Source Pravda.Ru

Competitive Russian Gas Market to Develop by 2010

There will be a competitive Russian gas market by 2010 according to Deputy Chairman of Gazprom Alexander Ryazanov, who spoke yesterday at the annual meeting of the company's management with the Russian government and President Vladimir Putin.

Mr Ryazanov said that the Russian gas market will develop in three stages. By 2006 there will be higher gas prices which will enable the gas industry to finance itself as well as make it more attractive for investment. At this stage it will also be necessary to provide greater access for independent gas producers to the major gas transportation systems.

By 2008 there will be transaction prices for all consumers excluding the population, independent gas producers will have access to a single export route, and both domestic and foreign markets will be equally profitable. By 2010 there will already be a competitive gas market. The third stage also foresees greater competition between producers of different energy resources.

The deputy chairman added that in his opinion government price control should be limited to gas transportation via the gas pipeline systems.

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