Bonds

Gazprom's Eurobonds issued under the Euro Medium Term Note (EMTN) Program

The EMTN Program is a revolving multi-currency credit line with the amount (maximum outstanding principal amount) of up to USD 40 billion and is used to raise funds for Gazprom on international capital markets.

European medium-term notes are debt instruments with maturities of more than 1 year and ranking equally with other unsecured bonds of the issuer.

The following Eurobond issues (EMTN) are now in circulation:

^* before the first recalculation date

Eurobonds issued outside the Euro Medium Term Note (EMTN) Program

^* К_i = (CPI – 100%) + 1%, where:

К_i – interest rate for the i-th coupon period, but no less than 0.01% per annum.

CPI – Consumer Price Index calculated in total for the Russian Federation in terms of percentage to the corresponding month of the previous year (hereinafter CPI) in the last month for which CPI was officially published (in electronic or paper format) by the authorized executive body that is in charge of generation of official statistical information about social, economic, demographic, ecological, and other public processes in the Russian Federation.

Calculation month is a month in which an interest rate is calculated for the corresponding coupon period.

Date of issuer's calculation and approval of interest rate for i-th coupon periods, from second up to sixtieth (i = 2, 3, ... 60) inclusive, for exchange bonds is determined as the 9^th business day prior to the i-th coupon period commencement date.

Date of CPI calculation and its use for the purpose of issuer's approval of interest rate for exchange bonds is determined as the 9^th business day prior to the i-th coupon period commencement date.

^* The amount payable on each i-th coupon per one bond is calculated with the following formula:

 Di0+Ti

CYi=∑ *YDi

 Di0+1

where:

CYi – amount of coupon yield in RUB on each bond for the i-th coupon period;

i – sequential number of the corresponding coupon period (i=1,2,3,....., 20);

Di0 – commencement date of the i-th coupon period set on bonds;

Di0+1 – date following the commencement date of the i-th coupon period on bonds;

Ti – duration of the i-th coupon period set on bonds, expressed in days.

CYi is calculated with an accuracy of two decimal places; rounding of numbers in the course of the calculation is done in accordance with the mathematical rounding rules.

The mathematical rounding rules applied in this case are the rounding method where the second digit after the decimal point remains unchanged if the digit immediately to the right of the number to round is from 0 to 4 (inclusive), and is rounded up to the nearest whole number if the digit immediately to the right of the number to round is from 5 to 9 (inclusive).

YDi – yield in RUB on each bond to be calculated for each calendar date Di with the following formula:

YDi=Nom*RDi/365*100%

where:

Nom – nominal value of one bond in RUB;

RDi – interest rate for each date Di expressed in per cent per annum and calculated with the following formula:

RDi = R+S, where

R – RUONIA rate present on the seventh (7th) day preceding the date Di (hereinafter referred to as Di-7) which is published on the official Internet website of the Bank of Russia. In the event the RUONIA rate for the day Di-7 has not been published (including in the cases where the day Di-7 is a weekend day or holiday in the Russian Federation), such rate is assumed to be equal to the latest RUONIA rate published. In the event the RUONIA rate ceases to exist and/or the Bank of Russia stops using it, then a similar rate determined by the Bank of Russia shall be deemed to be the RUONIA rate. The RUONIA rate in this formula is calculated with an accuracy of two decimal places in accordance with the mathematical rounding rules.

Di – calendar date (within the i-th coupon period) on which the yield is calculated;

S – spread – a premium expressed in per cent per annum (to be determined by the issuer and disclosed by the issuer in the form of a material fact statement prior to the day on which the placement of bonds starts).

The procedure for information disclosure as regards the value of spread S:

The information on the value of spread S which has been determined by the issuer is to be disclosed by the issuer before the day on which the placement of bonds starts and not later than one (1) business day from the date on which the issuer published such value of spread S in the Newsline.

^** The amount payable on each i-th coupon per one bond is calculated with the following formula:

 Di0+Ti

CYi=∑ *YDi

 Di0+1

where:

CYi – amount of coupon yield in RUB on each bond for the i-th coupon period;

i – sequential number of the corresponding coupon period;

Di0 – commencement date of the i-th coupon period set on bonds;

Di0+1 – date following the commencement date of the i-th coupon period on bonds;

Ti – duration of the i-th coupon period set on bonds, expressed in days.

CYi is calculated with an accuracy of two decimal places; rounding of numbers in the course of the calculation is done in accordance with the mathematical rounding rules.

The mathematical rounding rules applied in this case are the rounding method where the second digit after the decimal point remains unchanged if the digit immediately to the right of the number to round is from 0 to 4 (inclusive), and is rounded up to the nearest whole number if the digit immediately to the right of the number to round is from 5 to 9 (inclusive).

YDi – yield in RUB on each bond to be calculated for each calendar date Di with the following formula:

YDi=Nom*RDi/365*100%

where:

Nom – nominal value of one bond in RUB;

RDi – interest rate for each date Di expressed in per cent per annum and calculated with the following formula:

RDi = R+S, where

R – the Bank of Russia's key rate present on the seventh (7th) day preceding the date Di (hereinafter referred to as Di-7) which is published on the official Internet website of the Bank of Russia. In the event the Bank of Russia's key rate for the day Di-7 has not been published (including in the cases where the day Di-7 is a weekend day or holiday in the Russian Federation), such rate is assumed to be equal to the Bank of Russia's latest key rate published. In the event the Bank of Russia's key rate ceases to exist and/or the Bank of Russia stops using it, then a similar rate determined by the Bank of Russia shall be deemed to be the Bank of Russia's key rate. The Bank of Russia's key rate in this formula is calculated with an accuracy of two decimal places in accordance with the mathematical rounding rules.

Di – calendar date (within the i-th coupon period) on which the yield is calculated;

S – spread – a premium expressed in per cent per annum (to be determined by the issuer and disclosed by the issuer in the form of a material fact statement prior to the day on which the placement of bonds starts, but not later than one (1) business day from the date on which the issuer published such value of spread S in the Newsline).