Domestic market of energy sources

Supplies to the domestic market have always been considered less profitable compared to exports. However, the situation is gradually changing.

Gas producers have long been insisting on liberalization of the gas market based on the principle of equal profitability of exports and supplies to domestic consumers.

The latter obviously impede implementation of this idea as much as they can. Their efforts were facilitated by the presidential elections that did not delay introduction of the net back method on the gas market but also froze prices of oil products.

The question is how the situation will develop. Moreover, the number of those supporting growth in gas prices is growing. For instance, the finance ministry does not mind it provided that all additional revenues of gas producers are taken away from them in the form of taxes. Putin is to make the final decision – he is facing a rather complicated task. It is necessary to take into account different interests of gas producers, Russian industrialists, as well as the budget and the finance ministry.

The report elaborates on the following issues:

• Domestic gas market: problem of liberalization of prices and access to pipeline system

  • Standing of independent gas producers
  • Evolution of the system of domestic gas sales
  • Long-term contracts, changes in the rules of the game

• Problems of pricing on gas market: positions of main players and Putin’s arbitration

  • Difficult way to the principle of equal profitability of exports and domestic supplies
  • Pace of reforms, possible consequences

• Russian market of oil products: search for ways of development

  • Problem of balance of interests between exports and domestic market

• State regulation of fuel market

  • Problem of domestic prices of oil products
  • Attempts to change the structure of production of oil products

• Medium-term forecasts of developments

The contents of the report: