On 20 October 2005 OAO Gazprom issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) for the three months ended 31 March 2005.

During the period from December 2003 to March 2005, the International Accounting Standards Board (“IASB”) revised 17 of its standards and issued 5 new standards. The financial information was prepared in accordance with all the new and revised IFRS standards effective 1January 2005, which are relevant to its operations. In addition, effective 1 January 2005 the Group early adopted IFRS 6 “Exploration for and Evaluation of Mineral Resources”.

The table below presents the unaudited consolidated interim condensed statement of income for the three months ended 31 March 2005 and 2004. All amounts are presented in million Russian Roubles, unless otherwise stated.

Sales (net of excise, VAT and customs duties) increased by RR83,336 million, or 33%, to RR339,181 million in the three months ended 31 March 2005 compared to the three months ended 31 March 2004. More detailed information on our sales for the three months ended 31March 2005 and 2004 is presented in the table below.

Net sales of natural gas increased by RR73,484 million, or 35%, to RR282,150 million in the three months ended 31 March 2005 compared to the three months ended 31 March2004. This increase was primarily due to the increase in prices of gas sales in Europe and in the Russian Federation and due to the increase in volumes of gas sales.

Net sales of natural gas to Europe increased by RR43,776million, or 40%, to RR152,572million in the three months ended 31 March 2005 compared to the three months ended 31 March 2004. This was primarily due to the increase in average prices of gas sales to the customers in European countries and a 5% increase in sale volumes.

Net sales of natural gas to FSU countries increased by RR9,817 million, or 68%, to RR24,182 million in the three months ended 31 March 2005 compared to the three months ended 31March 2004. This is primarily due to a temporary reduction in sales volumes to Belarus in the three months ended 31 March 2004.

Net sales of natural gas in the domestic market increased by RR19,891 million, or 23%, to RR105,396 million in the three months ended 31 March 2005 compared to the three months ended 31March2004. This was primarily due to the increase in average domestic prices for gas sales set up by the Federal Tariff Service.

Sales of gas condensate and oil and gas products increased by RR8,709 million, or 32%, primarily due to the increase in market prices of oil and gas products in the three months ended 31March of 2005 compared to the three months ended 31 March 2004.

Operating expenses increased by RR38,486 million, or 21%, to RR220,414 million in the three months ended 31 March 2005 compared to the three months ended 31March 2004.

This increase in operating expenses was primarily due to the increase in taxes other than on income (RR6,878 million), purchased gas (RR5,894 million) and repairs and maintenance (RR5,276 million). The increase in taxes other than on income was primarily due to changes in tax legislation related to natural resources production tax, which became effective 1 January 2005. The increase in cost of purchased gas was primarily due to increased volumes of gas purchases, both in Central Asia and in Europe, for resale to customers in Western Europe and the FSU. The increase in repairs and maintenance expenses is primarily due to an increase in the volume of repairs and maintenance services rendered by external providers primarily in the transportation segment.

Profit tax increased by RR9,000 million, or 39%, to RR32,116 million in the three months ended 31 March 2005 as compared to the three months ended 31 March 2004. Our overall effective profit tax rate was 25.8% in the three months ended 31 March 2005 compared to 25.1% in the three months ended 31 March 2004.

In the three months ended 31 March 2005 our profit for the period attributable to equity holders of OAO Gazprom totaled RR91,628 million, which is RR23,275 million, or 34%, higher compared to the three months ended 31 March 2004.

Our net debt balance (defined as the sum of short-term borrowings, current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities, net of cash and cash equivalents and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) decreased by RR68,340million, or 14%, from RR499,855million as of 31December 2004 to RR431,515million as of 31 March 2005. This was primarily due to increased balance of cash and cash equivalents, resulting primarily from an increase in cash inflows from operating activities.

More detailed information on the IFRS consolidated interim condensed financial information for the three months ended 31 March 2005 can be found here.