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Rosneft and Gazprom at loggerheads over Power of Siberia pipeline

01st July 2014

Rosneft has openly criticised Gazprom over its monopolisation of the Power of the Siberia pipeline in a statement released today

Rosneft and Gazprom at loggerheads over Power of Siberia pipeline
Rosneft makes no mention of access to Chinese markets but has threatened to strongly defend its right to provide domestic gas supply

The statement refutes Gazprom’s right to be the sole provider of Power of Siberia natural gas.

“This position is completely different from the target of developing Siberia and Far East regions and openly contradicts the current legal system,” said Rosneft in today’s statement. “Gazprom ignores the fact that it is not an equal market participant, but a monopoly, which in 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 billion cubic metres 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.”

The planned extension of the Power of Siberia network will become the main conduit for natural gas supply to China following this year’s historic natural gas agreement signed in May.

Rosneft makes no mention of access to Chinese markets but has threatened to strongly defend its right to provide Russian domestic gas supply.

“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.”

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