The Board of Directors’ meeting has come to an end at Gazprom’s Headquarters.

The Board endorsed the Gazprom’s Cost Management Conception.

The Conception identifies major approaches to the corporate Cost Management Conception development and sets forth requirements to its components, taking into account Gazprom’s business peculiarities and development strategy.

The Conception is largely focused on ensuring efficient use of resources, enhancing soundness and quality of the decision-making process, coming up with full, comparable and transparent cost data as well as delegating authority and responsibility for the efficient use of resources at various management levels.

Implementing the new Conception will raise Gazprom’s business efficiency and transparency that will bolster the Company’s capitalization and investment attractiveness and solidify its standing on the global and Russian energy markets.

Reference:

Starting 2002, Gazprom has been implementing the Cost Optimization (Reduction) Program, on the one hand, proving to be highly efficient but, on the other hand, showing that the operational cost reduction is limited and further direct cost slashes might affect the United Gas Transmission system operability. As a result, there has emerged an initiative to switch over to comprehensively managing costs on a systematized basis. In March 2004, Gazprom’s Management Committee resolved to develop the corporate Cost Management System.

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