MOSCOW, Oct. 16 (UPI) — Russian natural gas company Gazprom could be divided into separate production and transportation groups, a federal anti-monopoly service said.
The European community has looked to rival suppliers to advance its own energy security needs, expressing frustration with the monopoly Gazprom holds over transit and supplies. Russian Foreign Minister Sergei Lavrov said the country would remain the key energy supplier for Europe, however.
Igor Artemyev, the head of Russia’s Federal Antimonopoly Service, said Igor Sechin, the chief executive officer at Russian oil producer Rosneft, initiated the talks for a Gazprom split.
“It had been subject of discussion for a decade,” Artemyev said. “The issue should be discussed within the respective program of gas market development.”
Sechin asked the Kremlin last year to use a national welfare fund to support the growing debt of Rosneft, which has struggled under the pressure of economic sanctions and lower crude oil prices. Sechin is considered one of the most powerful men in Russia, serving as deputy prime minister in President Vladimir Putin’s government until 2012.
The European Commission ruled earlier this year that, “ultimately, each member state in the region should have access to at least three different sources of gas.”
In April, the commission accused Gazprom of abusing its market position in Central and Eastern Europe. Margrethe Vestager, the European commissioner in charge of competition policy, said all European market players need to play by European rules regardless of their country of origin.
First half profits for the top gas producer in Russia were up 50 percent year-on-year to $10.5 billion. Revenue rose 1.4 percent and, for the second quarter, earnings were up 29 percent to $4.4 billion.
Total natural gas sales for Gazprom increased 1 percent for the first half of the year, with much of the increase driven by sales to Europe.
Comment count on this article reflects comments made on Breitbart.com and Facebook. Visit Breitbart's Facebook Page.