Pursuing the goal to bring domestic wholesale gas prices for industrial consumers closer to the level of profitability of export supplies, Russia had implemented an annual average gas prices rise of 15% between 2005 and 2013 (source: Enerdata, Global Energy & CO2 database). In order to support the domestic economy the Russian Governement has decided to postpone the next increase of gas price for industry. The initial annual price increase of 15% expected over the period 2013-2015 has been postponed to two successive hikes of 4.8% and 4.9% to occur respectively in July 2015 and in July 2016. Therefore, no gas price increase is planned for 2014.
Gazprom, the sole gas supplier at regulated prices in Russia, has benefited from the gas price increases (households and industry) implemented since 2005 to increase its profitability in Russia, thus to reduce its dependence on revenues from gas sales to European countries. According to the company, the regulated prices are undervalued and Gazprom is not able to generate enough revenues for creating its own source of financing to be invested in constructing new production, transmission and storage facilities and maintaining the existing ones for the benefit of Russian consumers. Moreover, according to Gazprom, the company has made no profit from domestic gas supplies between 2000 and 2008.
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