Today Alexey Miller, Chairman of the Gazprom Management Committee paid a working visit to the Republic of Bashkortostan.

As part of the visit Alexey Miller met with Murtaza Rakhimov, President of the Republic of Bashkortostan. The parties discussed the progress with the Cooperation Agreement paying particular attention to supplies of the equipment produced in Bashkiria for the needs of Gazprom and its subsidiaries, as well as to the partnership targeted at the socioeconomic development of the Republic.

Alexey Miller and Murtaza Rakhimov inaugurated a visbreaking unit at the Salavatnefteorgsintez refinery. The unit is intended to produce marketable fuel oil from black oils without utilization of light oils.

During the event Alexey Miller pointed out that Salavatnefteorgsintez was Russia’s largest complex combining a full hydrocarbon feedstock processing cycle with the recovery of a broad spectrum of globally demanded products (gasoline, diesel fuel, mineral fertilizers, ethylene) at a single site. By launching the visbreaking unit Salavatnefteorgsintez refinery will raise monthly production of diesel fuel by 10-15 thousand tons.

“Modernization of such enterprises through advanced and environmentally-friendly technologies and an increase in the high value-added products output will substantially promote the competitiveness of Gazprom as a global energy company,” said Alexey Miller.

Alexey Miller also visited the ceremonial opening of the Golden Fish swimming pool built in line with the Gazprom to Children program in the town of Salavat. The swimming pool may be attended by over 500 visitors a day.

In addition, Gazprom’s Management Committee Chairman Alexey Miller and Bashkirian President Murtaza Rakhimov visited Salavat’s GDS-4 gas distribution station owned by Gazprom transgaz Ufa.

Background:

The Cooperation Agreement and the Gasification Accord between Gazprom and the Government of the Republic of Bashkortostan were signed on April 24, 2006 and on June 24, 2003 accordingly.

Natural gas penetration in Bashkiria is at 81 per cent, including 89.1 per cent in cities and towns and 67.7 per cent in rural areas. The identical Russia-averaged rates account for 62, 67 and 44 per cent respectively.

In 2009 Gazprom is planning to invest RUB 290 million for the construction of three inter-settlement gas pipelines with the total length of 82 kilometers in Bashkortostan.

In 2008 Gazprom supplied over 16 billion cubic meters of gas to the Republic and roughly the same amount is slated for this year.

The Bashkirian consumers have no gas arrears.

Salavatnefteorgsintez (Petrochemical Plant No.18 before 1993) was incorporated in 1948. It is one of the leading oil and gas processing companies in Russia. Salavatnefteorgsintez turns out over 140 various products marketed to more than 20 countries in the FSU and worldwide.

The processing subsidiaries of Gazprom and Salavatnefteorgsintez are linked by feedstock, transportation and product flows. At present, Gazprom supplies feedstock to Salavatnefteorgsintez that makes higher value-added products.

In 2003 a controlling stake in Salavatnefteorgsintez was entrusted to Gazprom by the founder – State Property Management Committee of the Republic of Bashkortostan. In 2007 this stake was acquired by NPF Gazfond.

In February 2009 Gazprom pererabotka, a wholly owned subsidiary of Gazprom, consolidated a 50.000008 per cent stake in Salavatnefteorgsintez.

The Gazprom to Children program is the Company’s largest social project. In 2007 and 2008 Gazprom invested as much as over RUB 6.7 billion in the program. 527 sports facilities in 67 regions of Russia have been constructed by now in line with the Gazprom to Children program. These include recreation centers, stadiums, football fields, swimming pools, playgrounds and children’s camps. A further 107 sports facilities are under construction now. Today, some 250 thousand young sportsmen are strengthening their health under the supervision of experienced coaches at sports facilities of Gazprom’s subsidiary companies.