Rosneft Announcement Regarding Gazprom Position on the Admission of Independent Gas Producers to the Major Gas Pipeline Network

The head of Gazprom Alexey Miller has announced that “Power of Siberia pipeline and export supplies to China were planned only for Gazprom resource base”. This position is completely different from the target of developing Siberia and Far East regions and openly contradicts the current legal system. The argument of Gazprom is that “Gas pipeline network of Gazprom is considered as an instrument for realization of its shareholders and investors’ interests in the sphere of expanding volumes and increasing sales efficiency”, which obviously implies that supposedly similar position of Rosneft, which does not agree to worsen its shareholders’ position in favor of TNK-BP Holding minority shareholders.

However Gazprom ignores the fact that it is not an equal market participant, but a monopoly, which ion addition to the advantages of being a monopoly, is subject to obligations to other participants of business activities, including those guaranteed by law.

Gazprom, being an infrastructure monopoly, is obliged to guarantee independent producers access to the transport system. And in this case 40 bcm of gas, produced by Rosneft subsidiaries in East Siberia and at least as much produced by other manufacturers will become a part of regions’ economy, will provide light, heat and energy for their development. We will protect the rights of our citizens by means of negotiations within the framework of corporate procedures, discussions with regulators and if necessary court proceedings.

Rosneft Information Division
tel.: +7 (495) 411 54 20
fax: +7 (495) 411-54-21
July 1, 2014

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