Gazprom projects gas prices to rise 3-3.5% in Russia

MOSCOW, Mar 2 (PRIME) -- Gazprom projects a 3-3.5% rise in regulated Russian gas prices, below inflation, in the next few years, below inflation level, Deputy CEO Andrei Kruglov said on Thursday.

“We expect gas prices to stay regulated in Russia in the mid-term. Prices are likely to rise at a rate of below the level of inflation, about 3-3.5%,” the executive said at a Gazprom investor day in Hong Kong.

Discounts to large consumers are being considered by the government, he said.

“We have proposed that Gazprom should have the right to grant a discount of 10% and more to its customers. The issue is being considered and we hope a positive decision will be made.”

Deputy Chairman of the Management Committee Alexander Medvedev said Gazprom is not going to revise prices for gas, delivered to China via the Sila Sibiri (Power of Siberia) pipeline. The company confirmed its plans to launch the pipeline from May 2019 to May 2021.

He also said that Gazprom is likely to hold the next gas auction in summer 2017 and raise the foreign currency revenue from exports by 16% on the year to U.S. $35 billion in 2017.

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