A working meeting between Alexey Miller, Gazprom’s Management Committee Chairman and Dmitry Kazakov, Beltransgaz’s Director General has taken place today at Gazprom’s Headquarters.

The meeting dealt with current and potential issues of bilateral cooperation in the gas business, resolving to accelerate the construction of compressor stations of the Yamal-Europe gas pipeline in Belarus. The Krupskaya, Slonimskaya, Orshanskaya and Minskaya compressor stations commissioning due 2005 will bring the pipeline to the targeted design capacity.

The parties reached an accord that the Belarusian side would speed up the registration of long-term land lease contracts for the pipeline facilities, with respective legal documents to be executed in a favorable manner.

Alexey Miller and Dmitry Kazakov appreciated bilateral interaction in Russian gas deliveries to and transit via Belarus, pointing to the fulfillment of all the commitments. Current gas shipments are being paid up in time and full, with the Belarus’ gas debt restructuring agreement implementation also being a success. Over the 1st quarter of 2005, the amount of gas supplies to and transit via Belarus exceeded the identical parameters of last year’s same period by 4.7% and 17.8%, respectively.

The parties also addressed gas deliveries and transit for 2006, expressing a common opinion to adhere to the 2005 contractual commitments provided all the existing obligations in relation to the compressor station construction and property registration were fulfilled in full.

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With their total length to exceed 4 thousand km, the Northern Tyumen Region (NTR) – Torzhok and Yamal-Europe gas pipelines are scheduled to link NTR with West Europe.

The Yamal-Europe Belarusian part is 575-km-long. The pipeline transmission section and Nesvizhskaya compressor station are already in operation. To bring the pipeline to its nominal capacity, another 4 compressor stations including Krupskaya, Slonimskaya, Orshanskaya and Minskaya are slated for commissioning.

Gazprom and Beltransgaz entered into an investment agreement to construct the Yamal-Europe gas main extension in Belarus on 25 February 2004, acting as project investor and customer, respectively.

On 30 December 2004, Gazprom and Beltransgaz sealed a gas supply and transit contract over 2005. Under the contract, Gazprom will provide Belarus with 19.1 bcm of gas worth $46.68 per 1,000 cu m, with another 1.4 bcm to be shipped additionally given there are spare gas transmission capacities.

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

On 5 December 2003, Gazprom and Beltransgaz entered into an agreement to restructure Belarus’ 1999, 2001 and 2002 gas debts worth $75.33 mln. The arrears are being cleared in strict compliance with the debt repayment schedule.

DIVISION OF RELATIONS WITH MASS MEDIA