Russian gas sector dominated by Gazprom; little incentive to expand

OAO Gazprom essentially is the Russian gas industry. The company produces 90% of Russia's domestic natural gas. It is one of the world's largest natural gas companies, accounting for 20% of the world's natural gas production.Despite having been partly privatized in 1993, Gazprom remains state controlled. It has a de facto monopoly on gas production in Russia through its control of the pipeline network for transporting and marketing gas. This monopoly does Gazprom little good, however, because of the low rates for gas set by the Russian government.The prices Gazprom charges consumers in Russia are state-regulated at an extraordinarily low rate (when they are paid at all). The R...

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