Energy Resources Not Undercharged in Russia?

Andrei Illarionov, the Russian president's Adviser for economic issues, does not think that the current energy resources are undercharged in Russia. He expressed this view on Friday at the parliamentary hearings named "Russia's energy strategy for the Period till 2020. Problems and Solutions." The Adviser said the oil and coal market has been fully liberalised, prices are being set freely with no over- or undercharge. As for gas, it might be undercharged, but not as greatly as people think, he noted. Unlike other energy resources, electric energy is not greatly demanded by the world, as "it can not be transported for long distances due to its physical characteristics," Illarionov noted. That's why, the electric energy world market does not exist and only regional markets operate. The relation between supply and demand sets prices. "Prices for electric energy are overcharged in Russia in relation to our economic development, and the state of the electric energy as well," Andrei Illarionov said.

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