Gazprom during Putin`s latest tenure

The past few years have been rather difficult for Gazprom. Competition on foreign markets is growing as well as the pressure by domestic competitors. Moreover, poor results produced by Gazprom in 2012, e.g. decline in production, reduction in its share on the domestic market, decrease in exports and export revenues, enabled its opponents to launch a powerful campaign against the gas giant’s monopoly and against its management.

Besides NOVATEK’s desire to get access to export revenues, there are ambitions of Rosneft that has declared about large-scale plans in the gas sphere and gained control over some gas assets.

Only the sharp improvement of conjuncture in Europe made it possible to repulse this attack with minimal losses, i.e. liberalization of LNG exports. Nevertheless, we can ascertain that the situation in the gas industry has changed profoundly. Three strong bears are now trying to get along together in one ‘gas lair’.

Meanwhile, the situation around Ukraine makes no headway, the European Commission presses Gazprom despite obvious problems with the EU gas balance, and negotiations with China are not easy. It is coupled with new fiscal and tariff policies of the state towards gas producers.

Key topics of the report:

• Transformation of the gas industry

  • Growth of NOVATEK, ambitions of Rosneft
  • Production strategies of three companies, battle for domestic market

• Restructuring of Gazprom

  • Mass media reports and reality
  • Lobbied decisions, position of president Putin as supreme arbiter

• Liberalization of exports

  • Struggle for LNG exports
  • Prospects of discussing free piped gas exports

• Gazprom’s export policy

  • Relations with the EU
  • Comeback of Russian gas to Europe
  • Eastern vector, negotiations with China and eastern consumers
  • LNG projects of Gazprom

• Transit problems

  • Gas relations of Russia and Ukraine
  • Situation on Ukrainian gas market

• Financial and economic situation

  • New tariff and fiscal policies

• Investment program: epoch of restrictions

• Forecast of medium-term developments

Contents of the report: