Domestic Gas Prices in Russia – Towards Export Netback?

This paper, by James Henderson, concludes that Russian domestic gas prices are not likely to reach European netback levels any time soon, but that the momentum of the past five years towards significantly higher domestic prices will continue, leading to an eventual liberalization of the Russian gas market. Over the next decade, this could create fundamental changes in Russia’s relationship with European gas markets with potential competition for available supplies between domestic and European export markets.

By: James Henderson

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