On June 1, 1968 OMV became the first Western European company to conclude a natural gas agreement with the former Soviet Union. This long-standing partnership, which celebrates its 40th anniversary this year, has played a pioneering role for the European gas supply business and represents a milestone in securing supply in Austria. On the basis of the long-term supply agreements with the Russian Gazprom an overall gas volume of 150 bcm has been imported into Austria since 1968. The extension of the gas supply agreements to 2027 in autumn 2006 secured a further volume of 150 bcm of natural gas for Austria. A 50/50 joint venture between OMV and Gazprom, which was realized in January 2008, aims at expanding and further developing the Central European Gas Hub - a virtual trade platform - into the leading trading hub of its kind in continental Europe. Moreover, it should further contribute to securing supply by strengthening the trade of liquid volumes.

Wolfgang Ruttenstorfer, CEO of OMV, said: "OMV and Gazprom can look back on a successful partnership aimed at securing gas supply. The signing of the supply agreements, which celebrate its 40th anniversary this year, represented and still represents a milestone for the stable and secure supply of natural gas in Austria and in Europe. Thus, the continuation of this successful partnership is a consistent step: natural gas will become increasingly important due to its environmental friendliness and the ever rising energy consumption." According to estimates of energy experts of the International Energy Agency (IEA), gas consumption in Europe will increase from a current year volume of 500 bcm to almost 800 bcm in the next 20 years. Russia will continue to play a significant role as Europe's dependable partner.

The Minister of Economic Affairs Martin Bartenstein said: "For four decades the traditionally good relations between Austria and Russia have been reflected in the reliable gas supply of Austria from Russia. This partnership between our two countries will be further expanded. Supply agreements have been extended for many years - in any case until 2027. At the same time OMV is realizing jointly with Gazprom a trading platform for the Central European Gas Hub. This will clearly strengthen Austria's role in safeguarding Europe' gas supply security.

On the occasion of the 40 year celebration of the first natural gas supply contacts, Alexej Miller, Chairman of the Board of Directors of OAO Gazprom, said: "In 1968 OMV became the first Western European company to conclude a gas supply contract with the former Soviet Union. Since then, our cooperation has developed with great success and it now includes new business areas such as the further expansion of the Baumgarten trading hub, the realization of joint storage projects along with natural gas supply and transport. By forging ahead with such vigour, Gazprom and OMV are not only strengthening their own positions on global markets but they are also making an inestimable contribution to the security of Europe's gas supply."

Tags: Gazprom, OMV