The Bill on Gas Export was shaped by Valery Yazev, chairman of State Duma’s Energy Committee.
Photo: Ilya Pitalev
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Armed by Gas
Russia’s lower house of parliament, the State Duma, passed the Bill on Gas Export in the second and the third reading yesterday. Timing this move to the eve of G8 summit in St. Petersburg could be viewed as a response to the E.U. calls for gas market liberalization. Once the bill is approved by the Federation Council, it will become a solid lever for President Vladimir Putin in his talks with the G7 leaders. Using it requires just signing a bill into law.
The bill passed by State Duma yesterday grants the exclusive right for gas export to an entity that owns the Unified Gas Supply System (UGS) or to its 100-percent subsidiary. Gazprom is the sole owner of the UGS today and its 100-percent subsidiary, Gazexport, is the sole export arm of the monopoly.
The Federation Council will soon have the bill to ensure its quick and smooth route to Vladimir Putin.
Creating a unified export channel represented by Gazexport actually legalizes the monopolistic standing of the latter and ends all hopes of intermediaries, including ITERA Group, to have another try on the market.
But the bill affords enough ground for liberalizing domestic gas market of Russia, including free access for any foreign investments or companies to it. But no foreign producer of Russia’s gas will ever be able to independently export it by passing Gazprom or any other owner of UGS.
The timing of the bill is perfect. The probable introduction of gas export monopoly is a very good trump card for Russia's president before the G8 summit that St. Petersburg will host July 15-17. A scratch of Putin’s pen will suffice to make senseless the key energy negotiations of G8. Once the bill is signed into law, the energy security will be debated not in the Kremlin but rather in Gazprom headquarters.
www.kommersant.com
All the Article in Russian as of July 06, 2006
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