Russia

Domestic Gas Sales in Details

2019 Annual Report (PDF, 12.1 MB)

Gazprom's marketing strategy for the domestic market is mainly targeted at ensuring sustained gas supplies in the country while increasing sales profitability.

Russian gas market

Gazprom is the largest supplier of natural gas in the Russian market. The Gazprom Group sells a substantial part of its gas domestically. In 2019, the Group sold 235.8 billion cubic meters of gas in Russia, with the net revenue from domestic gas sales (net of VAT) reaching RUB 970.9 billion.

Russian natural gas market in 2019

Russian natural gas market in 2019

Average gas selling price in Russia (net of VAT, excise tax and customs duties)
  Year ended December 31
  2015 2016 2017 2018 2019
RUB/1,000 m3 3,641.3 3,815.5 3,808.3 3,981.3 4,118.2
USD*/1,000 m3 59.4 57.1 65.3 63.3 63.7
EUR*/1,000 m3 53.6 51.6 57.7 53.7 56.9

* The data were not derived from financial statements and were calculated based on exchange rates as of the end of the relevant period.

In accordance with Russia's current legislation, gas prices for end consumers are subject to state regulations and differentiated by consumer groups (population and industries) and price zones depending on the distance of transmission from producing regions to consumers.

Natural gas consumption in Russia
Natural gas consumption in Russia

Natural gas consumption in Russia

Regulatory framework for Russian gas market

  • Russian Government Directive No. 239 (as amended and supplemented) dated March 7, 1995, on Measures to Streamline State Regulations for Prices (Tariffs);
  • Russian Federal Law No. 147-FZ dated August 17, 1995, on Natural Monopolies;
  • Russian Government Directive No. 162 dated February 5, 1998, on Approval of Rules for Gas Supplies in the Russian Federation;
  • Russian Federal Law No. 69-FZ dated March 31, 1999, on Gas Supplies in the Russian Federation;
  • Russian Government Directive No. 1021 dated December 29, 2000, on State Regulations for Gas Prices and Transmission Service Tariffs in the Russian Federation;
  • Russian Government Directive No. 335 dated May 3, 2001, on Setting Special Charges for Transmission Tariffs by Gas Distribution Companies to Finance Gasification Programs;
  • Russian Government Directive No. 333 dated May 28, 2007, on Improvement of State Gas Price Regulations;
  • Russian Government Directive No. 1205 dated December 31, 2010, on Improvement of State Gas Price Regulations;
  • Russian Government Directive No. 323 dated April 16, 2012, on Natural Gas Trading at Commodity Exchanges and Amendments to the Acts of the Russian Government Regarding State Regulations for Gas Prices and Access to the Gas Transmission System of Open Joint Stock Company Gazprom;
  • Russian Government Directive No. 1663 dated December 27, 2017, on Certain Aspects of Gas Sales in the Russian Federation;
  • Russian Government Directive No. 1282 dated October 29, 2018, on Certain Aspects of Gas Sales in the Russian Federation;
  • Russian Government Directive No. 1442 dated November 30, 2018, on Updating and Revoking Certain Acts of the Russian Government Regarding State Regulations for Gas Prices;
  • Russian Government Directive No. 1622 dated December 21, 2018, on Amending and Revoking Certain Acts of the Russian Government;
  • Russian Government Directive No. 179 dated February 21, 2019, on Amending Certain Acts of the Russian Government;
  • Russian Government Directive No. 305 dated March 19, 2020, on Amending Certain Acts of the Russian Government and Revoking Certain Provisions in the Acts of the Russian Government.

Development of natural gas trading

Seeking to develop market-based pricing, Gazprom takes part in natural gas trading at the St. Petersburg International Mercantile Exchange (SPIMEX). In 2019, the amount of natural gas supplied as a result of Gazprom’s transactions on SPIMEX totaled 10.5 billion cubic meters.

Gas distribution

Gazprom is the leader of Russia's gas distribution sector.

As of late 2019, the Gazprom Group’s gas distribution subsidiaries and affiliates owned and operated 802.8 thousand kilometers of gas distribution networks in the Russian Federation.

Length of gas distribution pipelines in Gazprom Group, thousand kilometers

Length of gas distribution pipelines in Gazprom Group, thousand kilometers