Russia's gas business : facts, challenges and the road to reform

Abstract

The Russian gas sector, one of Russia's key industries, needs urgent reform to deal with ageing gas fields, excessive state regulation, monopolistic control over the industry and inadequate, outdated pipeline infrastructure.The dangers of supply disruptions are particularly striking in view of ever-increasing demand for natural gas in Russia's domestic market and internationally.To prevent Russian natural gas supply from decline, three major issues must be addressed.First, regulation has kept domestic prices artificially low and eliminated incentives to make necessary investments.Second, independent producers still lack fair access to the market, especially the pipeline network.Third, there is a compelling need for systematic investment.Keywords: Russia, Natural Gas, Energy, Reform