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Gazprom approves adjusted programmes

World Pipelines,

The Gazprom Board of Directors has approved the adjusted investment programme, budget (financial plan) and cost optimisation (reduction) programme for 2014.

According to the adjusted investment programme for 2014, the total amount of investments will make up RUB 1 trillion 026.15 billion, which is a RUB 220.146 billion increase as compared to the Investment Program approved in December 2013.

Meanwhile, the amount of capital investments will make up RUB 816.572 billion (a RUB 115.462 billion increase as compared to the investment programme approved in December 2013), of which RUB 804.860 billion and RUB 11.712 billion will be allocated for capital construction and acquisition of non-current assets, thus showing an increase of RUB 106.648 billion and RUB 8.815 billion accordingly.

According to the adjusted budget for 2014, gains from operating and investment activities will total RUB 5.649 trillion, while the amount of payments in all activities – RUB 6.174 trillion. The external financial borrowings will remain unchanged and total RUB 90 billion. The budget surplus (taking into account intragroup borrowings and beginning balances on Gazprom's accounts as of early 2014) will account for RUB 0.5 billion.

A new version of the cost optimisation (reduction) programme for 2014 envisages measures aimed at cost optimisation (reduction) to result in a cumulative effect of RUB 17.9 billion (the initial plan was RUB 17.5 billion).

The 2014 investment programme adjustment is mainly driven by the need to increase long-term financial contributions as well as the investments in Gazprom's top-priority strategic projects for natural gas production and transportation.

Edited from various sources by Hannah Priestley-Eaton

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