The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Vladimir Semashko, First Deputy Prime Minister of the Republic of Belarus.

The parties addressed the issues surrounding gas supplies to Belarus, arrangement of gas transit across the country and the Beltransgaz joint venture operations. It was noted that at the moment the daily volume of gas deliveries exceeded the contracted amount by 9 per cent.

Alexey Miller also stressed that Gazprom started well in 2011. Since the beginning of the year, the Company has produced some 900 million cubic meters of gas in excess of the scheduled volume due to gas demand growth.

Background:

On December 31, 2006 Gazprom and Beltransgaz signed the Gas Supply and Transit Contract for 2007 through 2011. Among other things, the document set a price formula starting from January 1, 2008 (which is in line with the price formula for Russian gas deliveries to Europe) and discount rates to the market price for 2008 through 2010 (0.67, 0.8 and 0.9 respectively).

In May 2007 Gazprom and the State Property Committee of the Republic of Belarus inked the Purchase and Sale Agreement for a 50 per cent stake in Beltransgaz worth USD 2.5 billion payable in equal portions within four years. In 2010 the transaction was completed.