Gazprom and its CEO Alexey Miller may have to fork out some $2 billion to cover losses of independent gas producers.
Photo: Dmitry Azarov
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Officials Want Gazprom to Share Profits with Independent Producers
Russia’s competition watchdog is set to allow independent producers to have their shares in gas export. Gazprom will still be serving as a joint export channel, but it will have to share profits from deliveries with other gas firms to match the volumes of their production. Gazprom may have to lose some $2 billion in what is clearly another attempt to control the gas giant’s superprofit.
Authorities are to come up with amendments to a gas export law which would open the door for independent gas producers to the Russian export channel, Deputy Director of the Federal Anti-Monopoly Service Anatoly Golomolzin told Kommersant Tuesday.
The law on gas export, which was adopted last year, made Gazprom the sole gas exporter in Russia. Independent producers have repeatedly complained that they have to sell gas to Gazprom at domestic prices for the gas monopolist to export it eight times as expensive.
Anti-monopoly officials would like to see Gazprom returning a portion of its profits to independent gas producers which would be equivalent to their shares in Gazprom’s transit system.
Russia produces over 650 billion cu. meters of gas annually, 100 billon of which accounts for independent producers. Gazprom exports 200 billion cu. meters every year, which means independent producers could gain 30 billion in profits. The Anti-Monopoly Service suggests that Gazprom pays other gas firms for the price difference between domestic and export rates. Industry analysts have estimated that Gazprom will have to lose as much as $2 billion if the amendments are adopted.
Government’s pressure to strip Gazprom of its excess profits has recently increased as Finance Minister suggested Gazprom and other state-run companies curb their borrowings and use profits to clear outstanding debts.
www.kommersant.com
All the Article in Russian as of Apr. 25, 2007
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