There must be equal terms of competition between companies in the domestic market

25 march 2016 | RBC-TV

“I would like to emphasize what it is exactly that we are trying to achieve in our natural gas sector,” said Alexander Kurdin, the Head of the Department for Strategic Studies in Energy of the Analytical Center on RBC-TV.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

“The current industrial policy calls for the promotion of sound competition in the domestic market so producers will compete with each other and become more effective,” the expert said, “while in the global market competition with foreigners is not always for good.” In the global market the state should support its producers. In this context, the idea of a single export channel looks as follows: companies are competing in the domestic market on equal terms to get access to the single export channel while in the global market there is a single Russian supplier. I personally think this idea is rather promising.”

Mr. Kurdin believes that the current imbalances stem from a whole range of issues that prevent the emergency of a healthy competitive environment in the domestic market.

“What I mean when I am talking about domestic competition is that different companies (Gazprom and other independent producers) should compete for access to the single export channel so NG would be supplied at the lowest prices while on the global market the single Russian supplier would sell this NG at the highest possible price. This will help the country to get the highest export margin while ensuring there is competition between companies within Russia that will force them to become more efficient,” Mr. Kurdin said. In his opinion, it is one possible move that could put Gazprom on a more equal footing with independent NG producers. “In the meantime companies have so many claims to each other that we could not possibly sort out all these issues,” the expert concluded.

Source: RBC-TV