OAO Gazprom launched a debut bond tranche in euro

Not for distribution in the United States, Canada or Japan or to U.S. persons

On September 16, 2003 OAO Gazprom launched and priced a €1 billion bond due 2010 as the first tranche under a US$5 billion programme for the issuance of Loan Participation Notes.

The transaction was priced at par with a coupon of 7.8%. Deutsche Bank and UBS Investment Bank acted as joint arrangers of the Programme and lead managers of the issue.

The Gazprom delegation, led by Deputy Chairman Boris Yurlov and Member of the Board, Head of the Corporate Finance Department Andrey Kruglov, had met with investors in Europe and Asia over a period of four days. The bonds were distributed to more than 350 investors.

Deal highlights:

• the issue was targeted at Euro investors and achieved a very broad geographical distribution. This is the largest ever Euro denominated corporate bond by an emerging markets issuer;
• largest Euro denominated Eurobond from Russian and largest corporate Euro denominated transaction;
• first Euro deal by Gazprom;
• the longest maturity in euro for Russian issuer;
• first Russian corporate EMTN Programme.

These materials are not an offer for sale of any securities of Gazprom in the United States. Any securities offered by Gazprom in connection with this potential offering may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended. Gazprom does not intend to register any portion of the offering in the United States or to conduct a public offering of the securities in the United States.

This communication is directed only at (a) persons who are outside the United Kingdom and (b) those persons in the United Kingdom who are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the Order) or (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons mentioned in (a) and (b) together being referred to as relevant persons). Any securities mentioned in this communication will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Stabilization/FSA.

This press release is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.

Information Directorate, OAO Gazprom