Russian gas behemoth Gazprom has reorganized the existing intra-corporate governance structure of Gazprom-UGS, a wholly owned subsidiary of Gazprom.

The reorganization was completed by merging Gazprom UGS and buffer companies including Gazprom UGS-Krasnodar, Gazprom UGS-Orenburg, Gazprom UGS-Perm, Gazprom UGS-Samara, Gazprom UGS-Saratov, Gazprom UGS-North-West, Gazprom UGS-Stavropol, Gazprom UGS-Tyumen, Gazprom UGS-Ufa set up in the first quarter of 2007 by unbundling from the Gazprom gas transportation companies.

The UGS asset consolidation into Gazprom-UGS as an integrated company is an important part of the intra-corporate governance structure improvement, which is conducted in the frames of the second stage of the company’s reform.

The aim of reforming is to increase Gazprom’s business activity efficiency as a vertically integrated company and to optimize the governing structure of the core business activities at the subsidiary level. Structural changes will result in completing separation and transparency increase of cash flows in production, transportation, processing, storage and marketing of gas and hydrocarbons.