Proposals on Gazprom share liberalisation submitted to Duma
Valery Yazev, deputy to the Russian Duma and head of the Russian Gas Association has submitted an amendment to the law on gas supply to the Duma, aimed at lifting the 20% restriction on foreign share ownership in Gazprom, reports the Russian financial daily Vedomosti. The ministry of economic development had said it would be presenting liberalisation proposals to the government, but as the documents have still not been submitted and the process could take a long time, Yazev’s action could speed things up considerably. Yazev’s proposed amendment would also consolidate the Russian government’s majority ownership in Gazprom at 50% plus one share. Yazev expects Duma approval for his proposals and hopes it will be given by the end of this year. What is not clear is whether Yazev’s proposals have included other legal changes necessary for the full implementation of liberalisation in Gazprom share trading. For that to happen the requirement for foreigners to obtain permission from the Russian federation prior to trading the shares would have to be lifted, as would the current restrictions on the location of trade. At present Gazprom shares can only be traded on the St Petersburg, Moscow, Yekaterinburg and Siberian exchanges.
It is ironic that Yazev is proposing amendments to a law he himself had written six years ago aimed at maintaining Gazprom’s monopoly on the Russian gas market. Yazev has been involved in the Russian gas industry since the time of Rem Vyachirev. In 1992 his company “Yava” began by taking construction orders from Gazprom and getting involved in the gasification of the Sverdlovsk region . Sverdlovsk’s gas has been supplied for some years by the trader/producer Itera. The region currently takes 16-17 Gm3 gas annually.
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