ABSTRACT
Domestic gas price reform is regarded as necessary in order to secure additional gas volumes to Europe – and Europe is, as shown in the chapters by Mitrova, Busygina and Filippov, and in Baev, the most important market for Russian gas. Gas prices in Russia are regulated at low levels, which leads to overconsumption and, indirectly, lack of necessary investment in new production capacity. Combined with the on-going decline in core West Siberian production assets, fears have arisen that Russia may have to sacrifice its exports to Europe in favour of domestic security of supply, defined by the national political leadership as the major task of the country's gas companies.
