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Article: Reform at Gazprom still a pipe dream.
- Article from:
- International Petroleum Finance
- Article date:
- April 1, 2004
CopyrightCOPYRIGHT 2004 Energy Intelligence Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Don't hold your breath if you're waiting for a wholesale restructuring of Gazprom or the Russian gas market.
Following his expected election win last month, Russian President Vladimir Putin has reiterated that any reforms should be handled carefully and subtly. That means, for example, that domestic gas prices--currently pegged at about $25 per thousand cubic meters (71 cent per million Btu)--won't be raised overnight.
"We know very well that gas is sold for household and industrial needs at a price lower than production cost, but [that provides] for the growth of other branches of industry," Putin said. "If we moved in an instant to market conditions, ...