MOSCOW — The deal to increase the state stake in Gazprom's authorized capital to a controlling one will be held without Rosneft's participation. The necessary stake will be acquired at a market price, the gas holding has reported.

"Taking into account those changes, which took place in Rosneft's consolidated assets and liabilities after September 2004, it was decided not to use this asset as a means of payment for Gazprom's stake," the holding's statement claims.

The deal is expected to be held by the annual general shareholders' meeting, scheduled for June 24, 2005.