The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Oleg Dubina, Chairman of the Board of NAK Naftogaz Ukrainy.

The meeting discussed the issues with regard to implementing the provisions of the Memorandum of Cooperation in the gas sector signed by Chairman of the Russian Federation Government and Prime Minister of Ukraine on October 2, 2008.

The parties have achieved a considerable progress in coordinating the long-term gas supply contract to Ukraine, as well as the contract on its transit via the Ukrainian territory. In particular, there is a common understanding of approaches to gas pricing for Ukraine in 2009. The relevant negotiations are expected to be finalized in the near future.

Agreements have been reached to supply no less than 55 bcm of gas to Ukraine in 2009.

Background:

On October 2, 2008 in the course of the meeting between the Russian Federation Prime Minister Vladimir Putin and his counterpart, Julia Timoshenko the Memorandum of Cooperation in the gas sector was signed. One of the key provisions of the Memorandum is a possibility to transfer to direct long-term relations between Gazprom and NAK Naftogaz Ukrainy starting from January 1, 2009. The Memorandum also confirms the intention to establish a stagewise (during three years) transition to market, economically expedient and mutually agreed gas prices for Ukraine, as well as tariffs for gas transit across its territory.

In March 2008 Gazprom and NAK Naftogaz Ukrainy signed the Agreement to develop the relations in the gas sector.

In 2008 Ukraine will be supplied with gas from Central Asia in the amount of no less than 55 bcm priced at USD 179.5 per 1,000 cu m. The gas at the Russian-Ukrainian border is currently purchased by NAK Naftogaz Ukrainy.

In conformity with the Agreement starting from May 1, 2008 direct gas supplies to Ukrainian consumers in the amount of 7.5 bcm have been effectuated by Gazprom sbyt Ukraine (a wholly-owned subsidiary of Gazprom).