GAZPROM TO SET UP NATURAL GAS STORAGE MANAGEMENT UNIT

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MOSCOW, May 27, 2004. (RIA Novosti) - Russian oil giant Gazprom plans to set up oil extracting and natural gas storage management units, deputy chairman of the Gazprom Board Alexander Ananenkov announced Thursday.

"We will be through with it before 2004 end, for there are no technical problems but we have to undergo certain procedures," Mr. Ananenkov stressed.

According to him, the gas giant intends to single out units engaged in construction and provision of services as well.

These are the steps taken in the context of the second stage of Gazprom's reforms aimed at improved transparency, the deputy chairman of the board underlined.

According to Mr. Ananenkov, the second stage of Gazprom's reforms will last from 2005 into 2007. The schedule for the second stage will be completed by the end of 2004.

"The program will make it possible to define transparent financial flows, will allow to manage expenditures and improve the efficiency of the gas industry," Mr. Ananenkov said.

He also said the gas giant is considering a possible delivery of gas not only to its consumers but to third parties as well. However, Mr. Ananenkov did not specify when it would happen. At present, the Gazprom provides electric power to its enterprises on the Yamburg, Yamal and Zapolyarnoye gas fields (Russia's North).

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