The results of Alexey Miller and Alexander Zhilkin working meeting

Today at Gazprom headquarters Alexey Miller, Chairman of Gazprom's Management Committee, held a working meeting with Alexander Zhilkin, acting Governor of Astrakhanskaya Oblast.

The parties discussed the implementation of the Agreement on cooperation between Gazprom and Astrakhanskaya Oblast.

One of the issues discussed related to the gasification of the region, creation of a unified gas distribution organization in Astrakhanskaya Oblast, and setting a uniform tariff for gas transmission trough the distribution gas pipelines.

At the meeting, the parties reviewed the implementation of the program of relocation of residents from the Astrakhan Gas Facilities Complex protection area. It was noted that Astrakhangazprom fulfills its obligations in full regarding residents' relocation.

Alexey Miller and Alexander Zhilkin discussed the measures aimed at raising the payments by consumers for gas supplies and covering the amounts past due for gas already supplied.

Background

The five years' Agreement on cooperation between Gazprom and the administration of Astrakhanskaya Oblast was signed on 28 November 2000.

Astrakhanskaya Oblast's level of gasification is 68.5%, including 81.8% in urban areas and 40.9% in rural areas. In Russia, the corresponding average figures are 52.7%, 60.2% and 33.1%.

In 2004, according to the Program of the Russian Federation regional gasification, Gazprom invested more than RUR 88.4 million in the Oblast.

In 2006 the Program of residential construction for relocation from the Astrakhan Gas Facilities Complex protection area is scheduled to be implemented. The Program is financed by Astrakhangazprom, federal, regional and municipal budgets.

Astrakhangazprom is building residential space for the relocated families ahead of schedule. In 2001–2004, 119,600 square meters of residential space was built (instead of the planned 102,000 sq. m) at the cost of RUR 1.1 billion. It is expected that in 2005 the obligations of Astrakhangazprom on relocation of residents from the protection area will be fulfilled.

The payment for gas supplied is at the level of 76.4%, when the average in Russia is 97.8%. The amount past due in the nine months of 2004 rose by RUR 193 million, and was totaling RUR 348.5 million as of 1 October. The biggest debtors are Astrakhangazprom (RUR 183.29 million) and the residents (RUR 103.83 million).

The Oblast's 2004 budget covers only 50% of the amount necessary to pay for preferential gas supply tariffs offered to a number of population groups.

Information Directorate, OAO Gazprom

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