Gazprom’s Headquarters hosted today a working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Adnan Terzic, Chairman of the Council of Ministers of Bosnia and Herzegovina.

The parties deliberated on the outlook of further cooperation in the gas industry and, in particular, the possibility of entering into long-term contracts on Russian natural gas deliveries. At the same time, the parties debated the issues of Bosnia and Herzegovina’s gas supply network development and Gazprom’s involvement in the project as investor. The meeting also addressed potential gas transit via Bosnia and Herzegovina to neighbouring countries.

In the course of the talks, Alexey Miller, Gazprom’s Management Committee Chairman underscored that settling Bosnia and Herzegovina’s debt to Gazprom for the gas supplied over 1991 to 1995 is a prerequisite for cooperation deepening between the parties. Simultaneously, A. Miller pointed out that over the past years there had been no controversy between Gazprom and Bosnia and Herzegovina in the gas business and Russian natural gas deliveries to the country were on a steady rise.

Reference:

Russian natural gas has been channeled to Bosnia and Herzegovina (former Socialist Federative Republic of Yugoslavia - SFRY) since 1978 and is currently the only gas supply source for the country. In 2004, Bosnia and Herzegovina is scheduled to receive a total of some 300 million cubic meters of Russian gas.

Before the SFRY’s collapse, Russian gas was piped to the country based on an Intergovernmental Agreement. Upon foundation of the Independent State of Bosnia and Herzegovina, the countries did not enter into a new agreement.

Due to Bosnia and Herzegovina’s unsettled debt for previous gas deliveries, the parties used not to debate potential conclusion of a long-term gas supply contract. The existing contract is regularly extended for short-term periods and is currently effective until 1 October 2004.

Bosnia and Herzegovina’s indebtedness for the Russian gas received between 1991 and 1995 accounts for USD 104.8 million. At present, the parties are looking into the possibility of resolving this matter at the governmental level by clearing Bosnia and Herzegovina’s gas arrears to Gazprom through the settlement of the ex-USSR’s oustanding debt to the former SFRY. Existing Russian gas deliveries to Bosnia and Herzegovina are being paid up in full.

DIVISION OF RELATIONS WITH MASS MEDIA