A revolution in the Russian gas market?

The world's largest natural gas producer, Gazprom, has presented proposals for actions that would enable the company to increase domestic revenue and meet growing export demand. One of the proposed solutions is to increase gas prices for the population, as well as reduce prices for raw materials for industry.

These changes can be fundamental and have serious political implications. Low prices for gas and oil in Russia are, in fact, something constant, just like in other countries of large hydrocarbon producers.

The company recognizes that gradual adjustment of wholesale gas prices is a necessity in order to provide more flexibility in pricing. It is no secret that there are many places in Russia where gas is wasted because raw material prices are low. The increase in fees could force consumers to use gas more efficiently.

This, in turn, may lead to the emergence of certain reserves that can be directed for export by Gazprom. According to some experts, the Russian company, despite the scale of its operations, is beginning to face problems with the rapid growth of exports, as well as with the growing demand for gas in the European Union, which may cause supply strains.