The Gazprom Board of Directors took note of the information about the Company’s action plan to create a target model for the domestic gas market.

It was noted that the long-term sustainability of the gas sector and the reliability of gas supplies were essential to Russia’s economy and energy security.

Gazprom makes a great contribution to achieving those goals by providing uninterrupted gas deliveries across the country, including during peak demand in winter periods. To that end, the Company constantly expands its resource base and maintains the readiness of substantial spare capacities for gas production and transportation. Gazprom makes extensive efforts to shape the gas industry in the east of Russia, pursues a program to develop the regional gas infrastructure, and expands the national NGV market.

The regulated gas transmission rates do not cover the costs incurred by Gazprom to develop gas transmission and distribution systems for the benefit of all suppliers and consumers.

The current environment necessitates a new approach toward calculating and setting gas transportation rates, as well as a unified competitive market with equal opportunities for all gas suppliers. Priority should be given to improving regulations and protocols with the aim of facilitating free pricing for Gazprom’s gas, streamlining the rate-setting system for gas transportation services and developing tools for organized gas trading.

The Company will continue to cooperate with the authorities in developing the domestic gas market.

The Management Committee was instructed to devise an action plan for creating a target model for the domestic gas market.