At crossroads. Current problems of Russia’s gas sector

Abstract:

The Russian gas sector has found itself in a difficult situation. The mounting challenges and problems are primarily the consequence of the sector’s politicisation, the growing rivalry between Gazprom and the so-called independent gas producers, changes on external gas markets and the absence of reforms, which have been repeatedly postponed. Because Gazprom serves as an internal and foreign policy instrument and a source of revenues for the Russian elite, economic calculations or the interests of the sector as a whole have often been ignored by the state. This has led to problems in the gas production sector and challenges in external markets.

The purpose of this paper is to present the current condition of the Russian gas sector and its prospects. To a limited extent, the paper also discusses the wider context of the changes that occurred in the Russian gas sector in the years 2000-2016.