Gazprom Predicts USD 160 Million Loss on Domestic Sales in 2003

Even taking into account the 20% rise in gas tariffs scheduled for 2003, Gazprom's domestic sales will continue to be loss making. According to the gas concern's press service, Alexander Ryazanov, Gazprom's deputy chairman, made this declaration at the 'Russia's Fuel and Energy Complex in the 21st Century' energy forum in the Kremlin. Ryazanov said that Gazprom will make a predicted loss of 5 billion roubles (USD 157 million) in 2003.

Ryazanov believes that Gazprom must break even on domestic gas supplies in 2004. He stressed that the concern intends to increase efficiency by significantly reducing costs. Costs are planned to fall by over 40 billion roubles (USD 1.26 billion) in 2003. An important step towards reducing costs will be the construction of the companies own electricity stations. Ryazanov noted that expenditure on electricity is currently very significant, costing Gazprom USD 300 million a year.

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