Interfax reports that Gazprom wants to increase the domestic gas price in Russia.

Interfax reported that Gazprom, the Russian gas giant, was trying to increase prices in order to fund investments. The company's sales abroad have plummeted as European buyers are turning away due to the Ukraine conflict.

Gazprom suffered losses of nearly $7 billion in 2023. This was its first loss in over 20 years. The decline in gas sales to Europe, which used to be its primary market, is the reason for this.

As part of Moscow’s pivot towards the East, the company has now set its sights on increasing gas exports, particularly to China.

Last week, President Vladimir Putin said that Gazprom would supply Iran up to 55 billion cubic meters of gas annually, which is equal to the Nord Stream 1 pipeline's damaged capacity.

The government regulates the domestic gas price in Russia.

The current wholesale gas price regulation does not provide the financial resources necessary to invest in gas infrastructure maintenance and development in the interest of Russian consumers, according to Alexei Sakharov. He is a senior manager at Gazprom.

He said that Gazprom wanted to maintain its monopoly over Russian gas exports via pipeline.

Sakharov said, "Despite the decline of gas export volumes to Europe... This point remains relevant with regard to the redirection and flow of Russian gas to the East and the countries of the Global South." (Reporting and editing by Ros Russell; Oksana Kobieva, Vladimir Soldatkin)

(source: Reuters)