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Home THE INSIDER

Putin instructed the government to prepare proposals for allowing Rosneft to export gas to Europe

by novichoktimes
December 7, 2021
in THE INSIDER
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Putin instructed the government, together with Rosneft and Gazprom, to submit by March 1, 2022, agreed proposals to conduct an experiment on pipeline gas supplies from Rosneft to the European market in the amount of up to 10 billion cubic meters per year. Such an order the president gave following a meeting on the development of the fuel and energy complex.

Prime Minister Mikhail Mishustin, head of Rosneft Igor Sechin and chairman of the board of Gazprom Alexei Miller have been appointed responsible for implementation.

Earlier, Sechin again asked Putin for the company’s access to gas exports. In order not to violate Gazprom’s monopoly, Rosneft is ready to work with the company under an agency agreement. As arguments in favor of this decision, Sechin cites an increase in the federal budget, assistance in filling Nord Stream 2 and the possible lifting of restrictions on the gas pipeline from Brussels.

Thereafter, the government announced that ready “As an experiment” to allow Rosneft to export 10 billion cubic meters of gas a year to Europe through an agency agreement with Gazprom. Deputy Prime Minister Alexander Novak proposed to the Ministry of Energy to work out this option, as well as to analyze, together with the Ministry of Finance, the possibility of amendments to the Tax Code on linking the mineral extraction tax with the volumes exported by Rosneft to the spot gas prices in Europe. The report notes that the final decision on the issue should be made by Vladimir Putin, since the positions of Gazprom and Rosneft are sharply different.

Rusenergy partner Mikhail Krutikhin explained The Insider that the agreement on the commission between Gazprom and Rosneft will not help circumvent European laws, and to implement Sechin’s proposal, Gazprom will have to deprive Gazprom of its monopoly on the export market.



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