Evolution of Gas Pipeline Regulation in Russia

Russia has been reforming its domestic gas transportation regime since the mid-2000s and achieved significant progress through an introduction of legal unbundling, establishment of a legal/regulatory framework for non-discriminatory access and a new zonal tariff methodology.

However the existing framework remains insufficiently developed both in scope (e.g. non-applicability to non-UGS systems, storage and LNG infrastructure) and content (e.g. significant room for discretion in choice of routes for third party gas and capacity allocation in the event of capacity deficit); the new draft framework, currently under discussion in government, aims to address these problems.

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