Domestic gas prices to grow by 2010

Gas prices on the open market will be some $45 to $50 per 1,000 cubic meters in Russia by 2010, Valery Yazev, the head of the Russian gas association, declared at a news conference in Moscow. Today the association has reported that it joined the International Gas Union. According to Yazev, this accession does not envisage any provision on increasing Russian gas supplies to the world market.

According to Yazev, Gazprom's losses from gas supplies to the domestic market will be about 8bn rubles (about $270m) in 2003. He thinks that fair gas prices are about $35 to $37 per 1,000 cubic meters, while currently the average domestic gas price is some $24 per 1,000 cubic meters. Yazev mentioned that the government planned to raise gas prices by 21 percent in 2004.

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