Gazprom faces first post-2008 crisis domestic sales losses of 33.5 bln rubles next year
MOSCOW. Dec 8 (Interfax) - Gazprom could have net losses of 33.5 billion rubles from domestic market gas sales in 2016 and a loss margin of 3.5%, Vitaly Khatkov, a head of department at the Russian gas giant, said in a presentation at the Russian Gas Forum.
The profit margin on domestic supplies might be 0.9% in 2015.
Gazprom has not supplied gas to the domestic market at a loss since the 2008 crisis year.
Khatkov said that due to the slowdown in price indexation for gas, "we're virtually looking at a new gas pause" which would have an adverse effect on the whole economy.
"At the end of 2015, a decision was made on the indexation of prices, the level of indexation sharply fell. In fact, these decisions that were made in 2015 for 2016-2018, mean that a new "gas pause" came into effect. In essence, a decision on freezing prices was made. It is understandable that for the development of the gas market, the gas sector and independent producers this is not entirely the correct decision. We are not disputing this. But we are paying attention that this in its turn is affecting the development of industrialization," he said.