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    GAZPROM TO REFORM THE STRUCTURE OF ITS CORPORATIVE MANAGEMENT BEFORE THE END 0F 2004

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    MOSCOW, March 19, 2004. (RIA Novosti) - The Gazprom company plans to reform its corporative management before the end of 2004.

    The essence of the reform is to divide financial flows according to the type of activity, the company's Chief Executive Officer Alexander Miller said in his interview with the newspaper Vedomosti which was published on Friday, March 19.

    He explained that the extraction, transportation, sale of liquid hydrocarbons and gas and also its procession and underground storage will be fixed separately.

    Officials and investors always reproach Gazprom of the lack of transparency of its outlays. However, the company is ready to change the situation, the Chief Executive Officer said. According to him, before the end of 2004, affiliated companies will have special departments for each type of activity and will carry out independent financial accounting.

    'We are planning that restructuring in the company will be completed by 2005. These transformations will make it possible for us to achieve absolutely clear and transparent outlays for gas transportation, and this is important for establishing substantiated transport tariffs," Miller said.

    Apart from that, the consolidation of the main types of activity will raise the efficiency of governing the entire system of Gazprom's affiliated companies, he added.

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