The Gazprom Management Committee has considered the work carried out for implementing the Company’s Oil Business Strategy as satisfactory and tasked the respective structural units to prepare the materials required to address the issue at a Board of Directors meeting.

The appropriate business units were entrusted with developing a plan of the Gazprom Group activities in the oil industry before Gazprom Neft ratifies the Strategic Development Concept on April 1, 2009.

Background:

On December 27, 2006 the Board of Directors approved the Company’s Oil Business Strategy.

Pursuant to the Strategy, Gazprom will achieve the production level of 80 mtpa by 2020.

In order to reach this level, the Company is planning to work in the following areas:

- phased development of all the proven oil fields of Gazprom Neft (with due regard of the company’s 50 per cent stake in Slavneft);

- commencement of Gazprom’s reserves development;

- resource base expansion.

In 2007 Gazprom Neft was renewing its long-term strategic targets and objectives with due consideration of the basic principles provided for in the Strategy.

In February 2008 an extended meeting of the Gazprom Neft Management Committee considered and approved the oil company’s Strategic Development Concept through to 2020. The Concept is subject to ratification by the Board of Directors of Gazprom Neft.

Under the Concept, Gazprom Neft is planning to increase oil production to 90-100 mtpa by 2020 with account of all the subsidiaries, fields owned by Gazprom, resource base expansion, new acquisitions in Russia and abroad. By 2020 the company’s oil refining capacity is projected to reach 70-80 mtpa, the oil derivatives sales via the corporate network of filling stations is to be increased to 12 mtpa, the sales network is to grow to 5000-5500 filling stations.

In the long term Gazprom Neft is going to extend its activities abroad. In particular, the European countries, the Asia-Pacific region and the USA are of the company’s strategic interest.

Furthermore, Gazprom Neft is planning to enhance operations in Russia. West Siberia will remain a key region. East Siberia and Nenets Autonomous Okrug will gain importance.

In order to reach the desired objectives, Gazprom Neft has taken a series of efforts and commenced the implementation of projects in various fields.

In particular, elaboration of a detailed action plan was initiated to engage Gazprom Neft in developing Gazprom’s oil assets, GazpromNeft – Yamal was set up to produce gas from the Novoportovskoye field; potential participation of Gazprom Neft in a number of projects abroad is under consideration. In addition, a structure of Moskovsky Oil Refinery management was established. The structure will ensure settling the shareholders’ disputes and enhancing the effectiveness of the existing refinery development program. A Framework Agreement was entered into for the acquisition of a controlling stake in the Serbian NIS.