icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
2 Mar, 2007 10:22

Energy prices to outstrip incomes in Russia

Energy prices to outstrip incomes in Russia

Prices for energy and utility services will grow faster than incomes over the next years in Russia. Economic Development and Trade Minister, German Gref, told a government meeting that domestic prices for gas will almost double by 2010.

The minister said domestic gas prices will jump next year by 25% – and almost 28% annually over the next two years. Prices in the power industry will also grow faster than inflation.

Gref also approved the liberalization plan for power industry.

One problem that  the minister highlighted was the situation with gas extraction.

“What we see now and what Gazprom is saying is that they will provide gas extraction until 2011. However, Gazprom specialists have officially declared a deficit of gas supply on the domestic market after 2011. We don’t have a forecast for pipeline system development, and this prevents us from coordinating  3-year and long-term budgets for the gas sector and the investment programme,” stressed German Gref.