A Board of Directors’ meeting is in progress at Gazprom’s Headquarters.

The Board heard a report on Gazprom’s draft budget (financial plan), investment and cost reduction programs for 2005, agreeing to adopt a final resolution on the matter upon completion of the RF Government’s 1st quarter of March meeting.

Under the draft financial plan, Gazprom’s overall income & earnings and liabilities, expenses & investments are scheduled at RUR 1.48 and 1.6 trln, respectively, with financial borrowings and budgetary surplus to account for RUR 110 and 0.3 bln, respectively.

Gazprom’s 2005 investments are projected at RUR 212.6 bln, including RUR 188 and 24.6 bln as capital and long-term financial investments, respectively.

The 2005 investment program will mainly be focused on the gas transmission system development and security enhancement, with the capital investments to amount to 65% of the total.

The Board also took into account information on Gazprom’s forecast budget (financial plan) and investment program over 2006 to 2007.

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