Gazprom and YaNAA enter into 2005 Cooperation Agreement

Alexey Miller, Gazprom’s Management Committee Chairman and Yury Neyolov, Governor of the Yamal-Nenets Autonomous Area (YaNAA) entered into a Cooperation Agreement for 2005.

The Agreement outlines a broad range of bilateral cooperation issues, aiming to promote traditionally friendly and partnership ties and emphasizing mutual commitments in the asset management & manufacture, capital construction, power conservation and nature management sectors as well as tax, pricing and social policies.

In particular, over 2005, Gazprom intends to furnish YaNAA’s regional and local budgets with RUR 16.6 bln in tax and other payments.

Special emphasis has fallen on collaboration within the Program on comprehensive industrial development of hydrocarbon fields of the Yamal Peninsula and its offshore. The parties will agree on the construction of hydrocarbon production, transmission and processing facilities in the Area between 2005 and 2007, with special attention to be paid to the regional economy expansion on the platform of YaNAA’s social and economic development strategy and Russia’s Energy Strategy to 2020.

YaNAA’s authorities will step up measures towards settling municipal state-run companies’ gas debt to Gazprom’s subsidiaries running business in YaNAA.

Gazprom will effect supplies of and YaNAA’s authorities will timely provide payments for hydrocarbon feedstock processing products.

At the same time, Gazprom will complete the construction of a gas compressor station at the Long-Yugan-Labytnangi gas pipeline and will keep on building the Zapolyarnoye-Tazovsky motor highway and gas supply infrastructure of the settlement of Tazovsky.

In addition, Gazprom and YaNAA will promote the construction of a bridge across the Pur River, being part of the Novy Urengoy-Zapolyarnoye field motor road.

The parties will also finalize the inventory of socially significant facilities built by Gazprom’s subsidiaries and will produce the paperwork to hand over said infrastructure under the municipal ownership.

Over the 1st quarter of 2005, the parties will address the issue of founding regional gas distribution and power companies and will decide on the expediency of setting up a regional firm to be responsible for gas marketing all over YaNAA.


A major gas production province of Gazprom, the Yamal-Nenets Autonomous Area (YaNAA) accounts for over 90% of the Company’s production (some 83% of Russia’s overall gas extraction), seeing operations of Gazprom’s 7 subsidiaries, including Urengoygazprom, Nadymgazprom, Yamburggazdobycha, Noyabrskgazdobycha, Nadymstroygazdobycha, Novy Urengoy Gas Refining Integrated Company and Urengoystroygaz.

Cooperation between Gazprom and YaNAA is being fundamentally regulated by a General Agreement. To promote this Agreement, the parties have signed additional agreements and contracts, a Memorandum of Cooperation and the Cooperation Agreement being addressed herein.

Information Directorate, OAO Gazprom

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