Gazprom’s Board of Directors considers intra-corporate pricing system principles
The Board of Directors’ meeting has adjourned at the Company’s Headquarters.
The Board of Directors took into notice the information on the intra-corporate pricing system principles.
The Management Committee was tasked with continuing the work on further improvement of the transfer price and tariff system and reporting on its results in the 4th quarter of 2009.
According to the Federal Law on Gas Supply in the Russian Federation, Gazprom sets domestic gas prices and tariffs for its transmission.
The main goal for applying and developing the system of domestic prices and tariffs is providing subsidiaries with optimum financial and economic conditions so as to ensure reliable gas supply to consumers.
The system of domestic prices and tariffs hinges on the principles as follows:
- offsetting economically substantiated expenses of subsidiaries;
- realization by subsidiaries of profit needed for scheduled geological exploration, socioeconomic development as well as for the purpose of other underpinned payments and expenses;
- earmarking funds in the price and tariff structure, needed for paying taxes and other Russian statutory charges.
For further optimization of the parent company’s account settlements for gas and its transmission provided by subsidiaries Gazprom continuously endeavors to improve and develop the intra-corporate pricing system.