THE Russian Duma is debating a Bill that would give Gazprom a full monopoly gas exports.

Gazprom, which supplies 25 per cent of the European Union's gas, already has a de facto monopoly on exports, but the new law would entrench that position and close the door on the possibility of foreign companies exporting Russian gas.

The Bill comes just two weeks after José Manuel Barroso, the European Commission President, met President Putin in Russia and urged him to let foreign companies export Russian gas to Europe.

Adam Landes, oil analyst at Renaissance Capital, said: “The move seems highly political and a direct response to EU pressure on Russia to open up access to the gas behemoth’s pipeline network.”

The EU is concerned that Gazprom’s monopoly position could make it difficult for Russia to meet Europe’s growing energy needs. Marc Franco, head of the Commission’s Moscow office, said: “Gazprom is underinvesting in production, but isn’t letting anyone else export. It’s bad for Russia, and it’s not good for us.”

Gazprom and its controlling shareholder, the Kremlin, refuse to consider opening up the export system to foreign companies. Dmitri Medvedev, the Deputy Prime Minister and chairman of Gazprom’s board, said this week: “Gazprom is a unique company because of its importance to the Russian economy. It would be naive and foolish to destroy this system just to create opportunities for competitors.”

Gazprom denies that it is not investing properly.

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