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Impaired by legal obligation to sell at the regulated price, Gazprom cannot compete on fair terms and has lost sizeable market shares along with its most profitable industrial customers.
Mounting competition by independent producers and the development of new production by Gazprom, combined with stagnating domestic demand and weakening export markets, have created a situation of overproduction, made worse by western sanctions and low oil and gas prices.
The New CEDIGAZ report “Russian Gas Market: Entering New Era” by Tatiana Mitrova (Russian Academy of Sciences) and Gergely Molnar analyses the ongoing changes in the Russian industry and the challenges to be met.
Increased competition and demand stagnation has led to an oversupplied domestic market, while frozen regulated prices, rising non-payment and rouble depreciation have further undermined its attractiveness.
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