Russia Minister: Rise Of Domestic Gas Prices Delayed

Russia Minister: Rise Of Domestic Gas Prices Delayed
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Τρι, 27 Μαΐου 2008 - 03:27
Russia intends to delay until 2014-15 plans to raise domestic gas prices to export levels -- three years later than the original deadline of 2011, the Interfax news agency said Tuesday, citing the country's Deputy Economy Minister Andrei Klepach.
Russia intends to delay until 2014-15 plans to raise domestic gas prices to export levels -- three years later than the original deadline of 2011, the Interfax news agency said Tuesday, citing the country's Deputy Economy Minister Andrei Klepach.

Energy prices have recently risen globally to record levels which would suggest a 95% to 100% hike in the domestic price of natural gas, Klepach said. A "compromise" has been found and the prices will rise to the export level in "a few years" he said.

Russia decided two years ago to reduce its role in regulating domestic gas tariffs, which are heavily subsidized and drag down profits and investment at gas producers, in particular state-controlled OAO Gazprom (GAZP.RS).

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