Major Progress in Negotiations on Asset Swap between Gazprom and E.ON

Major progress has been made in the negotiations on an asset swap between Gazprom and E.ON in the framework of which E.ON will acquire a stake in the west Siberian gas field Yuzhno Russkoye and Gazprom will acquire stakes in E.ON assets in western and central Europe.

The E.ON assets from which Gazprom will be able to choose shareholdings in western and central Europe were defined. They include power plants in various western and central European countries as well as underground storage facilities. The valuation of these assets still has to be made and, in the event of a value imbalance, additional assets should be agreed on. Thus the asset swap transaction cannot be completed by the time of the inauguration of the field on 18 December 2007.