Gazprom Annual Report 2005 (English)

ANNUAL REPORT 2005
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ANNUAL REPORT 2005
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ANNUAL REPORT 2005
TABLE OF CONTENTS
Address by the Chairman of the Board of Directors and the Chairman

of the Management Committee to the Shareholders
of OAO “Gazprom” ..................................................................................................4
Major Events ..........................................................................................................7
Major Operating Results..........................................................................................9
Gazprom’s Position in Russian and Global Gas Market ........................................10
Development Strategy ..........................................................................................13
OAO “Gazprom” Board of Directors and Management Committee ......................18
Board of Directors ..........................................................................................18
OAO “Gazprom” Board of Directors’ Report on Work
in Priority Areas of Activity ............................................................................23
Management Committee ................................................................................25
Major Operational Results by Types of Activities ..................................................33
Exploration and Production ............................................................................33
Gas Transportation ..........................................................................................40
Refining ..........................................................................................................48
Marketing and Sales........................................................................................52
Diversification of Products and Activities ......................................................58
OAO “Gazprom” Investment Program and Raising Finance ............................60
Social Policy and Environmental Measures ..........................................................64
Personnel ........................................................................................................64
Sponsorship and Charity ................................................................................64
Environmental Measures and Energy Saving ..................................................65
Information for Shareholders and Investors..........................................................68
Share Capital ..................................................................................................68
Share Market and Capitalization......................................................................68
Dividends ........................................................................................................70
Financial Coefficients and Market Indicators ..................................................71
Corporate Governance ....................................................................................71
Asset Management and Improving Corporate Structure ................................73
Major Transactions and Transactions in Which OAO “Gazprom”
had an Interest ................................................................................................75
Major Risk Factors ..........................................................................................76
Significant Law Suits Filed against Gazprom Group........................................80
Glossary of Basic Terms and Abbreviations ..........................................................82
Addresses and Contacts........................................................................................84
Annex ....................................................................................................................86
List of transactions,
in which the company had an interest,
approved by OAO “Gazprom” control bodies in 2005 ....................................86
Notes
The term OAO “Gazprom” used in the Annual Report refers to the head company of the Group, i.e. to Open Joint
Stock Company “Gazprom”. The “Gazprom Group”, the “Group” or “Gazprom” imply OAO “Gazprom” and its
subsidiaries taken as a whole.
The Annual Report contains information related to Gazprom Group’s business activities in the future, which is based
on the forecast and estimates of OAO “Gazprom” management and on the current situation.
Due to the effect of various objective reasons, actual results may differ from the forecasts and estimates presented
herein.
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ANNUAL REPORT 2005
Dear shareholders!
ADDRESS BY THE CHAIRMAN
In 2005, Gazprom continued evolving into the world-class global energy company.
OF THE BOARD OF DIRECTORS Over the past year, Gazprom has shown impressive capitalization growth rates well
above the country-wide and industry-wide average. The share price went up 2.5
AND THE CHAIRMAN times accompanied by an increase of 83 % in the RTS index and an increase of
42 % in the world oil and oil product prices.
OF THE MANAGEMENT COMMITTEE
One of the key aspects to stimulate this process was OAO “Gazprom” share market
TO THE SHAREHOLDERS liberalization, which became possible due to the increase in the government’s
shareholding in the company to a controlling interest. This removed any limitations
OF OAO “GAZPROM” with regard to foreign investors’ shareholdings in OAO “Gazprom”.
Following its strategy, Gazprom persistently keeps expanding the area of its sup-
plies. In 2005, the company stepped over the Atlantic and entered one of the world’s
largest liquefied natural gas markets as first tankers with LNG reached the USA.
The company is implementing intensive preparations for the development of the

Shtokmanovskoye field on the shelf in the Barents Sea, which is to become the min-
eral resource base for large-scale LNG production in Russia.
The company continued to strengthen its positions in its traditional foreign markets.
The gas sales in Europe exceeded 156 bcm. The unique Blue Stream gas pipeline
running from Russia to Turkey reached its design capacity in 2005. The construction
of a brand new gas transportation line – the North European Gas Pipeline – was
launched. This project carried out in cooperation with the German companies
“BASF AG” and “E.ON AG” will allow Gazprom to considerably expand its scope
of operation in the European market, diversify its export flows, and improve their
reliability and flexibility.
In 2005, Gazprom moved to the market principles of cooperation in gas sphere with
the former Soviet Union states, which can be viewed as a considerable success.
This will not only enable the company to increase its profit but also to improve
the reliability of gas supply to distant foreign countries through the CIS countries.
It is hard to imagine a global energy company without an oil business component.

In 2005, Gazprom acquired Sibneft having completed by far the largest transaction
in Russian history. Acquisition of Sibneft allowed Gazprom not only to diversify its
production activities but also to become one of the most influential players in the
Russian oil market.
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ANNUAL REPORT 2005
In pursuing its strategy of export routes diversification and mastering new areas
of business, Gazprom pays special attention to the consolidation of its financial
position, the development of its resource base, the production growth, and the gas
transportation system expansion.
In the past year, OAO “Gazprom” achieved record high production and financial
results. Its revenues grew up by 38.8 % and reached RR 1 231.3 billion, while its
net profit exceeded RR 203 billion. High financial results make it possible to consid-
erably increase the dividends.
This was the first year in the joint-stock company’s history when the incremental
growth in its explored gas reserves (583.4 bcm) considerably exceeded its produc-
tion (547.9 bcm).
Gazprom continued to expand its production capacities. The production complex

combining the Vyngayakhinskoye and Yety-Purovskoye fields reached its design
capacity of 20 bcm of gas per year. 246 new wells were commissioned at Gazprom’s
fields. Successful overcoming of this winter’s spell of abnormally low temperatures
evidenced Gazprom’s capabilities in gas production.
The work was carried out to improve the reliability and the throughput capacity
of the Unified Gas Supply System. 1.4 thousand km of trunk pipelines and 7 new
compressor stations were commissioned in 2005.
Our achievements in the field of export enabled stable gas supply to Russian con-
sumers and established favorable conditions for resolving the persistent problems
concerning the development of the domestic market. Gazprom’s Program for the
expansion of gas supply facilities in regions of Russia for the period between 2005
and 2007 became its major social-oriented project. The advantages of gas fuel will
become available to over 11 million citizens all over the country. An unprecedented
amount of RR 35 billion is to be invested into the construction of gas supply facili-
ties. The priority of the Program is the expansion of gas supply facilities into rural
areas.
Business efficiency is one of the main principles underlying the world largest com-
panies’ operations. Therefore, Gazprom keeps consistently improving its corporate
governance structure and reforming the company. It started establishing sub-
sidiaries specializing in such fields of activities as underground gas storage, under-
ground repairs, hydrocarbon processing, oil production, etc.
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ANNUAL REPORT 2005
The electric power assets have been structured as part of the reform enabling
Gazprom to consider the power industry as its core business rather than a field for
its financial investment.
Gazprom’s efforts have been positively perceived by the professional participants

of the market: the leading international rating agencies have raised the company’s
credit ratings. Last year, Gazprom managed to successfully place a number of large-
scale bond issues and considerably bring down the cost of raising funds.
The results of 2005 allow us to be confident in our future. We are setting ambitious
goals to win leading positions in the global energy market, improve Gazprom’s pres-
tige and influence in the world community, and provide for the long-term growth
of the company’s shareholder value.
OAO “Gazprom” OAO “Gazprom”

Chairman of the Board of Directors Chairman of the
Dmitry Medvedev Management Committee
Alexey Miller
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ANNUAL REPORT 2005
INCREASE IN RUSSIAN FEDERATION SHAREHOLDING

IN OAO “GAZPROM” MAJOR EVENTS
In 2005, the government acquired additional shares of OAO “Gazprom” bringing its
shareholding in the company to a controlling interest. The purpose of the transaction
is to provide for the control over the company, which is strategically important for the
country, this being a prerequisite for OAO “Gazprom” share market liberalization.
This transaction involved signing agreements in June 2005 for the sale of share-
holding in OAO “Gazprom” to the state-owned company OOO “Rosneftegaz”. These
agreements involved the shares owned to the companies within Gazprom Group
(AB “Gazprombank” (ZAO) (Gazprombank), “Gazprom Finance B.V.”, and NPF
“Gazfund”) and the shares jointly owned to the companies within Gazprom Group
(OOO “Gazprominvestholding”, OOO “Novfintech”, and OOO “Fincom”).
OAO “Gazprom” Board of Directors had approved the disposal by these companies
of 2,542,500,000 shares of OAO “Gazprom” to Rosneftegaz, which account for
10.74 % of its share capital, for a consideration of RR 203.5 billion. The shares were
paid for during 2005 in the full amount and within the preset deadlines.
OAO “GAZPROM” SHARE MARKET LIBERALIZATION
The following regulatory documents were adopted in late December 2005, which
removed any legislative limitations with regard to the circulation of OAO “Gazprom”
shares:
Federal Law № 182-FZ dated December 23, 2005 “On making amendments to
Article 15 of the Federal Law “On gas supply in the Russian Federation”;
Decree of the President of the Russian Federation № 1519 dated 23 December 2005
“On rendering certain decrees of the President of the Russian Federation null and void”;
regulation of the Government of the Russian Federation № 818 dated
28 December 2005 “On rendering certain regulations of the Government of the
Russian Federation null and void”.
After coming into effect these documents canceled any quotes related to the acqui-
sition of OAO “Gazprom” shares by foreign holders and trading limitations on these
shares at Russian stock exchange trading floors. This should contribute to the cre-
ation of a single fair price for the shares and American Depositary Receipts (ADRs)
of OAO “Gazprom”, which will reflect the company’s actual value.
ACQUISITION OF CONTROLLING INTEREST IN OAO “SIBNEFT”
In October 2005, Gazprom Group acquired 72.66 % shares in OAO “Sibneft”.

The transaction amounted to US $ 13,079 million. An additional 3.02 % of
OAO “Sibneft” shares were purchased in September 2005. As of the end of 2005,
Gazprom Group’s total shareholding in OAO “Sibneft” amounted to 75.68 %.
Sibneft Group (Sibneft) is one of the largest Russian vertically integrated oil compa-
nies engaged in the oil and gas exploration, production, processing, and sale. As of
the end of 2005, the company’s hydrocarbon reserves1 included 730.8 million tons
of oil and 149.3 bcm of gas. Sibneft also owns the Omsk Oil Refinery, one of the
most technologically advanced refineries in Russia.
The acquisition of Sibneft is aimed at helping OAO “Gazprom” achieve its strategic
goal, i.e. to evolve into a global energy company and a leader in the world energy
market.
1Hydrocarbon reserves hereinafter refer to the explored reserves (categories A+B+C1) in accordance with the Russian
classification if not specified otherwise.
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ANNUAL REPORT 2005
LAUNCH OF NORTH EUROPEAN GAS PIPELINE CONSTRUCTION
In 2005, the project related to the construction of the North European Gas Pipeline
(NEG) started being implemented. The gas pipeline runs from Russia under the
Baltic Sea to Germany. The strategic goals of the project are to diversify Russian
export routes, improve the reliability and increase the volume of export supplies,
and optimize transportation flows. The projected throughput of the two runs of the
pipeline is to reach 55 bcm per year. Gazprom plans to build the ground part on its
own and cooperate with foreign partners in building the sea part. The sea part con-
struction cost is estimated at over EUR 4.0 billion.
In September 2005, OAO “Gazprom” signed a contract with “BASF AG” (BASF) and
“E.ON AG” (E.ON) on the NEG project implementation. In accordance with this agree-
ment a joint company was established, which will design, construct, operate, control,
and own the sea part of the gas pipeline.
On December 9, 2005, the first joint of the NEG ground part was welded. NEG is
scheduled to be commissioned in 2010.
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ANNUAL REPORT 2005
Gazprom Group MAJOR OPERATING RESULTS

production results Units 2004 2005 2005/2004, %
Incremental increase in the
natural gas reserves due to the
exploration work bcm 378.1 583.4 154.3
Natural gas production* bcm 545.1 547.9 100.5
Gas condensate production* million tons 11.1 11.7 105.4
Oil production* million tons 0.9 1.3 144.4
Volume of gas retrieved
from UGSF in Russia bcm 37.9 42.8 112.9
Volume of gas pumped
into UGSF in Russia bcm 42.6 46.3 108.7
Sales of gas in Russia bcm 305.7 307.0 100.4
Sales of gas in Europe bcm 153.2 156.1 101.9
Sales of gas in CIS
and Baltic States bcm 65.7 76.6 116.6
Trunk pipelines and pipeline
branches commissioned km 1,013.6 1,401.5 138.3
OAO “Gazprom”
financial results**
Net sales of goods, products,
work, and services
(excluding VAT, excise taxes
and other similar payments) million roubles 887,231 1,231,262 138.8
Sales profit million roubles 211,593 358,144 169.3
Net profit million roubles 161,084 203,439 126.3
Net assets*** million roubles 2,789,053 2,964,323 106.3
Short-term borrowings*** million roubles 200,355 197,381 98.5
Long-term borrowings*** million roubles 459,534 704,191 153.2
Capital expenditures billion roubles 155.4 186.0 119.7
Net assets per share roubles 117.81 125.22 106.3
Earnings per share roubles 6.80 8.58 126.1
Dividends per share**** roubles 1.19 1.50 126.1
* Excluding Sibneft’s figures.
** Figures for 2004 may differ from the respective figures in the Annual report for 2004 due to the restatement to
the comparable data in the preparation of the 2005 accounting (financial) statements.
*** Net assets as well as short-term and long-term borrowings for 2004 are shown based on the data in the col-
umn “At beginning of reporting year” while those for 2005 are shown based on the data in the column “At end of
reporting year” in OAO “Gazprom” balance sheet as of December 31, 2005.
**** It is recommended that the dividends payable in 2006 based on operating results in 2005 should amount to
RR 35,510.3 million.
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ANNUAL REPORT 2005
Gazprom’s share in the global export of natural gas amounted to 24.5 % in 2004.
GAZPROM’S POSITION The Group supplies natural gas to the markets in Europe, CIS, and Baltic states.
In 2004, Gazprom supplied more than 25 % of the natural gas consumed in the
IN RUSSIAN AND GLOBAL GAS European countries1.
MARKET Gazprom holds a special position in the Russian fuel and energy market.
OAO “Gazprom” is included into the List of strategic enterprises and strategic joint-
stock companies approved by Decree of the President of the Russian Federation №
1009 dated August 4, 2004. Its share in the natural gas production of the Russian
Federation exceeds 85 %. Due to its acquisition of control over Sibneft in 2005
Gazprom has considerably consolidated its position in liquid hydrocarbons explo-
ration ranking fifth in Russia in terms of oil and gas condensate production.
Gazprom supplies about 75 % of gas to industrial and household consumers in

Russia, this still being done at regulated prices. There are also independent gas sup-
pliers working in the non-regulated segment, whose share amounts to 15 % in the
total Russian production and 25 % in the Russian market.
PRODUCTION OF NATURAL Natural, Share, Oil and Share,

and associated gas % gas condensate, %
bcm thousand tons
AND ASSOCIATED GAS, OIL, Gazprom 547.9 85.48 12,953 2.76
Novatek 25.4 3.96 2,395 0.51
AND GAS CONDENSATE Surgutneftegaz 14.4 2.25 63,859 13.58
Rosneft 13.0 2.03 74,418 15.83
TNK-BP 8.7 1.36 75,347 16.03
IN RUSSIA IN 2005. Lukoil 5.8 0.90 87,814 18.68
Sibneft 2.0 0.31 33,040 7.03
YUKOS 2.0 0.31 24,615 5.24
Slavneft 1.0 0.16 24,162 5.14
Russneft 1.0 0.16 12,181 2.59
Tatneft 0.7 0.10 25,332 5.39
Bashneft 0.4 0.06 11,934 2.54
Others 18.7 2.92 22,032 4.68
Total 641 100 470,082 100
GP “TsDU TEK” (Fuel and Energy Complex Central Dispatch Department), companies’ data.
1According to the statistical review “The Trends and Figures” by CEDIGAZ (July 2005)
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A number of transactions were carried out on June 23, 2005 related to the purchase and sale of
2,542,500,000 shares of OAO “Gazprom”, in the result of which 10.74 % of its shares owned by
Gazprom subsidiaries were acquired by a state-owned company OAO “Rosneftegaz”. Thus, the
government obtained over 50 % of shares of the gas producer, which was a key prerequisite for
OAO “Gazprom” share market liberalization enabling the disclosure of their fair value. The acqui-
sition of OAO “Gazprom” shares by the state contributed to raising additional funds for the com-
pany development in the areas adjacent to its core activities, in particular in oil business.
ANNUAL REPORT 2005
Major Russian consumers of the natural gas produced by Gazprom are still the energy
sector (38 %), households (16 %), and utility sector (10 %).
In planning its measures to develop business in the domestic market Gazprom is

guided by the Russian energy strategy for the period up to 2020 (Energy Strategy)
approved by the Government of the Russian Federation in 2003. In particular, the doc-
uments envisage an increase in Gazprom’s production up to 580–590 bcm by 2020
making it possible to meet the domestic demand and fulfill its export obligations. The
Energy Strategy envisages a gradual growth in the natural gas regulated prices in
Russia in order to establish step-by-step an efficient internal gas market.
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ANNUAL REPORT 2005
MISSION
Ensure an efficient and balanced gas
DEVELOPMENT STRATEGY
supply to consumers in the Russian Federation
and fulfill long-term contracts and intergovernmental
gas export agreements
STRATEGIC GOALS
Build the company’s position as a world-leading energy company
by ensuring reliable gas supplies and diversifying activities
in the energy sector both in the domestic and foreign markets
KEY STRATEGY ELEMENTS
Exploration and production Gas transportation Refining Marketing and sales Diversification
Resources New routes Gas processing Russia LNG
Production Gas distribution Oil processing Europe Power industry
Gas and oil chemistry CIS and Baltic states
Gazprom’s mission is to ensure an efficient and balanced gas supply to consumers in

the Russian Federation and fulfill its long-term contracts and intergovernmental gas
export agreements at a high level of reliability in accordance with the objectives out-
lined for the gas industry by the Government of the Russian Federation and the
Russian Energy Strategy.
Gazprom’s strategic goal is to further build up its position as a world leading energy
company by ensuring reliable natural gas supplies and diversifying its activities in the
energy sector both in the domestic and foreign markets.
In pursuing its activities Gazprom follows the following principles:
raising the efficiency of all the links in the production chain;

expanding and diversifying its activities through the implementation of projects
with high added value;
meeting the interests of all Gazprom shareholders;
improving corporate governance and ensuring transparency of financial and busi-
ness activities;
maintaining the highest levels of personal responsibility and leadership in the
managerial decision-making.
KEY ELEMENTS OF THE STRATEGY
Exploration Work and Production
Aiming at the recovery of its hydrocarbon reserves, Gazprom has devised a

long-term program envisaging geologic exploration work in gas production
areas with a focus on the Nadym-Pur-Tazovsky region (including the Ob and
Tazovskaya bays) and the Precaspian oil-and-gas bearing provinces as well as
in the promising gas production regions, such as the shelf in the Arctic seas,
Yamal Peninsula, Eastern Siberia, and Far East. As per the scheduled program,
the company plans to maintain a balanced growth in its reserves and production
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ANNUAL REPORT 2005
during the next 5 years and ensure the enhanced reproduction of gas reserves in
the future.
It intends to expand its participation in the exploration and development of hydro-

carbon reserves abroad. In 2005, the list of projects in Vietnam, India, and
Uzbekistan was extended by a project for the exploration of hydrocarbon reserves in
Venezuela.
Gazprom’s field development strategy includes investing in gas production sites in

accordance with the priority list based on the economical efficiency of synchronous
integrated development of gas production, transportation, processing, and storage
facilities.
Gazprom plans to provide for the production of 550-560 bcm of gas by 2010 and
580-590 bcm by 2020 in order to meet the needs of the domestic market and fulfill
its contractual obligations and international agreements for gas export supplies. The
production will be carried out both in traditional gas production areas (primarily in
the Nadym-Pur-Tazovsky region) and in new oil-and-gas bearing provinces (the
Yamal Peninsula, the shelf in the Arctic seas, Eastern Siberia, and Far East).
In the period up to 2010, the company plans to provide for scheduled gas production
volumes by means of commissioning additional facilities at its existing fields and com-
missioning new fields in the Nadym-Pur-Tazovsky region (the Yuzhno-Russkoye field,
the Kharvutinskaya area of the Yamburgskoye field, Lower Cretaceous deposits of the
Zapolyarnoye and Pestsovoye fields, and Achimovsk formations of the Urengoiskoye
field) located close to the existing infrastructure facilities, which predetermines the cost
efficiency of their development.
In order to continue to evolve into a global energy company and a leader in the
global energy market, Gazprom is striving to considerably consolidate its positions
in the oil industry. This will ensure further diversification of the sources of income
and decrease the Group’s financial dependency upon gas exports and supplies to
the domestic market. The acquisition of Sibneft in 2005 is aimed at solving this
strategic objective. Integration of Sibneft into Gazprom Group will allow for the fur-
ther development of Gazprom’s vast liquid hydrocarbon reserves.
Gas Transportation
One of the major factors in determining field development priorities is the efficiency
of gas supplies. This is primarily determined by the cost of arranging for a particu-
lar field’s connection to the gas transportation system which can be very capital
intensive.
In determining the long-term sequence of commissioning new gas transportation

facilities, the company takes into account the expected timing for their efficient load
and options available for providing the best performance of the existing gas trans-
portation system.
In order to supply gas to the domestic market and fulfill its contractual obligations
related to the export of gas, Gazprom seeks to implement trunk pipeline construc-
tion projects. The most significant projects currently are the construction of
a pipeline to connect the Northern areas of the Tyumen Region with Torzhok (SRTO –
Torzhok) and the North European Gas Pipeline.
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On September 2, 2005, the first tanker with Gazprom’s liquefied natural gas arrived at the Cove
Point regasification terminal in the USA. Gazprom stepped over the Atlantic to enter the world’s
most promising LNG market. A number of Memorandums of Understanding have been signed
with such American companies as Chevron, ConocoPhilips, ExxonMobil, and Sempra Energy,
which envisage Gazprom participation in projects of LNG regasification in North America, mar-
keting of gas supplies to the USA, and carrying out gas exchange transactions using gas
pipelines in North American, as well as these companies’ participation in the LNG production
project in Russia. Gazprom strategic goal is to arrange long-term contracts for direct Russian
LNG supply to the USA.
ANNUAL REPORT 2005
In order to ensure the reliability of gas supplies and cost optimization the company
applies advanced diagnostic methodologies, reconstructs and refurbishes its gas
transportation facilities, as well as expands the capacity of its underground gas
storage facilities (UGSF).
Refining
Gazprom intends to increase the depth of feedstock processing to be able to extract

the maximum amount of valuable components. In pursuing this objective the com-
pany plans to conduct technical refurbishment and reconstruction of its existing
production facilities. Restructuring of the petrochemical company OAO “Sibur
Holding” (Sibur Holding) within Gazprom Group is currently underway. Obtaining
products of higher depth of processing at Sibur Holding companies will allow for a
more efficient use of the raw materials produced at Gazprom’s fields. Sibneft’s refin-
ing facilities will considerably strengthen Gazprom’s refinery segment.
Marketing and Sales
Gazprom marketing strategy for the gas transported through trunk pipelines is for-
mulated considering the peculiarities of individual sale market.
Gazprom’s strategy in the Russian domestic market consists of ensuring continuous

gas supply to the country and making the sales more profitable. In cooperating with
state authorities and trying to devise a gas market development strategy Gazprom
sticks to the development of a two-sector wholesale market with a step-by-step reduc-
tion in the regulated sector and expansion of the non-regulated one. In the first stage,
gas should be sold to production consumers at contractual prices based on supply and
demand forces and determined using such technologies as e-commerce and exchange
trade. Meanwhile state-regulated prices are suggested to be maintained for the gas
supplies to households, housing and community services, budgetary consumers, and
heat producers for households. The creation of an unregulated gas market sector will
help establish market relations, while stimulating inter-fuel competition and implemen-
tation of energy-saving technologies.
Gazprom’s key objective in Europe market is to maintain its market leading position,
provide for reliable gas supply, and gain access to ultimate consumers. The funda-
mental principle of the export strategy is to maintain “a single-channel” export sys-
tem. These objectives are planned to be achieved through developing relationships
with traditional customers on a long-term contractual basis and using new forms of
trade based on long-term and medium-term sales, as well as gas exchange transac-
tions.
In the interest of consolidating its position in the European natural gas market and
improving reliability and flexibility of gas supplies, Gazprom intends to expand the
use of underground gas storage facilities in Europe and increase its shareholding in
the companies engaged in the sale of gas and electric power to ultimate consumers.
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ANNUAL REPORT 2005
The key objective of the company’s marketing strategy in the CIS countries is to
ensure that the Russian gas will continue to maintain its predominant position in the
energy sector of the former Soviet republics while adjusting the existing agreements
in order to move to contractual terms and conditions and pricing mechanisms simi-
lar to those existing in the European countries. Taking into account economic diffi-
culties in the CIS countries, Gazprom aims for a gradual transition to economically
reasonable price levels in exchange for getting access to ultimate consumers
through participation in the privatization of energy facilities. One of the major tasks
in CIS countries is to minimize transit risks, thus providing for continuous fulfillment
of its contractual obligations concerning gas export to Europe.
In order to ensure certain flexibility in the development of fields in the new gas pro-
duction regions in Russia, Gazprom strives to potentially seek cooperation in devel-
oping gas reserves as well as upgrading and improving gas transportation systems
in Central Asian countries. Central Asian gas resources open new possibilities in
expanding sale markets and maintaining reliable supplies to the traditional con-
sumers.
In addition to the above markets Gazprom intends to consolidate its positions in the
new markets in the USA and the Asian and Pacific Region.
Diversification of Products and Activities
One of Gazprom’s priorities in its foreign trade activities is to implement its strategy
of liquefied natural gas (LNG) production and sea transportation. The
Shtokmanovskoye gas condensate field in the Barents Sea is widely considered to
be an advantageous resource base for LNG production. The target routes include
LNG supply to the Gulf of Mexico and the US East coast by tankers, while LNG sup-
ply to Europe is being contemplated as well.
Gazprom intends to expand its activities in the field of electric power. In 2004 and
2005, Gazprom acquired a 10.5 % shareholding in RAO “UES of Russia” (RAO UES)
and a 25.01 % shareholding in OAO “Mosenergo” (Mosenergo). The company plans
to continue taking part in investment projects related to the construction of power
stations in the territory of the Russian Federation and abroad.
The integration of new energy segments with Gazprom’s traditional gas-related

activities will provide for the realization of important synergies and lead to the cre-
ation of a vertically integrated energy company and a world leader.
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ANNUAL REPORT 2005
BOARD OF DIRECTORS
OAO “GAZPROM” BOARD
Members of the Board of Directors in 2005
OF DIRECTORS AND MANAGEMENT
MEDVEDEV Dmitri Anatolievich
COMMITTEE Chairman of the Board of Directors,
Head of the Presidential Administration of the Russian Federation (till November
2005), First deputy Head of the Government of the Russian Federation (since
November 2005)
MILLER Alexei Borisovich

Deputy Chairman of the Board of Directors,
Chairman of the Management Committee of OAO “Gazprom”
ANANENKOV Alexander Georgievich

Member of the Board of Directors,
Deputy Chairman of the Management Committee of OAO “Gazprom”
BERGMANN Burckhard
Member of the Management Committee of E.ON AG
Chairman of the Management Committee of E.ON Ruhrgas AG
GAZIZULLIN Farit Rafikovich

Member of the Board of Directors
GREF German Oskarovich

Minister for Economic Development and Trade of the Russian Federation
KARPEL Elena Evgenyevna

Head of Economic appraisal and pricing department of OAO “Gazprom”
SEREDA Mikhail Leonidovich

Deputy Chairman of the Management Committee -
Head of Administration of OAO “Gazprom” Management Committee
FEDOROV Boris Grigorievich

Member of the Board of Directors
KHRISTENKO Victor Borisovich

Minister of Industry and Energy of the Russian Federation
YUSUFOV Igor Khanukovich

Special Representative of the President of the Russian Federation
for International Energy Cooperation,
Ambassador-at-large of the Ministry of Foreign Affairs of the Russian Federation
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ANNUAL REPORT 2005
Information about Members

of the Board of Directors as of December 31, 2005
MEDVEDEV Dmitri Anatolievich

Born in 1965, graduated from the A.A.Zhdanov
Leningrad State University
Positions held over the past 5 years:
2001-2003 - first deputy Head of the Presidential Administration
of the Russian Federation
2003 - 2005 - Head of the Presidential Administration
since 2005 - First deputy Head of the Government
Has no shareholding in OAO “Gazprom”

Born in 1962, graduated from the N.A.Voznesensky
Leningrad Financial and Economic Institute
2001 - deputy Minister of Energy of the Russian Federation
since 2001 - Chairman of the Management Committee of OAO “Gazprom”
Shareholding in OAO “Gazprom” - 0.00000027 %

Born in 1952, graduated from the Ufa Oil Institute
and the Academy of National Economy
under the Council of Ministers of the USSR.
2001 - General Director of OOO “Yamburggazdobycha”
since 2001 - deputy Chairman of Management Committee of OAO “Gazprom”
19
ANNUAL REPORT 2005
BERGMANN Burckhard
Born in 1943, graduated from the Aachen Institute of Technology.
2001 - deputy Chairman of the Executive Board of Ruhrgas AG
2001-2003 - Chairman of the Executive Board of Ruhrgas AG
since 2003 – member of the Executive Board of E.ON AG,
Chairman of the Executive Board of E.ON Ruhrgas AG
GAZIZULLIN Farit Rafikovich

Born in 1946, graduated from the Gorky Institute
of Water Transport Engineers.
2001-2004 - Minister for Property Relations of the Russian Federation
GREF German Oskarovich

Born in 1964, graduated from Omsk State University.
since 2001 - Minister for Economic Development
and Trade of the Russian Federation
20
ANNUAL REPORT 2005
KARPEL Elena Evgenyevna

Born in 1944, graduated from the D.S.Korotchenko
Kiev Institute of National Economy
since 2001 – Head of Economic appraisal and pricing department
of OAO “Gazprom”
Shareholding in OAO “Gazprom” – 0.00086595 %
SEREDA Mikhail Leonidovich

Born in 1970, graduated from the St.Petersburg State University
of Economy and Finance.
2001 - deputy General Director for Finance of OAO “Baltic Pipeline System” (BTS)
2001 - deputy Head for Economy of BTS branch OAO “Verhnevolzhskie
Magistralnye Nefteprovody” (Verhnevolzhskie Trunk Pipelines)
2001-2004 - Head of Administration of OAO “Gazprom” Management Committee
since 2004 - Deputy Chairman of the Management Committee of OAO “Gazprom” -
Head of Administration of OAO “Gazprom” Management Committee
FEDOROV Boris Grigorievich

Born in 1958, graduated from the Moscow Financial Institute.
since 2001 - President of the all-Russia public and political movement
“Russia, Ahead!”
Shareholding in OAO “Gazprom” – 0.00000422%
21
ANNUAL REPORT 2005
KHRISTENKO Victor Borisovich

Born in 1957, graduated from the Chelyabinsk Polytechnic Institute and the
Academy of National Economy under the Government of the Russian Federation
2001-2004 - deputy Prime Minister of the Russian Federation
since 2004 - Minister of Industry and Energy of the Russian Federation
YUSUFOV Igor Khanukovich

Born in 1956, graduated from the Novocherkasskiy Polytechnic Institute and All-
Union Academy of Foreign Trade.
2001 - general director of the Russian agency for government reserves
2001-2004 - Minister of Energy of the Russian Federation
since 2004 - Special Representative of the President of the Russian Federation
for International Energy Cooperation,
Ambassador-at-large of the Ministry of Foreign Affairs of the Russian Federation
22
ANNUAL REPORT 2005
OAO “GAZPROM” BOARD OF DIRECTORS’ REPORT ON WORK

IN PRIORITY AREAS OF ACTIVITY
In 2005, OAO “Gazprom” Board of Directors held 46 meetings and adopted resolu-
tions on a total of 142 issues including such key areas as the company’s develop-
ment strategy, operation improvement, asset management, and control over the
results of OAO “Gazprom” financial and business activities.
Improving Management Efficiency,

Transparency and Control over Spending
The Board of Directors considered the implementation of measures to improve

OAO “Gazprom” internal corporate management structure. It approved the consoli-
dation of core activities in specialized companies and the transformation of services
and social infrastructure into separate legal entities.
It approved the Major principles for investment projects implementation in

OAO “Gazprom” using project finance methods. The document primarily aims at
standardizing the procedures for preparing such projects for their implementation.
The Board of Directors made amendments to the Procedures for transactions and
Procedures for OAO “Gazprom” interaction with companies and organization, in
which OAO “Gazprom” has a shareholding. The investment efficiency valuation is
based on advanced methodologies of forecast and analysis of investees’ activities. A
Program for the improvement of OAO “Gazprom” representatives’ activities in the
investees’ management bodies was adopted.
A Concept of OAO “Gazprom” cost management was approved. The major objec-
tives of this new cost management system are to improve the efficiency of resource
usage, the soundness and quality of management decisions; prepare complete,
comparable, and transparent information about the cost level; and to distribute pow-
ers and responsibilities for efficient resource usage throughout all management lev-
els.
Strategic Financial Planning
The Board of Directors approved target values for OAO “Gazprom” performance for
2005 and 2006 and a list of strategic target values for OAO “Gazprom” development,
including the economic profit increase, net profit ratio of its capital, debt to capital
ratio, production and sales volumes, total reserves, and the reserve recovery ratio.
It considered and approved the OAO “Gazprom” Budget (financial plan) and
OAO “Gazprom” Investment program.
In the reporting year the work concerning creation of a financial model for
OAO “Gazprom” development for the period up to 2015 was analyzed. It will be
based on the Russian Energy Strategy, the plans of Russia’s social and economic
development, OAO “Gazprom” forecast gas balances, scenarios of gas price
changes, and the tax burden level.
23
ANNUAL REPORT 2005
Strategic Issues of Gazprom Development by Types of Activities
In the reporting year, the Board of Directors considered the medium- and long-term
strategy of OAO “Gazprom” gas production, in particular the identification of strate-
gic priorities in gas production, preparation of program documents with regard to
Gazprom development, drafting projects for gas production in new oil-and-gas
bearing regions.
It approved the following major directions in improving gas transportation through

OAO “Gazprom” trunk pipelines: maintaining the throughput capacity at a techni-
cally permissible level; expanding the gas transportation system in order to raise the
volumes of gas received; providing for the new gas transportation routes; decreas-
ing the operational costs of gas transportation companies; and establishing fair
transportation tariffs and gas prices.
It considered the concept of Central Asian gas purchases, which determines that
this gas is an important element of the strategy for the development and diversifica-
tion of OAO “Gazprom” resource base. It established the task of providing for the
long-term supply of Central Asian gas to Russia and other countries.
The Board of Directors approved the development strategy for OAO “AK “Sibur” for
the period from 2004 through 2011. Any debts owed by OAO “AK “Sibur” to
OAO “Gazprom” and its subsidiaries are to be repaid by the shares of the newly
established open joint-stock company. In order to raise the efficiency of
OAO “Gazprom” investment in the petrochemical business, the Board of Directors
approved the principal of working in the market conditions as the main principle for
the relationship between OAO “Gazprom” and OAO “AK “Sibur”.
In pursuing its task to develop the Russian gas market, the Board of Directors con-
sidered the issues relating to the expansion of the non-regulated sector of the
wholesale gas market. It was decided to boost work in this field with the executive
authorities, independent gas producers and non-commercial organizations engaged
in the gas supply sphere.
The Board of Directors continuously monitored the implementation of liquefied nat-

ural gas projects. The tasks to enter LNG markets can be completed successfully if
a special joint system is created for managing the projects aimed at developing this
type of business.
24
ANNUAL REPORT 2005
MANAGEMENT COMMITTEE
List of Members of the Management Committee in 2005

Chairman of the Management Committee
Members of the Management Committee

Deputy Chairman of the Management Committee
VASILIEVA Elena Alexandrovna

Deputy Chairman of the Management Committee - Chief Accountant
KOZLOV Alexander Nikolaevich

KRUGLOV Andrei Vyacheslavovich

Deputy Chairman of the Management Committee -
Head of Finance and economics department
MEDVEDEV Alexander Ivanovich

Deputy Chairman of the Management Committee,
general director of OOO “Gazexport”
RYAZANOV Alexander Nikolaevich

Deputy Chairman of the Management Committee, President of OAO “Sibneft”
USHAKOV Sergey Konstantinovich

Deputy Chairman of the Management Committee, general director of the Security
service of OAO “Gazprom”
BUDZULYAK Bogdan Vladimirovich

Head of Gas transportation,
underground storage and utilization department
GOLUBEV Valeri Alexandrovich

Head of Investments and civil construction department,
general director of OOO “Gazkomplektimpex”
ILYUSHIN Viktor Vasilievich

Head of Department for relationships
with regional authorities of the Russian Federation
PAVLOVA Olga Petrovna

Head of Asset management and corporate relations department
PODYUK Vasili Grigorievich

Head of Natural gas, gas condensate and oil production department
RUSAKOVA Vlada Vilorikovna

Head of Strategic development department
25
ANNUAL REPORT 2005
SELEZNEV Kirill Gennadievich

Head of Gas and liquid hydrocarbons processing and marketing department,
general director of OOO “Mezhregiongaz”
CHUICHENKO Konstantin Anatolievich

Head of the Legal department
Information about members of the Management Committee elected in 2005

(elected by the Board of Directors’ decision №688 March 18, 2005)
Information about members of the Management Committee

whose authorities were terminated in 2005
AKSELROD Mikhail Arkadievich

Head of Department of capital construction and transportation
(authority of member of the Management Committee ceased by the Board
of Directors’ decision №686 March 18, 2005)
GUSLISTY Nikolai Nikiforovich

(authority of member of the Management Committee ceased
by the Board of Directors’ decision №687 March 18, 2005)
KOMAROV Yuri Alexandrovich

(authority of member of the Management Committee ceased
by the Board of Directors’ decision №704 May 12, 2005)
26
ANNUAL REPORT 2005
Information about members of the Management Committee in 2005

Leningrad Financial and Economic Institute.
2001 - deputy Minister of Energy of the Russian Federation
since 2001 - Chairman of the Management Committee of OAO “Gazprom”

Born in 1952, graduated from the Ufa Oil Institute
and the Academy of National Economy under the Council of Ministers of the USSR.
2001 - General Director of OOO “Yamburggazdobycha”
since 2001 - deputy Chairman of the Management Committee of OAO “Gazprom”
VASILIEVA Elena Alexandrovna

Leningrad Financial and Economic Institute.
2001 - Chief Accountant of OAO Baltic Pipeline System (BTS)
and then Chief Accountant of BTS Branch OAO “Verhnevolzhskie Trunk Pipelines”
2001 - deputy Head of the Administration of the Management Committee -
Assistant to the Chairman of the Management Committee of OAO “Gazprom”
since 2001 - deputy Chairman of the Management Committee -
Chief Accountant of OAO “Gazprom”
27
ANNUAL REPORT 2005

Born in 1952, graduated from the Moscow
State Institute for International
Relations.
2001-2004 – deputy Chief of the Administration
of the President of the Russian Federation
2004-2005 – Head of the Main logistic and transportational department
of the Administration of the President of the Russian Federation.
KRUGLOV Andrei Vyacheslavovich

Born in 1969, graduated
from the St.Petersburg Technological Institute of Refrigeration Industry.
2001- Head of Section of foreign trade and investments of the Department for
foreign economic cooperation of the Committee for foreign relations of
St. Petersburg Administration
2001-2002 - deputy director of OOO “Invest-In”
2002-2003 - Head of Department of corporate finance of OAO “Gazprom”
2003-2004 - Head of Department of finance and economics of OAO “Gazprom”,
Member of the Management Committee of OAO “Gazprom”
since 2004 - Deputy Chairman of the Management Committee - Head of Finance and
economic department of OAO “Gazprom”
MEDVEDEV Alexander Ivanovich

Born in 1955, graduated from the Moscow Physics and Technical Institute.
2001-2002 - director of Company “IMAG Investment Management & Advisory
Group GmbH”, Austria
2002-2005 - general director of OOO “Gazexport”,
member of the Management Committee of OAO “Gazprom”
since 2005 – deputy Chairman of the Management Committee of OAO “Gazprom”,
general director of OOO “Gazexport”
28
ANNUAL REPORT 2005
RYAZANOV Alexander Nikolaevich

Born in 1953, graduated from the I.M.Gubkin Moscow Institute of Petrochemical
and Gas Industry, All-Union Correspondence Financial and Economic Institute.
2001 - delegate and deputy Chairman of the Committee for Property of the State
Duma of the Federal Assembly of the Russian Federation
since 2005 – deputy Chairman of the Management Committee of OAO “Gazprom”,
Presidenr of OAO “Sibneft”.
USHAKOV Sergey Konstantinovich

Born in 1952, graduated from the A.A.Zhdanov Leningrad State University.
2001-2002 - employee of the Directorate of the Federal Securities Service for St.
Petersburg and the Leningrad region
2002-2003 - deputy director of the Federal Protection Services of the Russian
Federation
since 2003 - deputy Chairman of the Management Committee of OAO “Gazprom”,
general director of the Security service of OAO “Gazprom”
BUDZULYAK Bogdan Vladimirovich

Born in 1946, graduated from the Ivano-Frankovsk Oil and Gas Institute.
2001 - Head of Department of gas transportation and utilization of OAO “Gazprom”
since 2001 - Head of Gas transportation, underground storage and utilization
department of OAO “Gazprom”
Shareholding in OAO “Gazprom” - 0.00443534%
29
ANNUAL REPORT 2005
GOLUBEV Valeri Alexandrovich

Born in 1952, graduated from the V.I.Ulianov (Lenin)
Leningrad Electrotechnical Institute and the Academy of National Economy
under the Government of the Russian Federation.
2001-2002 - chairman of the Tourism Committee
of the St.Petersburg Administration
2002-2003 – member of the Federal Council of the Federal Assembly of the Russian
Federation, member of the Federal Council Committee for Science, Culture,
Education, Health and Ecology, member of the Federal Council Committee for the
Foreign Affairs, member of the Federal Council Committee for Relationship with the
Audit Chamber of the Russian Federation, member of the Federal Council
Committee for the Implementation Methodology of the Constitutional Authority of
the Federal Council, member of the Federal Council Committee for Youth and
Sports, member of the Federal Council Committee for Natural Monopolies, deputy
Head of the Federal Council Committee for the Foreign Affairs
2003-2005 – general director of OOO “Gazkomplektimpex”
since 2005 – Head of Investments and civil construction department
Shareholding in OAO “Gazprom” - 0.00035060%
ILYUSHIN Viktor Vasilievich

Born in 1947, graduated from the Urals Polytechnic Institute
and the Academy of Social Sciences under the Communist Party
Central Committee.
since 2001 - Head of Department for relationships
with regional authorities of the Russian Federation of OAO “Gazprom”
PAVLOVA Olga Petrovna

Born in 1953, graduated from Far East State University.
2001-2002 – senior lecturer of the Department of Civil Law at St.Petersburg State
University
2002-2003 - deputy Head of Economic Management of the President of the Russian
Federation
since 2003 - Head of Asset management and corporate relations department
30
ANNUAL REPORT 2005
PODYUK Vasili Grigorievich

Born in 1946, graduated from the Ivano-Frankovsk Oil and Gas Institute.
2001-2002 - Head of Department of gas, gas condensate
and oil production and procession of OAO “Gazprom”
since 2002 - Head of Natural gas, gas condensate
and oil production department of OAO “Gazprom”
RUSAKOVA Vlada Vilorikovna

Born in 1953, graduated from the I.M.Gubkin Moscow Institute
of Petrochemical and Gas Industry.
2001-2002 – Head of Directorate of forecasting growth strategies
of Department of long-term development of OAO “Gazprom”
2002-2003 - Head of Directorate of forecasting growth strategies of Department
of long-term development, science and ecology of OAO “Gazprom”
since 2003 - Head of Strategic development department of OAO “Gazprom”
SELEZNEV Kirill Gennadievich

Born in 1974, graduated from the D.F.Ustinov Baltic State Technical Institute
and St.Petersburg State University.
2001 - Head of the Tax Group of OAO “Baltiiskaya Truboprovodnaya Sistema”
(Baltic Pipeline System - BTS)
2001-2002 - Deputy Head of the Administration of the Management Committee -
assistant to the Chairman of the Management Committee of OAO “Gazprom”
2002-2003 - Head of Department for marketing and processing of gas
and liquid hydrocarbons of OAO “Gazprom”
since 2003 - Head of Gas and liquid hydrocarbons processing and marketing
department of OAO “Gazprom”, general director of OOO “Mezhregiongaz”
31
ANNUAL REPORT 2005
CHUICHENKO Konstantin Anatolievich

Born in 1965, graduated from the A.A.Zhdanov
Leningrad State University and Yu.V.Andropov Red Banner Institute.
2001 – member and lawyer of the First legal advice center
of the Moscow branch of the International “St. Petersburg” Bar Association
since 2001 - Head of the Legal department of OAO “Gazprom”
Total compensation of the members of the Bord of Directors

and the members of the Management Committee.
Total compensation of the members of the Board of Directors, the members

of the Management Committee and the Chairman of the Management Committee
paid by OAO “Gazprom” in 2005 was RR424,328,000.
32
ANNUAL REPORT 2005
EXPLORATION AND PRODUCTION

MAJOR OPERATIONAL RESULTS
Gazprom ranks first in the world in terms of explored hydrocarbon reserves
and hydrocarbon production, being far ahead of other publicly traded companies. BY TYPES OF ACTIVITIES
Mineral Resource Base
DISTRIBUTION
OF GAZPROM GROUP’S
HYDROCARBON
RESERVES IN THE
RUSSIAN FEDERATION
Gas, bcm
Condensate, mln tons
Oil, mln tons
In 2005, Gazprom Group’s natural gas reserves grew by 210.8 bcm to 29.1 tcm and
its liquid hydrocarbon reserves increased by 699.3 million tons up to 2,573.8 million
tons. The incremental growth in liquid hydrocarbon reserves was mainly achieved
through the acquisition of Sibneft, whose oil reserves amounted to 730.8 million
tons as of the end of 2005.
An important result reached in 2005 was that the incremental growth of reserves
volume through exploration work exceeded the annual production volumes, which is
in line with Gazprom strategic goals.
Change in reserves
Reserves Reserves as GAZPROM GROUP’S
31.12.2004 Exploration Revaluation Acquisition/ Licenses** Production, of 31.12.2005
(in accordance sale of assets* inclusive (in accordance
with the 2004 of losses*** with the HYDROCARBON
valuation changed
methodology) valuation RESERVES FLOW
methodology)
Gas, bcm 28,920.1 583.4 8.3 218.4 -39.7 -559.6 29,130.9
Condensate,
million tons 1,225.4 15.5 -6.4 -8.0 -1.7 -8.5 1,216.3
Oil,
million tons 649.1 17.6 -7.9 733.1 -0.1 -34.3 1,357.5
* Including the influence of changes in the reserve accounting system. The subsidiaries’ reserves are recorded without taking into account
the associated companies’ reserves. The associated companies and subsidiaries used to be accounted for pro rata to the shareholding.
** Including the transfer of the incremental growth of reserves based on the results of exploration in the areas covered with NP category
licenses (exploration and assessment of the field) into the unallocated mineral reserve fund of the Russian Federation. According to the Russian
legislation, the company, which has explored reserves in the certain licensed areas, has a top-priority to get the license for its development.
*** Annual production of all the companies within the Group as of the end of the reporting period, including the annual production of the compa-
nies, which became part of Gazprom Group during the reporting period.
33
ANNUAL REPORT 2005
Based on the results in 2005, an independent company DeGolyer and MacNaughton

audited 95 % of gas reserves, 90 % of gas condensate, and 90 % of oil (categories
A+B+C1) (excluding Sibneft). According to the valuation results, the proved and
probable natural gas reserves amounted to 20.7 tcm, gas condensate reserves
being 690.5 million tons and oil reserves being 299.5 million tons. Their present
value is estimated at US $ 138.6 billion.
Licenses
Gazprom held 229 licenses for the use of mineral resources as of December 31,
2005, including 154 hydrocarbon production licenses, 43 geologic examination
licenses and 32 licenses for the search, construction, and operation of under-
ground gas storage facilities, for the storage of helium concentrate, gas concen-
trate, and methanol. These include 59 licenses held by Sibneft, 49 of which are
hydrocarbon production licenses and 10 are geologic examination licensees.
In the reporting year, two licenses were obtained for the search, exploration, and
production of hydrocarbons at the Rybalny block and Bukharovsky block as a result
of auctions for the right to use the mineral resources and two licenses were
obtained for the exploration and production of hydrocarbon raw materials at the
Dolginskoye and Beryambinskoye fields after the fact of discovery was recorded.
The company received two certificates confirming the discovery of the Ninelskoye
and Chugoryakhinskoye fields.
Strategy of Reserves Incremental Growth and Utilization
PROMISING
AREAS
FOR EXPLORATION
WORK
IN RUSSIAN
FEDERATION
Exploration area
The main goal of exploration carried out by Gazprom is the recovery of the hydrocarbon
production volumes by reserves of industrial categories in gas production areas (the
Nadym-Pur-Tazovsky region including the Ob and Tazovskaya bays) as well as prepara-
tion of the raw material base in the promising regions (the Yamal Peninsula, the shelf in
the Arctic seas, Eastern Siberia, and Far East). In performing its exploration work the
company applies state-of-the-art technologies, which considerably improve the effi-
ciency of these operations.
34
In October 2005, Gazprom acquired a 72.66 % shareholding in the oil company OAO “Sibneft” from
Millhouse Capital for US$13.079 billion bringing its shareholding in OAO “Sibneft” up to 75.68 %.
The expansion of Gazprom’s oil component proved another step forward in reaching the company’s
strategic goal to diversify its business and contributed to the strengthening and balancing of the
Russian energy resource market as a whole, as well as providing consumers with stable supply of oil
products.
ANNUAL REPORT 2005
In 2005, Gazprom Group (exclusive of Sibneft) allocated RR 15.1 billion for exploration,
including 67 % for deep exploration well drilling and 20 % for seismic survey work.
142.2 thousand meters of search and exploration wells were drilled, 10.4 thousand km
of 2D and 3.2 thousand square km of 3D seismic survey cross-sections were
processed.
The major incremental growth in gas reserves of 399.2 bcm was obtained at the
Shtokmanovskoye gas condensate field. 3 new fields and 14 deposits at the fields were
discovered as a result of exploration.
In 2005, the company adjusted certain figures in the Program for the mineral base
development for the period up to 2030, which was developed in 2002. The Program
defines key directions in exploration and license policy.
EXPLORATION WELLS Penetration, Completed wells

thousand m pcs
Gas 89.7 25
DRILLED IN 2005
Oil 46.5 19
Excluding Sibneft’s figures.
Program implementation stages
from 2002 through 2005 – increasing the reserves and balancing the hydrocar-
bon production and reserve incremental growth;
from 2006 through 2010 – stabilizing exploration volumes and laying a founda-
tion for expanded recovery;
from 2011 through 2030 – expanded recovery of the mineral resource base.
The aim of the Program is to provide between 2002 and 2030 an incremental
growth in gas reserves of 23.5 tcm and that in gas condensate and oil of 3.4 bil-
lion tons. The implementation cost for the period up to 2030 is estimated at
US $ 32 billion.
The implementation of the Program between 2002 and 2005 resulted in a discovery
of 17 oil and gas fields and 24 oil and gas deposits. The incremental growth in
hydrocarbon reserves resulting from exploration exceeds 1.8 tcm of gas and 0.2 bil-
lion tons of gas condensate and oil in the current period.
Gazprom is expanding its exploration activities outside Russia. In September 2005,

Jack-up floating drilling rig “Amazone” is OAO “Gazprom” won a tender for Phase “A” of the Rafael Urdaneta Project in
designed for drilling oil and gas wells with a Venezuela and obtained licenses to carry out exploration and produce hydrocarbons
depth of up to 3 kilometers. in the investment blocks known as “Urumaco 1” and “Urumaco 2”. The scheduled
In 2005, it was used to drill two wells for the investment is to total US $ 43 million. Exploration drilling and seismic works were
total penetration of 5,220 m in the carried out at the Vietnamese shelf and India as well. The South Pars field develop-
Tazovskaya bay. Three gas condensate ment project (Iran) started to reimburse investments.
deposits were discovered. The incremental
growth in reserves amounted to 40 bcm of
gas and 1.6 million tons of condensate.
A jack-up floating drilling rig
“Arkticheskaya” is currently constructed for
drilling wells on the shelf in the Arctic seas
and a floating drilling rig “Obsky-1” for
drilling wells on the shallow parts of the
shelf in the Ob and Tazovskaya bays.
36
ANNUAL REPORT 2005
Natural Gas Production
GAZPROM GROUP’S
PRODUCTION
OF HYDROCARBONS
SPREAD
BY REGIONS
OF RUSSIAN
FEDERATION
Natural and associated gas, bcm

Gas condensate, thousand tons
Oil, thousand tons
Gazprom is Russia’s largest gas producer and has been successful in implement-
ing its strategic goal of increasing gas production in a balanced manner. In 2005,
gas production increased by 2.8 bcm. Gazprom Group Companies produced1
547.9 bcm, which amounts to 85.5 % of the total volume of production
in Russia. An additional 0.5 bcm of gas was produced by Sibneft in the 4th quar-
ter of 2005. The incremental growth in production was due to the new facilities
in Western Siberia mostly commissioned in the end of 2004 and the production
recovery at the West Tarkosalinsk field (OOO “Purgazdobycha” (Purgazdobycha)
being the holder of the license), the operation of which was partially suspended
in 2004 due to the title re-registration.
2004 2005 2005/2004, % PRODUCTION CAPACITIES

Number of fields being developed 78 83 106.4
Gas production wells, pcs 6,652 6,976 104.9
OF GAZPROM GROUP’S
including those in operation, pcs 6,094 6,434 105.6
Oil production wells, pcs 375 406 108.3
including those in operation, pcs 202 297 147.0 GAS PRODUCTION COMPANIES
Comprehensive and preliminary gas
treatment units (CGTU, PGTU), pcs 161 169 105.0
CGTU aggregate project capacity, bcm 909.0 939.6 103.4
Booster compressor stations/
workshops (BCS), pcs 41 /69 44 /72 107.3/104.4
BCS installed capacity, MW 3,956.1 4,176.1 105.6
Excluding Sibneft’s figures.
1Gazprom's production volume includes 51% of ZAO “Purgaz” production and 100% of ZAO “Northgas” production
since September 21, 2005. Gazprom's production figures exclude Sibneft's production volumes.
37
ANNUAL REPORT 2005
Gas Reserves Development Strategy
The gas production level, which is scheduled to reach 550-560 bcm by 2010, will be
achieved through existing and newly commissioned fields in the Nadym-Pur-
Tazovsky region: Kharvutinskaya area of the Yamburgskoe field, the Yuzhno-
Russkoye field, Lower Cretaceous deposits of the Zapolyarnoye and Pestsovoye
fields, and Achimovsk formations of the Urengoiskoye field. It is economically prac-
ticable to develop fields in the above region due to the vicinity of the existing gas
transportation infrastructure facilities.
After 2010, the forecast gas production volumes are planned to be enabled through
the development of gas fields on the Yamal Peninsula, the shelf in the Arctic seas,
the Ob and Tazovskaya bays, Eastern Siberia, and Far East.
In 2006, the Program for comprehensive commercial development of deposits on

the Yamal Peninsula and the adjacent waters is to be adjusted considering the basic
Comprehensive gas processing unit technical decisions and economic indicators in the “Assessment of the efficiency of
at Yety-Purovskoye field, that insured a investments into the development of the Bovanenkovskoye field on the Yamal
6.9 bcm gaz production increase in 2005. Peninsula and gas transportation” currently undergoing the state expert evaluation.
The growth of gas production volumes
in Yety-Purovskoye and Pestsovoye fields Liquid Hydrocarbon Production
(+11.6 bcm), Aneryakhinskaya area
of Yamburgskoye field (+6.7 bcm), In 2005, Gazprom produced1 11.7 million tons of gas condensate and 1.3 million tons of
Zapolyarnoye field (+5.4 bcm) and other oil (11.1 and 0.9 millions tons in 2004 respectively). Also, Sibneft produced 8.2 million
fields offset the declining production in tons of oil in the 4th quarter of 2005. Gas condensate production grew primarily due to
the old fields and contributed to the overall the increase in production capacities at the Yen-Yakhinskoye and Astrakhanskoye fields,
production growth by 2.8 bcm. as well as the production volumes of ZAO “Northgas” (Northgas), control over 51 % of
shares of which was regained in 2005, and Purgazdobycha acquired in 2004. Oil pro-
duction increased mainly due to ZAO “Stimul” (Stimul), which entered Gazprom Group
in the end of 2004. Stimul develops crude oil perimeters of the Orenburgskoye field. In
2005, Stimul produced 346.6 thousand tons of oil.
Gazprom Group’s New Hydrocarbon Production Assets
Oil production is becoming one of Gazprom major activities. After purchasing

Sibneft, Gazprom ranks fifth in Russia in terms of oil production. Sibneft produced
33 million tons of oil and 2 bcm of associated gas.
Sibneft is operating in the Yamal-Nenets and Khanty-Mansiisk autonomous regions,

Omsk and Tomsk regions, and Chukotka autonomous region. Nearly 80 % of the
company’s total oil reserves are concentrated near the town of Noyabrsk. This
region in particular was the major center of Sibneft oil production. Five largest
fields - Sugmutskoye, Sporyshevskoye, Sutorminskoye, Vyngapurovskoye, and
Muravlenkovskoye fields, developed by OAO “Noyabrskneftegaz” and its sub-
sidiaries, provided for 63 % of the company’s oil production in the reporting year.
Sibneft also produces associated gas in the Noyabrsk region, selling over 90 % of it
to Sibur Holding or using it for its own needs.
One of the most promising fields is the Priobskoye field in the Khanty-Mansiisk
autonomous region. An active development of this field started in 2004. In 2005, its
production grew by 79 % compared to 2004. The Priobskoye field provides for 8 %
of Sibneft’s total production volume in 2005, and as of the end of 2005, its explored
reserves amounted to 176.1 million tons.
1Excluding Sibneft’s figures.
38
ANNUAL REPORT 2005
Sibneft’s total oil production decreased by 2.9 % in 2005 compared to 2004, which
is related to its aggressive production increases pursued in previous years.
Sibneft’s priority for the foreseeable future is to commission new oil production
facilities. The company’s business plan for 2006 envisages increased capital invest-
ment into exploration and production. Sibneft’s capital investment planned for 2006
amounts to US $ 1.76 billion, which is a 70 % increase compared with 2005. Special
attention will be paid to obtaining new licenses.
MAJOR SIBNEFT FIELDS
KHANTI-MANSIISK
AUTONOMOUS REGION
YAMAL-NENETS
AUTONOMOUS REGION
KHANTI-MANSIISK
TYUMEN AUTONOMOUS REGION
REGION
Sineft field Main pipeline Sineft field Main pipeline

Field Major roadway Field Major roadway
Railroad
Sineft license block
In 2005, Gazprom Group’s organizations and Northgas’ shareholders signed an

agreement on cooperation and transfer of a 51 % shareholding in Northgas to
Gazprom. Northgas was incorporated in 1993 for the purpose of developing
Neocomian deposits in the Severo-Urengoiskoye gas condensate field. Northgas’
aggregate reserves amount to 292.4 bcm of gas and 39 million tons of gas conden-
sate and oil. As of the end of 2005, its production capacities amounted to some
5 bcm annually.
39
ANNUAL REPORT 2005
Joint Projects
Gazprom strategy of engaging its partners in the development of hydrocarbon

reserves is aimed at extracting the resources located in complex geologic condi-
tions in an efficient manner. The strategy also envisages an exchange of assets on
a parity basis in pursuing the expansion of Gazprom operation area and activities.
In 2005, OAO “Gazprom” signed a Memorandum of Understanding and Major Terms

and Conditions of the Asset Exchange Transaction with BASF. BASF is offered a
share in a joint venture engaged in the development of the Yuzhno-Russkoye field in
Western Siberia, while Gazprom gets an opportunity to increase its shareholding in
WINGAS GmbH (from 35 % to 50 % less one share), cooperate with Wintershall AG
(BASF’s 100 % subsidiary) in the field of exploration and production in Northern
Africa, and participate in other assets. Gazprom has already gained practical expert-
ise in the implementation of hydrocarbon exploration projects with Wintershall AG,
e.g. a joint venture OOO “Achimgaz” (with equal shareholdings) is engaged in the
development of area A1 of the Achimovsk formations of the Urengoiskoye field.
In July 2005, OAO “Gazprom” and “Royal Dutch/Shell” agreed to the general terms
and conditions of a transaction envisaging an exchange of a half of Gazprom’s share-
holding in the “Zapolyarnoye – Neocomian deposits” project for a 25% shareholding
plus one share in the “Sakhalin – 2” project. The parties are planning to balance any
differences in the asset value by means of additional contributions made by assets or
funds.
In the reporting year, “The Agreement on the principles of joint development of the
hydrocarbon reserves at the geological structure Centralnaya” was signed between
OOO “TsentrKaspNeftegaz” (TsentrKaspNeftegaz) and AO NK “KazMunayGaz”
(KazMunayGaz) representing the Kazakh side. The agreement stipulates the major
principles for the structure development and production sharing. A Contract for the
joint activities between TsentrKaspNeftegaz and KazMunayGaz is being prepared.
According to preliminary estimates, reserves (category C3) of Centralnaya structure
of the Russian segment of the Caspian Sea amount to 276 million tons of oil equiv-
Accommodation block alent.
GAS TRANSPORTATION
Topside section
Technological block Gazprom owns and operates the Russian Unified Gas Supply System (UGSS), which
Junction block is a unified technologic complex combining gas production, processing, transporta-
tion, storage and distribution facilities. The UGSS provides for a continuous gas
Caisson supply cycle from a well to an ultimate consumer.
The UGSS consists of the following:

155 thousand km of trunk pipelines and pipeline branches;
A sleetproof ocean drilling platform 6.1 thousand km of condensate products pipelines;
“Prirazlomnaya” will be constructed to 268 compressor stations with a capacity of 44.8 million kW;
develop oil reserves at the Northern shelf. 6 gas and gas condensate refineries;
The Prirazlomnoe oil field is a core one for oil 24 underground gas storage facilities.
production development at sea on the shelf
of the Pechora Sea. The field reserves (cate- Centralized management, extensive branching and parallel transportation routes
gories C1+C2) amount to 72 million tons. result in considerable reliability of the UGSS and its ability to provide smooth gas
The start of the development is scheduled supply even in the case of seasonal peak loads.
for 2008. The maximum annual oil production
within the project is scheduled at 6.6 million
tons.
40
ANNUAL REPORT 2005
Gas Transportation Network
Gazprom’s gas transportation network is the largest in the world. Over half of it con-
sists of gas pipelines of a large caliber (1,220 and 1,420 mm). In 2005, the gas
transportation network enjoyed stable performance supplying gas to Russian and
foreign consumers. Gazprom is in charge of the transportation of almost all the gas,
which is transported in the Russian Federation, through high-pressure pipelines.
2004 2005 RECEIPT AND DISTRIBUTION

Total amount received
by the gas transportation system 684.4 699.7
Gas received by the system 635.2 646.9
OF GAS TRANSPORTED THROUGH
including Central Asian gas 50.4 54.6
Gas retrieved from UGSF in Russia 37.9 42.8 GAZPROM GAS TRANSPORTATION
Decrease in gas reserves
within the gas transportation system 11.3 10.0 SYSTEM IN THE TERRITORY
Total distribution from
the gas transportation system 684.4 699.7
Supply to Russian consumers 333.5 339.8
OF THE RUSSIAN FEDERATION, BCM
Supply outside Russia 245.9 251.2
Gas pumped into UGSF in Russia 42.6 46.3
Technological needs
of the gas transportation system 52.0 51.7
Increase in gas reserves a
within the gas transportation system 10.4 10.7
Shown figures do not include gas volumes taken from UGSF of foreign countries and supplied over the territo-
ries of the Russian Federation.
120 114.9 VOLUME OF GAS TRANSPORTED

103.6
Number
100 92.4 95.4 99.9
of companies
80
24
BY COMPANIES ENTITLED
bcm
60 33
40 30 TO ACCESS GAZPROM
20 33
0 31 GAS TRANSPORTATION SYSTEM
2001 2002 2003 2004 2005
0.25 NUMBER OF TECHNICAL FAULTS

number of technical faults
0.2 0.21 0.21 0.16

0.18
per 1,000 km
0.15 0.14 AT THE GAS TRANSPORTATION

0.1
0.5 SYSTEM IN 2001-2005
0
2001 2002 2003 2004 2005
Independent gas producers have been applying for access to OAO “Gazprom” gas
transportation system since 1998. Over the past 5 years, the load of the gas trans-
portation system increased due to a growth in Gazprom gas supplies and trans-
portation of independent producers’ gas. In 2005, UGSS gas pipelines recieved
699.7 bcm of gas (621.2 bcm in 2001). The gas transportation volumes increased
41
ANNUAL REPORT 2005
by 12.6 % over the period. The forecast growth in a demand for gas in Russia and
major export markets as well as the growth in gas transit from Central Asia suggest
further increase in the gas transportation system load. Therefore, Gazprom takes
measures to improve, upgrade and expand the existing gas transportation system.
Refurbishment and Reconstruction
Gazprom gas transportation system was mainly established in 1970s-1980s. As of

December 31, 2005, the trunk pipelines had been in operation for an average of
22 years. The system enjoys stable functioning due to the implementation of
advanced diagnostic methodologies, preventative maintenances and repairs. This is
evidenced by a lower number of pipeline technical faults in the reporting year, which
decreased down to 22 (25 in 2004).
Drive Engine AL-31ST produced by
OAO NPO “Saturn”. Gazprom has established Gazprom is implementing a Comprehensive program of reconstruction and techni-
a technological base for the comprehensive cal refurbishment of its gas transportation facilities for the period from 2002
reconstruction. It created and installed new through 2006 (Reconstruction program). The gas pipeline reconstruction and
types of gas pumping units at the compressor upgrade program envisages the elimination of bottlenecks and the reduction of
stations with efficiency up to 35 %. energy demands for gas transportation. It will also help ensure the reliability and
The following new engines are now in serial industrial safety of the gas pipelines.
production: PS-90, AL-31ST, NK-36, D-336,
etc. A total of 17 gas pumping units were All the necessary measures were accomplished within the Reconstruction Program
replaced by new generation units and to ensure reliable operation of the gas transportation system. The work was focused
1 gas pumping unit was upgraded in 2005. on the most strategically important directions of gas transportation, which effec-
tively prevented a potential 16-bcm decrease in the throughput capacity of the gas
transportation system. Furthermore, the initiative has boosted the technically feasi-
ble production level by an additional 3.5 bcm.
Gas Transportation System Development
In 2005, major investments into gas transportation system development were allo-
cated for the construction of the Russian part of the Yamal-Europe gas pipeline,
SRTO-Torzhok and Pochinki-Izobilnoye gas pipelines, as well as the expansion of
the Urengoi gas transportation unit.
The Yamal-Europe pipeline was commissioned in 1999. It passes through the terri-
tory of Belarus and Poland. In December 2005, the final scheduled compressor sta-
The complex of intrapipeline defectoscope tion was commissioned in Poland, which brought the Polish part of the pipeline to
produced by ZAO NPO “Spetsneftegaz” with its design annual capacity of 33 bcm.
the caliber of 1,400 mm.
The intrapipeline defectoscope plays a key The construction of the SRTO-Torzhok gas pipeline from the Urengoiskoye field is
role in the complex of diagnostic measures underway. The project will provide for the increase in gas supply to the consumers
and is the most informative and technological in the North-Western region of Russia and gas export through the Yamal-Europe
way of examination. pipeline.
In 2005, the intrapipeline defectoscope
method was used to examine 17.3 thousand The Urengoi gas transportation unit is being expanded in order to transport the
km of gas pipelines while the electrometric increased gas volumes from the fields developed in the Nadym-Pur-Tazovsky
measurement method was used to examine region. The Federal Tariff Service (FTS) of the Russian Federation has worked out
23.2 thousand km. and approved a methodology of the tariff calculation for gas transportation services,
The diagnostic examination resulted in the which provides, in particular, for the return of the investments made into the con-
selective overhaul of 2,166.8 km of gas struction of the new parts of the Urengoi gas transportation system to the investor.
pipelines, including 508.8 km of complete
pipe replacement and 1,477.8 km of reisola-
tion.
42
ANNUAL REPORT 2005
The Pochinki-Izobilnoye gas pipeline is a part of the gas pipelines running from
Russia to Turkey. The commissioning of this pipeline will allow for the supply of gas
from the fields in the Nadym-Pur-Tazovsky region into the Blue Stream gas pipeline.
The project for the construction of a Petrovsk-Frolovo-Izobilnoye pipeline segment
(linear part) is currently underway.
In 2005, Gazprom started the construction of the North European Gas Pipeline to
run from Russia to Western European countries under the Baltic Sea. The North
European Gas Pipeline is a completely new route for Russian gas export to Europe.
NEG is unique as it passes no transit states, which brings down gas transportation
risks and costs and raises export supply reliability.
A joint venture “North European Gas Pipeline Company” (registered in Switzerland)

was established to design, construct and operate the offshore segment of the NEG.
OAO “Gazprom” interest in the joint venture amounts to 51 %, with the German
companies BASF and E.ON Ruhrgas holding 24.5 % each.
Underground Storage
Underground gas storage facilities (UGSF) are an integral part of the Russian Unified
Gas Supply System (UGSS) and are located in the major gas consumption areas.
UGSF make it possible to level off seasonal fluctuations in gas consumption, bring
down peak loads within the UGSS, and provide for flexible and reliable gas supply.
The UGSF network provides for up to 20 % of gas supply to Russian consumers dur-
ing the heating period, and increases as high as 30 % during the sudden cold spells.
As of the beginning of the withdrawal season in 2005-2006, the Russian under-

ground storage facilities accumulated 62.6 bcm of market-grade natural gas
reserves.
The capacity of the underground gas storage facilities is being increased in order to
make UGSS more flexible and provide for the best performance of the system. There
is a Program of work for the period from 2005 through 2010 related to the under-
ground gas storage in Russia designed to level off seasonal fluctuations in gas con-
sumption. The Program is aimed at raising the daily gas output of UGSF up to
700 mcm per day by the withdrawal season in 2010-2011.
The implementation of the Program made it possible to bring the average daily out-
put up to 477 mcm in the heating period of 2005/2006 (470.5 mcm in the heating
period of 2004/2005). The average daily performance of UGSF is scheduled to be
increased up to 500 mcm by the heating season of 2007/2008.
Gazprom keeps improving its underground storage facilities performance by com- Kasimovskoye UGSF is one of the 24 gas
missioning new facilities. In 2005, the active capacity of the UGSF was increased by storage facilities operated in the Russian
1.9 bcm. Federation, 7 of them being located in water-
bearing structures and 17 at the exhausted
Three underground gas storage facilities are under construction in Russia: in the fields. In 2005, a total of 46.3 bcm of gas
water-bearing structure of the Udmurt reserving complex and in the rock salt for- was pumped into the gas storage facilities
mations at the Kaliningradskoye and Volgogradskoye UGSF. The Volgogradskoye located in Russia and a total of 42.8 bcm
UGSF will become the largest one in Europe and the first Russian underground gas was withdrawn. The pumping and withdrawal
storage facilities in salt with the active gas volume of 800 mcm and the daily output were done using 17 compressor stations and
of 70 mcm. 235 gas pumping units with a total installed
capacity of 1,021.7 thousand kW.
Gazprom stores gas in UGSF abroad as well. In July 2005, a lease agreement was
signed with “Vitol” for access to 50 % capacity of the Humbly Grove UGSF in the
south of Great Britain within a five-year period.
43
ANNUAL REPORT 2005
EURASIAN GAS TRANSPORTATION SYSTEM
44
ANNUAL REPORT 2005
MAJOR GAS TRANSPORTATION PROJECTS
OF GAZPROM
North European
Gas Pipeline Project
NEG’s design capacity is 55 bcm per year. The onshore
segment of the pipeline, which is 917 km long, will run
through the Russian Federation from Gryaznovets to
Vyborg. The offshore segment, which is 1,198 km long,
will run under the Baltic Sea to the coast of Germany, a
branch moving to Sweden. The first line is scheduled to
be commissioned in 2010.
Yamal-Europe Gas Pipeline

The gas pipeline design capacity is 33 bcm per year. A linear
section of the pipeline, that extends 1,997 km from the
Torzhok KS to the STEGAL pipeline in Germany, is currently in
operation. The facilities commissioned in 2005 included 3
compressor stations. 1 compressor station is scheduled to be
commissioned at the Russian part in 2006.
SRTO-Torzhok Gas Pipeline

Its projected capacity is 20.5-28.5 bcm per year at its
various segments. The gas pipeline is 2.2 thousand km
long and involves the construction of 13 compressor
stations with an aggregate capacity of 968 MW. The lin-
ear part of the 685.6 km gas pipeline was commis-
sioned in 2005. The project is scheduled to be complet-
ed in 2010.
Gas pipeline Pochinki – Izobilnoye –

Severo-Stavropolskoye UGSF
The construction of the 938 km Petrovsk-Frolovo-
Izobilnoye pipeline (linear part) is currently underway. The
design capacity is 26.2 bcm per year. It is equipped with 6
compressor stations. As of the end of 2005, the line part of
the gas pipeline was commissioned for a total of 308.9 km
equipped with 1 compressor station. The completion of the
pipeline is scheduled for 2006. The timing for the con-
struction of the segment (linear part) connecting Pochinki
and Petrovsk will be determined based on the timing for
the development of fields on the Yamal Peninsula.
45
ANNUAL REPORT 2005
GROWTH DYNAMICS 80 82
60 57.8 62.6
OF MARKET-GRADE NATURAL GAS
bcm
40
20
VOLUMES IN RUSSIAN UGSF 0
2000 2005 2010 (forecast)
Expanding UGSF capacity is one of Gazprom strategic goals. The cost of building underground gas storage
facilities to level off seasonal fluctuations is 5 to 7 times lower than building the relevant reserve gas produc-
tion and gas transportation facilities.
In 2005, the volumes of gas pumped into UGSF in foreign countries in accordance
with the relevant agreements amounted to 2.4 bcm, including 1.5 bcm in Latvia,
0.4 bcm in Germany, 0.4 bcm in Austria, and 0.1 bcm in Great Britain.
Gas Distribution and “Gasification”1
Gazprom is a leader in the Russian Federation in terms of gas distribution through

the low-pressure pipelines. Gazprom has shareholdings or controlling interest in
148 regional gas distribution organizations and in three organizations that service
the gas distribution system (OAO “Gazpromregiongaz”, OAO “Zapsibgazprom”,
OOO “Tattransgaz”). These organisations service 463.4 thousand km (75 %) of gas
distribution networks in Russia and supply gas to 75 % of gas-consuming settle-
ments. Annual gas transportation volumes supplied to Russian ultimate consumers
exceed 200 bcm.
Gas distribution assets are being consolidated in order to optimize the internal
structure. The assets are being transferred to OAO “Gazpromregiongaz”, which is a
part of Gazprom Group. The consolidation of these assets will establish a basis for
pursuing a unified tariff policy, creating the sources of finance to gasify Russian
regions as well as the conditions for the internal market liberalization by means of
equal access of all gas producers to the customers.
1“Gasification” - construction of low-pressure gas pipelines to ensure gas supply to the ultimate consumers.
46
ANNUAL REPORT 2005
The “gasification” of Russian regions is one of Gazprom key objectives. A program for
the “gasification” of the Russian regions for the period between 2005 and 2007 was
created, which enjoys governmental support as a social project of national importance.
According to the program, over 12 thousand km of gas distribution pipelines are to be
laid within a 3-year period. The investment will total RR 35 billion. RR 5.2 billion of them
were allocated for 2005, RR 17.6 billion were scheduled for 2006 and RR 12.2 billion
were scheduled for 2007. The “gasification” projects will be implemented based on the
Concept of OAO “Gazprom” participation in “gasification” of the regions of the Russian
Federation, which was approved in August 2003 and envisages the following:
payment in full for the current gas supplies and repayment of consumers’ debt
for gas;
economic efficiency of the facilities being built;
consumers’ readiness to off take the fuel;
work load of pipeline branches and gas distribution stations;
regional authorities’ assistance in the implementation of energy saving tech-
nologies.
PROGRAM
FOR “GASIFICATION”
OF RUSSIAN REGIONS
FOR THE PERIOD
BETWEEN 2005
AND 2007
In 2005, Gazprom built 2.5

thousand km of medium- and
low-pressure networks gas
pipelines in 40 regions of the
Russian Federation.
“Gasification” level: The implementation of the
Regions without gas supply Program for the “gasification”
Less than 25 % of Russian regions will make
From 25 % up to 50 %
it possible to raise Russian
From 50 % up to 75 %
Over 75 % “gasification” level from 54 %
Regions included into the Program for “gasification” of Russian regions in 2005-2007 in 2005 up to 60 % by 2008.
11 million people additionally
will be able to use gas fuel.
A well-established system of interaction with the regional administrations of the
Russian Federation on the question of OAO “Gazprom” regional policy makes it pos-
sible to resolve production, financial, social, and organizational issues in close con-
tact with these local administrations.
The key objective of this policy is to balance the interests of Gazprom and the
regions of the Russian Federation, as well as coordinate OAO “Gazprom” sub-
sidiaries’ work in the regions. This is achieved by means of strengthening the regu-
latory basis for the interaction, which is built upon cooperation agreements with the
sub-federal regions of the Russian Federation. Cooperation agreements with
72 Russian regions were effective as of the end of 2005.
47
ANNUAL REPORT 2005
OAO “Gazprom” Commission for Regional Policy coordinates OAO “Gazprom” and
subsidiaries’ activities in the sub-federal regions of the Russian Federation.
Technological Communications
Gazprom unified technological communications network provides for the technical

reliability and safety of UGSS operation. The communications system consists of
ground-based systems and a satellite communications network. As of the end of
2005 the ground-based part consisted of 87.6 thousand km of cable lines,
22.1 thousand km of multi-channel radio-relay lines, and 766 automatic telephone
stations with a total capacity of 300.8 thousand numbers.
The satellite communications network consists of a Yamal-100 satellite, two Yamal-

200 satellites, and 130 earth stations providing for satellite communications. Some
25 % of the satellite performance capacity is used by Gazprom, while the remaining
part is used by governmental organizations or telecommunication companies -
lessees.
UGSS Energy Supply
Gazprom is one of the largest consumers of electric power and heat energy. Over
2005, UGSS facilities consumed 19.1 billion kWh of electric power and 26.1 million
Gcal of heat energy. The company’s own generation units produced 1.5 billion kWh
of electric power and 27.4 million Gcal of heat energy.
REFINING
As of December 31, 2005, the Group’s aggregate capacities in preparing and pro-
cessing gas and liquid hydrocarbons amounted to 52.5 bcm of natural gas and over
48.1 million tons of unstable gas condensate and oil per year (including Sibneft’s
19.5 million tons of oil, but excluding Sibur Holding’s capacities). A considerable
increase in liquid hydrocarbons processing capacity (which almost doubled com-
pared to 2004) is due to the acquisition of the Omsk Oil Refinery belonging to
Sibneft.
Gas and Gas Condensate Refining
Gazprom (excluding Sibur Holding) operates six gas and gas condensate refineries,
which purify natural gas and gas condensate, dehydrate natural gas and prepare it
for transportation, stabilize and process gas condensate and oil, and provide a wide
range of refining products. The refineries are connected to the relevant oil and gas
condensate fields and constitute unified technologically linked complexes.
In pursuing deeper processing of hydrocarbon raw materials, maximizing the

extraction of valuable components from gas, and improving economic efficiency
and environmental safety of its production processes Gazprom plans to complete
technical refurbishment and reconstruction of the existing gas refineries.
48
ANNUAL REPORT 2005
2004 2005 2005/2004, % VOLUMES OF GAZPROM GROUP’S

Raw Materials
Natural gas, bcm 32.4 33.9 104.6
Unstable gas condensate HYDROCARBON RAW MATERIAL
and oil, thousand tons 11,297.1 12,025.6 106.4
Stable gas condensate PROCESSING*
and oil for primary processing,
thousand tons 6,017.3 5,989.3 99.5
Refinery’s products
Motor gasoline, thousand tons 2,005.1 2,242.7 111.8
Diesel, thousand tons 1,732.1 1,640.8 94.7
Furnace fuel oil, thousand tons 392.8 380.8 96.9
TS-1 fuel, thousand tons 15.0 50.9 339.3
Liquefied hydrocarbon gases,
thousand tons 1,854.0 1,881.9 101.5
Helium, thousand tons 3,452.3 1,636.4 47.4
Sulfur, thousand tons 5,184.0 5,361.8 103.4
Gross stable condensate and oil,
thousand tons 8,254.1 8,851.2 107.2
Ethane, thousand tons 202.6 108.1 53.3
Stripped dry gas, bcm 25.0 26.5 106.0
Excluding give and take raw materials. Also excludes Sibur Holding’s and Sibneft’s capacities
In 2005, most of the investment in processing was allocated for the recovery of the
Orenburg Helium Plant production capacities (the work is scheduled to be com-
pleted in the 3rd quarter of 2006). In 2005, work was also carried out to build under-
ground storage facilities for liquid products at the Astrakhan Gas Refinery and
reconstruct production facilities for processing gas condensate.
The Orenburg Gas Refinery receives over 7 bcm of gas annually from Kazakhstan for
processing. The production of the Orenburgskoye field keeps steadily falling, there-
fore, Gazprom is contemplating to increase gas purchases from the
Karachaganakskoye field up to 15 bcm per year. The implementation of this project
will guarantee the Orenburg Gas Refinery’s load adjusted to the refinery’s future
upgrade and increased production capacity. Gazprom is contemplating the creation
of a joint venture on the basis of the Orenburg Gas Refinery to process gas received
from the Karachaganakskoye field and the fields located in the Orenburg region.
New Oil Processing Assets
As a result of acquiring Sibneft Gazprom gained control over the Omsk Oil Refinery,
Russia’s most advanced and one of the world largest oil refineries.
The Omsk Oil Refinery is located in the south of Western Siberia. Raw materials come
to the refinery directly from Sibneft’s oil fields through a pipeline system operated by The Omsk Oil Refinery is one of the most techno-
OAO “Transneft” without mixing with heavier oil supplied by other Russian producers. logically advanced refineries in the world (as per
the technical evaluation performed by Shell Global
In addition to Sibneft’s control over the Omsk Oil Refinery it holds 38.8 % of voting Solutions). The installed processing capacity is
shares in OAO “Moscow Oil Refinery” and enjoys access to its production facilities 19.5 million tons. The refinery is capable of
pro rata to its stake. deeper processing of raw materials than other
Russian oil refineries. The Omsk Oil Refinery is
one of the few Russian factories capable of pro-
ducing MTBE additive increasing gasoline RON
without using lead. Sibneft continues to improve
the processing to increase the share of products
with higher added value, including those comply-
ing with EU export requirements.
49
ANNUAL REPORT 2005
MAJOR TYPES OF PRODUCTS Omsk Moscow Total

Oil Refinery Oil Refinery
Raw materials
PRODUCED BY SIBNEFT Desalinized oil 3,303 791 4,094
Production
IN 4TH QUARTER OF 2005, Gasoline 921 196 1,117
Diesel 1,091 222 1,313
THOUSAND TONS TS-1 fuel 231 47 278
Furnace fuel oil 484 213 697
Petroleum cokes 42 - 42
Oils 53 - 53
Petroleum bitumen 11 34 45
Liquefied hydrocarbon gases 81 17 98
In order to improve the processing of hydrocarbon raw materials produced by

Gazprom Group the company is contemplating to integrate the technological flows
of gas condensate (oil) refineries operated by Gazprom and Sibneft (sour furnace
fuel of the Astrakhan Gas Refinery and gas distillate of the Surgut Condensate
Stabilization Plant).
Gas and Oil Chemistry
In February 2005, Gazprom approved the development strategy for OAO “AK “Sibur”
(Sibur) for the period up to 2011. In implementing this plan, a new company OAO “AKS
Holding” (AKS Holding) was established in July 2005. AKS Holding charter capital was
payed with shares of petrochemical companies of Sibur and its subsidiaries. As a result
AKS Holding became the owner of petrochemical assets and Siburs’ successor. Sibur
Group’s debt to Gazprom Group amounting to RR 40.1 billion was repaid within the
transactions related to the repurchase of AKS Holding’s shares by OAO “Gazprom”.
OAO “Gazprom” shareholding in this company amounts to 25 % plus one share, the
remaining 75% minus one share belonging to Gazprombank. In November 2005,
OOO “Tomskneftekhim” is one of Sibur AKS Holding was renamed into Sibur Holding.
Holding’s subsidiaries. It is a major pro-
ducer of polymers, urea-formaldehyde Sibur Holding processes the purchased hydrocarbon raw materials based on processing
resins, and formalin. It ranks first in Russia agreements signed with processing organizations, and is a shareholder in some of these
in polypropylene production and it ranks processing companies. At the same time, over 50 independent oil chemistry companies
second in high-pressure polyethylene. are involved in Sibur Holding’s production cycle. At the processing stage Sibur Holding
produces inters and final oil chemistry products and then sells them in the domestic and
foreign markets.
As of the end of 2005 Sibur Holding accounts for 17 % of polyethylene production

in Russia, 36 % of polypropylene production, 37 % of tyre production, 34 % of liq-
uefied hydrocarbon gas production. It is the largest Russian producer of synthetic
rubbers (56 %).
MAIN TYPES OF SIBUR Years 2004 2005 2005/2004,

%
Liquified hydrocarbon gases,
HOLDING PRODUCTION thousand tons 2,817 2,891 102.6
Monomers and monomer fractions,
IN 2004 - 2005 thousand tons 1,747 1,867 106.9
Synthetic rubbers, thousand tons 537 584 101.9
Polymers, thousand tons 431 465 107.9
Products of organic synthesis, thousand tons 762 813 106.7
Fuel and its components, thousand tons 535 651 121.7
Tyres, million pcs 15.2 13.4 88.2
50
On November 3, 2005, the first stage of the Beregovaya booster compressor station was
commissioned in the Gelendzhik district of the Krasnodar area bringing to the project
capacity the Blue Stream gas pipeline, which runs under the Black Sea and directly con-
nects the Russian gas producer with Turkey, one of Europe’s major consumers. The unique
gas transportation corridor of 1,213 km adds to the existing route from Russia to Turkey
through Ukraine, Moldova, Romania, und Bulgaria.
ANNUAL REPORT 2005
In developing Sibur Holding’s oil chemistry business, Gazprom takes into consideration
the market environment of the company’s operations and the increase in value of its own
investment in the company.
MARKETING AND SALES
Gazprom is the major gas producer in Russia and the largest natural gas exporter in
the world. It sells gas to ultimate consumers in the domestic market primarily
through its 100% subsidiary OOO “Mezhregiongaz” (Mezhregiongaz) and regional
gas sale companies.
Years 2004 2005 2005/2004, %

GAZPROM GROUP’S
Russia 305.7 307.0 100.4
GAS SALES (BCM) European countries 153.2 156.1 101.9

CIS member states and Baltic states 65.7 76.6 116.6
Its 100% subsidiary OOO “Gazexport” (Gazexport) acts as an agent in the export of
its natural gas as well as gas condensate, oil, oil products, liquefied petroleum
gases, and other refining products.
Gas sales in the Russian market
In the reporting year Gazprom provided for continuous gas supply to Russian con-
sumers. 307 bcm of gas were sold in the domestic market. Revenues from gas
sales (excluding VAT and excise tax) amounted RR310.0 billion. The average price
of gas sold by Gazprom on the local market in 2005 was:
RR1,014.1 per 1,000 cubic meters (excluding VAT, including excise tax);
GAZPROM GAS SALES RR1,009.7 per 1,000 cubic meters (excluding VAT and excise tax)
STRUCTURE SPREAD Gazprom sells gas in the domestic market at wholesale prices regulated
by the Federal Tariff Service in accordance with the Regulations of the Russian
BY CONSUMER GROUPS Federation on the maximum level of such prices. The regulated wholesale gas prices
are below economically reasonable price levels and do not take into account
IN 2005 the prices of alternative fuels or any environmental and technological advantages
of using gas. Prices for alternative fuels (furnace fuel oil and coal) of those
for the gas supplied by independent producers are determined on a market basis.
Such system resulted in a considerable mismatch between prices from fuel
resources and an inefficient structure of the fuel and energy balance.
Power industry – 38 %
Metallurgy – 7 %
Agricultural chemistry – 7 %
Households – 16 %
Utility sector – 10 %
Other 22 %
52
ANNUAL REPORT 2005
The regulated gas prices and gas transportation tariffs changed in 2005. Since
January 1, 2005, wholesale gas prices grew by an average of 23 %. Since October
1, 2005 gas transportation tariffs related to the transportation of gas produced by
independent organizations went up by an average of 22.4 %. In 2005, tariffs were
raised for gas transportation services rendered by Gazprom Group’s companies
with regard to gas transportation through distribution gas pipelines. At the same
time, the tax burden rose since January 1, 2005 due to an increase in the sever-
ance tax rate.
However, the decision to increase the regulated wholesale gas prices did not take
into account the whole set of pricing factors. Therefore, in 2005, in spite of price
adjustment the company suffered RR8 billion losses from gas supply to the domes-
tic market. This situation will continue in 2006. The losses from this type of activities
are preliminary estimated at RR34.3 billion even considering an 11 % increase in the
regulated gas prices1.
The further development of a two-sector wholesale market with a step-by-step

reduction in the regulated sector and expansion of the non-regulated one will make
it possible to avoid the risk of bringing down the reliability of gas supply and adverse
affect on the consumer. Considering Gazprom leading role in supplying gas to
domestic consumers, its participation in the expansion of the non-regulated sector
of the gas market is a key prerequisite for further development of market relation-
ships. The first practical move in this direction may be the implementation of
Gazprom’s initiative to carry out an experiment to sell limited amounts of its gas (up
to 5 bcm) starting from 2006 at free market prices via auctions using commodity
exchange technologies and the gas of independent producers. The development of
the unregulated sector of gas market will help to introduce market relationship,
interfuel competition and energy saving technologies.
Gazprom policy is aimed at enabling independent producers to develop their own

gas production and granting them access to Gazprom gas transportation system.
The company approved its internal Regulation on the procedures for preparing and
issuing permits to independent producers for an access to Gazprom gas transporta-
tion system, which simplifies the procedure for processing the applications.
Increasing the volumes of gas coming into the gas transportation system from inde-
pendent producers and purchasing it on economically reasonable terms will cover
the country’s growing need in this fuel.
1
Management accounts adjusted to assets revaluation.
53
ANNUAL REPORT 2005
Gas Sales in European Markets
Russian gas has been supplied to Europe for more than thirty years. A total
of 156.1 bcm was sold in European countries in 2005. The sales of gas amounted
to RR 619.1 billion.
GAZPROM GROUP’S
NATURAL GAS SALES
IN EUROPEAN COUNTRIES IN 2005,
BCM
bcm
0 30 60 90 120 150
Gas consumption increased by 2.1 % in Europe in 2005. In spite of this fact, the
excess of supply over demand remained and resulted in sharper competition among
suppliers.
As the European gas market continues toward liberalization, Gazprom is implement-

ing new methods and is getting ready to expand its exported goods portfolio.
Gazprom took into account EU requirements and excluded a provision related to the
ultimate destination from its contracts with Western European countries. Therefore,
the buyers of Russian gas enjoy an opportunity to resell it in other countries, where
Gazprom operates as well. At the same time, a mechanism to protect the company’s
interests was developed.
In the reporting year, Gazprom continued to develop relationships with its traditional
customers focusing on meeting its gas supply obligations and improving supply reli-
ability.
Most part of the gas is currently exported and is intended to be further exported
under long-term agreements. At the same time, a system of short-term and single
(spot) transactions is being developed. Last year, Gazprom sold 4 bcm of gas on a
spot basis, the foreign currency revenues amounting to US $ 675 million].
54
ANNUAL REPORT 2005
In 2005, the dynamics of export prices for Russian natural gas was influenced by the
world prices for competitive liquid fuels: nominal oil prices were at an unprece-
dented high level last year. In 2005, an average Russian gas sale price in the
European market was:
RR5,443.6 per 1,000 cubic meters (including excise tax and customs duties);
RR3,964.8 per 1,000 cubic meters (excluding excise tax and customs duties).
Gas Sales in CIS and Baltic States Markets
Gazprom is a key player in the gas market in the CIS and Baltic states. A total
of 76.6 bcm of natural gas was sold in these countries in 2005. The sales of gas
amounted RR 108.4 billion (excluding VAT, excise tax and customs duties).
Gazprom supplies gas to CIS countries in accordance with intergovernmental agree-
ments, which are used as a basis for signing annual contracts, whereas the supplies
to the Baltic states are based on long-term contracts valid through 2015.
GAZPROM GROUP’S
NATURAL GAS SALES

bcm
IN CIS AND BALTIC STATES
IN 2005, BCM
0 10 20 30 40 50 60 70 80
In 2005, average price of Gazprom Group gas sold in CIS and Baltic countries was:
RR1,716.1 per 1,000 cubic meters (including excise tax and customs duties);
RR1,415.7 per 1,000 cubic meters (excluding excise tax and customs duties).
The current prices charged by Gazprom for the gas supplied to CIS countries are
higher than those charged for the gas sold in the Russian domestic market but are
lower than those charged for the gas sold in Europe. At the same time, the prices
charged for the natural gas sold in Estonia, Latvia, and Lithuania are mostly compa-
rable to those charged by Gazprom for the gas supplied to Europe. Gazprom sticks
to its policy of bringing the prices charged for the gas sold in CIS and Baltic states
up to a balanced level (adjusted to the transportation distance) with gas prices
charged from its European customers. In accordance with this policy, gradual
adjustments have been made to the contractual prices in the Baltic states since
2005. The company moved to more flexible new formulas of gas pricing dependent
upon the furnace fuel oil prices, Euro being used as payment currency. The terms
and conditions of gas supplies to Ukraine, Belarus, and Moldova in 2005 were regu-
lated by intergovernmental agreements, which were used by OAO “Gazprom” as
guidelines for signing contracts with these countries’ national companies. Work was
carried out to increase gas sale prices charged from the customers in Ukraine,
Belarus, and Moldova in accordance with the declared pricing policy.
In particular, contracts were signed with AO “Moldovagaz” for the 1st and 2nd quar-
ter of 2006 to supply gas to Moldovan consumers at a price of US $ 110. Gazprom
and NAK “Naftogas of Ukraine” moved to market relationships in their joint activi-
ties. The parties agreed that Gazprom would supply gas to “RosUkrEnergo AG”
based on a new pricing formula since January 1, 2006. The initial Russian gas price
55
ANNUAL REPORT 2005
amounts to US $ 230 per 1,000 cubic meters. Considering that there is also Central
Asian gas in “RosUkrEnergo AG” balance, the company will sell the fuel at the
Russian-Ukrainian border at a price of US $ 95 per 1,000 cubic meters. The tariff
charged for the Russian gas transportation through the Ukrainian territory will
amount to US $ 1.6 per 1,000 cubic meters per 100 km. The parties agreed not to
use any exchange transactions any longer and to pay for the gas and the transporta-
tion services only in cash.
Developing Relationships with Central Asian Countries
Gazprom’s strategy for its activities in Central Asia is aimed at strengthening its
position in the region. It will allow the company to react adequately to a possible
increase in the demand in CIS countries and optimize gas flow through the Unified
Gas Supply System, which was established taking Central Asian sources into
account.
In pursuing the strategy, medium-term agreements were signed in 2005 (for the
period up to 2011) with AK “Uztransgaz” for the transportation of Turkmen gas
through the territory of Uzbekistan and with AO “Intergaz Tsentralnaya Aziya” for the
transportation of Turkmen and Uzbek gas through the territory of Kazakhstan.
The following volumes of gas were purchased in accordance with the contracts in
2005: 3.8 bcm of Turkmen gas and 8.2 bcm of Uzbek gas1.
In addition to purchasing gas directly from AO “KazRosGaz” (a joint venture with

Kazakhstan) Gazprom purchased Kazakh gas mainly from the Karachaganakskoye
field for the purpose of selling it in the countries adjacent to Russia. In 2005, the vol-
ume of such supplies amounted to 6 bcm.
Following its strategy to cooperate with Central Asian countries, Gazprom intends to
facilitate the development of gas resources and gas transportation infrastructure in
the region.
In 2005, Gazprom devised a plan for a step-by-step implementation of the project

for the development of oil-and-gas fields in the Ustyurt region of Uzbekistan. The
work resulted in signing two agreements in January 2006, which defined the guide-
lines and the provisions of the Production sharing and geologic exploration agree-
ment. The development of the fields in the Ustyurt region will raise Uzbekistan’s
export potential by 8 to 9 bcm in the period between 2010 and 2020.
One of the key prerequisites for successful cooperation with Central Asian states in
the gas field is the upgrade and expansion of the Middle Asia – Center (MAC) gas
transportation system. Taking an investment decision of MAC expansion requires
information about gas reserves in Turkmenistan confirmed by international auditors.
1 Based on managment accounting.
56
ANNUAL REPORT 2005
GAS PIPELINES AND
MAJOR GAS FIELDS
IN CENTRAL ASIA:
Middle Asia – Center gas

transportation system con-
nects Turkmenistan,
Uzbekistan, Kazakhstan,
and Russia and has a
capacity of 40 to 50 bcm
per year (the system design
capacity is 68.8 bcm per
year). It is considered rea-
sonable to develop MAC in
two stages, i.e. provide for
the maximum increase of
the existing capacity at first
and then to construct the
new facilities. At the feasi-
bility study stage (before
obtaining an independent
expert opinion as to the gas
reserves in Turkmenistan)
Trunk pipelines
Hydrocarbon fields Gazprom holds consulting
meetings with its partners
in joint activities applying a
In the reporting year, intensive work was carried out under the agreements on gas concept of overcoming bot-
field cooperation between Gazprom and the governments of Kyrgyzstan and tlenecks in MAC. In 2005, a
Tajikistan. Joint projects were defined in the geologic exploration and hydrocarbon dispatch meeting was held
production in the territory of these countries, recovery and construction of new gas attended by representatives
transportation and gas storage facilities, as well as gas supply projects. In January of gas transportation com-
2006, Gazprom signed a Memorandum on intention to establish a joint Russian- panies from Uzbekistan,
Kyrgyz oil-and-gas company with the Kyrgyz Government. In March 2006, it signed Kazakhstan, and Russia.
a Memorandum on intention to establish a joint Russian-Tajik company with the The list of measures to
Energy Ministry of Tajik Republic. refurbish MAC parts located
in the republic was agreed
upon with National Holding
Company “Uzbekneftegaz”.
57
ANNUAL REPORT 2005
DIVERSIFICATION OF PRODUCTS AND ACTIVITIES
Liquefied Natural Gas
As the global gas market continues to evolve, one of Gazprom priorities is to imple-
ment its strategy for LNG production and sea transportation.
SHTOKMANOVSKOYE
FIELD
DEVELOPMENT
PROJECT
Shtokmanovskoye Field. Its

explored gas reserves of
categories C1+C2 are esti-
mated at 3.7 tcm. The proj-
ect for the
Shtokmanovskoye field
development envisages an
annual production volume
of about 70 bcm of natural
gas and about 0.6 million
tons of gas condensate.
The initial stage of the proj-
ect implementation aimed at
ensuring the production
level of 22.5 bcm of natural
gas and 205 thousand tons
of gas condensate, the con-
struction of a factory to pro-
duce LNG with an annual
capacity of 15 million tons,
and the construction of an
underwater pipeline to LNG’s major advantage is the relative flexibility and ability to diversify the directions
transport natural gas and and volumes of gas supply by using tankers, making it possible to adapt to the ever
gas condensate to the LNG changing world market environment. LNG’s share in the global natural gas export
factory. The expected was estimated at 26.2 % or 191 bcm in 2005, which is comparable with the annual
investment amounts to volume of Russian gas export. LNG share is expected to reach 30 % of the global
$13 billion gas trade by 2010. Gazprom has all the necessary prerequisites to successfully
implement LNG production and export projects:
sound mineral resource base with expansion potential;
low temperatures in the regions, where most of the reserves are concentrated, bring-
ing down energy costs for producing liquefied gas;
Russian LNG competitiveness due to relatively short distances between the mineral
resource base and the distribution markets.
The Shtokmanovskoye gas condensate field in the Barents Sea was chosen as the
preferable mineral resource base for the priority project of LNG production. The
projects for the construction of LNG production plants in the Leningrad and
Murmansk regions are contemplated along with participation in the “Sakhalin – 2”
project. The target markets for the Russian LNG supply are the Gulf of Mexico and
the US East coast. Supplies to Europe are possible, too.
58
ANNUAL REPORT 2005
Gazprom is considering the proposals submitted by major oil-and-gas, construc-

tion, and financial companies, which declared their interest to participate in
Gazprom LNG projects. In 2005, Gazprom signed documents with major oil-and-gas
companies (ConocoPhilips, Statoil, Chevron, Norsk Hydro, Total, and Petro-Canada)
with regard to jointly elaborating possible cooperation projects in this field.
Consolidating its position in the traditional natural gas market in Europe, Gazprom
enters the global gas market using gas swap operations.
In September 2005, Gazprom delivered its first tanker with LNG to the Cove Point
regasification terminal (Maryland, USA). This delivery was based on contracts
signed with British Gas Group and Shell Western.
In November 2005, Gazprom completed its first transaction with Gaz de France to
swap LNG and the gas transported through trunk pipelines. Gazprom supplied gas
to Europe through the pipeline swapping it for a batch of LNG provided by MED LNG
& GAS (a joint venture established by Gaz de France and Sonatrach). Liquefied nat-
ural gas was sold to Shell Western LNG at the Cove Point regasification terminal in
early December 2005.
In implementing such transactions, Gazprom will gain the required experience for
preparing its own LNG for trade. In 2006-2009, the company will keep supplying
LNG to the USA based on medium-term contracts with American companies, mov-
ing to direct Russian LNG supply on a long-term basis after 2010.
Power Industry
In pursuing its strategy to evolve into a vertically integrated energy company,

Gazprom Group acquired 10.5 % of shares in RAO UES1, which is a natural monop-
oly in energy supply and the largest energy producer in Russia, in 2004 - 2005.
In June 2005, K.G. Seleznev, who is a member of OAO “Gazprom” Management
Committee, was elected member of RAO UES Board of Directors.
As of the end of 2005, Gazprom increased its shareholding in Mosenergo, the major
energy and heat producer in Moscow and the Central Region, up to 25.01 % and
received an approval from the Federal antimonopoly service of the Russian
Federation to bring its shareholding in Mosenergo up to 32 %. Due to Mosenergo
restructuring, Gazprom received shareholdings in 13 new companies pro rata to its
shareholding.
Gazprom expands its cooperation with independent energy suppliers, which possess
a client base and technologies enabling the Group to expand its activities in the power
market. The company plans to participate in investment projects related to the con-
struction of power stations in the Russian Federation and abroad including those
within its program to construct power stations and power units at its UGSS facilities.
RAO UES is the largest gas consumer in the Russian Federation. Selling electric
power, Gazprom will be able to receive additional profit and diversify its business.
Shareholdings in the country’s energy producers will allow Gazprom to get access to
an important market segment and obtain products with higher added value. Also, its
investments in the power industry will secure Gazprom as an energy consumer from
any increase in energy prices and improve the company’s competitiveness and oper-
ational flexibility.
1
Excluding shares in the trading portfolios of Gazprom Group companies, which execute professional
trades on the stock market.
59
ANNUAL REPORT 2005
OAO “GAZPROM” INVESTMENT PROGRAM

AND RAISING FINANCE
OAO “Gazprom” investment program is subject to annual approval by the Board

of Directors and is divided into two basic sections: capital investments and long-
term financial investments. Capital investments are made into the creation and
acquisition of fixed assets recorded on OAO “Gazprom” balance sheet and then
leased out to its subsidiaries. Long-term financial investments are made in
accordance with OAO “Gazprom” strategy (normally to participate in joint proj-
ects) as well as within the measures aimed at optimizing OAO “Gazprom” organ-
ization structure.
Implementing 2005 Investment Program1
A total of RR 601.2 billion was invested in 2005, including RR 237.6 billion of capi-
tal investments and RR 363.6 billion of long-term financial investments.
The company’s major projects in gas transportation and storage included the con-
struction of such trunk pipelines as SRTO – Torzhok, Yamal – Europe, Kasimovskoye
UGSF – Voskresenk compressor station (CS), Pochinki – Izobilnoye – Severo-
Stavropolskoye UGSF, expansion of the Urengoi gas transportation unit, construc-
tion of the Krasnoznamenskaya CS at the Minsk – Vilnius – Kaliningrad gas pipeline
and of the Volokolamskaya CS at the Tula – Torzhok pipeline.
Capital investments totaling RR 26.5 billion were allocated for the reconstruction
and technical refurbishment of gas transportation facilities in order to improve the
OAO “GAZPROM” CAPITAL UGSS reliability.
INVESTMENTS IN 2005 In the field of gas production, funds were allocated for the development of the
Urengoiskoye, Yen-Yakhinskoye, Pestsovoye, Zapolyarnoye, and Yamburgskoye
BY TYPES OF ACTIVITIES fields, as well as its Aneryakhinskaya area of Yamburgskoye field, and the commis-
sioning of additional wells at the Astrakhanskoye field, the first stage of the booster
compressor station (BCS) at the Yamsovieyskoye field, BCS at the Orenburgskoye
field, and the production complex combining the Vyngayakhinskoye and Yety-
Purovskoye fields.
In the field of gas processing, capital investments were allocated mostly for the
recovery of the Orenburg Helium Plant production capacities.
In 2005, long-term financial investments amounted to RR 363.6 billion, including

RR 305.1 billion for the acquisition of OAO “Sibneft” shares and RR 33.4 billion for
the acquisition of ZAO “Sevmorneftegaz” (Sevmorneftegaz) shares, which is the
holder of the licenses to develop the Shtokmanovskoye and Prirazlomnoe fields.
Gazprom strategy to optimize its investment activities implies a significant role of

Transportation and UGSF – 66.6 % open tenders for the purchase of materials, equipment, and services, as well as the
Production – 20.2 % tenders for the selection of contractors to perform different types of work. In the
Production well drilling – 5.2 % reporting year, OAO “Gazprom” saved over RR 6.6 billion due to the implementation
Processing – 3.9 % of contest procedures.
Construction other than that of production
facilities – 1.6 %
Maintenance and repair work, equipment
not included into the construction esti-
mates and others – 2.2 %
Exploration work – 0.3 %
1 Based on management accounting.
60
ANNUAL REPORT 2005
Raising Finance
In order to carry out its investment program, OAO “Gazprom” raises funds in the
Russian and international financial markets in accordance with the Principles for
OAO “Gazprom” long-term financing approved in 2004.
Bonds placed in 2005
Amount of loan Placement date Maturity date Coupon rate Purpose of borrowing
ROUBLE-DENOMINATED BONDS
RR 5 billion 16.02.2005 10.02.2010 8.22 % General corporate
purposes
RR 5 billion 11.08.2005 06.08.2009 6.95 % General corporate
purposes
Amount of loan Placement date Maturity date Coupon rate Purpose FOREIGN
of borrowing
EUR 1 billion 01.06.2005 01.06.2015 5.875 % General corporate CURRENCY-DENOMINATED
purposes
US $ 283.2 million 19.07.2005 21.01.2010 5.625 % Refinancing BONDED LOANS
of the outstanding amount
of the MITI/OULI loan
US $ 400 million 19.07.2005 12.07.2012 5.065 % Refinancing
of the outstanding amount
of the SACE loan
and the Tragas loan
EUR 1 billion 09.12.2005 09.12.2012 4.56 % General corporate
purposes
61
ANNUAL REPORT 2005
Loans received in 2005
In the reporting year, OAO “Gazprom” continued to borrow funds in the international
markets. Listed in the table below are the loans received by OAO “Gazprom” during
2005.
Lender/
Amount of loan1 Date of agreement Maturity date Interest rate Purpose of borrowing
ING Bank NV/
SEK 353 million 16.02.2005 01.08.2014 LIBOR+0.37 % Funding the supply
of equipment
for the Vuktylskaya CS
ABN AMRO Bank/
US $ 972 million 28.04.2005 28.02.2010 LIBOR+1.5 %
LIBOR+1.25 % Refinancing of credit lines
Dresdner Bank/
US $ 15 million 03.08.2005 04.08.2035 8.868 % General corporate purposes
Credit Swiss First Boston/
EUR 200 million 08.09.2005 19.10.2008 4.05 % General corporate purposes
BNP Pariba/
US $ 200 million 16.09.2005 26.10.2008 LIBOR+0.92 % General corporate purposes
EUR 250 million 08.11.2005 14.11.2007 EURIBOR+0.19 % General corporate purposes
US $ 200 million 22.09.2005 11.09.2006 LIBOR+0.32 % General corporate purposes
EUR 200 million 22.09.2005 27.09.2006 EURIBOR+0.16 % General corporate purposes
Loan granted
by GazpromPurInvest/
RR 1,528 million 15.12.2005 25.12.2006 2% General corporate purposes
1An export loan granted by Deutsche Bank for a total of SEK371,839,496 was used when constructing Ukhtinskaya CS in 2005.
A loan received from the Credit Swiss First Boston Bank for a total of US $ 200 mil-
lion in 2004 was prolonged, the loan maturity date being shifted to November 30,
2006.
In October 2005, its subsidiary Gazprom Finance B.V. transferred outstanding liabil-
ities to OAO “Gazprom” as a consideration for the transfer of OAO “Sibneft” shares
for a total of US $ 10,079.3 million. Such outstanding liabilities were related to the
loans received by Gazprom Finance B.V. for a total of US $ 13,079 million and used
to purchase this shareholding. OAO “Gazprom” and Gazprom Finance B.V. repaid US
$ 8 billion of these outstanding liabilities as of the end of 2005. In addition to that, in
February – May 2006, OAO “Gazprom” paid back another US $ 2.6 billion from its
own sources.
In 2005, OAO “Gazprom” credit rating was raised by the rating agency Moody’s
to the level Baa2 (stable forecast) and by the rating agency Fitch Ratings to the level
BB+ (stable forecast). The rating agency Standard and Poor’s raised
OAO “Gazprom” rating to the level BB in 2005 and to the level BB+ (positive fore-
cast) in January 2006.
The International Financing Review magazine awarded OAO “Gazprom” with a prize
for its successful activities in the borrowing market in the following nominations in
62
ANNUAL REPORT 2005
2005: Global Borrower of the Year, European Borrower of the Year, and
Supranational / Agency Borrower of the Year.
Debt Portfolio Structure
In 2005 work was continued to optimize the debt portfolio structure, in particular to
decrease the share of loans secured by the company’s export revenues. Thus, the
share of secured loans in OAO “Gazprom” overall loans and borrowings amounted
to 14.6 % as of the end of 2005 (33.6 % as of the end of 2004). The share of long-
term debt instruments increased in OAO “Gazprom” debt portfolio in 2005. Given
the relatively high cost and limits of Russian bank loans, OAO “Gazprom” borrowed
most of the funds in the foreign financial markets in 2005.
Promissory notes (veksels) were not issued in 2005 as a debt instrument.
OAO “Gazprom” outstanding debt balances increased as of the end of 2005 because
of its increased current corporate needs in borrowed funds in the 4th quarter of
2005 due to its acquisition of major oil assets.
100 OAO “GAZPROM”

90 Long-term loans
80 DEBT STRUCTURE SPREAD
Long-term borrowings
70
60 Short-term loans BY TYPES OF BORROWINGS
50 59.2 % 59.3 % and borrowings
40
Promissory notes
30 27.4 % 31.5 %
(veksels) payable
20
10 13.1 % 9.2 %
0 0.2 % 0.1 %
2004 2005
63
ANNUAL REPORT 2005
Personnel
SOCIAL POLICY
The total average number of Gazprom Group’s employees in 2005 was 397 thou-
AND ENVIRONMENTAL MEASURES sand people (Sibneft’s personnel was included starting from the date of taking the
company under Gazprom’s control).
Gazprom pays much attention to advanced professional training of its employees. In

2005, over RR 1.2 billion was spent on training management, specialists, and work-
ers including RR 66 million on preparing various training and methodological mate-
rials. Over 37,5 thousand managers and specialists as well as 128,3 thousand
workers were trained within Gazprom’s system of on-going professional education
in 2005.
Social and labor relationships with employees are regulated by the General
Collective Contract of OAO “Gazprom” and its subsidiaries for the period from 2004
through 2006 (General Collective Contract) and its subsidiaries’ collective contracts.
The participants of the General Collective Contract include OAO “Gazprom” and its
38 subsidiaries employing about 260 thousand people. Employees’ interests are
presented by OAO “Gazprom” Interregional Trade Union Organization (ITUO). As of
January 1, 2006, ITUO members included 90.6 % of the people employed by the
companies, which signed the General Collective Contract.
One of the most important social guarantees is an additional pension program,

which involves monthly payment of non-government pensions to the employees by
Non-government Pension Fund “Gazfund” (NPF “Gazfund”) or monthly payments
made by subsidiaries in addition to the government pension. In 2005, over 40 thou-
sand participants received their non-government pensions from NPF “Gazfund”
amounting to an average of RR 3.8 thousand per month. Over 23 thousand pension-
ers receive monthly payments amounting to an average of RR 1.4 thousand in addi-
PEOPLE SERVED BY GAZPROM’S tion to their government pension.
HEALTHCARE SYSTEM Another major goal of the social policy is to maintain employees’ health and occu-
pational fitness and provide for safe labor environment. Gazprom assesses working
places in terms of labor environment in order to identify production factors affect
upon the employees’ health. In 2005, 58 % of the assessed working places were
recognized as satisfying the requirements to conditions of work.
Gazprom established a comprehensive health protection system for its employees,

including an extensive network of medical institutions and units of various type and
purpose.
SPONSORSHIP AND CHARITY
Social responsibility, sponsorship and charity are an integral part of Gazprom’s

development and contribute to its reputation improving corporate spirit and consid-
erably expanding the framework of the company’s constructive cooperation with the
government, business circles, and society as a whole.
Employees – 61.6 % Gazprom has been carrying out sponsorship and charity activities promoting healthy
including employees lifestyles, supporting culture and education, stimulating the development of the sci-
working in the Extreme Nort – 21.6 % entific and technical sector in the country, protecting the environment, rendering
Employees’ assistance to unprotected categories of the population, as well as preserving and
family members – 25.5 % reviving Russian national values.
Pensioners – 3.5 %
Others – 9.4 % Sports. In 2005, it continued close cooperation with the Russian Federal Agency for
Physical Culture and Sports in organizing competitions, which are important to pro-
64
ANNUAL REPORT 2005
mote sports in Russia. OAO “Gazprom” rendered its support for such mass Russian
competitions as “Ski-track of Russia” and “Nations’ Cross-Country Race”, as well as
world-level events, such as European Biathlon Championship, European Rhythmic
Gymnastics Championship, World Bandy Championship, Women’s World Handball
Championship, and the International Tennis Tournament “St. Petersburg Open”.
OAO “Gazprom” permanent partners include federations and clubs of the most pop-
ular sports in Russia: the Russian Gymnastics Federation and football club Zenit.
OAO “Gazprom” also rendered its assistance in holding a series of Vladislav

Tretyak’s Cup ice-hockey tournaments for children and youth.
Culture and spiritual wealth. Various programs aimed at developing Russian culture,
contributing to spiritual revival, and preserving national values hold a prominent
place in OAO “Gazprom” charity activities.
OAO “Gazprom” and Verbundnetz Gas AG became official partners of the

Rakhmaninov Trio, a participant of the Berlin Classical Music Concert timed to the
60th anniversary of Germany’s liberation from fascism and the completion of World
War II.
Marking the 30th anniversary of their cooperation, OAO “Gazprom” and Gaz de
France sponsored the exhibition “Russian Art in the Second Half of the 19th
Century: a Quest for Identity” in Paris.
The company sponsored the projects of the prominent native artists

D. Khvorostovsky and V. Spivakov.
In the reporting year, OAO “Gazprom” continued contributing to the restoration of

cultural and architectural monuments in the territory of the Spaso-Preobrazhensky
stavropigial monastery on the island of Valaam. OAO “Gazprom” rendered its sup- OAO “GAZPROM”
port in filming a documentary “Pilgrimage to the Eternal City” devoted to early-
Christian shrines in Rome. ENVIRONMENTAL
Technical Progress and Education. OAO “Gazprom” participated in the implementa- EXPENSE STRUCTURE
tion of a number of projects to support scientific and technical progress and educa-
tion, the International Energy Award “Global Energy” being one of the most
significant of them. There are a number of joint projects aimed at supporting and
developing Russian higher education, which are traditionally implemented together
with the Russian State University of Oil and Gas named after I.M. Gubkin.
ENVIRONMENTAL MEASURES AND ENERGY SAVING
Gazprom carries out its activities in accordance with the requirements of the
Russian environmental legislation, generally accepted international principles, as
well as “OAO “Gazprom” Policy for environmental protection and employees’ occu-
pational safety and health”, devised on their basis. The document establishes the
following priorities:
providing for the environmental safety in the areas, where gas production facili-
ties are deployed, and using nature resources in a reasonable and effective manner; Current environmental expenses – 69.2 %
providing for the industrial and environmental safety during the construction Capital environmental expenditure 19.1 %
and operation of hydrocarbon production, processing, transportation, and storage Capital repairs
facilities; of basic production facilities – 7.2 %
providing for employees’ occupational safety and health; Environmental fees – 4.5 %
contributing to the environmental safety of the regions, where Gazprom's facili-
ties are deployed. Note: management accounting data
65
ANNUAL REPORT 2005
In 2005, hazardous emissions into the atmosphere at Gazprom’s production

facilities did not mostly exceed the permitted limits for such emissions. The qual-
ity of soil as well as surface and underground water reservoirs was mainly
referred to as satisfactory. Water consumption considerably went down
(97.47 mmcm in 2005) and the discharge of polluted and insufficiently treated
wastewater decreased notably due to taking measures aimed at raising the vol-
umes of recycling water supply and improving the efficiency of wastewater treat-
ment facilities. The volume of work related to soil rehabilitation increased by
35.3 % compared to last year (9,200 ha).
In 2005, there were fewer accidents affecting the environment (a total of 27 in 2005
compared to 33 in 2004) and a lower amount of fines related to the violation of envi-
ronmental legislation (RR 3.9 million in 2004, RR 0.4 million in 2005).
In 2005, OAO “Gazprom” allocated RR 6.3 billion1 for environmental measures,

which is 14.7 % more than in 2004.
Energy Saving
The following directions are envisaged by OAO “Gazprom” in its Program for energy
saving for the period from 2004 through 2006:
gas production – bringing down gas spending for technological needs, optimizing
technological facilities operation, improving control over gas consumption, and
accounting for gas consumption;
gas transportation – reconstructing gas transportation facilities, carrying out sys-
temic optimization of technological regimes applied to trunk transportation facilities,
bringing down gas losses, implementing automated management systems and tele-
mechanics, improving technical condition of gas pumping units, and bringing down
gas spending for technological needs;
gas processing – raising heat utilization level for the technological flows, raising
the efficiency of gas-driven heat units, and implementing new energy saving
processes;
underground gas storage – bringing down buffer volumes at underground gas
storage facilities and reducing formation gas losses.
1
Figures are based on the management reports.
66
On December 9, 2005, the “first joint” of the ground part was welded in the Vologda region at
the North European Gas Pipeline, which will become a fundamentally new export route for the
Russian natural gas supply to Europe. The gas pipeline will bring “blue fuel” to Germany, UK,
the Netherlands, France, and Denmark. Its offshore segment under the Baltic Sea will be
1,198 km long. A joint venture was established with E.ON Ruhrgas and BASF for its construc-
tion and operation. The gas will start flowing through the North European Gas Pipeline as early
as in 2010. The North European Gas Pipeline will allow Gazprom to increase the reliability and
flexibility of its gas supply from Russia and to meet the growing demand for Russian gas in the
unified Europe.
ANNUAL REPORT 2005
SHARE CAPITAL
INFORMATION FOR
In 2005, OAO “Gazprom” share capital remained at RR 118,367,564,500. It is
SHAREHOLDERS AND INVESTORS divided into 23,673,512,900 ordinary registered shares with a par value of RR 5
each. The total number of shareholders amounted to 471,956 as of December
30, 2005.
The structure of OAO “Gazprom” share capital changed considerably in the report-
ing year. After the state owned company Rosneftegaz had purchased 10.740 %
SHAREHOLDERS’ CAPITAL shares in OAO “Gazprom”, the shareholding in OAO “Gazprom” controlled by the
Russian Federation increased up to 50.002 %. This resulted in higher governmental
STRUCTURE control over the company, which is strategically important for the national economy.
AS OF DECEMBER 30, 2005 In addition to the shifts in the share capital towards the increase in the government
shareholding, the share of Russian legal entities went down by 6.438 %.
The increase in the share of Russian individuals underwent some minor decrease
of 0.250% (compared to 0.712% in 2004). As part of the transaction aimed
at increasing governmental shareholding, OAO “Gazprom” subsidiary Gazprom
Finance B.V. registered in the Netherlands sold 4.577 % of its shareholding in
OAO “Gazprom” to Rosneftegaz in June 2005. Therefore, the non-residents’ share
decreased from 11.500 % down to 6.923 %. After Decree of the President of the
Russian Federation № 1519 came into force on December 23, 2005 canceling the
procedures, which envisaged the requirement for foreign participants to obtain per-
mits when purchasing OAO “Gazprom” shares, the non-residents’ total sharehold-
ing in OAO “Gazprom” increased up to 7.448 % by the end of the reporting year.
SHARE MARKET AND CAPITALIZATION
Canceling any limitations on the trading of OAO “Gazprom” shares was the most
Controlled significant event both for OAO “Gazprom” and the whole Russian stock market in
by the Russian Federation – 50.002 %* 2005. Liberalization of the company’s share market was stipulated by the Federal
Russian legal entities – 29.482 % Law “On making amendments to Article 15 of the Federal Law “On gas supply in the
Russian Individuals – 13.068 % Russian Federation”, Decree of the President of the Russian Federation № 1519
Non-residents – 7.448 % dated December 23, 2005, and Regulation of the Government of the Russian
Federation № 818 dated December 28, 2005. These regulations removed any leg-
*Russian Federation represented islative limitations concerning foreign shareholding in OAO “Gazprom” and the
by the Federal agency for federal property
management has 38.373 %. State companies number of trading floors where its shares can be traded.
OAO ”Rosgazifikatsiya” and OAO “Rosneftegas”
have 0.889 % and 10.740 % respectively. In the reporting year, the company’s shares were mostly traded at the St. Petersburg
Stock Exchange (SPBEX) through the Russian Trade System (RTS) terminals as
before. The interest to OAO “Gazprom” shares continued to grow in the anticipation
of its share market liberalization. In 2005, the average daily volume of trade at
SPBEX increased 1.49 times compared to the previous year and amounted to US $
86 million (US $ 59 million in 2004). The maximum volume of trade reached as high
as US $ 533 million (compared to US $ 318 million in 2004).
LIST OF SHAREHOLDERS WITH Shareholders Shareholding, %

Russian Federation
represented by the Federal Agency
A SHAREHOLDING EXCEEDING 2 % for Federal Property Management 38.373
OAO “Rosneftegaz”* 10.740
Bank of New York International Nominees** 4.422
AS OF DECEMBER 30, 2005 ZAO “Gerosgaz” 2.930
E.ON Ruhrgas AG 2.500
ZAO “Novy Proekt” 2.339
* 100 % owned by the Russian Federation.
** Nominal holder of shares within OAO “Gazprom” ADR Program.
68
ANNUAL REPORT 2005
80 OAO “GAZPROM” ADR

190 75
180 70 AND ORDINARY SHARE PRICE
170 65
160
60
DYNAMICS IN 2005
Prices, roubles
150
Prices, US$
55
140
50
130
120 45
110 40
100 35
90 30
80 25
70 20
January
February
March
April
May
June
July
August
September
October
November
Share price at SPBEX, rubles December

ADS price at LSE, US$
Similar trends were noted on the OAO “Gazprom” ADR market, which were primarily
traded at the London Stock Exchange (LSE). In 2005, the average daily volume of
trade on the LSE was US $ 34 million, whereas the maximum volume of trade there
was US $ 165 million. During 2005, the company’s ADRs gained 102 % on the LSE.
The regulations adopted in December 2005, which removed any legislative limita-
tions concerning the circulation of OAO “Gazprom” shares, not only cancelled any
quotas related to the acquisition of its shares by foreign holders but also allowed the
trading of these shares at all the Russian stock exchange trading floors.
In 2006, OAO “Gazprom” shares were included into the non-listed securities at the
Moscow Interbank Currency Exchange (MICEX) and RTS. This enables carrying out
transactions in OAO “Gazprom” shares at the leading Russian stock exchanges.
Close price 2004 2005 2005/2004, % INCREASE IN OAO “GAZPROM”

Russian Trade System, roubles per share
As of end of year 76.57 194.30 253.8 ADR AND SHARE PRICE

Minimum 40.55 69.60 171.6
Maximum 84.70 195.00 230.2
London Stock Exchange, US $ per ADR
As of end of year 35.50 71.70 202.0

Minimum 26.25 29.80 113.5
Maximum 39.40 78.50 199.2
OAO “Gazprom” share market liberalization also influenced ADRs for the company’s
shares. On April 18, 2006, the OAO “Gazprom” Level 1 ADR Program (ADR
Program) was launched. This was accompanied by a decrease in the ratio of
OAO “Gazprom” ordinary shares per ADR from 10 shares per ADR to 4 shares per
ADR. OAO “Gazprom” ADRs, which circulated before April 18 and were issued under
Regulation S, were automatically converted in accordance with the above ratio
(adjusted to the effective limitations).
The ADR Program makes it possible to convert OAO “Gazprom” ordinary shares into
ADRs and back (as permitted by the effective legislation) since April 18, 2006.
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ANNUAL REPORT 2005
Depositary receipts issued within the ADR Program can be freely traded in the US
over-the-counter markets and in the European stock markets. The maximum num-
ber of ordinary shares, which may back all OAO “Gazprom” ADRs, will not exceed
35 % of OAO “Gazprom” share capital.
In 2005, OAO “Gazprom” shares were growing faster than RTSI, which grew by
83.3 % over the reporting year. The share prices increased 2.5 times at SPBEX in
2005 compared to 2004, while the company’s average capitalization grew by 68.2 %
to US $ 91.13 billion1.
MARKET CAPITALIZATION 100

90 91.13
OF OAO “GAZPROM” 80
60 54.24
Billion US$
50
40
30
20
10
0
2004 2005
DIVIDENDS
DIVEDENDS Accrued, Paid, Unpaid, Unpaid/

thousand roubles thousand roubles thousand roubles * Accrued ratio, %
Total 28,171,480 28,134,598 36,882 0.131
PAID OUT IN 2005
including:
Russian Government 10,810,284 10,810,284 – –
ON RESULTS OF 2004 individuals
and legal entities 17,360,569 17,324,314 36,255 0.209
AS OF DECEMBER 31, 2005. unidentified
persons 627 – 627 100
*Dividends remained unpaid due to the absence of information about shareholders’ names and/or addresses
and payment details changes. Clause 44 of Chapter 6 of the Federal Law “On joint stock companies” makes
shareholders responsible for due notice of such changes.
OAO “Gazprom” Dividend policy aimed at raising shareholders’ wealth is based on

maintaining the balance between corporate interests and shareholders’ interests.
Based on the results of operations in 2005, the Board of Directors recommends pay-
ing dividends in the amount of 1.50 roubles per share. The amount of dividends was
determined in accordance with OAO “Gazprom” Dividend policy, approved by
Resolution of the Board of Directors № 219 dated April 24, 2001.
1 In accordance with the OAO “Gazprom” dividend policy, market capitalization in this Report is calculated as the sum
of the arithmetic average of the daily market capitalization of the internal market and the arithmetic average of the daily
market capitalization of the external market. For the purpose of this document, the number of shares traded in the inter-
nal market and the external markets was set as follows compared to the total number of ordinary shares (23 673 512 900
pieces):
– 88.5 % and 11.5 % from January 1 through June 22;
– 93.08 % and 6.92 % from June 23 (the date when shares were sold by Gazprom Finance B.V.) through December 22;
– 95.58 % and 4.42 % (the ADR program for OAO “Gazprom” shares effective during this period) from December 23
(date of Presidential Decree № 1519 coming into force) through December 30.
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ANNUAL REPORT 2005
1,6 1.50 DIVIDENDS PER SHARE,

1,4
1,2 1.19 ROUBLES
1
roubles
0,8
0,6
0,4
0,2
0
2004 2005 (proposed)
FINANCIAL COEFFICIENTS AND MARKET INDICATORS
2004 2005 OAO “GAZPROM”

Return ratios*
Return on equity, % 8.70 6.86 FINANCIAL
Return on assets, % 6.41 5.26
Return on sales, % 23.85 29.09 AND MARKET RATIOS
Liquidity ratios*
Current liquidity ratio 3.04 3.34
Quick ratio 2.52 2.67
Financial stability ratios*
Equity/assets ratio 0.74 0.77
Market ratios
P/E ratio
(domestic OAO “Gazprom” share market) 11.29 22.67
P/E ratio
(external OAO “Gazprom” share market) 14.49 24.06
Market capitalization, US $ billion 54.24 91.13
Market capitalization/net assets 0.84 0.87
*Calculated in accordance with the Regulation on information disclosure by securities issuers approved by
Order of the Federal Financial Market Service № 05-5/pz-n dated March 16, 2005.
CORPORATE GOVERNANCE
The main corporate governance principles accepted and implemented by

OAO “Gazprom” are aimed at protecting its shareholders’ rights and interests, fair
treatment of its shareholders, professional and ethical responsibility of the members
of the company’s Board of Directors and other officials and shareholders, improve-
ment of information openness and development of its business ethics framework.
The implemented corporate governance principles are worded in OAO “Gazprom”

Corporate Governance (Behavior) Code, which was approved by the company’s
annual General Shareholders Meeting in 2002. In its operations OAO “Gazprom” fol-
lows this Code’s recommendations.
Shareholders exert their rights related to their participation in managing

OAO “Gazprom” primarily by taking decisions on the crucial issues of the com-
pany’s operation at the General Shareholders Meeting.
The existence of OAO “Gazprom” Dividend policy, which was approved by the Board
of Directors and defines the approach towards the distribution of the company’s net
71
ANNUAL REPORT 2005
profit, provides for the transparency in the dividend income calculation and its
growth in line with the increase in OAO “Gazprom” net profit.
The shareholders are provided with objective and exhaustive information about
OAO “Gazprom” activities on a timely basis. The General Shareholders Meeting
made certain amendments to the Charter in 2005, which envisage notifying the
shareholders 30 days in advance about the General Shareholders Meeting to be
held.
Certain amendments were also introduced into the Regulation on OAO “Gazprom”
Board of Directors related to the Board of Directors’ decisions requiring unanimous
or qualified majority of votes to be taken.
The Board of Directors acts in the interests of OAO “Gazprom” and its shareholders.
The Regulation on the Board of Directors stipulates its members’ responsibility to
act reasonably and in good faith in OAO “Gazprom” interests.
In July 2005, the Board of Directors established its Valuation Committee and Audit
Committee, which started functioning. The Valuation Committee’s function is to
analyze and draft proposals on improving the valuation procedures with regard to
OAO “Gazprom” and its subsidiaries’ property involved in their transactions and pre-
pare opinions on the efficiency of any property transactions contemplated by OAO
“Gazprom” and its subsidiaries. The Audit Committee’s function is to evaluate OAO
“Gazprom” potential auditors, the efficiency of OAO “Gazprom” internal control pro-
cedures, and the auditor’s opinion for the annual General Shareholders Meeting.
An efficient internal control system was established to effectively control

OAO “Gazprom” financial and business activities. It consists of the Department of
Internal Audit and Control over the Subsidiaries’ Financial and Business Activities,
the Audit Committee of OAO “Gazprom” Board of Directors, and the Revision
Commission.
OAO “Gazprom” meticulously sticks to the legislative requirements with regard to

the information disclosure in the security markets as well as provides additional
data to better inform its shareholders and all the stakeholders about its activities fol-
lowing the guidelines contained in the Regulation on OAO “Gazprom” Information
Disclosure approved by the Resolution of the Board of Directors in February 2005.
The company has a regularly updated web-site in Russian (www.gazprom.ru) and in

English (www.gazprom.com) containing information about OAO “Gazprom” history,
current events, assets, as well as its financial and business activities.
There is the Issuer’s Quarterly Report containing information about OAO “Gazprom”
operations, including its accounting (financial) statements, and a report on corpo-
rate behavior code compliance, which is submitted to SPBEX in accordance with its
listing contract.
The following documents are published on a regular basis:

consolidated financial statements of Gazprom Group prepared in accordance with
the International Financial Reporting Standards (IFRS);
consolidated interim condensed financial statements of Gazprom Group prepared
in accordance with IFRS;
management’s discussion and analysis of financial condition and results of oper-
ations of the Company.
72
ANNUAL REPORT 2005
OAO “Gazprom” prepares its environmental report for the General Shareholders
Meeting describing its environmental activities.
In 2005, information about OAO “Gazprom” activities was also disclosed in the form
of news releases, briefings, press conferences, and telephone conferences.
According to the survey entitled “Information transparency of Russian companies

controlled by the Government” carried out by Standard and Poor’s in 2005,
OAO “Gazprom” ranked first in the list of state-owned Russian companies in terms
of completeness of their information disclosure.
ASSET MANAGEMENT AND IMPROVING CORPORATE STRUCTURE
In the reporting year, OAO “Gazprom” entered an important stage in reaching its
strategic goal to evolve into a global energy company and a world leader. In accor-
dance with this goal, OAO “Gazprom” improves its corporate structure in the follow-
ing areas:
Acquisition of Core Assets
In pursuing its objective to expand its resource and production base,

OAO “Gazprom” performed certain work to acquire core assets in 2005.
In pursuing horizontal integration, the Group strengthened its presence in the oil
production segment in the reporting year by means of acquiring a 75.68 % share-
holding in OAO “Sibneft”. As of the end of 2005, OAO “Gazprom” owned a 59.01 %
shareholding in this oil producer. A 16.67 % shareholding is owned by
OAO “Gazprom” 100% subsidiary Gazprom Finance B.V.
Corporate control was regained over 51 % of shares of Northgas, which holds the
license to develop the Severo-Urengoiskoye field. OOO “Urengoigazprom” owns
51 % of the company’s shares, three members in Northgas’ Board of Directors,
which consists of five members, are OAO “Gazprom” representatives.
In order to obtain licenses for the use of mineral resources at the Eastern and
Western parts of the Yuzno-Kovyktinskaya area of the Irkutsk region
OAO “Gazprom” acquired a 100% shareholding in OAO “Irkutskgazprom”.
The Group established complete control over Sevmorneftegaz, which is the

holder of the license for the use of mineral resources at the Shtokmanovskoye and
Prirazlomnoe fields. In late 2004, the Group had acquired OAO “NK “Rosneft” share-
holding in joint activities related to the funding, development, and operation of the
Prirazlomnoe oil field and Shtokmanovskoye gas condensate field. Thus
OAO “Gazprom” became the sole financing participant of the project within the con-
tract on joint activities related to the development of these fields.
Diversification of Activities
In the second quarter of 2005, in order to consolidate its presence in the energy
market, OAO “Gazprom” purchased from OOO “Novfintech” controlled by Gazprom
Group a 100% shareholding in OOO “Gazoenergeticheskaya Kompaniya” having a
10.49 % shareholding in RAO UES. Its control over this asset will allow
OAO “Gazprom” to participate in the reform of the Russian power industry.
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ANNUAL REPORT 2005
Improving Corporate Structure
The Group has been undergoing internal reform aimed at improving manage-
ment, strengthening control, and raising the transparency of its operations. The
first stage involved the improvement of the corporate governance structure, the
main procedures, and the budgeting system at the head company level. The sec-
ond stage, which is currently underway, is aimed at raising the efficiency of
OAO “Gazprom” as a vertically integrated company, ensuring structural optimiza-
tion of the control over the main types of activities at the subsidiary level, and
raising the transparency of costs.
The subsidiaries combining gas production and processing with its transportation
and underground storage are to be split into the units specializing in separate types
of activities. The structural reorganization will result in a split of cash flows related
to the production, transportation, processing, underground storage, and marketing
of gas and liquid hydrocarbons. Services, gas distribution networks, and social
infrastructure are to be transformed into separate units. The reforms are intended to
improve the transparency of operating costs and provide for their fair statement
when establishing regulated tariffs for gas transportation. In 2006, the type of activ-
ities which are not common for the subsidiaries engaged in production and pro-
cessing is planned to be transferred to the new specialized subsidiaries, including
such OAO “Gazprom” subsidiaries as OOO “Gazprom-PKhG” (underground gas
storage) and OOO “Gazprompererabotka” (processing of gas and liquefied hydro-
carbons), and specialized service companies will be singled out. It is further planned
to complete the consolidation of communications services and establish specialized
entities to implement investment projects.
Restructuring of Activity Segments
In order to optimize its corporate structure, management systems, and control over
the gas chemical and petrochemical segment, as well as improve stability of its activ-
ities, Sibur Group, which is part of OAO “Gazprom”, was restructured in 2005. As a
result, OAO “Gazprom” and Gazprombank Group gained control over 100% stake in
Sibur Holding established with Sibur’s participation based on liquid petrochemical
and gas chemical assets. Thereby Sibur’s and its subsidiaries’ debts to
OAO “Gazprom” for a total of RR 40.1 billion were settled.
In order to optimize its asset structure, reduce its non-operating expenses,

OAO “Gazprom” sold its shareholdings in OAO “Gazprom-Media” and other media
companies to OOO “Elion” controlled by Gazprom Group in 2005.
Disposal of Non-core Assets
In 2005, contracts were signed for the sale of non-core assets for a total
of RR 21.4 billion. Some of the funds from the sale of non-core assets will be
received in the years to come.
As per their budgets for 2005, OAO “Gazprom” and its subsidiaries planned to
receive a total of RR 2.781 billion as revenues from the sale of non-core assets.
The actual figures related to the implementation of the budget exclusive of intra-
group transactions amounted to RR 5.8 billion including RR 3.7 billion from the sale
of shareholdings and RR 2.1 billion received from the sale of other securities as well
as movable and immovable property items.
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ANNUAL REPORT 2005
OAO “Gazprom” and its subsidiaries sold over 70 shareholdings including

40 ones sold outside Gazprom Group. A number of large-scale assets were sold
such as OAO “Kurgansky Mashinostroitelny Zavod”, OAO “Gazprom-Kran”,
ZAO AKB “Sibirgazbank”, OAO KB “Severgazbank”, and AO “Vseobshchy Bank
po Oborotu Tsennostey”.
Transfer of Social Entities to Municipal Authorities
In 2005, the company’s subsidiaries continued to transfer social entities to the

municipal authorities. 4 400 out of 9 320 such objects (mostly those of housing
and social infrastructure) were transferred to the municipal authorities by the end
of 2005.
In the reporting year, a contract was signed for the transfer of housing stock, social,
cultural, and utility sphere objects recorded on OOO “Urengoigazprom” balance
sheet to a municipal formation, i.e. the town of Novy Urengoi. It represented the first
time that OAO “Gazprom” transferred the housing and social infrastructure of a town
with a population of about 100 thousand people to municipal authorities.
State Registration of OAO “Gazprom”

Title to Immovable Property Items
In 2005, the technical inventory of 53 thousand immovable property items belonging

to OAO “Gazprom” was generally completed. OAO “Gazprom” arranged for the state
registration of its title to 47 % of its real estate items.
In 2005, the company completed all of its topographic and land measuring work,
performed most of its land planning work, had over a half of its land plots regis-
tered with the state cadastre, and took active measures to sign contracts for leas-
ing out its land plots.
In 2005, work was carried out in the company’s 35 subsidiaries to install a software
package entitled “Unified Register of the Title to OAO “Gazprom” Immovable
Property”, which would provide for managing Gazprom Group’s immovable property
based on a unified information and analytical platform.
MAJOR TRANSACTIONS AND TRANSACTIONS IN WHICH OAO “GAZPROM” HAD AN

INTEREST
No major transactions (as defined in the existing Russian legislation) were carried out
by OAO “Gazprom” in 2005.
OAO “Gazprom” completed 757 transactions in 2005 defined in the existing Russian
legislation as transactions, in which the company has an interest. These were approved
by the Resolution of OAO “Gazprom” annual General Shareholders Meeting dated
June 24, 2005 (Minutes № 1) and Resolutions of OAO “Gazprom” Board of Directors.
The information about these transactions is to be found in the Appendix hereto.
All the transactions approved by the annual General Shareholders Meeting and
OAO “Gazprom” Board of Directors support operational and commercial activities of
the company and its corporate concern.
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ANNUAL REPORT 2005
MAJOR RISK FACTORS
Any of the risk factors may have an adverse affect on Gazprom’s activities and finan-
cial standing. If such risks arise Gazprom will take all the possible measures to min-
imize their adverse effect. There is no guarantee, however, that these actions will
rectify the situation since the factors described are beyond Gazprom’s control.
Industry Risks
Risks of Higher Competition and Changes in Gas Prices in European Market
Gazprom sells a considerable amount of its natural gas in Europe. Gas sales constitute
a major part of sale revenues. Gazprom exports natural gas to the European countries
primarily under long-term contracts at prices adjusted to the changing international
prices for competing oil products. These prices may fluctuate considerably when influ-
enced by the factors beyond Gazprom’s control.
In the European markets, Gazprom faces competition from producers of alternative

fuels. There is also intense competition from other natural gas producers, in particular
those based in Norway, Algeria, and the Netherlands.
Risk Related to Regulated Gas Prices
In spite of continuous changes in regulated gas prices carried out since 2000,
wholesale prices for the natural gas supplied to Russian consumers neither provide
for profitable gas sales in the domestic market or reinvestment funds, nor take into
consideration a number of important pricing factors, such as the relative price level
for the alternative fuels.
Gazprom works with Federal authorities in validating the necessary level of changes
in the regulated prices to prevent losses from the sale of gas in the domestic market
and ensure the transition to economically reasonable price levels. However, the
Government of the Russian Federation is to take the final.
Risks Related to Company’s Operations
License-Related Risks
Gazprom carries out its activities related to hydrocarbon exploration and production
based on licenses for the use of mineral resources. Most of the licenses are subject
to withdrawal provided that the requirements of license agreements are not com-
plied with. Gazprom complies with the major requirements of license agreements.
Gazprom plans to prolong the existing licenses for the fields of hydrocarbon raw
materials, which will still be productive after the expiry of the licenses.
There are no guarantees that there will be no changes in the current legislation,
including licensing aspects, in the future, which might have an adverse effect on
Gazprom’s activities.
Environmental Risks
Gazprom’s production activities are linked to the potential risk of causing environ-
mental pollution or environmental damage. This results in the risk of civil liability
and the need to take measures to eliminate such damage. Gazprom monitors its
activities in order to comply with the effective environmental standards and imple-
ments environmental programs. When devising its financial plans, Gazprom makes
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ANNUAL REPORT 2005
provisions for its liability for environmental pollution when such liability is probable
and its amount can be reasonably assessed.
Risks of Equipment Failure
Gazprom’s gas exploration, production, and transportation activities may be

linked with adverse effects of various factors including equipment damage or fail-
ure, possible problems in technological processes, as well as decrease in produc-
tion figures below the expected production or efficiency levels. At the same time,
the UGSS provides for systemic reliability of gas supply (i.e. if an accident occurs
at one of its parts gas can still be supplied using other routes due to inter-system
links and bypasses). Also, Gazprom constantly monitors the systems of gas sup-
plies to consumers, reconstructs and upgrades them, thus mitigating such risks.
Country and Regional Risks
Risks Related to European Gas Market Liberalization
The implementation of the EU Gas Directives, adopted in 1998 and 2003, resulted in
the growing liberalization of the European Union gas market. They seek to stimulate
competition and bring down prices for ultimate consumers. All the consumers
(except those in the utility sector) received the right to select their gas supplier since
July 1, 2004; such right is to be effective for all the consumers from mid-2007.
The implementation of the EU Gas Directives will promote the development of the
market for short-term and spot transactions with natural gas. Expanding natural gas
trade using short-term and spot transactions may complicate prolongation and
signing of long-term gas supply contracts for Gazprom. However, when it is eco-
nomically efficient Gazprom uses spot transactions to sell additional gas volumes
(sometimes at higher prices).
In its Gas Directive 2003/55/EC the European Union officially admits the importance
of long-term contracts to supply natural gas to EU member countries. There is no
guarantee, however, that the EU authorities will not change their position in the
future.
Risks Related to Natural Gas Transportation
Gazprom natural gas export activities depend upon transit countries with transi-
tional economies, Ukraine in particular. Sometimes part of natural gas used to be
off-taken not due to the terms of existing transit contracts when moving through
Ukraine. At the same time, Ukraine is dependent upon Gazprom in covering its
needs in natural gas.
Gazprom takes measures to minimize the risks related to the natural gas transit
through Ukraine. A package of documents was signed, which set out the terms and
conditions of Russian and Ukrainian cooperation in the field of natural gas supplies
and transit for the period up to 2028.
In order to offset this risk Gazprom diversifies gas export routes. An example of
such work is the project of the Yamal-Europe pipeline construction to pass through
the territories of Belarus and Poland and the decision to construct the North
European Gas Pipeline under the Baltic Sea.
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ANNUAL REPORT 2005
Financial Risks
Risk of Changes in Currency Exchange Rates
The main currency exchange risk for Gazprom is related to the fluctuation of the rou-
ble to US dollar and rouble to Euro exchange rates. Rouble depreciation in relation to
US dollar or Euro will result in higher costs and expenses denominated in foreign
currency as well as in higher rouble value of outstanding loans denominated in for-
eign currency. The risks related to the fluctuation of currency exchange rates are
limited because most of Gazprom’s revenues (over 50 % annually) are also denom-
inated in US dollars and Euro.
Risk of Changes in Interest Rates
A considerable part of Gazprom’s debt portfolio is presented by syndicated loans

granted by Western banks. Many of these loans have an interest rate based on
LIBOR/EURIBOR rates for inter-bank loans. Thus higher interest rates may result in
higher debt service cost for Gazprom.
Over the past few years, the share of loans with a fixed interest rate has increased
in Gazprom’s debt portfolio mitigating this risk to a certain extent.
Risks Related to Customs, Currency, and Tax Regulations
Risks Related to the Monetary Policy

of the Central Bank of the Russian Federation (Bank of Russia)
In implementing its monetary policy the Bank of Russia indirectly influences the
financial markets and the money supply. Its major priority for the time being is to
maintain a stable rouble exchange rate and raise its actual purchasing power. In pur-
suing these goals through its various tools, the Bank of Russia influences the com-
panies both directly in indirectly. Any actions taken by the Bank of Russia may either
decrease or increase Gazprom’s risks, which will influence financial performance of
the company.
Risk of Changes in Currency Regulation
Gazprom participates in foreign trade, has some of its assets and liabilities denomi-
nated in foreign currency as well as foreign currency accounts opened with foreign
banks and their branches located abroad. Therefore the company is subject to con-
siderable risks of changes in currency regulation.
The law “On currency regulation and currency control” effective from June 2004
enables the Government and the Central Bank of the Russian Federation to take
measures aimed at strengthening currency control including that over Russian com-
panies’ transactions with foreign securities and borrowings denominated in foreign
currency. The law sets a number of limits related to transactions with foreign cur-
rency such as making obligatory provisions with the Bank of Russia and authorized
banks for certain types of transactions with foreign currency, notifying about open-
ing certain accounts abroad, carrying out some other transactions with foreign cur-
rency and opening special accounts in order to make settlements in foreign
currency.
In 2005, the Russian Federation regulations concerning currency regulation and cur-
rency control were amended. These amendments were aimed at liberalization and
further improvement of the currency regulation regime. In particular, changes were
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ANNUAL REPORT 2005
introduces to the procedures for preliminary registration of accounts, the provisions

regulating opening of residents’ accounts with banks outside the Russian Federation
as well as the procedures for making provisions and recovering these provisions.
Effective from January 2006, currency regulation authorities are not entitled to
demand that any residents or non-residents should obtain individual permits.
However, the existing limitations with regard to carrying out foreign currency trans-
actions may have an adverse effect on Gazprom operating results, in particular on
the company’s ability to repay loans.
Risk of Changes in Tax Legislation
Gazprom is one of the largest taxpayers in the Russian Federation paying federal,
regional, and local taxes, in particular value added tax (VAT), excise tax, corporate
income tax, unified social tax, corporate property tax, and land tax.
The tax reform carried out in the Russian Federation over the recent years is accom-
panied by a decrease in tax burden. Thus, a flat individual income tax rate of 13 %
has been established, corporate income tax has been decreased from 35 % down to
24 %. Value added tax (VAT) has been decreased from 20 % down to 18 % effective
from January 1, 2004. The maximum unified social tax rate has also been decreased
from 35.6 % down to 26 % effective from January 1, 2005.
At the same, a decreased tax burden for one tax is sometimes accompanied by an
increased tax burden for another one in the field of Gazprom’s activities. For
instance, excise tax on natural gas was canceled effective from January 1, 2004,
whereas export duties on natural gas were raised from 5 to 30 %. A mineral
resources tax (MRT) rate of RR 107 per 1 000 cubic meters of the natural gas pro-
duced replaced a rate of 16.5 % of the cost of the natural gas produced, which used
to amount to about RR 32 per 1 000 cubic meters. When selling oil and natural gas
to the CIS countries, the sales are subject to a 0 % VAT rate effective from January
1, 2005. At the same time, the MRT rate was increased from RR 107 up to RR 135
per 1 000 cubic meters of the natural gas produced effective from January 1, 2005.
Also, effective from January 1, 2005, revenues received by Russian companies and
individual tax residents in a form of dividends as a result of having a share in other com-
panies’ activities are now taxed at a rate of 9 % compared to an earlier rate of 6 %.
There is a risk of further changes or amendments to the legislation on tax and

charges, which may result in higher tax burden for Gazprom.
Risk of Changes in Customs Control Rules and Customs Duties
Article 315 of the new Customs Code of the Russian Federation vests customs
authorities with a right to demand guarantees of customs payments. At the same
time, the Instruction approved by Order of the State Customs Service of the Russian
Federation № 1013 dated September 15, 2003, charges tax authorities with ensuring
that customs payments are collected.
The State Customs Service of the Russian Federation has granted a permit to
OAO “Gazprom” / OOO “Gazexport” to get customs clearance for its natural gas
without securing its customs payments. However, OAO “Gazprom” may not guaran-
tee that this permit will not be withdrawn or challenged in the future.
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ANNUAL REPORT 2005
In addition, moving to the system of unsecured customs payments creates a risk

related to tough deadlines to transfer customs duties and charges and strict compli-
ance with a 50 % advance payment for each contract.
When exporting gas to European countries involving the transit through Ukraine,
risks may arise related to unauthorized off-takes of gas intended for Western con-
sumers. Such situation complicates customs control procedures.
SIGNIFICANT LAW SUITS FILED AGAINST GAZPROM GROUP
1. An American company Moncrief Oil International Inc. filed a law suit against
OAO “Gazprom” in the U.S. District Court for the Northern District of the State of
Texas on June 7, 2005 demanding a restoration of its rights to the Yuzhno-Russkoye
field and/or OAO “Severneftegazprom” or compensation of losses estimated by the
claimant at several billion dollars. OAO “Gazprom” has never signed or approved
any agreements with Moncrief Oil International Inc., has never received any pay-
ments thereunder, and has never agreed to the hearing of disputes with its partici-
pation in any of the US courts. In March 2006, the court declined the law suit due to
having no jurisdiction with regard to OAO “Gazprom”. The claimant submitted an
appeal.
2. In July 2005, a firm Minardi filed a claim in the Faenza court demanding an arrest
of OAO “Gazprom” property for a total of US $ 56 million as a security of
OAO “Gazprom” alleged obligation to provide sponsorship support to Minardi.
The Faenza court passed a resolution to completely dismiss Minardi’s claim.
3. OAO “NK “YUKOS” (YUKOS) filed a law suit in the Moscow Arbitration Court
against the Russian Fund of Federal Property, OOO “Baikalfinansgrup”, OAO “NK
“Rosneft”, OOO “Gazpromneft”, OAO “Gazprom”, and the Ministry of Finance of the
Russian Federation. In its law suit, YUKOS asked to invalidate the auction, which
was held on December 19, 2004, to sell shares in OAO “Yuganskneftegaz”, and the
contract signed at the said auction and to enforce a collective compensation for its
losses and damages for a total of RR 388.3 billion from the defendants.
4. In October 2005, a law suit was filed with the US District Court for the District of
Columbia on behalf of 12 American shareholders of YUKOS against the Russian
Federation and other defendants including OAO “Gazprom”. The shareholders
intend to get a compensation to offset the decrease in the YUKOS’ shares value.
After the defendant’s opinion is provided, the court will consider its jurisdiction on
this case.
5. The Bluefield Group Corporation (Bahama Islands) filed a law suit against
OAO “Gazprom” claiming a compensation of RR 355.5 million. The first instance
court dismissed the suit. The appeal court and the court of review confirmed the
validity of the resolution.
6. A law suit filed by OOO “Stilkant” against OAO “Gazprom” claiming a compensa-
tion of an equivalent of US $ 10.4 million was satisfied by the resolution of the first
instance court. The appeal court canceled this resolution and dismissed the law suit.
The claimant submitted an appeal to the court of review.
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ANNUAL REPORT 2005
7. OAO “Rosgazifikatsiya” filed a law suit against OAO “Gazprom” and ZAO “SR
DRAGA” claiming to enforce a collective compensation for its losses for a total of RR
1,459 million. The proceedings were dismissed in 2005. The Higher Arbitration
Court of the Russian Federation has recently transferred the case to the Moscow
Arbitration Court for a trial procedure.
8. OAO “Rosgazifikatsiya” filed a law suit against OAO “Gazprom”, V.V. Plotnikov,
ZAO “SR DRAGA”, and OYuL “Depozitarno-raschyotny Soyuz” claiming to enforce a
collective compensation of its losses for a total of RR 9,370 million.
The Cheryomushkinsky District Court of Moscow passed a resolution to dismiss the
law suit. The Moscow City Court canceled the resolution and returned the case to
the Cheryomushkinsky District Court of Moscow to be tried anew. OAO “Gazprom”
has lodged a supervisory complaint on the decision of the Moscow City Court.
9. OOO “SpetsStroyKompleks-68” filed a law suit against OAO “Gazprom” claiming

a compensation of RR 159.2 million. The first instance court partially satisfied the
law suit for a total of RR 75.5 million. OAO “Gazprom” filed an appeal (the court
proceedings in the appeal instance court were suspended after OAO “Gazprom”
petition for an additional expert evaluation was satisfied).
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ANNUAL REPORT 2005
ADR of OAO “Gazprom” Gas cubic meter

GLOSSARY An American depository receipt (an American depositary share) Cubic meter of natural gas as measured at a pressure of one
issued on OAO “Gazprom” shares, equals 10 ordinary atmosphere and 20°C
OAO “Gazprom” shares as of December 31, 2005. Gas sales
OF BASIC TERMS
Volume of gas sold to the consumers in the considered market
ADR Program with no account taken of the intra-group sales. This includes all
AND ABBREVIATIONS OAO “Gazprom” ADR Program Level 1 the gas sold by Gazprom Group, i.e. the one produced at its own
fields and purchased from third companies.
ADR Program Level 1
ADRs issued within this program are freely traded in the US Gazprom Group, Group, Gazprom
over-the-counter markets and in the European stock markets. OAO “Gazprom” (head company) and its subsidiaries taken as a
whole. For the purpose of the Annual Report, the list of sub-
ADR Program Regulation S sidiaries was prepared on the basis used in the preparation of
ADRs issued within this program are traded in the European OAO “Gazprom” combined accounting (financial) statements in
stock markets (outside the USA). accordance with the requirements of the Russian legislation.
Baltic States Hydrocarbon reserves (categories А+В+С1)

Lithuania, Latvia, and Estonia Explored reserves according to the Russian standards of classi-
fication. It is a part of geological reserves, which extraction for
BCS the date of calculation is economically efficient, considering
Booster compressor station – a production station, which is market conditions and rational use of modern equipment and
used to compress natural gas in order to ensure its compliance technologies, and also satisfying requirements of the bowel and
with the design quality and quantity for a specific field and the environmental protection.
estimated pressure in the trunk pipeline system Explored gas reserves (categories A+B+ С1) are considered as
recoverable. For oil and gas condensate reserves special index
Central Asia of extraction is used. This index is calculated taking into
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and account geological and technical factors.
Uzbekistan
IFRS
Central and Eastern Europe International financial reporting standards
Bulgaria, Bosnia, Croatia, Czech Republic, Hungary, Macedonia,
Poland, Romania, Serbia and Montenegro, Slovakia, Slovenia LNG
Liquefied natural gas
CGTU
Comprehensive gas treatment unit LSE
London Stock Exchange
CIS
Commonwealth of Independent States MAC
“Middle Asia – Center” gas transportation system
CS
Compressor Station MICEX
Moscow Interbank Currency Exchange
Energy Strategy of Russia
Russian energy strategy for the period up to 2020. It was MRT
approved by Regulation of the Government of the Russian Mineral resources tax
Federation No.1234-r dated August 28, 2003.
NEG
EU North European Gas Pipeline
European Union
OYuL
EU Gas Directives Group of legal entities
The Directive adopted by the European Parliament in August
1998 and replaced with the new Derective on July 26, 2003. PGTU
Their purpose is to establish general rules for the structure and Preliminary gas treatment unit
functioning of the European natural gas market
FTS
Federal Tariff Service of the Russian Federation
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ANNUAL REPORT 2005
Principles for Gazprom Group’s

Hydrocarbon Reserves Accounting
The hydrocarbon reserves data shown in the report takes into
account Gazprom Group’s control over or influence upon the
organization, which is qualified as a subsoil user. Gazprom
Group’s reserves include hydrocarbon reserves at the fields
belonging to OAO “Gazprom” and Gazprom Group’s entities
consolidated as subsidiaries (in full amount) and at the fields
owned by the entities consolidated using a proportional consol-
idation basis (pro rata to the proportionate share belonging to
Gazprom Group’s entities).
SPBEX
Non-commercial partnership “St. Petersburg Stock Exchange”
Spot transactions
Individual transactions related to the sale of natural gas in the
EU market
SRTO-Torzhok
A pipeline connecting the Northern Areas of the Tyumen Region
with the city of Torzhok
tce
A ton of standard coal equivalent is equal to 877 cubic meters
of natural gas
toe
A ton of oil equivalent is equal to 1 125 cubic meters of natural
gas
UGSF
Underground Gas Storage Facility
UGSS
Unified Gas Supply System of Russia
VAT
Value added tax
Western Europe
Austria, Andorra, Belgium, Germany, Greenland, Greece,
Denmark, Irish Republic, Iceland, Spain, Italy, Cyprus,
Lichtenstein, Luxemburg, Malta, Monaco, Netherlands, Norway,
Portugal, San Marino, United Kingdom of Great Britain and
Northern Ireland, Turkey, Finland, France, Switzerland, and
Sweden
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ANNUAL REPORT 2005
Full name
ADDRESSES AND CONTACTS Open Joint Stock Company “Gazprom”
Abbreviated name
OAO “Gazprom”
Location
16 Nametkina St., Moscow, Russian Federation
Mail address
16 Nametkina St., 117997, Moscow, V-420, GSP-7
Tel.: (7-495) 719-30-01 (for references). Fax: (7-495) 719-83-33, 719-37-37
www.gazprom.ru
www.gazprom.соm
Certificate of entry into the Unified State Register of Legal Entities

Issued by the Moscow Department of the Ministry of Taxes and Fees of the Russian
Federation on 02.08.2002; No. 1027700070518
Identification Number Of Taxpayer (INN)

7736050003
Head of Shareholders Relationship and Share Capital Office

Lobatcheva Elena Pavlovna
Tel.: (7-495) 719-27-86, 719-26-01. Fax: (7-495) 719-39-37
E-mail: [email protected]
Head of Information, Analysis and Forecasting Office

Baryshnikov Mikhail Yurievich
Tel.: (7-495) 719-44-48. Fax: (7-495) 719-35-41
Head of Investor Relations Information Office

Zhdanovich Dmitri Vadimovich
Tel.: (7-495) 719-10-97. Fax: (7-495) 719-10-37
Auditor to OAO “Gazprom”

ZAO “PricewaterhouseCoopers Audit”
Location and mail address

52 Kosmodamianskaya Nab., Bld. 5, Moscow, 115054, Russian Federation
Tel.: (7-495) 967-60-00. Fax: (7-495) 967-60-01.
E-mail: [email protected].
License
No. E 000376 issued 20.05.2002
by the Ministry of Finance of the Russian Federation
Registrar of OAO “Gazprom”

ZAO “Specialized registrar –
Holder of gas industry shareholders register” (“SR-DRAGA”)
Location and mail address

71/32 Novocheremushkinskaya St., 117420, Moscow
Tel.: (495) 719-39-29. Fax: (495) 719-45-85.
84
On December 23, 2005, Russian President Vladimir Putin signed a Decree on OAO “Gazprom”
share market liberalization. Together with the Regulation of the Government of the Russian
Federation and amendments to the Federal Law “On gas supply”, the Decree canceled any restric-
tion related to the acquisition of OAO “Gazprom” shares by foreign holders and removed any bar-
riers separating the markets where the company’s securities can be traded. The liberalization of
the company’s share market became a prerequisite for first-rate investors to become
OAO “Gazprom” shareholders. These primarily include international funds operating with pension
and insurance companies’ funds. The liberalization will contribute to the long-term growth of
OAO “Gazprom” shareholder value, which is a key term for its evolving into a world leading glob-
al energy company.
ANNUAL REPORT 2005
ANNEX
9. Contract for keeping the minimum balance on the account amounting to
LIST 30,000,000 Euros with AB “Gazprombank” (ZAO) effective from 14.01.2005 through
OF TRANSACTIONS, IN WHICH THE COMPANY 18.01.2005 and bearing an annual interest rate of 4.0 % of the minimum balance. The
HAD AN INTEREST, APPROVED BY OAO “GAZPROM” interested persons are the following members of OAO “Gazprom” executive bodies:
A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and
CONTROL BODIES IN 2005 A.I. Medvedev. Approved by the Resolution of the annual General Shareholders Meeting
dated 25.06.2004.
1. Contract for keeping the minimum balance on the account amounting
to RR5,000,000,000 with AB “Gazprombank” (ZAO) effective from 11.01.2005 through 10. Contract for keeping the minimum balance on the account amounting to
12.01.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The US$20,000,000 with AB “Gazprombank” (ZAO) effective from 26.01.2005 through
interested persons are the following members of OAO “Gazprom” executive bodies: 27.01.2005 and bearing an annual interest rate of 3.5 % of the minimum balance. The
A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and interested persons are the following members of OAO “Gazprom” executive bodies:
A.I. Medvedev. Approved by the Resolution of the annual General Shareholders Meeting A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and
dated 25.06.2004. A.I. Medvedev. Approved by the Resolution of the annual General Shareholders Meeting
dated 25.06.2004.
RR6,000,000,000 with AB “Gazprombank” (ZAO) effective from 12.01.2005 through 11. Contract for keeping the minimum balance on the account amounting to
dated 25.06.2004.
RR7,000,000,000 with AB “Gazprombank” (ZAO) effective from 13.01.2005 through 12. Contract for keeping the minimum balance on the account amounting
14.01.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The to 30,000,000 Euros with AB “Gazprombank” (ZAO) effective from 18.01.2005 through
dated 25.06.2004.
17.01.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The 20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 18.01.2005 through
dated 25.06.2004.
A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
A.I. Medvedev. Approved by the Resolution of the annual General Shareholders Meeting Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
dated 25.06.2004. Approved by the Resolution of the annual General Shareholders Meeting dated
25.06.2004.
20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 12.01.2005 through 15. Contract for keeping the minimum balance on the account amounting to
25.06.2004.
25.06.2004.
18.01.2005 and bearing an annual interest rate of 9.0 % of the minimum balance. 20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 25.01.2005 through
The interested persons are the following members of OAO “Gazprom” executive bodies: 26.01.2005 and bearing an annual interest rate of 7.0 % of the minimum balance. The
25.06.2004.
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ANNUAL REPORT 2005
18. Contract for keeping the minimum balance on the account amounting to 27. Contract for keeping the minimum balance on the account amounting to
RR8,000,000,000 with AB “Gazprombank” (ZAO) effective from 18.01.2005 through RR10,100,000,000 with AB “Gazprombank” (ZAO) effective from 02.02.2005 through
19.01.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The 03.02.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
Approved by the Resolution of the annual General Shareholders Meeting dated Approved by the Resolution of the annual General Shareholders Meeting dated
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
RR3,700,000,000 with AB “Gazprombank” (ZAO) effective from 20.01.2005 through 20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 28.01.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
RR3,500,000,000 with AB “Gazprombank” (ZAO) effective from 31.01.2005 through £5,000,000 with AB “Gazprombank” (ZAO) effective from 31.01.2005 through
25.06.2004. 25.06.2004.
RR3,000,000,000 with AB “Gazprombank” (ZAO) effective from 31.01.2005 through US$20,000,000 with AB “Gazprombank” (ZAO) effective from 28.01.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
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ANNUAL REPORT 2005
US$350,000,000 with AB “Gazprombank” (ZAO) effective from 02.02.2005 through 20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 09.02.2005 through
25.06.2004. 25.06.2004.
20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 04.02.2005 through 20,000,000 Euros with AB “Gazprombank” (ZAO) effective from 08.02.2005 through
25.06.2004. 25.06.2004.
100,000,000 Euros with AB “Gazprombank” (ZAO) effective from 07.02.2005 through RR6,100,000,000 with AB “Gazprombank” (ZAO) effective from 16.02.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
US$200,000,000 with AB “Gazprombank” (ZAO) effective from 07.02.2005 through RR7,700,000,000 with AB “Gazprombank” (ZAO) effective from 11.02.2005 through
25.06.2004. 25.06.2004.
£5,000,000 with AB “Gazprombank” (ZAO) effective from 10.02.2005 through RR6,300,000,000 with AB “Gazprombank” (ZAO) effective from 10.02.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
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ANNUAL REPORT 2005
54. Contract for a bank guarantee for a total of RR50,000,000 with AB 63. Contract for keeping the minimum balance on the account amounting to
“Gazprombank” (ZAO) effective from 01.03.2005 through 28.04.2006 to secure customs RR9,500,000,000 with AB “Gazprombank” (ZAO) effective from 02.03.2005 through
payments as well possible interest and fines arising from the activities as a customs bro- 03.02.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The
ker. The annual fee is 1.0 % of the guarantee. The interested persons are the following interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
members of OAO “Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. Approved by the Resolution of the Approved by the Resolution of the annual General Shareholders Meeting dated
annual General Shareholders Meeting dated 24.06.2005. 25.06.2004.
£10,000,000 with AB “Gazprombank” (ZAO) effective from 21.02.2005 through £5,000,000 with AB “Gazprombank” (ZAO) effective from 24.02.2005 through
25.06.2004. 25.06.2004.
£10,000,000 with AB “Gazprombank” (ZAO) effective from 18.02.2005 through US$200,000,000 with AB “Gazprombank” (ZAO) effective from 01.03.2005 through
25.06.2004. 25.06.2004.
57. Contract for keeping the minimum balance on the account amounting to 66. Long-term property lease contract (for communications lines) with ZAO
RR2,000,000,000 with AB “Gazprombank” (ZAO) effective from 21.02.2005 through “Gaztelekom” effective from 01.01.2004 through 31.12.2008. The monthly lease pay-
22.02.2005 and bearing an annual interest rate of 0.5 % of the minimum balance. The ment is RR1,145,432. The interested person is M.L. Sereda,member of OAO “Gazprom”
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Board of Directors:. Approved by the Resolution No. 657 of the Board of Directors dated
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. 19.01.2005.
Approved by the Resolution of the annual General Shareholders Meeting dated
25.06.2004. 67. Agreement on the amendment of property lease contract № 08/1600-D-2/2004
dated 01.01.2004 with ZAO “Gaztelekom” due to the need to withdraw the communica-
58. Contract for keeping the minimum balance on the account amounting to tions lines from short-term lease and lease them out on a long-term basis. The agree-
RR12,000,000,000 with AB “Gazprombank” (ZAO) effective from 18.02.2005 through ment takes effect from 21.03.2005. The monthly lease payment is RR22,015. The
21.02.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The interested person is M.L. Sereda, member of OAO “Gazprom” Board of Directors.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Approved by the Resolution No. 657 of the Board of Directors dated 19.01.2005.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
Approved by the Resolution of the annual General Shareholders Meeting dated 68. Additional agreement to lease contract № D-17-993 dated 07.08.2000 with AB
25.06.2004. “Gazprombank” (ZAO) due to its prolongation and change in the lease payment and VAT
rate. The agreement takes effect from 20.01.2005. The monthly lease payment is
59. Contract for keeping the minimum balance on the account amounting to RR153,836. The interested persons are the following members of OAO “Gazprom” exec-
RR5,500,000,000 with AB “Gazprombank” (ZAO) effective from 17.02.2005 through utive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and
18.02.2005 and bearing an annual interest rate of 0.4 % of the minimum balance. The A.I. Medvedev. Approved by the Resolution No. 657 of the Board of Directors dated
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. 19.01.2005.
Approved by the Resolution of the annual General Shareholders Meeting dated 69. Contract for keeping the minimum balance on the account amounting to
25.06.2004. £10,000,000 with AB “Gazprombank” (ZAO) effective from 03.03.2005 through
09.03.2005 and bearing an annual interest rate of 2.15 % of the minimum balance. The
60. Contract for keeping the minimum balance on the account amounting to interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
RR7,200,000,000 with AB “Gazprombank” (ZAO) effective from 28.02.2005 through Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
01.03.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The Approved by the Resolution of the annual General Shareholders Meeting dated
25.06.2004. 300,000,000 Euros with AB “Gazprombank” (ZAO) effective from 04.03.2005 through
09.03.2005 and bearing an annual interest rate of 2 % of the minimum balance. The
02.03.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The Approved by the Resolution of the annual General Shareholders Meeting dated
25.06.2004. RR3,000,000,000 with AB “Gazprombank” (ZAO) effective from 03.03.2005 through
09.03.2005 and bearing an annual interest rate of 1 % of the minimum balance. The Approved by the Resolution of the annual General Shareholders Meeting dated
25.06.2004. RR4,800,000,000 with AB “Gazprombank” (ZAO) effective from 04.03.2005 through
interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
25.06.2004.
89
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
90
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
£16,000,000 with AB “Gazprombank” (ZAO) effective from 25.03.2005 through £20,000,000 with AB “Gazprombank” (ZAO) effective from 01.04.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
RR800,000,000 with AB “Gazprombank” (ZAO) effective from 29.03.2005 through RR6,000,000,000 with AB “Gazprombank” (ZAO) effective from 04.04.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
91
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
£2,000,000 with AB “Gazprombank” (ZAO) effective from 04.04.2005 through 180,000,000 Euros with AB “Gazprombank” (ZAO) effective from 12.04.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
92
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
250,000,000 Euros with AB “Gazprombank” (ZAO) effective from 15.04.2005 through £21,000,000 with AB “Gazprombank” (ZAO) effective from 22.04.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
93
ANNUAL REPORT 2005
145. Contract for keeping the minimum balance on the account amounting to 154. Contract for gas transportation services with OAO “Tomskgazprom”. The
RR6,000,000,000 with AB “Gazprombank” (ZAO) effective from 26.04.2005 through Contract takes effect from 01.10.2004. The gas transportation fee per 1 000 cubic
27.04.2005 and bearing an annual interest rate of 0.4 % of the minimum balance. The meters per 100 km is set at RR 20.28 effective from 01.10.2004 through 31.12.2004 and
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. RR 23.24 effective from 01.01.2005 through 30.09.2005. The interested persons are the
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. following members of OAO “Gazprom” executive bodies: M.L. Sereda, A.V. Kruglov, K.G.
Approved by the Resolution of the annual General Shareholders Meeting dated Seleznev, K.A. Chuichenko. Approved by the Resolution No. 693 of the Board of
25.06.2004. Directors dated 01.04.2005.
146. Contract for keeping the minimum balance on the account amounting to 155. Contract for the bank account in Russian Federation currency (with application
RR8,000,000,000 with AB “Gazprombank” (ZAO) effective from 20.04.2005 through of full-format electronic payment documents) with AK “Sberbank” RF (OAO) effective
21.04.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The from 16.05.2005 through 16.05.2006. The interested person is B.G. Fedorov, member of
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. OAO “Gazprom” Board of Directors. Approved by the Resolution No. 680 of the Board of
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. Directors dated 22.05.2005.
25.06.2004. 156. Contract for keeping the minimum balance on the account amounting to
RR2,500,000,000 with AB “Gazprombank” (ZAO) effective from 05.05.2005 through
147. Contract for keeping the minimum balance on the account amounting to 06.05.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The
£20,000,000 with AB “Gazprombank” (ZAO) effective from 25.04.2005 through interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
29.04.2005 and bearing an annual interest rate of 2.5 % of the minimum balance. The Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Approved by the Resolution of the annual General Shareholders Meeting dated
170,000,000 Euros with AB “Gazprombank” (ZAO) effective from 20.04.2005 through interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
100,000,000 Euros with AB “Gazprombank” (ZAO) effective from 05.05.2005 through
US$250,000,000 with AB “Gazprombank” (ZAO) effective from 12.05.2005 through
US$400,000,000 with AB “Gazprombank” (ZAO) effective from 06.05.2005 through
151. Contract for gas transportation services with OAO “AK “Sibur” effective from 11.05.2005 and bearing an annual interest rate of 2.25 % of the minimum balance. The
01.01.2005 through 31.12.2005. The fee is RR19.37 per 1,000 cubic meters per 100 km. interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
The volume of gas transported in 2005 amounted to 5,363.94 mcm. The interested per- Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
sons are the following members of OAO “Gazprom” executive bodies: A.N. Ryazanov, Approved by the Resolution of the annual General Shareholders Meeting dated
K.G. Seleznev, A.V. Kruglov, M.L. Sereda. Approved by the Resolution of the annual 25.06.2004.
General Shareholders Meeting dated 25.06.2004.
152. Supply Contract with OAO “Sibur” effective from 01.02.2005 through £26,000,000 with AB “Gazprombank” (ZAO) effective from 11.05.2005 through
31.12.2005. The gas price amounted to RR620 per 1,000 cubic meters in the 1st and 2nd 16.05.2005 and bearing an annual interest rate of 2.5 % of the minimum balance. The
quarter of 2005 and RR560 per 1,000 cubic meters in the 3rd and 4th quarter of 2005. interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
The volume of gas purchased amounted to 800 mcm in the 1st quarter of 2005 and 200 Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
mcm in the 2nd quarter of 2005. The interested persons are the following members of Approved by the Resolution of the annual General Shareholders Meeting dated
OAO “Gazprom” executive bodies: A.N. Ryazanov, K.G. Seleznev, A.V. Kruglov, M.L. 25.06.2004.
Sereda. Approved by the Resolution No. 723 of the Board of Directors dated 23.05.2005.
153. Agreement on the termination of contract № 1NPtr/k-2004 dated 23.01.2004 RR3,200,000,000 with AB “Gazprombank” (ZAO) effective from 12.05.2005 through
with OAO “Vostokgazprom”. The contract was terminated effective from 01.10.2004. The 13.05.2005 and bearing an annual interest rate of 0.35 % of the minimum balance. The
parties are to complete their settlements (mutual settlements) for the services, which interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
were actually rendered under the contract, by 01.06.2005. The interested persons are the Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
following members of OAO “Gazprom” executive bodies: M.L. Sereda, A.V. Kruglov, K.G. Approved by the Resolution of the annual General Shareholders Meeting dated
Seleznev, K.A. Chuichenko. Approved by the Resolution No. 693 of the Board of 25.06.2004.
Directors dated 01.04.2005.
25.06.2004.
94
ANNUAL REPORT 2005
164. Contract for keeping the minimum balance on the account amounting to 80,000,000 Euros with AB “Gazprombank” (ZAO) effective from 29.04.2005 through
15,000,000 Euros with AB “Gazprombank” (ZAO) effective from 05.05.2005 through 03.05.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The
06.05.2005 and bearing an annual interest rate of 5.5 % of the minimum balance. The interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. Approved by the Resolution of the annual General Shareholders Meeting dated
Approved by the Resolution of the annual General Shareholders Meeting dated 25.06.2004.
25.06.2004.
25.06.2004.
25.06.2004.
167. Contract for keeping the minimum balance on the account amounting to RR2,700,000,000 with AB “Gazprombank” (ZAO) effective from 04.05.2005 through
25.06.2004.
168. Contract for keeping the minimum balance on the account amounting to RR14,800,000,000 with AB “Gazprombank” (ZAO) effective from 27.04.2005 through
£26,000,000 with AB “Gazprombank” (ZAO) effective from 04.05.2005 through 28.04.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The
25.06.2004.
169. Contract for keeping the minimum balance on the account amounting to £2,000,000 with AB “Gazprombank” (ZAO) effective from 17.05.2005 through
25.06.2004.
170. Contract for keeping the minimum balance on the account amounting to £26,000,000 with AB “Gazprombank” (ZAO) effective from 16.05.2005 through
25.06.2004.
25.06.2004.
25.06.2004.
95
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
96
ANNUAL REPORT 2005
330,000,000 Euros with AB “Gazprombank” (ZAO) effective from 19.05.2005 through US$100,000,000 with AB “Gazprombank” (ZAO) effective from 27.05.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
US$80,000,000 with AB “Gazprombank” (ZAO) effective from 19.05.2005 through US$500,000,000 with AB “Gazprombank” (ZAO) effective from 08.06.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
97
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
RR700,000,000 with AB “Gazprombank” (ZAO) effective from 30.05.2005 through £27,000,000 Euros with AB “Gazprombank” (ZAO) effective from 30.05.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
98
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
28,800,000 with AB “Gazprombank” (ZAO) effective from 03.06.2005 through US$150,000,000 with AB “Gazprombank” (ZAO) effective from 15.06.2005 through
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
99
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
100
ANNUAL REPORT 2005
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
25.06.2004. 25.06.2004.
277. Contract for keeping the minimum balance on the account amounting to 286. Contract for the purchase of additional ordinary shares of AO “KazRosGaz”
300,000,000 Euros with AB “Gazprombank” (ZAO) effective from 16.06.2005 through with AO “KazRosGaz” for a total of 17,500 shares. The contract takes effect on
17.06.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The 13.07.2005. The total amount payable for the shares is 17,500,000 tenge. The interested
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. persons are the following members of OAO “Gazprom” executive bodies: K.G. Seleznev,
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. A.N. Ryazanov. Approved by the Resolution No. 683 of the Board of Directors dated
25.06.2004.
287. Contract for the security for the debt repayment by OOO
278. Contract for keeping the minimum balance on the account amounting to “Gazoenergeticheskaya Kompaniya” with AB “Gazprombank” (ZAO) including the princi-
US$220,000,000 with AB “Gazprombank” (ZAO) effective from 16.06.2005 through pal and interest charged for the use of the loan under loan contracts № 138/05-R and №
17.06.2005 and bearing an annual interest rate of 2.25 % of the minimum balance. The 138/05-V dated 28.07.2005. The contract is effective from 28.07.2005 through
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. 31.10.2005. The liability is limited to RR23,190,000,000.00. The interested persons are
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. the following members of OAO “Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov,
Approved by the Resolution of the annual General Shareholders Meeting dated M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Pavlova. Approved by
25.06.2004. the Resolution No. 745 of the Board of Directors dated 26.07.2005.
279. Contract for keeping the minimum balance on the account amounting to 288. Contract for the security for the debt repayment by OOO
US$300,000,000 with AB “Gazprombank” (ZAO) effective from 17.06.2005 through “Gazoenergeticheskaya Kompaniya” with AB “Gazprombank” (ZAO) including the princi-
20.06.2005 and bearing an annual interest rate of 2.25 % of the minimum balance. The pal and interest charged for the use of the loan under loan contract № 138/05-R dated
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. 28.07.2005. The contract is effective from 28.07.2005 through 31.10.2005. The liability
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. is limited to RR16,225,000,000.00. The interested persons are the following members of
Approved by the Resolution of the annual General Shareholders Meeting dated OAO “Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A.
25.06.2004. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Pavlova. Approved by the Resolution No.
745 of the Board of Directors dated 26.07.2005.
US$100,000,000 with AB “Gazprombank” (ZAO) effective from 20.06.2005 through 289. Contract for keeping the minimum balance on the account amounting to
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. 27.06.2005 and bearing an annual interest rate of 2.25 % of the minimum balance. The
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, and A.I. Medvedev. interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
Approved by the Resolution of the annual General Shareholders Meeting dated Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
25.06.2004. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
24.06.2005.
101
ANNUAL REPORT 2005
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
102
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
103
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
08.07.2005 and bearing an annual interest rate of 8 % of the minimum balance. The 04.07.2005 and bearing an annual interest rate of 3.5 % of the minimum balance. The
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
104
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
18.07.2005 and bearing an annual interest rate of 2.5 % of the minimum balance. The 18.07.2005 and bearing an annual interest rate of 3 % of the minimum balance. The
24.06.2005. 24.06.2005.
105
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
367. Contract for the supply of office furniture with OOO “Mezhregiongaz”. The 377. Contract for keeping the minimum balance on the account amounting to
contract takes effect from 12.04.2005. The contract amount is RR1,994,596.78. The RR6,000,000,000 with AB “Gazprombank” (ZAO) effective from 05.08.2005 through
interested person is K.G. Seleznev, member of OAO “Gazprom” collegial executive body. 08.08.2005 and bearing an annual interest rate of 1.0 % of the minimum balance. The
Approved by Resolution No.727 of the Board of Directors dated 12.07.2005. interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
368. Loan contract with OOO “TsentrKaspneftegaz”. The loan amount is Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
RR114,700,000. The repayment deadline is 25.12.2005. The annual interest charged for 24.06.2005.
the use of the borrowed funds is 2 % of the loan amount. The interested persons are the
following members of OAO “Gazprom” collegial executive body: V.G. Podyuk and A.V. 378. Contract for keeping the minimum balance on the account amounting to
Kruglov. Approved by the Resolution No. 749 of the Board of Directors dated 28.07.2005. US$430,000,000 with AB “Gazprombank” (ZAO) effective from 03.08.2005 through
369. Agency contract with OAO “Zapsibgazprom” for a range of work related to the interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
registration of OAO “Gazprom” title to land plots and for the fulfillment of lease contracts. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
The agency commission fee is 0.01 % (inclusive of VAT) from the amount of expenses Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
incurred by OAO “Zapsibgazprom” except for the rental payments under the lease con- 24.06.2005.
tracts and 0.01 % (inclusive of VAT) from the amount of the rental payments under the
lease contracts. The advance payment is 30 of the cost of work. The contract takes effect 379. Contract for keeping the minimum balance on the account amounting to
from 10.06.2005 and is valid for an unlimited period. The interested persons are the fol- RR4,300,000,000 with AB “Gazprombank” (ZAO) effective from 04.08.2005 through
lowing members of OAO “Gazprom” collegial executive body: A.N. Ryazanov, V.V. 05.08.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The
Ilyushin and A.V. Kruglov. Approved by the Resolution No. 703 of the Board of Directors interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
dated 04.05.2005. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
370. Contract for keeping the minimum balance on the account amounting to 24.06.2005.
08.08.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The 380. Contract for keeping the minimum balance on the account amounting to
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. RR9,800,000,000 with AB “Gazprombank” (ZAO) effective from 03.08.2005 through
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. 04.08.2005 and bearing an annual interest rate of 0.3 % of the minimum balance. The
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
24.06.2005. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
371. Contract for keeping the minimum balance on the account amounting to 24.06.2005.
24.06.2005.
106
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
107
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
US$230,000,000 with AB “Gazprombank” (ZAO) effective from 27.07.2005 through £27,500,000 with AB “Gazprombank” (ZAO) effective from 25.07.2005 through
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
108
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
US$470,000,000 with AB “Gazprombank” (ZAO) effective from 09.08.2005 through £27,500,000 Euros with AB “Gazprombank” (ZAO) effective from 08.08.2005 through
24.06.2005. 24.06.2005.
US$520,000,000 with AB “Gazprombank” (ZAO) effective from 10.08.2005 through £28,300,000 Euros with AB “Gazprombank” (ZAO) effective from 12.08.2005 through
24.06.2005. 24.06.2005.
109
ANNUAL REPORT 2005
435. Additional agreement to gas supply contract № 16P-2005 dated 11.05.2005 444. Contract for keeping the minimum balance on the account amounting to
due to the setting of gas supply volume and gas price for the 2nd half of 2005 with OAO 50,000,000 Euros with AB “Gazprombank” (ZAO) effective from 18.08.2005 through
“Sibur”. The price is RR620.00 per 1,000 cubic meters. The volume of gas supply is up 19.08.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The
to 363.00 mcm in the 1st quarter, 0.00 mcm in the 2nd quarter, and up to 638.00 mcm interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
in the 3rd quarter (from July through August). The additional agreement takes effect Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
from 01.07.2005. The interested person is A.N. Ryazanov, member of OAO “Gazprom” Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
collegial executive body. Approved by the Resolution of the annual General Shareholders 24.06.2005.
Meeting dated 24.06.2005.
436. Additional agreement to contract for the collateral № AKS.4077.16-3 dated 50,000,000 Euros with AB “Gazprombank” (ZAO) effective from 19.08.2005 through
26.03.2001 due to lifting of a ban on any transactions related to the pledger’s right to 22.08.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The
operate with shares with OAO “Sibur”. The additional agreement takes effect from interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
29.08.2005. The interested person is A.N. Ryazanov, member of OAO “Gazprom” colle- Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
gial executive body. Approved by the Resolution No. 741 of the Board of Directors dated Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
22.07.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
440. Contract for keeping the minimum balance on the account amounting to 449. Additional agreement to contract for the term deposit № 1 dated 22.03.2005
100,000,000 Euros with AB “Gazprombank” (ZAO) effective from 15.08.2005 through due to making amendments providing for the treatment of the contract as a subordinated
16.08.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The deposit with AB “Gazprombank” (ZAO). It takes effect from 12.09.2005. The interested
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. persons are the following members of OAO “Gazprom” executive bodies: A.B. Miller, A.G.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Pavlova.
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated Approved by the Resolution No. 730 of the Board of Directors dated 13.07.2005.
24.06.2005.
450. Contract for the foreign currency account (for legal entities that are Russian
441. Contract for keeping the minimum balance on the account amounting to residents) with AB “Gazprombank” (ZAO). The contract takes effect from 12.09.2005.
100,000,000 Euros with AB “Gazprombank” (ZAO) effective from 16.08.2005 through The interested persons are the following members of OAO “Gazprom” executive bodies:
17.08.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. and O.P. Pavlova. Approved by the Resolution of the annual General Shareholders
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Meeting dated 24.06.2005.
RR8,000,000,000 with AB “Gazprombank” (ZAO) effective from 15.08.2005 through interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
16.08.2005 and bearing an annual interest rate of 1.1 % of the minimum balance. The Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. 24.06.2005.
18.08.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. 24.06.2005.
24.06.2005.
110
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
111
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
477. Contract for the purchase of ordinary registered shares of OAO “Sibneft” for a 486. Contract for keeping the minimum balance on the account amounting to
total of 143,000,000 shares. The contract amount is RR16,588,000,000.00. The contract 150,000,000 Euros with AB “Gazprombank” (ZAO) effective from 14.09.2005 through
takes effect from 27.09.2005. The interested persons are the following members of OAO 15.09.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The
“Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
A.V. Kruglov, A.I. Medvedev and O.P. Pavlova. Approved by the Resolution No. 765 of Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
the Board of Directors dated 17.10.2005. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
24.06.2005.
£28,000,000 with AB “Gazprombank” (ZAO) effective from 09.09.2005 through 487. Contract for keeping the minimum balance on the account amounting to
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
24.06.2005.
£27,500,000 with AB “Gazprombank” (ZAO) effective from 12.09.2005 through 488. Contract for keeping the minimum balance on the account amounting to
24.06.2005.
112
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
113
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
114
ANNUAL REPORT 2005
03.10.2005 and bearing an annual interest rate of 1,5 % of the minimum balance. The 10.10.2005 and bearing an annual interest rate of 0.5 % of the minimum balance. The
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
527. Commission contract for the export sales of natural gas purchased from OAO 536. Contract for keeping the minimum balance on the account amounting to
“Lukoil” from the Nakhodkinskoye field in the Bolshekhetskaya depression with OOO US$130,000,000 with AB “Gazprombank” (ZAO) effective from 28.09.2005 through
“Mezhregiongaz”. The fee is 1.17 %. The contract is effective from 01.10.2005 through 29.09.2005 and bearing an annual interest rate of 2.85 % of the minimum balance. The
31.12.2005. The interested person is K.G. Seleznev, member of OAO “Gazprom” collegial interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
executive body. Approved by the Resolution No. 775 of the Board of Directors dated Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
24.06.2005.
528. Contract for the security for the bank guarantee repayment by OOO
“Urengoigazprom” with AB “Gazprombank” (ZAO). The liability is limited to 537. Contract for keeping the minimum balance on the account amounting to
RR520,607,047.56. The contract is effective from 26.10.2005 through 06.08.2006. The US$200,000,000 with AB “Gazprombank” (ZAO) effective from 03.10.2005 through
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
O.P. Pavlova. Approved by the Resolution No. 753 of the Board of Directors dated Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
24.06.2005.
29.09.2005 and bearing an annual interest rate of 0.75 % of the minimum balance. The £29,500,000 with AB “Gazprombank” (ZAO) effective from 03.10.2005 through
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
115
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
116
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
117
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
118
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
RR800,000,000 with AB “Gazprombank” (ZAO) effective from 19.10.2005 through RR6,000,000,000 with AB “Gazprombank” (ZAO) effective from 08.11.2005 through
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
602. Contract for the services related to the consolidation of votes of shareholders 611. Contract for keeping the minimum balance on the account amounting to
living in remote regions, preparation of materials on OAO “Gazprom” annual sharehold- US$280,000,000 with AB “Gazprombank” (ZAO) effective from 01.11.2005 through
ers meeting and sending them by mail to individual shareholders with AB 02.11.2005 and bearing an annual interest rate of 3.1 % of the minimum balance. The
“Gazprombank” (ZAO). The contract amount is RR 1 110 484.01. The contract takes interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
effect from 01.04.2005. The interested persons are the following members of OAO Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
“Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
A.V. Kruglov, A.I. Medvedev and O.P. Pavlova. Approved by the Resolution No. 773 of 24.06.2005.
the Board of Directors dated 08.11.2005.
603. Contract for keeping the minimum balance on the account amounting to US$310,000,000 with AB “Gazprombank” (ZAO) effective from 02.11.2005 through
RR6,000,000,000 with AB “Gazprombank” (ZAO) effective from 31.10.2005 through 03.11.2005 and bearing an annual interest rate of 3.35 % of the minimum balance. The
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated 24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
119
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
621. Contract for keeping the minimum balance on the account amounting to 630. Agreement for the guarantee and reimbursement with BLUE STREAM
250,000,000 Euros with AB “Gazprombank” (ZAO) effective from 01.11.2005 through PIPELINE COMPANY B.V., SACE S.p.A., Gazstream S.A. effective from 18.07.2005
02.11.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The through 22.07.2013. The interested persons are the following members of OAO
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. “Gazprom” collegial executive body: B.V. Budzulyak and A.I. Medvedev. Approved by the
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. Resolution No. 731 of the Board of Directors dated 13.07.2005.
24.06.2005. 631. Contract for the amendments to the inter-creditor agreement dated
02.11.2000 with BLUE STREAM PIPELINE COMPANY B.V. effective from 18.07.2005
622. Contract for keeping the minimum balance on the account amounting to through 22.07.2013. The interested persons are the following members of OAO
300,000,000 Euros with AB “Gazprombank” (ZAO) effective from 02.11.2005 through “Gazprom” collegial executive body: B.V. Budzulyak and A.I. Medvedev. Approved by the
03.11.2005 and bearing an annual interest rate of 1.9 % of the minimum balance. The Resolution No. 731 of the Board of Directors dated 13.07.2005.
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. 632. Agreement for the amendments to the Tariff Trust Deed dated 02.11.2000 with
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated BLUE STREAM PIPELINE COMPANY B.V., OOO “Gazexport”, and AB “Gazprombank”
24.06.2005. (ZAO) effective from 18.07.2005 through 22.07.2013. The interested persons are the fol-
lowing members of OAO “Gazprom” executive bodies: A.B. Miller, A.G. Ananenkov, M.L.
623. Contract for keeping the minimum balance on the account amounting to Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev, O.P. Pavlova and B.V. Budzulyak.
500,000,000 Euros with AB “Gazprombank” (ZAO) effective from 03.11.2005 through Approved by the Resolution No. 731 of the Board of Directors dated 13.07.2005.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. 633. Agreement on subordination (amended) dated 02.11.2000 with ENI S.p.A. and
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. BLUE STREAM PIPELINE COMPANY B.V. effective from 18.07.2005 through 22.07.2013.
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated The interested persons are the following members of OAO “Gazprom” collegial executive
24.06.2005. body: B.V. Budzulyak and A.I. Medvedev. Approved by the Resolution No. 731 of the
Board of Directors dated 13.07.2005.
120
ANNUAL REPORT 2005
634. Addendum to contract № 16MRGtr/k-2002/1-038 dated 25.07.2002 for the 643. Contract for keeping the minimum balance on the account amounting to
gas transportation through the Republic of Kazakhstan due to the specification of pay- US$200,000,000 with AB “Gazprombank” (ZAO) effective from 16.11.2005 through
ment amount and application of a special methodology for tax deductions calculation 17.11.2005 and bearing an annual interest rate of 3.35 % of the minimum balance. The
with OOO “Mezhregiongaz”. The contract takes effect from 01.01.2005. The interested interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
person is K.G. Seleznev, member of OAO “Gazprom” collegial executive body. Approved Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
by the Resolution No. 777 of the Board of Directors dated 11.11.2005. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
24.06.2005.
121
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
122
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
interested persons are the following members of OAO “Gazprom” executive bodies: interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
O.P. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
dated 24.06.2005. 24.06.2005.
123
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
124
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
125
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
728. Agreement for the guarantee for the debt repayment by BLUE STREAM 737. Contract for keeping the minimum balance on the account amounting to
PIPELINE COMPANY B.V. (Beneficiary) with regard to Guarantee Bonds for a total of US RR2,600,000,000 with AB “Gazprombank” (ZAO) effective from 29.12.2005 through
$1,222,000,000 bearing an annual interest rate of 4.505 % maturing on 2013 with 30.12.2005 and bearing an annual interest rate of 3.0 % of the minimum balance. The
Gazstream S.A. It is effective from 18.07.2005 through 22.07.2013. The interested per- interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
sons are the following members of OAO “Gazprom” collegial executive body: B.V. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
Budzulyak and A.I. Medvedev. Approved by the Resolution No. 720 of the Board of Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
Directors dated 17.05.2005. 24.06.2005.
729. Agreement for the guarantee for the debt repayment by BLUE STREAM 738. Contract for keeping the minimum balance on the account amounting to
PIPELINE COMPANY B.V. (Beneficiary) with regard to Bonds for a total of US RR3,000,000,000 with AB “Gazprombank” (ZAO) effective from 29.12.2005 through
$646,500,000 bearing an annual interest rate of 5.625 % maturing on 2013 with 10.01.2006 and bearing an annual interest rate of 3.0 % of the minimum balance. The
Gazstream S.A. It is effective from 18.07.2005 through 22.07.2013. The interested per- interested persons are the following members of OAO “Gazprom” executive bodies: A.B.
sons are the following members of OAO “Gazprom” collegial executive body: B.V. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P.
Budzulyak and A.I. Medvedev. Approved by the Resolution No. 720 of the Board of Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated
Directors dated 17.05.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
126
ANNUAL REPORT 2005
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
24.06.2005. 24.06.2005.
interested persons are the following members of OAO “Gazprom” executive bodies: A.B. interested persons are the following members of OAO “Gazprom” executive bodies:
Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and O.P. A.B. Miller, A.G. Ananenkov, M.L. Sereda, E.A. Vasilieva, A.V. Kruglov, A.I. Medvedev and
Pavlova. Approved by the Resolution of the annual General Shareholders Meeting dated O.P. Pavlova. Approved by the Resolution of the annual General Shareholders Meeting
24.06.2005. dated 24.06.2005.
24.06.2005.
24.06.2005.
127
ANNUAL REPORT 2005
This Annual report is preliminary approved by the resolution

of OAO «Gazprom» Board of Directors № 855 dated May 24, 2006
Chairman of the OAO «Gazprom»

Management Committee Alexei B. Miller
Chief Accountant
of OAO «Gazprom» Elena A. Vasilieva
128

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ANNUAL REPORT 2005

Address by the Chairman of the Board of Directors and the Chairman

The company is implementing intensive preparations for the development of the

It is hard to imagine a global energy company without an oil business component.

Gazprom continued to expand its production capacities. The production complex

Gazprom’s efforts have been positively perceived by the professional participants

OAO “Gazprom” OAO “Gazprom”

INCREASE IN RUSSIAN FEDERATION SHAREHOLDING

OAO “GAZPROM” SHARE MARKET LIBERALIZATION

ACQUISITION OF CONTROLLING INTEREST IN OAO “SIBNEFT”

In October 2005, Gazprom Group acquired 72.66 % shares in OAO “Sibneft”.

LAUNCH OF NORTH EUROPEAN GAS PIPELINE CONSTRUCTION

Gazprom Group MAJOR OPERATING RESULTS

Gazprom supplies about 75 % of gas to industrial and household consumers in

PRODUCTION OF NATURAL Natural, Share, Oil and Share,

In planning its measures to develop business in the domestic market Gazprom is

KEY STRATEGY ELEMENTS

Gazprom’s mission is to ensure an efficient and balanced gas supply to consumers in

In pursuing its activities Gazprom follows the following principles:

raising the efficiency of all the links in the production chain;

KEY ELEMENTS OF THE STRATEGY

Exploration Work and Production

Aiming at the recovery of its hydrocarbon reserves, Gazprom has devised a

It intends to expand its participation in the exploration and development of hydro-

Gazprom’s field development strategy includes investing in gas production sites in

In determining the long-term sequence of commissioning new gas transportation

Gazprom intends to increase the depth of feedstock processing to be able to extract

Marketing and Sales

Gazprom’s strategy in the Russian domestic market consists of ensuring continuous

Diversification of Products and Activities

The integration of new energy segments with Gazprom’s traditional gas-related

MILLER Alexei Borisovich

ANANENKOV Alexander Georgievich

GAZIZULLIN Farit Rafikovich

GREF German Oskarovich

KARPEL Elena Evgenyevna

SEREDA Mikhail Leonidovich

FEDOROV Boris Grigorievich

KHRISTENKO Victor Borisovich

YUSUFOV Igor Khanukovich

Information about Members

MEDVEDEV Dmitri Anatolievich

MILLER Alexei Borisovich

ANANENKOV Alexander Georgievich

GAZIZULLIN Farit Rafikovich

GREF German Oskarovich

KARPEL Elena Evgenyevna

SEREDA Mikhail Leonidovich

FEDOROV Boris Grigorievich

KHRISTENKO Victor Borisovich

YUSUFOV Igor Khanukovich

OAO “GAZPROM” BOARD OF DIRECTORS’ REPORT ON WORK

Improving Management Efficiency,

The Board of Directors considered the implementation of measures to improve

It approved the Major principles for investment projects implementation in

Strategic Financial Planning

Strategic Issues of Gazprom Development by Types of Activities

It approved the following major directions in improving gas transportation through

The Board of Directors continuously monitored the implementation of liquefied nat-

List of Members of the Management Committee in 2005