The Board of Directors meeting is underway at the Gazprom Headquarters.

The Board of Directors approved a sales and purchase agreement with Daltransgaz for the Sakhalin – Komsomolsk – Khabarovsk. Phase I. First Startup Complex gas pipeline as a non-arm’s length transaction.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

The Eastern Gas Program envisages, inter alia, constructing and developing the Sakhalin –Khabarovsk –Vladivostok gas pipeline system to be connected with the Yakutia –Khabarovsk –Vladivostok gas pipeline. The purchase of the Sakhalin –Komsomolsk –Khabarovsk. Phase I. First Startup Complex gas pipeline is an important step towards the establishment of the Sakhalin –Khabarovsk –Vladivostok gas pipeline system.

The Sakhalin –Komsomolsk –Khabarovsk. Phase I. First Startup Complex gas pipeline was commissioned in November 2006. The gas pipeline length totals 445 km. The gas pipeline will connect fields of Gazprom being commissioned in the northern part of the Far East with the consumers both in Russia and in Asia-Pacific region.

A decision to sell the Sakhalin –Komsomolsk –Khabarovsk. Phase I. First Startup Complex gas pipeline was taken at the extraordinary general shareholders meeting held by Daltransgaz on April 29, 2008.