The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Magomedsalam Magomedov, President of the Republic of Dagestan.

The meeting addressed the progress with the Agreement of Cooperation between Gazprom and the Government of the Republic of Dagestan.

Particular attention was paid to the republican gasification issues and establishing a unified gas distribution company in Dagestan. In 2010 the Company will allocate another RUB 1 billion for gasification of Dagestan. These funds will be used to continue the construction of four inter-settlement gas pipelines and to launch engineering of 26 new ones.

The meeting emphasized that regional consumers had to timely and fully pay for the current gas supplies, as well as to clear the accumulated arrears.

Background:

The Agreement of Cooperation between Gazprom and the Republic of Dagestan was signed in September 2003 for an indefinite period. In January 2005 the parties signed the Accord on Gasification.

Natural gas penetration in the Republic of Dagestan accounts for 83.9 per cent including 100 per cent in cities and towns and 65.4 per cent in the rural area. The identical figures throughout Russia make up 63.2, 67.5 and 45.5 per cent respectively.

Between 2007 and 2009 Gazprom invested RUB 1.66 billion in the gasification of Dagestan. In 2009 the Dagestani Government generally fulfilled their obligations on consumer preparation for gas supplies.