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When is Mighty Gazprom Good for Russia?

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  • Marina Tsygankova

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    (Statistics Norway)

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    Abstract

    In the late 1990s, several proposals for a structural reform that would bring competition and market prices to the Russian gas industry were intensely debated. Splitting up Russian gas monopolist Gazprom into several producing companies was a considered option. In this paper, I examine theoretically and numerically how a split-up of Gazprom would affect Russian national welfare. Results show that under the current gas market structures in Europe and Russia, the split-up of Gazprom’s monopoly might not be beneficial for Russia. The market share of Russia in the European market is important in determining whether Gazprom’s dominance is supported under the national welfare criteria.

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    Bibliographic Info

    Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 526.

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    Date of creation: Dec 2007
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    Handle: RePEc:ssb:dispap:526

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    Keywords: Russia; Natural gas; restructuring reform; market share; national welfare;

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