Changes Looming Over Russia's Gas Industry?

Is the situation in Ukraine strongly related to a shakeup in the gas industry? Kiev is increasingly showing confident and consistent policies, while Russia might be pushed to change its strategy. Diplomatic twists are going hand-in-hand with financial tensions. 

It comes as no surprise that reports reference changes in Russian paradigms, specifically that Gazprom’s dominance could be soon reduced. According to Vedemosti, President Vladimir Putin signed an order that would open the doors of pipelines in Siberia and Far East to other companies. 

Europe lobbied to have Gazprom excluded from the last round of sanctions, but the United States still imposed sanctions on Gazprombank. Gazprom could go through financial problems and a recapitalisation of the company looks increasingly likely. All of these factors suggest that Gazprom’s future depends on much in the coming weeks. Challenging Gazprom’s dominance would immediately come with a change of the Russian gas industry. 

Meanwhile, the Ukrainian government set up a committee to impose sectoral and personal sanctions on Russia. The committee has 10 days to come up with a list. 

“The committee shall introduce a list of all companies, which are residents of the Russian Federation and that directly or indirectly finance terrorism and banditry in Ukraine, which supported the annexation of the Crimea, both financially and through the administrative levers of influence used by respective persons vested with powers,” said Ukrainian PM Arseniy Yatsenyuk in a note released on Wednesday.