Represented by ZGG GmbH Gazprom has inked with LEVIT and SWGI GROWTH FUND (CYPRUS) LIMITED (the major shareholders of NOVATEK) a preliminary agreement to buy at market value an ownership interest (less than 20% of outstanding shares) in NOVATEK. The transaction is anticipated to be executed in August 2006.

Within the said timeframe the parties are to seal a share purchase and sale agreement and a shareholder agreement, which will grant a new shareholder representing Gazprom two seats on the NOVATEK Board of Directors comprising eight members. Under the NOVATEK Charter, this will give the new shareholder sufficient rights to participate in the company’s management.

The shareholder agreement will also stipulate that the NOVATEK equity stake to be owned by Gazprom and its affiliates won’t exceed at any given time 19.9 per cent of NOVATEK’s outstanding shares.

Within the scope of the preliminary agreement the parties pursue the objective of promoting NOVATEK’s activities covering development of existing fields and expansion of the resource base. Furthermore, the parties will agree on the NOVATEK marketing policy in natural gas supply as well as give NOVATEK the opportunity to get involved in the gasification of Russian regions.

Buying into NOVATEK, which is the fast growing gas company, will enable Gazprom to use extra resources for gas supply to Russian consumers and to conduct a coordinated policy for the Russian Federation gas market development.

Reference:

NOVATEK is Russia’s largest independent natural gas producer and the second-largest natural gas producer in Russia after Gazprom. Founded in 1994, the company is engaged in gas & liquid hydrocarbon exploration, production and processing, and holds licenses for fields and prospects located in the Yamal-Nenets Autonomous Area, which is the world’s largest natural gas production province accounting for over 90 per cent of natural gas extraction in Russia and some 20 per cent of gas production worldwide.

NOVATEK is an open joint-stock company set up under the laws of the Russian Federation. The company’s shares are listed on the Russian Trading System (RTS) Stock Exchange and London Stock Exchange (LSE) under the ticker symbol “NVTK” and at NASDAQ PORTAL System as Rule 144A Global Depository Receipts under the ticker symbol “NVATY”.