Gazprom responded to competitors in an attempt to break the export monopoly

In interview to Agency “RIA Novosti” Deputy Chairman of the Board “Gazprom” Valery Golubev said that the access of independent producers to export gas to Europe will lead to competition among Russian suppliers, will not be profitable for Russia’s national interests.

According to Golubev, “Rosneft” access to the export pipeline gas to Europe will be favorable, and the government does not. “Why have access for exports, if the Russian independent producers will earn in the domestic market as much as they earned when gas supplies abroad?” — said a top Manager of gas holding.

Golubev pointed out that independent producers sell certain volumes of gas to Gazprom, which sends them including for export. “To a certain extent we can state that the gas produced by independent producers, is located in the volume exported and export trading authorized by one company — “Gazprom export,” he said.

In early March, “Vedomosti” said that the Chairman of the Board and co-owner of NOVATEK, Mikhelson encroached on export monopoly Gazprom. At the request of Putin, the energy Ministry considered the possibility to allow the Swiss trader NOVATEK Novatek Gas & Power GmbH (NGP) to supply European consumers with gas in Arcticgaz (joint venture of NOVATEK and “Gazprom oil”).

In February, the CEO of Gazprom Alexey Miller has written to the presidential administration response to the proposal of Novatech. This letter States that a trader NOVATEK acquires gas from the German company E. ON, which, in turn, buys it from “Gazprom”, says a source familiar with the contents of the letter. If allowed to export gas in Arcticgaz, “Gazprom” will lose the customer, procuring over 2 billion cubic meters, and there will be a gap in the single export channel.

Before company’s request to allow the export of pipeline gas appealed to the Russian President of “Rosneft”. Igor Sechin in October 2015, it sent a letter to Putin with the request to allow Rosneft to export 7 billion cubic meters of gas to Europe without intermediaries for the sale of British BP.

Miller has criticized this attempt to break the monopoly of “Gazprom”, the letter to Putin in November 2015. Sechin’s proposal on the sale of 7 billion cubic meters of gas outside the single export channel is not based on a serious analysis of the European market, indicates Miller. In his opinion, additional volumes of Russian gas will only worsen the position of “Gazprom export” not only the market, as well as arbitration proceedings.