Gazprom has agreed on the major terms of gas supply from Turkmenistan for 2009.

A supplemental agreement has been signed to the long-term gas purchase and sale contract. The document contemplates using a pricing formula based on European gas prices.

Background:

Russia and Turkmenistan entered into the 25-year Agreement of Cooperation in the gas industry on April 10, 2003. Under the Agreement, Gazprom export (Gazprom’s wholly owned subsidiary) and GTC Turkmenneftegaz concluded a long-term contract to purchase and sell Turkmen natural gas throughout the period of the Agreement.

Turkmen gas is supplied through the Central Asia – Center system of gas transit pipelines crossing Uzbekistan, Kazakhstan and Russia. In accordance with intergovernmental agreements Gazprom transits Turkmen gas across Russia to Ukraine. Furthermore, under mid-term contracts Gazprom serves as operator of Turkmen gas transit across Uzbekistan and Kazakhstan