The Russian gas market requires changes

Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented to the Neft and Capital Internet portal on the possibilities of reforming the domestic gas market in Russia.

Alexey Gromov pointed out that wholesale prices for Gazprom's raw materials in the Russian Federation are determined by the state, but this does not happen with regard to independent producers (NOVATEK and Rosneft). According to him, despite the indexation, the profitability of domestic supplies for the concern does not exceed $ 70 per 1 thousand cubic meters, so it is not always profitable. They wanted to bring wholesale sales closer to the market price by opening gas trading at the St. Petersburg International Commodity Exchange in 2014. However, so far companies on the stock exchange sell only surplus raw materials. The expert also pointed out the uneven tax burden, which was previously justified by Gazprom's export revenue.