RELEASE

Board of Directors approves work carried out by Management Committee to implement Gazprom’s Power Generation Strategy

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

The Board of Directors has considered and approved the work done by the Gazprom Management Committee relevant to the implementation of the Company’s Power Generation Strategy adopted in April 2007.

The Management Committee has also been tasked to assess the mid-term economic benefit of the investments in power generation facilities and to report to the Board of Directors on the results to be achieved in the first half of 2009.

Background:

Gazprom’s Power Generation Strategy was ratified by the Company’s Board of Directors in April 2007. In accordance with the document, the major business development targets of Gazprom in the power generation industry are increasing the Company’s capitalization through bigger returns on capital, optimizing the national fuel mix and achieving a synergetic effect in the natural gas and power generation sectors.

Gazprom’s Power Generation Strategy hinges on the following basic elements:

• access to a free electricity pricing regime and regulatory risk diversification;
• realizing profit from power generation;
• synergetic effects of vertical integration;
• optimizing power supply to subsidiaries;
• benefiting from the potential of investments in key assets of power generation companies;
• risk hedging;
• diversifying fuel mix in Russia’s power generation sector.