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Gazprom presses for market-based prices on gas

      RBC, 27.10.2009, Moscow 13:56:36.The government's decision on the transition to the market-based pricing of gas must occur within the specified period - beginning from 2011. The price of gas on the domestic market is expected to be equal to the average gas export price, chairman of Gazprom's management committee Alexei Miller announced at today's meeting of the board of directors. "If we are really targeting the development, modernization, and higher efficiency of Russian industry, the government's decision must be realized in accordance with the schedule," he said. He pointed out that a lack of competition between energy companies on the domestic market was a major hindrance in the economy's modernization. "There is simply no motivation for innovations or structural changes," Miller noted.

      Gazprom is currently selling over 50 percent of produced gas on the domestic market, but 82 percent of the company's gross revenue comes from gas exports. With this in mind, Gazprom is interested in boosting the efficiency of gas sales on the domestic market by introducing new regulations and resuming trade in gas on the energy exchange.

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