Abstract

The purpose of this chapter is twofold: first, to provide an overview of the development and structure of the Russian gas sector as well as its role in the Russian economy; and second, to find an answer to the question of whether Russian gas sector restructuring is really oriented toward market-styled reforms. A thorough analysis of the Russian gas market is still severely hampered by the lack of information. This chapter gives a historical overview of the gas sector in the Soviet planned economy. The changes that have taken place in the organization and regulation of the gas industry during transition are analyzed against this historical background. This is followed by a presentation of supporting facts and figures and a discussion of the projects of natural gas production and exporting. During the Soviet era, the gas industry was the part of the planned system. State authorities regulated production and export volumes, and prices were centrally administered. This chapter discusses the future of the gas industry.

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