OREANDA-NEWS. June 1, 2007. The Gazprom Management Committee has approved the updated key figures of the Gazprom Investment Program and draft Budget (Financial Plan) for 2007.

Said draft documents are pending endorsement by the Board of Directors.

Pursuant to the draft Investment Program, the total investments are earmarked at RUR 762.3 bln, which is RUR 232.92 bln up on the Investment Program approved in January 2007. Therefore the capital investments will be at RUR 319.78 bln (RUR 40.78 bln less as compared with the Investment Program approved in January 2007); long-term investments will make up RUR 442.52 bln (RUR 273.7 bln up on the Investment Program approved in January 2007).

According to the updated draft Budget overall cash income & revenues will make up RUR 2,277 trln, which is RUR 289 bln less as compared with the Budget approved in January 2007. Liabilities, expenditures and investments will increase by RUR 93 bln and account for RUR 2,749 trln. The total financial borrowings are projected at RUR 421.2 bln. The increase in borrowings is driven by the need to finance the acquisition of new assets. Financial borrowings for the current production and operating activities will remain unchanged at RUR 90 bln.

The net surplus will make up RUR 1.3 bln.

The necessity to update the Investment Program and Budget was driven mainly by the share acquisition of Sakhalin Energy, Beltransgaz and Mosenergo. Additionally, the Investment Program modification stamps in particular from the need to adjust a list of investment projects and investment scope. The Budget adjustments can also be explained by lower gas marketing volume due to the anomalously warm winter 2006-2007, change in macroeconomic rates.