When is Mighty Gazprom Good for Russia?
AbstractIn 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 InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 526.
Date of creation: Dec 2007
Date of revision:
Russia; Natural gas; restructuring reform; market share; national welfare;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
- NEP-CIS-2008-01-05 (Confederation of Independent States)
- NEP-ENE-2008-01-05 (Energy Economics)
- NEP-TRA-2008-01-05 (Transition Economics)
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