New scheme of natural gas marketing in Russia is apported by Gazprom

Today, Mr. Alexey Miller, the Chairman of the Management Committee of Gazprom declared at the working meeting that the Guidelines on coordination of the gas marketing process in Russia have been signed. Elaboration of the document was stipulated by paragraph 1 of the Improvement of Natural Gas Marketing Order of 30 December 2002.

The document includes key provisions as follows:

• assignment of the rights under gas sales contracts between regional gas companies, other consumers and OOO Mezhregiongaz in favor of Gazprom;
• setting-up regional gas companies with Gazprom’s interest in business or Gazprom’s 100% gas marketing affiliated companies in the regions of Russia lacking such companies; transfer of Mezhregiongaz’s interest in authorized capital of regional gas companies to Gazprom;
• making amendments in the Gazprom’s management profile;
• making amendments in the Mezhregiongaz’s staff;
• the contracts between regional gas companies and industrial consumers as well as those between Gazprom and regional gas companies will require a 100% prepayment for gas deliveries beginning from 1 January 2004.

“New pattern of gas marketing is aimed at liberalization of the domestic gas market. The pattern assumes that a sole seller will be replaced by dozens of the “blue fuel” marketers in Russia. The proposed scheming will enable to minimize costs, to strengthen the payment discipline, to abandon the offset and billing practices in settlements with Gazprom”, noted at the meeting Alexander Ryazanov, the Deputy Chairman of the Management Committee.

Information Directorate, OAO Gazprom