2006

January

The following documents were signed:

• the contract for natural gas transit and supply to the Republic of Moldova;
• the documents fixing the price of Uzbek natural gas purchased by Gazprom and the rate of gas transit through Uzbekistan;
• he Accord on the major principles and provisions of the PSA for the Urga, Kuanysh fields and the Akchalak group of the Ustyurt Region of the Republic of Uzbekistan;
• the five-year Gasification Agreement for the Khabarovsk Territory;
• the Agreement on the major principles of geological survey for the investment blocks in the Ustyurt Region of the Republic of Uzbekistan and subsequent development of oil and gas under the PSA terms;
• the Memorandum of Intent to set up a joint Russian-Kyrgyz oil and gas venture in the oil and gas sector.

Gazprom suspended gas supplies to Ukraine.

Gazprom and NAK Naftogaz Ukrainy shifted over to market-based principles in joint activities in the oil and gas sector.

The State Commission for Mineral Reserves under the Russian Federation Ministry of Natural Resources and Environment approved an increase in the Shtokman gas and condensate field reserves.

During the cold snap Gazprom supplied large-scale extra gas supplies to Russian and foreign consumers.

Maintenance and repair operations were completed at the North Caucasus – Transcaucasia gas trunkline.

February

The Board of Directors:

• resolved to convene the annual General Shareholders Meeting on June 30, 2006;
• agreed on Gazprom’s acquisition of a 51 per cent stake in NEGP Company from ZGG;
• agreed on Gazprom’s acquisition of a 50 per cent stake in ROSUKRENERGO from Gazprombank (Gazprom’s subsidiary).

In addition, the Gazprom Board of Directors approved the purchase by Mezhregiongaz of additional shares in the following companies: Ivanovoregiongaz, Kirovregiongaz, Udmurtregiongaz, Vladimirregiongaz, Mosregiongaz and Bashkirgaz.

Paris hosted the presentation of the ‘Masterpieces of Russian Art. Golden Map of Russia.’ album. The first edition of the album was published with financial support from Gazprom.

Gazprom’s delegation took part:

• in festive events dedicated to bringing the Vyngaiakhinskoye and Yety-Purovskoye gas fields facilities to their design capacity;
• in the inauguration of the Zambrow compressor station at the Polish section of the Yamal – Europe gas trunkline.

March

The following documents were signed:

• the network schedules for gasification facilities construction in the Kaluga, Kirov, Kaliningrad, Tver, Ulyanovsk and Orenburg Regions;
• the Memorandum of Cooperation with the Central Institute of Aviation Motors named after P.I. Baranov (CIAM);
• the Cooperation Agreement with Petro-Canada within the Baltic LNG project;
• the Memorandum of Cooperation with the Republic of Tajikistan;
• the Protocol on natural gas supply from Russia to the People’s Republic of China;
• the Memorandum of Understanding between Gazprom and State Oil and Gas Corporation Sonatrach;
• the Cooperation Agreement with the Orenburg Region Administration.

Alexey Chernyshev, Governor of Orenburg Region and Alexey Miller, Chairman of Gazprom Management Committee

Pursuant to the Order by Russian President Vladimir Putin, Alexey Miller Chairman of the Gazprom Management Committee was awarded the Order for the Services to the Fatherland, IV Class. By the same President’s Order Sergey Kupriyanov, Alexey Miller’s Press Secretary was awarded the Order of Honor.

Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Gazprom’s subsidiary Gazobezopasnost won the National Prize ‘For Enhancing Security of Russia’.

April

The Management Committee approved the proposal to conduct Gazprom’s annual General Shareholders Meeting on June 30, 2006. The Management Committee also approved and submitted for consideration by the Company’s Board of Directors draft amendments to Gazprom Charter.

The network schedules were signed for gasification facilities construction in the Altai Territory, the Republic of Mordovia, the Udmurtia Republic as well as the Vladimir, Volgograd, Kostroma, Astrakhan, Voronezh, Leningrad, Penza, Kursk, Arkhangelsk, Yaroslavl and Kurgan Regions.

The Cooperation Agreements were signed with:

• E.ON Ruhrgas;
• Astrakhan Region Administration;
• Leningrad Region Administration;
• Kurgan Region Administration;
• the Republic of Mordovia.

In addition, the following documents were signed:

• the 25-year Agreement identifying the strategic principles of cooperation in the gas and energy sector in the Republic of Armenia;
• the Agreement on exchanging gas production and marketing assets between Gazprom and BASF.

Andrey Rossinsky was appointed Director General of Burgaz.

Gazprom completed its first LNG supply to the Isle of Grain terminal in the UK.

May

The Gazprom Board of Directors re-elected Alexey Miller as the Gazprom Management Committee Chairman.

The following documents were signed:

• the network schedules for gasification facilities construction in the Vologda, Nizhny Novgorod, Tula, Ivanovo, Lipetsk, Tambov, Novosibirsk and Bryansk Regions;
• the Preliminary Agreement stipulating the conclusion of a long-term contract on Russian gas supply between Gazexport and Romanian trading company Conef.

Festive events were held on the occasion of the end of retrofitting the main startup complex of Orenburggazprom helium plant.

Pursuant to the decision by the Moscow Patriarchy, Gazprom was granted a special award ‘For Activity on Consolidating the Unity of Orthodox Christian Peoples’. The award was handed to Alexey Miller, Chairman of the Gazprom Management Committee by the Patriarch of Moscow and All Russia Alexiy II personally.

Gazprom’s specialists led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee were entitled to the International Fuel and Energy Association Prize in the name of Nikolai Baibakov.

Gazprom won the Finance Magazine prize instituted to honor organizations and inpiduals with the most outstanding achievements in the financial sector.

As part of the Golden Diploma – 2006 National Award, Sergey Kupriyanov, Press Secretary of the Gazprom Management Committee Chairman was granted the special award ‘For Actively Maintaining Dialogue with Russian Media and Personal Contribution to Transparency in Fuel and Energy Complex’.

The jury elected Gazprom’s official website as the best in the ‘Customer Edition. Electronic Media’ nomination of the Best Corporate Media – 2006 All-Russian annual competition.

June

The network schedules were signed for gasification facilities construction in Saint Petersburg as well as the Krasnodar and Stavropol Territories.

The following documents were signed:

• the Cooperation Agreement with the Stavropol Territory Administration;
• the Cooperation Agreement with the Krasnodar Territory Administration;
• the Cooperation Agreement with MOL Group;
• the Partnership Agreement for 2006 to 2010 with ITERA Oil and Gas Company;
• the first Contract for Russian gas supply to Denmark;
• the Contract for gas supply by DONG Energy to Gazprom Marketing & Trading, a Gazprom Group company;
• the Agreement between Gazprom Marketing & Trading and Natural Gas Shipping Services Limited on providing administrative services for gas supplies to the UK ultimate consumer market;
• the preliminary agreement between Gazprom represented by ZGG, LEVIT and SWGI Growth Fund (Cyprus) Limited to buy at market value an ownership interest in NOVATEK in the amount of less than 20 per cent of the Company’s outstanding shares.

Gazprom’s delegation took part in the 23rd World Gas Conference.

Gazprom’s delegation took part in the 10th Saint Petersburg International Economic Forum.

Gazpromtrans was awarded the Golden Chariot National Prize of the Russian transport industry in the Leader of the Russian Transportation and Shipping Sectors nomination.

Gazprom purchased the retail business of Pennine Natural Gas Limited. The deal was completed by Gazprom Marketing & Trading.

Gazprom’s annual General Shareholders Meeting was held.

The Gazprom football team won the 10th International Tournament among football clubs of parliaments and governments of the CIS countries.

July

The Board of Directors decided to form the Audit and the Asset Evaluation Committees under the Gazprom Board of Directors.

The following documents were signed:

• the Framework Agreement between Gazprom and E.ON on swapping gas production, gas marketing and power generation assets;
• the Contract stipulating VNIIGAZ (a wholly owned subsidiary of Gazprom) to devise a General Scheme for the gas industry development in the Bolivarian Republic of Venezuela (jointly with Petroleos de Venezuela).

Gazprom was recognized in the Business nomination of the Russian Press Favor Award Simpre 2005.

Gazprom started drilling exploration well No.7 in the Shtokman gas and condensate field in the Barents Sea.

August

The following documents were signed:

• the Agreement on additional gas supply via the North European Gas Pipeline;
• the Memorandum of Understanding (with Algerian State Oil and Gas Corporation Sonatrach);
• the Agreement on extension of the existing contracts for gas supply via Waidhaus for 15 years (with E.ON Ruhrgas).

Alexander Medvedev, Deputy Chairman of Gazprom Management Committee and Burckhard Bergmann, Chairman of E.ON Ruhrgas

Inauguration of the 4th startup complex of the Orenburggazprom (wholly owned subsidiary of Gazprom) helium plant was held.

Gazprom was proclaimed the winner of a tender for the subsurface use license of the Parusovy block in the Yamal-Nenets Autonomous Area.

Gazprom was declared the winner of a tender for the subsurface use license of the Tetersky block in the Krasnoyarsk Territory.

Gazprom made the first LNG shipment to Japan. The transaction was completed by Gazprom Marketing & Trading, a company of Gazprom Group.

September

The Board of Directors approved the asset consolidation scheme and agreed upon the deals providing for Gazprom to acquire shares additionally placed by Gazmash as well as for Gazmash to acquire stakes in the Kanevskoy Gas Equipment Plant and the Armavir Gas Equipment Plant.

The following documents were signed:

• the Cooperation Agreement with the Sakhalin Region Administration;
• the Cooperation Agreement with the Administration of the Altai Republic;
• the Memorandum of Cooperation with ITERA Oil and Gas Company (regarding gas from the Bratsk gas and condensate field in the Irkutsk Region);
• the Cooperation Agreement with Gaz de France (on personnel training and development);
• the Gasification Accord of the Altai Republic;
• the Gasification Accord of the Komi Republic;
• the Memorandum of Understanding among Sonagas, Gazprom and Suntera;
• the contracts for supplying RosUkrEnergo with Central Asian gas in the fourth quarter of 2006;
• the long-term contracts for natural gas supply to Austria (signed by Gazprom and Austrian companies OMV, OMV Gas, EconGas, GWH and Centrex Europe Energy & Gas).

The terms of additional Turkmen gas delivery in 2006 were agreed on. The price and the gas supply amounts were specified for 2007 to 2009. The parties identified the adjustment principles for gas supply terms in the next triennial period.

The First Children’s Spartakiada Games and the Sixth Summer Spartakiada Games of Gazprom started.

Gazprom and BP made a deal to supply LNG to the Atlantic Basin countries.

Gazprom’s delegation took part in the 4th Baikal Economic Forum.

The Joint Coordinating Committee of Gazprom and PTT Public Company Limited (PTT), Thailand’s oil and gas company, held its first meeting.

Represented by ZGG, Gazprom closed the deal on purchasing 19.4 per cent of NOVATEK’s placed ordinary shares from LEVIT and SWGI Growth Fund (Cyprus) Limited (majority shareholders of NOVATEK).

October

The Gazprom Management Committee awarded the 2006 Science and Technology Prizes.

The following documents were signed:

• the Agreement on terms and conditions of gas transmission and supply to the Kazakh domestic market;
• the Memorandum of Understanding regarding joint activities within the NEGP and BBL gas pipelines projects as well as the utilization of Gasunie gas transmission capacities (between Gazprom and Gasunie);
• the Memorandum of Understanding on cooperation within oil and gas projects with Repsol;
• the Agreement for title sponsorship with the Schalke 04 Football Club (the Agreement was concluded for a five-year term);
• the Memorandum to set up a permanent Russian-German Resource Utilization Forum (between Saint Petersburg State Mining Institute and Freiberg Mining Academy);
• the Agreement on gas supply to Korea between Gazprom and Korean company Kogas.

The inauguration of the retrofitted Moskovo 18A CS was held.

Moskovo 18A CS opening after retrofitting

Gazprom made the first shipment of liquefied natural gas to the Korean Republic.

Corporate Gazprom Magazine won the BCP Award-2006 Golden Prize awarded by the European Corporate Publishing Verband (ECPV), the largest corporate press association in Europe.

November

The following documents were signed:

• the Cooperation Agreement with PetroVietnam State Oil and Gas Corporation;
• the Strategic Cooperation Agreement with Rosneft;
• the Strategic Cooperation Agreement with the Tyva Republic Administration;
• the Gasification Accord with the Primorye Territory Administration;
• the Gasification Accord with the Sakhalin Region Administration;
• the Memorandum of Cooperation with Irkutsk Oil Company (regarding gas of the Markovskoye oil, gas and condensate field and Ayanskoye gas field in the Irkutsk Region);
• the Strategic Partnership Agreement with Eni;
• the Cooperation Agreement with the Tyva Republic Administration;
• the Cooperation Agreement with the Nenets Autonomous Area Administration.

The following events took place:

• the presentation of the ‘Masterpieces of Russian Art. Golden Map of Russia.’ album. The album was published with financial support from Gazprom;
• the ceremony of bringing onstream the Barnaul – Biysk section of the Barnaul – Biysk – Gorno-Altaisk gas trunkline with a branch to Belokurikha;
• the 2006 National Environmental Award ceremony. Gazprom’s subsidiary companies – Urengoygazprom Orenburggazprom and Kavkaztransgaz became the award winners.

Gazprom placed the A7 and A8 corporate bonds worth RUB 5 billion each, with the face value of RUB 1,000 and circulation periods of 3 and 5 years, respectively.

Alexander Ryazanov was relieved of his post of Deputy Chairman of the Gazprom Management Committee due to the employment contract expiration.

Gazprom’s delegation took part in the 8th Annual Meeting of the EU-Russia Industrialists’ Roundtable.

Gazprombank won the Best Annual Report 2005 Award in the Information Congestion nomination.

Gazprom appeared in the corporate responsibility ranking of the Fortune Magazine (USA). It is the first Russian company represented in the ranking.

December

The Board of Directors agreed on Gazprom’s participation in the Gazpromipoteka Fund non-profit organization and tasked the Management Committee with organizing the work to set up the said company.

The Cooperation Agreements for 2007 were signed with:

• the Saint Petersburg Administration;
• the Leningrad Region Administration;
• the Yamal-Nenets Autonomous Area Administration.

In addition, the following documents were signed:

• the package of documents on further development of the Russian-Bulgarian cooperation in the Russian natural gas supply and transit sector;
• the Memorandum of Understanding among Gazprom Export, the Government of the Republic of Serbia and Serbian state-owned gas company Srbijagas;
• the Protocol on Gazprom’s entry in Sakhalin Energy Investment Company as the majority shareholder;
• the five-year contract for gas supply to and transit via the Republic of Belarus;
• the Protocol on terms and conditions of cooperation with Kazakhstan (for 2007);
• the Program for gas supply to Saint Petersburg between 2007 and 2015 with an outlook till 2025;
• the Agreement to extend the existing contracts for Russian natural gas supply to France until 2030 (with Gaz de France).

Alexey Miller, Chairman of Gazprom Management Committee and Jean-Francois Cirelli, President, Chief Executive Officer of Gaz de France

The following events were held:

• the ceremony dedicated to the start of gas supplies to Mirny (Arkhangelsk Region);
• the awarding of the 2006 Gazprom Science and Technology Prize winners.

Gazprom was announced the winner of the tender on hydrocarbon exploration and development in Block 19 offshore Libya in the Mediterranean Sea.

Gazprom inked gas supply contracts with three Georgian companies – Mtkvari Energetika, KazTransGaz-Tbilisi and the Georgian International Energy Corporation.

The accord was achieved on Russian gas supply to the Moldova Republic in 2007.

The Government of the Republic of Tajikistan granted Gazprom two geological survey licenses for the Sargazon (Dangarinsky area) and Rengan (Rudaki area) oil and gas prospects.

The results of the Excellent Reputation National Award were summed up. Gazprom took the first place among natural monopolies.

Yamburggazdobycha (Gazprom’s subsidiary) became the winner of the Leader in Environmental Protection in Russia national competition.

Gazprom-Media received the Darin National Award. The company was acknowledged in the Business Media nomination.

Non-State Pension Fund Gazfond became the winner of 2006 Financial Olympus Award in the Management Strategy nomination.

Gazprom became the winner of The Most Successful Russian Company of 2006 national poll organized by the Tribuna newspaper.