FRENCH RETAIL

2007 was our first year of direct gas sales to the end-user markets in France. This background gives us a strong position to access not only the industrial and commercial sector but SMEs as well.

We have secured access to positions in French storage facilities whilst continuing to expand our team and concentrating on building our gas portfolio. We are extending our marketing presence in France and exploiting our connections with other Gazprom Marketing & Trading teams to develop a foothold in power generation and the carbon business with industrial customers. We are also looking to establish partnerships with local distribution companies and will be exploring possible acquisition opportunities.

We are also developing our offering to French end users with particular regard to the gas metering project managed by Gazprom Marketing &Trading UK.