The Board of Directors’ meeting is underway at the Gazprom Headquarters.

The Board of Directors approved the Rules embracing the placement of orders with a sole supplier (executor, contractor) for the supply of goods, performance of works and rendering of services for the needs of Gazprom and its subsidiaries.

The Management Committee was tasked with submitting to the Board of Directors in the first quarter of 2010 the data on the progress in improving the system for the purchases of goods (works, services) so as to meet the needs of Gazprom and its subsidiaries, as well as on the Rules application techniques.

The Board of Directors entrusted the Management Committee to prioritize placing orders for the supply of goods and rendering of services with domestic producers when implementing the state crisis response measures.

Background:

Streamlining the existing system for the purchases of equipment and services in Gazprom provides for:

- streamlining the regulatory framework for the arrangement and performance of purchases;

- improving the quality of contests and enhancing their effectiveness;

- streamlining the contest object price setting practice (benchmark/base/limit/estimated prices of a contest object);

- establishing a unified automated system of electronic purchases (trade) in Gazprom;

- attracting potential suppliers (executors, contractors) to participate in competitive purchases.

The Rules embracing the placement of orders with a sole supplier (executor, contractor) for the supply of goods, performance of works and rendering of services for the needs of Gazprom and its subsidiaries have been developed pursuant to the Russian legislation.

The Rules regulate the following issues:

- the placement of orders with a sole source;

- coordination and decision-making procedure for the placement of orders with a sole source;

- the rules covering the submittal of data to Gazprom on the results of order placements with a sole source by Gazprom’s subsidiaries.

According to the Rules, the customer is entitled to place an order with a sole source, for instance, when placing an order in cases set out in part 2, Article 55, Federal Law #94 – FZ “On the placement of orders for the supply of goods, performance of works and rendering of services for the state and municipal needs” dated July 21, 2005.