Board of Directors addresses progress with Investment Program, Budget and Cost Reduction Program
The Gazprom Board of Directors took notice of the information about the progress with implementing the Company's Investment Program, Budget (Financial Plan) and Cost Optimization (Reduction) Program for 2015.
The Investment Program, Budget and Cost Reduction Program comply with the criteria approved by the Board of Directors in December 2014. In addition, Gazprom closely monitors the global economic environment, in particular, the exchange rate volatility and takes it into account while running its business. It was pointed out that despite the exchange rate fluctuations, at the year-end Gazprom would provide a budget surplus as was expected.
Pursuant to the Investment Program for 2015 approved in December 2014, the total amount of investments will make up RUB 840.35 billion. At the same time, the amount of capital investments will account for RUB 733.13 billion, of which RUB 733.09 billion and RUB 0.033 billion will be allocated for capital construction and acquisition of non-current assets accordingly. The amount of long-term financial investments will total RUB 107.22 billion.
According to the approved Budget for 2015, gains from operating and investment activities will total RUB 5.887 trillion, while the amount of payments in all activities – RUB 5.978 trillion. The external financial borrowings will stand at RUB 90 billion. The Budget surplus (taking into account intragroup borrowings and beginning balances on Gazprom's accounts as of early 2015) will account for RUB 0.5 billion.
The Cost Optimization (Reduction) Program for 2015 envisages measures aimed at cost optimization (reduction) to result in a cumulative effect of RUB 13.1 billion.