With the help of regional heads, Gazprom intends to completely gasify Russia
First Deputy Prime Minister Dmitry Medvedev called on regional authorities to intensify work on gasification of cities and villages, while strictly observing the principle of cost co-financing embedded in the large-scale gasification program currently being implemented, as well as to look for mechanisms for financial support for the poor and pensioners when connecting their apartments and houses to gas networks. “It is obvious that gasification has become a serious incentive for the development of the agricultural and industrial potential of the regions, but most importantly, it has become a symbol of a new quality of life for a huge number of people,” he said during a meeting held at the Government House with the participation of a number of governors. It is known that Russia is a leading gas power, and it is not only the leader in production, but also the owner of the largest reserves of blue fuel. However, for a significant number of Russians, gas in the house is still just a dream: the level of gasification with natural gas in the country is 61.66% in cities and 37.77% in rural areas. In the 90s, there was no need to talk about the construction of new gas networks in cities and towns. The permanent crisis of the transition period did not provide such an opportunity either to the federal government, or to the regional authorities, or to Gazprom. But as soon as the macroeconomic situation in the country stabilized, the management of Gazprom was not slow to come up with a socially oriented initiative, developing and starting to implement a large-scale gasification program for the regions of the Russian Federation. At all levels of government, the closest attention was paid to gasification of the country. Moreover, it is so intense that gasification, as First Deputy Prime Minister and Chairman of the Board of Directors of Gazprom Dmitry Medvedev has repeatedly stated, has become, in fact, the fifth national project. The currently implemented “Gasification Program for the Regions of the Russian Federation for 2005-2007” involves connecting and constantly providing gas to more than 3.8 million apartments and households (about 2.7 million in cities and 1.2 million in rural areas). Gas should reach the homes of 13 million people. It is planned to convert approximately 20 thousand public utility enterprises (hospitals, kindergartens, schools, etc.), more than 5 thousand rural and township boiler houses and about 500 agricultural enterprises to heating with natural gas. In 2007 alone, more than 20 billion rubles were allocated for gasification. It is planned to complete the construction of more than 400 objects (for comparison: just over 120 were built last year). At the same time, in many subjects of the federation gasification is progressing ahead of schedule (Orenburg, Penza, Tambov, Ulyanovsk regions, the Republic of Mari El, Udmurtia). Of particular note is the work of the administration of the Orenburg region, which was able to correct the difficult situation associated with the preparation of consumers in 2006, and this year became a leader. However, judging by the words of Dmitry Medvedev, not all regions are going smoothly. Until now, for various reasons, gasification plans for 2007 remain unapproved for five federal subjects out of 58 regions that participate in the program. These are the Irkutsk region, the Yamalo-Nenets Autonomous Okrug, the Krasnodar Territory, Dagestan and the Altai Republic. If the schedules are not signed in the near future, the question will be raised about excluding these regions from the gasification program for the current year. In addition, according to the First Deputy Prime Minister, “a significant number of regions are guilty” of violating schedules for preparing boiler houses and households for switching to gas. “At the same time, Gazprom is fulfilling its obligations,” he said. This refers to Gazprom’s implementation of the schedule for synchronizing the construction of gasification facilities, according to which its area of responsibility is the construction of inter-settlement gas pipelines, and regional authorities are responsible for the construction of intra-settlement networks and connecting direct consumers. A similar situation is developing in the Arkhangelsk, Chelyabinsk, Kursk, Tula, Kirov, Novosibirsk regions, Stavropol Territory and a number of other regions. Kirill Seleznev, member of the board of Gazprom and general director of Mezhregiongaz, outlined the picture more specifically. For example, seven gasification facilities are being built in the Arkhangelsk region. At the same time, the readiness of distribution networks and households is zero. Of the 14 boiler houses, only four are ready, and even then only those that were built using the financial resources of the Ministry of Defense. In the Chelyabinsk region, out of 5.5 thousand households, only eight are ready to connect to gas networks. 31 km of distribution networks out of 155 km (20%) have been prepared. None of the 11 boiler houses are ready. And in the Kursk region, where the readiness of households is less than 2% (out of 5,700 houses only 82 are ready for connection), not one of the 64 boiler houses is prepared for gasification. However, judging by their speeches, the governors are full of optimism. All those who spoke at the meeting literally swore that the remaining months of the year would be on schedule and the gasification program would be successfully completed. “There is no doubt that everything will be accomplished,” said the head of Komi, Vladimir Torlopov. “The program will be implemented,” echoed the governor of the Arkhangelsk region, Nikolai Kiselev. And the head of the Stavropol Territory, Alexander Chernogorov, generally committed to ensuring almost 100 percent gasification of the region by 2010. Moreover, he has every reason for such a statement. To the envy of fellow governors, today the Stavropol Territory is already 95% gasified in cities and 93% in the regions. Mr. Medvedev approved of the governors' confidence, but made it clear that the chickens would be counted in the fall. An issue that is extremely concerning to Dmitry Medvedev is the fee for connecting households to gas networks. He was almost indignant when he talked about what he heard during a recent trip to the Kaliningrad region. There, according to the First Deputy Prime Minister, the cost of connection is 250 thousand rubles. (!). “People don’t have that kind of money,” he stated. However, many do not have even 25 thousand rubles, which is how much connection costs on average in the country. The government understands this well and urges regions to constantly think about how to reduce fees for those who cannot pay even the average tariff. Dmitry Medvedev also reminded the representatives of the regions participating in the meeting that during the initial discussion of issues of co-financing the gasification program, “everyone said with one voice: “Yes, we are ready, we will fulfill our obligations, help municipalities and work with citizens accordingly,” providing for those who are unable to pay for themselves.” According to the First Deputy Prime Minister, if regional authorities today cannot provide connection to the population at a price not exceeding 25 thousand rubles, then the regions should honestly state that they are not fully ready to implement the gasification program, they want to wait a few years and then return to her. “But I think this is wrong: we all took on the corresponding obligation. In my opinion, this program is one of the most important, and if there really is not enough money, I believe that it is better to reduce some (local) investment projects,” Dmitry Medvedev emphasized. Dmitry Medvedev approved regional initiatives aimed at reducing the gasification burden on the poor. For example, in the Komi Republic, as Governor Vladimir Torlopov said, financial assistance will be provided through the republican social security agency. The authorities of the Novosibirsk region, Governor Viktor Tolokonsky informed, fully finance the connection to gas networks of pensioners' households, the rest are allocated 20 thousand rubles each. (total cost 37 thousand rubles). In the Chelyabinsk region, beneficiaries receive 15 thousand rubles free of charge. with a connection cost of 35-36 thousand rubles, said Governor Pyotr Sumin. The Kursk region provides assistance at the expense of the regional budget to low-income large families, disabled people and war veterans, as well as with the participation of the Pension Fund and pensioners. Among other support measures, Deputy Governor Alexander Zubarev noted, subsidizing interest rates on bank loans taken by citizens for gasification. Hearing about this, Dmitry Medvedev proposed more actively using the capabilities of Rosselkhozbank. “We directly oriented Rosselkhozbank so that it could provide loans for connection,” said the First Deputy Prime Minister. In turn, the General Director of Mezhregiongaz, Kirill Seleznev, spoke in favor of creating a unified system for regions to provide assistance to the population during gasification. He proposed that federal legislation oblige the constituent entities of the federation to allocate funds from regional budgets for these purposes. In conclusion, Dmitry Medvedev recalled that 58 regions are participating in the gasification program, but no one has removed the task of gasifying the entire country. “We are able - not in a year, not in two - to solve this problem,” he emphasized. Let us recall that earlier the First Deputy Prime Minister said that it was quite possible to gasify all of Russia within the next ten years.
