Statement by Centragas

Centragas confirms the further Award by the Stockholm Arbitration Tribunal in the dispute between Rosukrenergo and Naftogas over the expropriation of 11bcm of gas

Naftogas to return to RUE 12.1bcm of gas in storage in Ukraine

Summary:

Centragas is pleased to confirm that today, 8 June 2010, the Stockholm Arbitration Tribunal made a further Award in the long-running dispute between Rosukrenergo (RUE) and Naftogas over the expropriation by Naftogas in January 2009 of 11bcm of gas belonging to RUE. At the time of its expropriation, the gas belonging to RUE was being held in storage in Ukraine and was destined for export to RUE's customers in Europe.

This Award confirms that the gas in question was taken by Naftogas in breach of its storage contract with RUE and that Naftogas will return 11bcm of gas in storage in Ukraine to RUE on the same terms as before the expropriation.

In addition, the Stockholm Arbitration Tribunal has ordered that RUE will receive from Naftogas a further 1.1bcm of gas in lieu of RUE's entitlement to penalties for breach of contract.

This Award follows the earlier decision by the Stockholm Arbitration Tribunal on 30 March 2010 to award RUE in the region of USD200m for various breaches by Naftogas of supply, transit and storage contracts. This earlier ruling also becomes enforceable and will therefore be paid to RUE as part of this further Award.

Background:

Group DF subsidiary, Centragas Holding A G, is the owner of a 50% interest in RUE, which is co-owned by Gazprom.

RUE has been involved in a number of arbitration actions in the Stockholm Arbitration Tribunal against the Ukrainian national gas and oil company - Naftogas. These claims related to:

· Payments due and penalties payable under gas supply contracts.

· Payments due and penalties payable under transit and storage contracts.

· A claim for the theft of 11 bcm of gas from the storage facilities in Ukraine.

A final and binding award in respect of the first two items above was made by the Stockholm Arbitration Tribunal on 30 March 2010. Under that Award, both RUE and Naftogas were ordered to make payments in respect of those claims and counter-claims that were upheld by the Stockholm Tribunal. The overall net effect was that Naftogas would have to pay RUE in the region of USD200m. This Award now becomes enforceable and will therefore be payable to RUE as part of the further Award.

The Final Hearing took place on the third item above (namely the expropriation of 11 bcm of gas belonging to RUE) on 19 May 2010.

The Award:

Naftogas had originally maintained that RUE's 11bcm of gas in storage had been acquired by them in early 2009, but Naftogas had never properly explained how and under what circumstances it had managed to acquire the gas without the authorisation of RUE.

This further Award confirms that the ownership of the gas had never in fact changed hands and that it still belongs to RUE. As a result, the Stockholm Tribunal has declared that the gas was taken as a breach of the storage contract, and has ordered that this gas, currently held in storage in Ukraine, is now returned to RUE by no later than 1 September 2010.

RUE was also entitled to penalties for breaches of its storage contract with Naftogas. However, as part of this further Award, the Tribunal has declared that RUE will accept 1.1 bcm of gas in lieu of these penalties and that this additional gas will be made available to RUE under the same terms as those applicable to the 11bcm.

The Stockholm Arbitration Tribunal will be asked to adjudicate a few remaining and unresolved issues between the Parties including a determination of an Award for costs at a hearing which will take place in Stockholm on 21 June 2010.

Centragas also confirms that as a result of this Award it is withdrawing its action against the Ukrainian Government under the Energy Charter Treaty (ECT).

Commenting on the Award, Group DF CEO Robert Shetler-Jones said: "We are very pleased to have reached a satisfactory and just outcome of this long-standing dispute. The basis and legitimacy of our claims had already been upheld by the Stockholm Arbitration Tribunal in March and we were therefore confident of our position going into this hearing. We were always determined to hold the Ukrainian Government and Naftogas accountable for their actions and that they should be made to honour their obligations under contract. This Award by the Stockholm Tribunal is therefore a fair and sensible outcome for all concerned."