"New gas tariffs will result in a 40% price increase for consumers"

Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented on the government's plans to raise gas tariffs to the online magazine Novye Izvestia.

— How much does Gazprom want from the domestic market?

— Gazprom has pushed through the government to increase gas prices by about 40% ahead of inflation until 2028 for consumers. This is a serious challenge for consumers, but such a decision has been made, and it is solely due to the fact that without this decision Gazprom will not be able to fully implement its investment programs, realize gas production at new fields, and so on and so forth.

— The current Gazprom model has become ineffective and needs to be restructured. Does the tariff increase mean that this won't happen? So the next holes will be plugged at the expense of the population?

— The issue is more systemic. It has not been possible in Russia to build an effective domestic gas market in 30 years, where everything would be determined by market instruments, the ratio of supply and demand. Gazprom insists that this should not be done. It is better to ensure faster growth in gas prices and maintain the company's familiar situation in the domestic market.

—The tariff increase is an additional tax for consumers?

If the logic of the Ministry of Finance is confirmed by concrete decisions at the legislative level, all those additional revenues that Gazprom could receive from the increase in gas prices on the domestic market will still be redirected in the form of additional taxes. You will receive an additional replenishment of the budget.

Gazprom will not achieve its goals, and the negative inflationary effect on the country's economy will be ensured. Therefore, the decision is more than controversial. I still remain opposed to this decision.

—But it has already been accepted?

- Of course. But I don't think this solution will be useful for the Russian economy, because, I stress, we don't solve problems. The problem in the country is that we do not have a domestic gas market. This is the main problem, it needs to be solved. So far, the authorities, under pressure from Gazprom, are not ready for this.