Fitch Ratings says that the ongoing dispute between Gazprom and Ukrtransgaz, on the terms and conditions of the transfer of Russian gas through Ukraine to European off takers, has had no immediate impact on the ratings of notes issued by Gazprom International S.A. (the Issuer).

The next payment under the notes in an amount of USD103m is due in February. The Issuer holds cash equal to this amount in its account which in Fitch's view will ultimately ensure a timely payment. This also explains why there is no immediate impact at this time on the notes in relation to the short-term interruption of gas deliveries. However, a protracted, or regular short-term, interruption of gas deliveries could have a negative impact on the notes issued by the Gazprom International. Gas supply contracts generally foresee termination rights in case of an ongoing inability of one party to fulfil its obligations. While events beyond the control of Gazprom could be classified as a force majeure event, some agreements make use of a more narrow definition that would prohibit the right of renegotiation or termination. In such circumstances the gas importer either has rights for compensation that would be expected to be made in the form of discounts on future deliveries. Such discounts would reduce future collections and therefore dilute the collateral backing the issuance. Apart from this potential, and at this stage unlikely, effect, gas prices are already expected to fall compared to 2008 which will narrow the cash flow which has been at record levels during the course of last year.

Gazprom International's rated notes are backed by export receivables tied to long-term gas delivery contracts between OAO Gazprom ('BBB'/Stable) and two European importers located in Italy and The Netherlands. Italian-based ENI Spa ('AA-'((AA minus))/'F1+'/Stable) and The Netherlands-based Gasunie, both of which purchase gas from Gazprom, settle their payments through collection accounts held by the Issuer. The collections collateralise the payments due under the notes which are rated 'BBB+' with a Stable Outlook by Fitch. As the notes' rating is driven by these payments acting as security, it is a vital rating aspect that Gazprom is able to fulfil its delivery obligations to ENI Spa and Gasunie. The receivables supporting the notes are collected from the two European importers on the basis of them receiving ongoing gas supplies.

The gas export contracts between Gazprom and Gasunie and ENI Spa detail the minimum amounts of gas to be delivered annually to the two importers, who are invoiced on a monthly and annual basis. However, the amount of gas delivered is not constant every day and is subject to supply and demand, prices, and the operational restrictions of gas transfer and storage facilities. As such, the current interruption of gas exports through Ukrainian territory should be able to be made up with increased deliveries to the two importers after a temporary or midterm solution is found. While payments due from Gasunie and ENI Spa may be somewhat lower for January 2009, such a reduction is expected to be made up in coming months subject to the receipt of gas by the two importers.