A working meeting between Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee and Dmitry Kazakov, Beltransgaz’s Director General took place today at Gazprom’s Head Office.

The parties addressed matters relative to the timely commissioning of compressor stations at the Belarusian section of the Yamal-Europe gas pipeline.

The parties confirmed mutual intentions to complete in 2005 the construction of the Krupskaya, Slonimskaya, Orshanskaya and Minskaya compressor stations. This move will make it possible to bring the line to its nominal capacity this year, as it has been scheduled.

The Belarusian side took up the commitment to provide land and issue the Minskaya construction license not later than 15 August 2005. A similar license for Orshanskaya was granted on 15 June 2004 and the Krupskaya and Slonimskaya construction is underway already.

The meeting emphasized that additional above-the-schedule natural gas deliveries to Belarus over 2005 will be tied to the timely commissioning of the compressor stations.

Reference:

The Northern Tyumen Region (NTR) – Torzhok and Yamal-Europe gas pipelines are scheduled to link northern Tyumen’s fields with West Europe and will total over 4 thou km.

The Belarusian section of the Yamal-Europe gas pipeline is 575-km-long, with the pipeline transmission part and the Nesvizhskaya compressor station commissioned already.

Gazprom and Beltransgaz entered into an Investment Agreement for the construction of the Yamal-Europe gas pipeline in Belarus on 25 February 2004.

Under the Agreement, Gazprom and Beltransgaz are currently serving as the project investor and customer, respectively.

On 30 December 2004, Gazprom and Beltransgaz entered into a Gas Sales and Transit Agreement over 2005. In pursuance of the Agreement, Gazprom will provide Belarus with 19.1 bcm of gas worth of $46.68 per 1,000 cu m, with additional supplies up to 1.4 bcm to be effected to the Republic provided there is enough gas transmission capacity available.

The tariffs for gas transmission by the Beltransgaz-owned networks and Yamal-Europe pipeline will account for $0.75 and $0.46 per 1,000 cu m, respectively.

On 5 December 2003, Gazprom and Beltransgaz sealed an Agreement to restructurize Belarus’ $75.33 mln debt for the gas received in 1999, 2001 and 2002. Said arrears have been cleared in strict compliance with the schedule.

DIVISION OF RELATIONS WITH MASS MEDIA