amount of gas of the independent producers within the “take and pay” terms.

Over December 2006 to September 14, 2007, 5.43 bcm of gas was sold through the Mezhregiongaz ETP where 3.12 bcm, 2.31 bcm of gas were owned by Gazprom and the independent gas producers, respectively. Rosneft, NOVATEK and Lukoil are the largest sellers at the ETP.

Within the trades, the ETP constantly register the increase of gas prices by 38-42 per cent in comparison with the price level of the regulated market during the winter period. After the winter period the ETP’s average price level significantly decreased due to gas surplus on the market in terms of warm winter of 2006-2007.

As of September 14, 2007 according to the sales results, the index of the ETP average price increase was at 34.5 per cent in comparison with the price index established by the Federal Tariff Service.