Gazprom’s position on the Russian gas market weakening
Gazprom’s position on the Russian gas market weakening

Author(s): Ewa Paszyc
Subject(s): Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Developing nations
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Gazprom; Russia; gas market
Summary/Abstract: As the difficulties Gazprom has faced in recent years on the European market have multiplied, so more and more symptoms have appeared which may suggest that the company’s dominant position is deteriorating. The decision made by the Russian government in June 2011 to double the tax Gazprom has to pay on the extraction of gas, which was later approved by parliament, was the first time in many years when the company’s fiscal privileges were withdrawn.The process of Gazprom’s assets being taken over by private companies and business partners from within Vladimir Putin’s closest circle is underway. More and more frequently attempts are being made to challenge the company's monopoly in areas of key importance for the functioning of the entire gas sector, such as Gazprom’s exclusive right to dispose of the Russian gas transportation system and its exports monopoly. Competition from independent gas producers on the domestic market is growing, and Gazprom is gradually being pushed out of some of that market’s most profitable segments (industrial clients).

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