Today at Gazprom headquarters, Alexey Miller, Chairman of Gazprom Management Committee, held a working meeting with Nikolay Shaklein, Governor of Kirovskaya oblast.

The parties discussed implementation of the Cooperation agreement between Gazprom and Kirovskaya oblast. A. Miller and N. Shaklein expressed a common view that the regions’ payment discipline should be improved.

The parties also discussed the issue of natural gas supplies to the Kirovo-Chepetskii chemical plant (KCCP). It was noted that Mezhregiongaz was still ready to sign an agreement to supply 1 billion cubic meters of gas to KCCP in 2005 under the condition of bank guarantees regarding the payment for these supplies. Any additional supply over this quantity should be arranged with independent suppliers.

Reference:

The five year Cooperation agreement between Gazprom and Kirovskaya oblast was signed in July 2004.

Gazprom supplied more than 3 billion cubic meters of gas to Kirovskaya oblast last year which was 119.7% of the planned supplies.

The overall gasification level of the Kirovskaya oblast is 25.8%, in cities and rural townships – 35.6%, in rural areas – 3.8%. The average figures for Russia are 53%, 60% and 34.7% respectively.

In 2005, the regions’ consumers’ debt to Gazprom for the gas supplied increased by more than 18.5 times or by RUR 300 million, and stood at more than RUR 317 million as of April 1, 2005. 61.2% of gas supplied has been paid for in the first quarter of 2005.

The agreement between Mezhregiongaz and KCCP for 2005 stipulates a 1 billion cubic meters of gas supplies to the plant. The plant’s top management insisted on increasing supplies up to 1.45 billion cubic meters.

Since no supplies agreement for 2005 was signed, and the plant’s debt for gas supplied in the amount of RUR 260 million for January and February 2005, Mezhregiongaz ceased supplies of gas to the plant.

KCCP paid in full for the gas supplied on April 13, 2005. The payment of RUR 324 million was made (it includes pre-payment for gas supplies in April).

DIVISION OF RELATIONS WITH MASS MEDIA