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

The Board of Directors views Gazprom’s top priority mission for Russia’s East in developing the resource base and preparing hydrocarbon reserves for commercial development with the view of implementing gas supply projects in Eastern Siberia and the Far East.

In order to meet the challenges set forth in the Eastern Gas Program, the Board of Directors tasked the Management Committee with continuing the work aimed at developing the Company’s resource base so as to:

- secure the loading of the Sakhalin – Khabarovsk – Vladivostok gas transmission system to be fed with gas from the Kirinskoye field beginning in 2014

- organize gas supply to the Kamchatka Krai, with first gas to be delivered to Petropavlovsk-Kamchatsky in the fourth quarter of 2010

- prepare the hydrocarbon reserves of the Chayanda field for commercial development, with gas to be fed to the gas transmission system in 2016

The Management Committee was also entrusted with notifying the Board of Directors about the implementation of the Eastern Gas Program in the fourth quarter of 2009.

Background:

The Program for the gas industry’s mineral resource base development up to 2030 currently implemented by Gazprom stipulates meeting the strategic goal of accumulating gas reserves in eastern Russia in order to supply gas to Eastern Siberia and the Far East, and to organize the “eastern flow” of gas exports to Asia Pacific.

A low exploration extent of the Eastern Siberian and Far Eastern gas reserves (7.4 per cent for the onshore area and 5.9 for the shelf), the favorable geological conditions for discovering large hydrocarbon fields point to high potential for reserve preparation and gas production in these regions. Eastern Russia’s reserves enable to establish new large oil and gas production centers that would meet regional demands and secure export deliveries to Asia Pacific in the long term.

As of October 1, 2008 Gazprom, its subsidiary and affiliated companies hold 45 licenses for the right to use subsurface resources in Eastern Siberia and the Far East, including the Chayanda oil and gas condensate field in Yakutia, Chikanskoye gas and condensate field in the Irkutsk Oblast, Sobinskoye oil and gas condensate field in the Krasnoyarsk Krai and Kirinskoye gas and condensate field offshore the Sakhalin Island.

Pursuant to the Russian Government’s decisions taken at the September 1, 2008 circuit meeting in Vladivostok, Russia’s Natural Resources Ministry and Federal Subsurface Use Agency were tasked with resolving before the end of 2008 the issue of granting to Gazprom the rights to use subsurface resources in the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks of the Sakhalin III project, as well as in the offshore Zapadno-Kamchatsky prospect located in the Okhotsk Sea.

Gazprom is carrying out geological exploration in the Krasnoyarsk Krai and Irkutsk Oblast, and is preparing for geological exploration in the Republic of Sakha (Yakutia), Kamchatka Krai and Sakhalin Island shelf.

Pursuant to the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and Asia Pacific (Eastern Gas Program), with Gazprom appointed by the Russian Federation Government as the Program execution coordinator, up to 7 tcm of gas reserves are planned to be built up in the Siberian and Far Eastern Federal Districts by 2030.