Gazprom Board approves 2015 budget

Considering the company’s preliminary operating results for 2014, projected Investment Program, Budget (Financial Plan) and Cost Optimisation (Reduction) Program for 2016 -2017, the Board of Directors approved Gazprom’s Investment Program, Budget (Financial Plan) and Cost Optimisation (Reduction) Program for 2015.

The key performance indicators of the Investment Program grew by RUB1.11 billion against the version approved by the Gazprom Management Committee this November.

RUB107.22 billion in long-term financial investments

Pursuant to the Investment Program for 2015, the total amount of investments will make up RUB840.35 billion. At the same time, the amount of capital investments will account for RUB733.13 billion, of which RUB733.09 billion and RUB0.033 billion will be allocated for capital construction and acquisition of non-current assets accordingly. The amount of long-term financial investments will total RUB107.22 billion.

According to the approved budget for 2015, gains from operating and investment activities will total RUB5.887 trillion, while the amount of payments in all activities – RUB5.978 trillion. The external financial borrowings will stand at RUB90 billion. The budget surplus (taking into account intragroup borrowings and beginning balances on Gazprom’s accounts as of early 2015) will account for RUB0.5 billion.

Altai project

Taking into account the agreement with CNPC on gas supply to China via the western route, the budget covers the expenditures on pre-investment studies for the Altai project.

The Cost Optimisation (Reduction) Program for 2015 envisages measures aimed at cost optimisation (reduction) to result in a cumulative effect of RUB13.1 billion.

Adapted from press release by Cecilia Rehn

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