| The concern presented its concept of gas reform Gazprom heeded the government's calls to participate in the discussion on the development of market relations in the industry. Yesterday, the deputy chairman of the board of the concern, Alexander Ryazanov, at a joint meeting of the inter-factional association “Energy of Russia” and the Duma Committee on Energy, Transport and Communications, voiced the proposals of gas workers. The content of his speech was noticeably different from the famous letter from the head of the concern Alexei Miller to the president, which disrupted the December discussion of the issue in the government . Deputy Minister of Economic Development Andrei Sharonov, having listened to Mr. Ryazanov yesterday, admitted that he was hearing some of the proposals made for the first time. "Over the past few weeks, a number of the company's positions on a range of issues have evolved for the better," he said.
Mr. Sharonov spoke first and briefly outlined the main points of the concept of his ministry. The main complaints of the Ministry of Economic Development and Trade to the current gas business system can be reduced to the following: non-market prices for gas, problems with access of independent producers to the pipeline and non-transparency of the workload of Gazprom’s gas transportation capacities, as well as the lack of reliable information regarding the cost efficiency of the monopoly, primarily in terms of costs for pumping gas. According to the ministry, these problems can only be solved through comprehensive interventions and structural changes. To do this, according to Mr. Sharonov, it is necessary to separate the market infrastructure (pipeline and the Central Production Dispatch Department) from Gazprom. True, the official immediately made a reservation that he was not ready to talk about the specific form of allocation. In parallel, it is necessary to introduce the practice of concluding long-term contracts for the supply of gas, establish general rules for gas trading and use of the transport system, and also begin gradual liberalization of prices, hedging risks by developing competition in gas production and sales and other measures.
According to calculations by the Ministry of Economic Development and Trade, the normal free gas price corridor is $33-$46 per thousand cubic meters. At a minimum value, as Mr. Sharonov says, most consumers will be able to work normally, but at a price of more than $46, the risk of non-payment increases manyfold. And 35 dollars, according to Gref’s department, makes gas production in Russia attractive for investment.
Gazprom's proposals for controlled liberalization of prices and allowing the concern to sell part of its gas on the free market, according to Andrei Sharonov, are not without meaning. However, they are aimed exclusively at solving Gazprom’s financial problems in the short term and do not give any impetus to the development of a normal gas market.
Alexander Ryazanov, who spoke next, began his report by traditionally emphasizing the role of the concern for the Russian economy (20% of the budget, 25% of foreign exchange earnings, 8% of GDP, etc.). “Before taking steps towards cutting up and dismembering Gazprom, let’s see what it gives to Russia,” said Alexei Miller’s deputy. Mr. Ryazanov saved his proposals for developing the gas market “for dessert.” The monopolist proposes to create a gas market in Russia in three stages until 2010. True, the tasks for the current year are not new: the adoption of an energy strategy until 2020, the government’s approval of a program for increasing gas prices for three to four years, and permission for Gazprom to sell 5% (16 billion cubic meters) on the domestic market at free prices. Development of these areas (expansion of free trade in Gazprom gas) plus the development of uniform tariffs for gas transportation for all participants, including the concern, and changes in the taxation system of the industry (instead of the excise tax, it is proposed to introduce rental taxes, which, by the way, according to the Ministry of Economic Development and Trade) - contents first stage (until 2006).
At the next stage (until 2008), when the average market price for industrial consumers will be 36-42 dollars per thousand cubic meters, Alexander Ryazanov did not even rule out the possibility of providing gas from independent producers with access to the European market, albeit through a single export channel (Gazexport "). According to the concern, this will contribute to the intensification of investment activity in the gas industry. And in 2008-2010, according to Gazprom's plan, the gas market will be completely liberalized.
At the end of his speech, the deputy chairman of the concern’s board did not fail to remind the participants (primarily officials of the Ministry of Economic Development) of the president’s words that “the state will not support any plans for the dismemberment of Gazprom.” However, yesterday morning he was answered in absentia by German Gref, who said that the government does not intend to divide Gazprom into several companies that will be involved in gas production and transportation; We are talking about the intention to clearly highlight the transport, production and dispatch components within the company, so that “the consumer can understand how the price develops at each stage.” Such measures do not at all mean division of the concern, Gref emphasized.
Alexander Ryazanov told a correspondent of the Vremya Novostey newspaper that the concern has not yet sent its proposals to the government, but will present them to the Ministry of Economic Development and Trade in the near future. Alexey GRIVACHS |
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