Report by Dmitry Medvedev, Gazprom’s Board of Directors’ Chairman on the upcoming liberalization of Gazprom’s share market
Prior to addressing the topical matters, let
me touch upon the upcoming liberalization of Gazprom’s share market and
On 16 June 2005, Gazprom’s Board of
Directors unanimously endorsed the sale of its subsidiaries-held 10.74%
stake to the state-owned Rosneftegaz company.
I’d like to make an official statement and
inform you that all the deals have so far been closed and all the legal
documents have come into force.
As it has been announced earlier, the
state-owned controlling stake in Gazprom opens way to lifting all the
restrictions on the corporate stock trading.
The liberalization process is expected to be completed by this year’s end.
In accordance with the legislative
documentation, we’re counting on nowadays, a string of measures are
needed to make the liberalization a reality. In particular, amendments
are needed for the Gas Supply in the Russian Federation Law and
subordinate legislation, with their full or partial revocation
inclusive. All this will signify the abolishment of foreign
shareholding quotas in Gazprom and the permission for trading in the
corporate stock on all the stock exchanges. Thus, the shares will have
a common reasonable price that will reflect its real fundamental value.
We believe that Gazprom’s capitalization growth will enable the Company
to gain beneficial access to new financing sources for the purpose of
meeting corporate needs, implementing its development plans and, thus,
achieving all the shareholder-related objectives.
The Company’s Board of Directors and Russian
Government are strongly positive that Gazprom’s share market
liberalization will be both a crucial and challenging event for Gazprom
and a fundamental step forward towards the entire Russian stock market
To meet all the liberalization-related
challenges, the Government and Gazprom will set up a Working Group to
be tasked with overseeing and coordinating activities in said direction
as well as agreeing on the publication of due documents.
The Company will keep everybody (the shareholders inclusive) up-to-date on the progress in the corporate stock liberalization.