Gas regulatory system in Russia

Russia

General overview

Russia's extensive gas reserves (potentially amounting to 127 billion cubic meters) approximate to 1/3 of the overall gas reserves on the earth: enough to make Russia the largest gas producer in the world.

Russia produces more than it can consume and exports most of the excess production to Western and Central Europe. Further implementation of Russian Far-East oil and gas exploration and production projects will see the development of Russia's gas trade relations with other regions however and in particular that of Asia-Pacific.

Because of its economic and political importance, the Russian gas industry is highly regulated with the State exercising control over most aspects of exploration, production and transmission. In brief, the framework for the gas regulatory system in Russia the following three laws: Federal Law on Subsoil No. 2395-1 dated 21 February 1992 and Federal Law on Gas Supply No. 69-FZ dated 31 March 1999.