Russian Oil and Gas Industry: News

The beginning of the broadcast: February 26, 2019 at 18:00
GAZETA.RU
- Hello, Alexander Valentinovich. We are very glad to welcome you on our online in Gazeta.ru

- Good evening.

GAZETA.RU
- You mentioned the economic viability of transit. Is it possible to designate it in some digital parameters? If we compare it with the Nord Stream 2, especially transit, what makes up the transport component? Is there an understanding that it will now be more expensive for us to transport gas through Ukraine, rather than through the Nord Stream? About 3 billion a year, I think, we are now spending on transit costs with Ukraine? Have you compared this?

- It is necessary to compare the cost of the tariff for pumping 1,000 cubic meters of gas per 100 km. If we talk about the existing routes that are currently used for the transit of Russian gas, the Ukrainian direction, to date, is the most expensive and there is the highest tariff set - it is 2-2.5 times higher than other routes. What, for example, routes such as "Yamal-Europe" than the "Nord Stream-1." This is due, primarily, to the fact that the Ukrainian gas transportation system was created about 50 years ago, then there were still old technologies, a rather large deterioration of fixed assets, and large losses during gas transportation. The implementation of new gas transmission systems, which are being built, such as the Turkish Stream, Nord Stream 2, is based on the latest modern technologies that are used in this area.

- In addition, a significant issue is the distance of gas supply from the production center to the European consumer. For example, we have a production center today in Yamal, this is the Bovanenkovskoye field. The Nord Stream 1 route through the Baltic Sea from there to Germany is 1,885 km shorter than through the Ukrainian GTS. Given that the Ukrainian gas transportation system, as I have already said, is in a fairly worn condition with high operating costs and so on. It requires simply huge investments, billions of euros in order to restore and modernize it to at least the level of modern technologies. What is the point of using, "Lada", if you have a modern car, "Lada", for example, if you do not talk about some foreign models. Therefore, the cost of transporting gas through the Nord Stream 1 today costs almost 2 times cheaper than the cost of transportation through the gas system of Ukraine. And this is normal, this is competition. It is in any kind of economic activity. New roads are being built, the old ones are becoming less efficient. And automobile, and iron. There are new types of routes for the transport of goods by sea. Using modern technology. What is the difference between gas transportation infrastructure, as a type of gas transportation activity, and other types of activity? Nothing. The most effective, competitive (routes) should be used, creating an opportunity to save, first of all, the consumer. And to create conditions for the non-increase in the cost of purchasing gas from transportation costs.

GAZETA.RU
- A lot of readers and journalists are concerned about the issue of Ukrainian transit. Tell me, is Russia planning to agree to a new transit contract with the Ukrainian gas transportation system operator being created? Is it important to keep the conditions of the current transit agreement?

- First, I would like to begin by saying that there are 2 contracts between Gazprom and Naftogaz, which were signed in early 2009 for a ten-year period. They expire on January 1, 2020. One gas supply contract, directly for consumption by Ukrainian companies, consumers. The second contract concerns gas transit through the territory of Ukraine, using the gas transportation system of Ukraine for European consumers - in order to fulfill the contract for the supply of gas from Russia to Europe as a single gas exporter to European companies that have signed long-term contracts with Gazprom.

- Today we are in the process of discussing the possibility of concluding a new contract for the use of the Ukrainian GTS system. One of the conditions concerns the economic attractiveness of the Ukrainian transit route. Conditions must be provided that would be competitive with other routes. Such as "Turkish Stream", "Nord Stream-1", "Nord Stream-2", "Yamal-Europe" (gas transmission system, which runs through the territory of Belarus and Poland). And, accordingly, gas pumping rates should be competitive. The second basic condition is the settlement of all disputes that have arisen, which are now being considered in various instances of arbitration courts. As is known, this process has been going on for many years, there was a decision of the Stockholm Arbitration Court, which, in our opinion, was discriminatory, clearly a political connotation. The decision was made, we even roughly understand how this decision was prepared, taking into account the political situation. Therefore, Gazprom filed an appeal.

- We see the potential for growth in gas imports (this shows the practice of recent years). We see that not only new gas pipelines and transport structures will be loaded, but there is also potential, including to ensure that Ukraine’s gas transportation system remains as a route and is used. In some volume. This volume depends on the needs of European consumers directly. Therefore, there is still a big discussion. Until the end of the year, we will interact with our colleagues (in Ukraine) in working order and with our colleagues from the European Commission.

GAZETA.RU
- To what extent is the question of “Nord Stream 2” and the question of a transit contract with Ukraine linked to each other now? Perhaps there is some kind of bargaining? Because Ukraine is very interested, of course, to keep transit, many European partners are talking about it. What is our position in the negotiations?

- There are two different positions. Our position is that this is a commercial project, first of all, Nord Stream 2. It is sold by Gazprom in consortium with other European companies in France, England, Holland, and Germany. And these global companies, the same Engie, Shell and others, they would not have implemented this project if it was not commercially interesting. Such projects, they are implemented not for 1 year, but for decades. Somewhere, up to 50 years. And, accordingly, of course, this is a commercially very interesting project.

- On the other hand, there is a second opinion from some European countries supported by the European Commission. For example, that during the implementation of this project, Europe’s dependence on Russian gas will allegedly increase. And Ukraine will lose revenues from gas transportation, which it receives today. Therefore, by any means, by any means, by methods, by changing the legislation, or by direct blackmail, it is necessary to leave this volume of gas through the Ukrainian gas transportation system. Imagine, you were offered, say, to go from Moscow to Petersburg. You want to get to Sapsan in 4 hours. And you would be told: “No, you cannot go because you have to use the old railway infrastructure, the old locomotive, the old cars. Here you go, please, on them, in another way you can not. " But it's just some kind of nonsense. in fact. From some European countries, especially Eastern European countries.

- Plus, naturally, the US is interested here, who cynically push their liquefied natural gas to Europe. Moreover, it is absolutely cynical forcing ambassadors in many European countries to simply push through external economic channels, blackmailing other countries in different directions, including rendering assistance.

- Here are these two points of view. For our part, we say that we are ready to save part of the supplies through the Ukrainian gas transportation system. Because we see, as I said, gas consumption will grow and it will be enough to load both Nord Stream 2 and Turkish Stream, and to provide, among other things, part of the transit through the Ukrainian gas transportation system. You just need to understand whether this gas transmission system will be modernized, whether in the long run it will be competitive or not. We cannot guarantee that we will use it for 50 years. If Ukraine will modernize it, respectively, create a competitive environment, it will probably be able to use this infrastructure for a long time. For us, this is a purely commercial project, and we believe that all political opinions about the implementation of other routes,

DEIVIDAS LITOVCHENKO
- Given the increasing pressure from the United States on Russian oil and gas projects, such as Nord Stream 2, access to oil production technologies, etc., are our action plans developed or developed depending on the course of events? Does Plan A, B exist for the government? Thank.

EUGENE
- Will the European gas directive be able to spoil the blood of the Nord Stream 2? What else can some countries come up with to slow down the commissioning of this project? And why do the Europeans "cut the branch on which they sit" hindering the project?

GAZETA.RU
- The final decision on the "Gas Directive" will be made soon. Will Russia need to conclude any additional agreements after that? Do I need to somehow circumvent the terms of this directive?

- The essence of the "Gas Directive" is the extension of the third energy package to offshore projects. In our opinion, legally there is no need for that. This is, frankly, nonsense, because it has nothing to do with the passage of such routes through the territory of Europe. During the discussion at the meeting of representatives of the EU countries this issue was considered. The same Germany prepared amendments that extended the effect of this third energy package only to that part of the infrastructure located in the territorial waters of the country where the gas pipeline goes. And the right to regulate these relationships, also in accordance with these amendments, is given to the regulator of the country where the gas pipeline goes.

- Therefore, it is a much softer option than the previous ones. However, today there are still various discussion procedures and no final decision has been made. In the end, probably, in March or in other terms, as it will be established, the draft law will be directly considered.

- In any case, the implementation of such projects should not contradict European legislation. Our only requirement and legal understanding was that if it does not concern the jurisdiction of European countries, then (restrictions) should not apply, respectively, to the implementation of such projects.

- Therefore, we will observe, we will monitor. We need to finally see the texts of these amendments. In any case, we believe that the construction of the pipeline, it is not threatened. On a daily basis, a pipe is being laid along the bottom of the Baltic Sea. Even now, while we are talking to you, it lays 5-6 km a day. To date, more than 700 km out of 2100 km of pipe have been laid. This is about 30%.

OLGA
- Alexander Valentinovich, hello! Russia cuts oil production under the OPEC + agreement much slower than its partners. Tell me, other OPEC countries that have already exceeded their obligations, criticize Russia for such a pace? How much did Russia reduce production in February (as of February 26) to the October level? Do you plan to speed up production cuts? How much production will be reduced in March by October?

- Let me remind you of the agreements that were reached in October-December 2018. This, shall we say, is the second agreement between OPEC and non-OPEC countries. The first was in December 2016, and for one and a half years all parties fulfilled the agreement, achieved a result - the market was balanced. In the second half of 2018, there was a rebound - we have increased production by 1 million barrels of the country, knowing that the market was overheated and then, as we remember, prices were rising and it was necessary to react quickly in the other direction. Then the situation changed again. In December, we agreed that in the first six months of 2019, in total, OPEC and non-OPEC countries will reduce production compared to October 2018 by 1 million 200 thousand barrels of oil per day. Moreover, 800 thousand b / s will be taken over by the OPEC countries and 400 thousand b / s by the countries that are not members of OPEC. We discussed it and the discussion was very serious. In particular, we discussed the specifics of production cuts in the Russian Federation. For the first time, when we reached the reduction figure of 300 thousand b / s two years ago, we did it smoothly over several months. This is due to the specifics of Russian mining in the conditions of the Far North, low temperatures in the winter period: it is simultaneously impossible to simultaneously screw up the valve and reduce production. In winter, it is very dangerous to take and sharply shut off the well - there is a risk that it may not be restored in the future. And it will be irretrievable losses. This is due to the specifics of Russian mining in the conditions of the Far North, low temperatures in the winter period: it is simultaneously impossible to simultaneously screw up the valve and reduce production. In winter, it is very dangerous to take and sharply shut off the well - there is a risk that it may not be restored in the future. And it will be irretrievable losses. This is due to the specifics of Russian mining in the conditions of the Far North, low temperatures in the winter period: it is simultaneously impossible to simultaneously screw up the valve and reduce production. In winter, it is very dangerous to take and sharply shut off the well - there is a risk that it may not be restored in the future. And it will be irretrievable losses.

- Taking this into account, we agreed in December that Russia will gradually reach the level of reduction, which we took over the indicator for these six months - by 228 thousand barrels per day. At the present time, we fully comply with the concluded agreements: we fulfill all obligations and gradually reduce production. Within two months, by February 1, we started to reduce production somewhere in the 90-100 thousand b / d relative to October 2018. And considering that in December, our production figures were higher than in October, somewhere by 50 thousand barrels, then relative to December, the reduction now amounted to almost 140-150 thousand b / s. This is a fairly large and high rate of reduction. And I think that in March, by the end of March and in early April, we will reach the parameters that were agreed upon within the framework of the agreement. Once again I want to emphasize

GAZETA.RU
- What are your expectations from the meeting in Baku? Will the possibility of extending the OPEC + agreement be discussed?

- In Baku in the second half of March, there will be a monitoring committee that monitors the execution of the transaction, prepares recommendations for the ministerial meeting, where all ministers from 25 countries are already gathering. Typically, between 5 and 10 ministerial representatives of countries take part in such events. We will hear the reports of the technical committees for the execution of the transaction for January and February, as well as evaluate the current situation on the market, and forecasts of the development of the situation during the first half of the year and the second half of the year, including the balance of supply and demand. Now I would not guess about those decisions that can be made. Especially considering the factors that are often unpredictable, which are significantly influenced by certain actions of individual countries. For example, the same sanctions against Iran, against Venezuela, some statements are separate.

GAZETA.RU
- How do you think that the influence of OPEC is still preserved? It seems that oil prices are more responsive to the statement of US President Donald Trump on Twitter. Should OPEC balance the market, or does the other factors play more?

- There is always a fundamental factor — this is the balance of supply and demand. Because if supply exceeds demand, surpluses and residues form on the market, which find their application. And the markets react very strongly when overstocking in the direction of lower prices. Today we see a more or less calm, stable situation in the market, low volatility and more or less reasonable prices, which suit both exporters and consumers. We believe that, thanks to the deal, first of all, such stability has been achieved. Due to that, the winter period is quietly passing under conditions when the demand usually falls by 2 million barrels per day relative to the summer period. Our prices in December 2018 fell to $ 50. If the glut continued, we would see very low values. I would not even like to call them. I will remind you that in January 2016, prices reached the level of 25-27 dollars per barrel. And it is possible that we would break these records downward in the market.

GAZETA.RU
- If it were not for OPEC?

- If there was a deal. Because every day the market would additionally receive 1 million barrels per day, which would increase the surplus and overstock. Supply would exceed demand, prices would fall.

GAZETA.RU
- Question of Venezuela and sanctions against Venezuela, as one of the risk factors. For our companies that work there, how do you assess the risks? Maybe the state somehow plans to help them in their work plan now in such a difficult time?

- Our companies that are present there are very closely monitoring the situation, they are monitoring. They have the appropriate services, legal and commercial. To date, we have no information that somewhere there are problems or losses. Work is proceeding in the current order.

OLEG
- Why are citizens of the oil-producing country of Russia forced to pay for gasoline at exorbitant prices? And why does gasoline at gas stations rise in price with any movement of the price of oil (when oil rises, it rises in price and when oil drops, it rises)?

GAZETA.RU
- Many readers care about retail prices for gasoline and its quality. Last week, gas station prices have fallen slightly, but people are waiting for an increase - usually in March-April. Do oil companies comply with their obligations under the price regulation agreement or do they have to be managed manually? What can we expect in terms of rising gasoline prices?

- Let me remind you that a rather difficult situation developed in May last year, when prices at gas stations - in the retail market - grew at a high rate. They then grew by about 10%. The government took prompt measures to stabilize the situation, and a timely decision was made concerning the reduction of excise taxes on gasoline and diesel fuel from July 1, 2018. In addition, agreements were reached with companies that prices from the end of May-beginning of June will not grow. And if you look at the dynamics of retail prices at gas stations, from the end of May to the beginning of June they kept their level. On January 21 of this year, they rose by about 1.7% due to the fact that there was an increase in VAT from the beginning of the year from 18 to 20%. This is an objective situation, there were no surprises, everyone understood in advance that due to the increase in VAT in retail prices will increase by 1.7%. So far the prices have been stable for two months, we even see a drop for pennies. I think that this situation is not systemic and not fundamental, but systematically and fundamentally that the tasks have been set, all the necessary tools have been created in the form of tax regulation, which make it possible to keep the situation at the level of existing prices with growth rates no higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. that such a situation is not systemic and not fundamental, but systematically and fundamentally that tasks have been set, all necessary tools have been created in the form of tax regulation, which make it possible to keep the situation at the level of existing prices with growth rates not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. that such a situation is not systemic and not fundamental, but systematically and fundamentally that tasks have been set, all necessary tools have been created in the form of tax regulation, which make it possible to keep the situation at the level of existing prices with growth rates not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. which allow to keep the situation at the level of existing prices with a growth rate not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. which allow to keep the situation at the level of existing prices with a growth rate not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more.

GAZETA.RU
- The peak period is spring - March, April, May. Is there a danger that in these months growth may be higher than inflation?

- Let's start with the fact that there are three different types of prices for motor fuel. First of all, it is directly the prices at gas stations, that is retail. They concern consumers, the population, enterprises that buy petroleum products for refueling trucks and so on. In addition, there are wholesale prices, that is, the cost of purchases at tank farms, at these prices the fuel stations themselves buy fuel. And there are also stock prices, or wholesale. So wholesale and small wholesale prices throughout the year really fluctuate and are seasonal in nature on the exchange. They depend on the volume of offers, production, repair programs, and so on. It has always been, it is just a market factor. Wholesale prices can fluctuate, this is nothing. However, it is important that there is no shortage of supply in the domestic market.

- Therefore, the government has developed a number of measures to restrain price increases. First of all, conditions were created for the growth of the level of refining of petroleum products and their sale on the domestic market. So, last year a bill was passed, which entered into force on January 1, 2019. It introduces a reverse negative excise, which compensates for a reduction in the export duty rate, as part of the so-called tax maneuver. As you know, the decision was made to reduce the export duty from 30% to zero within five years, and the rate of extraction tax would gradually increase. Thus, since 2019, the export duty on oil is no longer 30%, but 25%, respectively, and the export duty on petroleum products depends on it. It is compensated by a negative negative excise for enterprises, which produce petroleum products with a high degree of processing. This encourages our enterprises to engage in the modernization of oil refineries and abandon the so-called samovars, who export petroleum products for export after primary processing. The second mechanism, which allows us to keep prices at a level not higher than inflation, is the so-called damper. If you simply say - this is the compensation of the difference between the cost of selling for export and the price of sales to the domestic market. This damping mechanism can also be both positive and negative. It is designed to smooth the difference between profitability in the foreign and domestic market. If, say, world prices have risen, and, accordingly, it is more profitable to sell the market there, as wholesale prices are lower on the domestic market, then this difference is partially compensated by a negative damper, that is, it is partially budget funds from those add. revenues that go to reserve funds, and partly take over the company. It turns out, for 2019, this is a ratio of 60 to 40, from 2020, a ratio of 50 to 50. I emphasize that both the state and companies take on this burden in order not to increase prices. Given that if the difference is vice versa in the domestic market is more profitable, as it is now in January, then the opposite situation arises, when companies pay the reverse excise tax. That is, a smoothing tool was created. they take on this burden both the state and companies in order not to increase prices. Given that if the difference is vice versa in the domestic market is more profitable, as it is now in January, then the opposite situation arises, when companies pay the reverse excise tax. That is, a smoothing tool was created. they take on this burden both the state and companies in order not to increase prices. Given that if the difference is vice versa in the domestic market is more profitable, as it is now in January, then the opposite situation arises, when companies pay the reverse excise tax. That is, a smoothing tool was created.

GAZETA.RU
- In addition to the price of gasoline, readers complain of cases of falsification of fuel at the gas station. Is there such a thing? Perhaps, small gas stations, as they say, save in this way?

- Of course, there are such facts. They are illegal. And the monitoring services control the situation, reveal such cases, simply close these gas stations, because if the goods do not meet the requirements of the technical regulations, then the player who supplies them, will be disqualified. In addition, as a pilot project, the Rosstandard is now implementing a unified state information system that would allow tracking the movement of petroleum products directly from the refinery to a gas station. Then it will completely exclude the possibility of using low-quality products. This system is, of course, more complicated than the Unified State Automated Information System in the case of alcoholic beverages. The corresponding system has already been created, a pilot project is being implemented in one of the regions. And the second direction that we are working with the Ministry of Finance, the Federal Tax Service, - payment of excise taxes. Many Russian companies have offered to consider the possibility of transferring the excise tax on petroleum products not on the wholesale link, but on the retail one, so that the excise tax should be paid for gas stations. After all, today gas stations do not pay excise, and this allows them to engage in frauds, including, as you say, loosening, breeding and selling low-quality product. Paying excise tax, they simply will not have such an opportunity, because then the cost of fuel will be completely different. Here, of course, it is very important to ensure that the collection of this excise tax is at the current level, in many respects it depends on the tax service, on the system for collecting information, monitoring, that is, tax administration. Now it's easier to take the excise tax from the oil refinery - there are not so many of them - than from 25 thousand gas stations that are scattered throughout the country. Many Russian companies have offered to consider the possibility of transferring the excise tax on petroleum products not on the wholesale link, but on the retail one, so that the excise tax should be paid for gas stations. After all, today gas stations do not pay excise, and this allows them to engage in frauds, including, as you say, loosening, breeding and selling low-quality product. Paying excise tax, they simply will not have such an opportunity, because then the cost of fuel will be completely different. Here, of course, it is very important to ensure that the collection of this excise tax is at the current level, in many respects it depends on the tax service, on the system for collecting information, monitoring, that is, tax administration. Now it's easier to take the excise tax from the oil refinery - there are not so many of them - than from 25 thousand gas stations that are scattered throughout the country. Many Russian companies have offered to consider the possibility of transferring the excise tax on petroleum products not on the wholesale link, but on the retail one, so that the excise tax should be paid for gas stations. After all, today gas stations do not pay excise, and this allows them to engage in frauds, including, as you say, loosening, breeding and selling low-quality product. Paying excise tax, they simply will not have such an opportunity, because then the cost of fuel will be completely different. Here, of course, it is very important to ensure that the collection of this excise tax is at the current level, in many respects it depends on the tax service, on the system for collecting information, monitoring, that is, tax administration. Now it's easier to take the excise tax from the oil refinery - there are not so many of them - than from 25 thousand gas stations that are scattered throughout the country.

GAZETA.RU
- They, probably, then will go bankrupt under such working conditions?

- I can say that we are able to provide the domestic market with high-quality gasoline and diesel fuel. We are releasing enough. We produce more gasoline and diesel fuel than the domestic market consumes. At the same time, this excess of gasoline is not so significant: maybe 2-3 million tons to the volume of consumption. And for diesel fuel - exactly 2 times more. If unscrupulous refueling will not engage in fraud, then those who work with high-quality products will fully provide and close the market needs. In this case, prices will remain at the same level.

OLEG STRYUKOV
- In 10-20 years, what will Russia keep warm for? what will the planes fly on? if we are so successful we will sell hydrocarbons ... Will we leave something to our grandchildren and great-grandchildren?

PETER
- Alexander Valentinovich! Tell me, for how long do we have enough oil reserves in Russia just and clearly?

RAMIL
- When will the population of Russia begin to receive rent from the sale of minerals?

SEMYON SLEPTSOV
- When, in your estimation, will the country dismount from the “oil needle”?

IVAN UPOROV
- Do you think that Russia's stake on oil and gas resources has unreasonably dragged out (almost 50 years with the USSR), as a result, Russia is rapidly lagging behind in scientific research and especially the introduction of new technological advances, becoming more and more immersed in hydrocarbon feudalism?

- This question is often asked, it is quite global. There are a lot of proven oil and gas reserves in the world. Now the main question facing countries and oil companies is how fast to monetize these reserves: in many countries these reserves exceed 10, 15, 20 years, or even higher. For example, we have gas reserves, based on the volumes we are producing today, more than 100 years. Oil reserves today - talking about categories B and C - amount to 29 billion tons, although they are also divided into commercially recoverable and commercially non-recoverable. Commercial recoverability depends on us, on what kind of fiscal system we implement in relation to this industry. With the existing fiscal system, approximately 50% - that is, 15 billion tons - are commercially recoverable. Last year we produced 556 million tons, respectively by simple division we get about 30 years - these are only commercially recoverable reserves. Moreover, these reserves are kept at about the same level, because each year new reserves are put on the balance, and the amount of reserves that are put on the stock is even slightly higher than production. That is the minimum level. Of course, it should be noted that the quality of reserves that are put on the balance is very different from what was previously put - these are mostly small deposits that are difficult to recover; now there are few large deposits that are already being discovered. We need to strategically understand and think ahead about what the energy balance will be, how technologies, other sources of energy will evolve, how we can use natural resources more wisely and monetize them in terms of production, sales and so on. Here you need to look at that in the future hydrocarbons will be used to a greater extent not as an energy source, for example, for automobiles, but as a source of chemical elements for the production of other goods — the same hydrocarbon fiber, etc. We have more than half of things from artificial materials, one way or another connected with recycled hydrocarbons. In fact, we do not see big problems. Of course, we believe that it is necessary to motivate and motivate our companies to create conditions so that they are more engaged in geological exploration, put resources on balance as reserves. We have a huge potential in the Arctic: I gave you figures without an arctic potential, because the deposits there are little explored, they have not been fully explored, there is only an assessment of the potential as resources. These are tens of trillion cubic meters of gas, billions of tons of oil. This is a reservoir that in the future will be a source of hydrocarbons to meet the energy needs of the world as a whole. And energy consumption in the world will grow. According to forecasts, by about 2035–2040, 30% more energy will be consumed, and the proportion of hydrocarbons will remain. Today, this share in the global energy balance is approximately 85%. According to experts, by 2035 it will drop to 75%, but it still means about ¾. Therefore, we must preserve our potential, our competitiveness in this market. It is often said that the oil and gas industry is a raw materials industry, in fact, this industry is high-tech, the most advanced developments and digital technologies are being introduced. This is a huge order for science, industry and other economic actors. Last year, within Russia, the fuel and energy complex was a customer of investments worth 5 trillion rubles. These are orders for mechanical engineering, chemical industry, equipment manufacturing and so on. Moreover, this is an order for the most innovative products, without which we will simply be uncompetitive in the modern world.

GAZETA.RU
- You mentioned LNG. As is known, the United States wants to saturate the European market with its LNG. Will American gas be able to compete with Russian gas, including after the commissioning of the export LNG terminal in Louisiana (US authorities gave the go-ahead for its construction in February)? Does the US have any intentions to “strangle” our LNG - we see the corresponding sanctions proposals.

- With regard to competitiveness, I do not see, in principle, the potential for competition of American liquefied natural gas, if we talk about market approaches. Our production cost is very low, our infrastructure was created and depreciated in due time. Yes, new infrastructure is developing, it will also be used for many years. I see the use of American LNG to a greater extent in those markets where there is no pipeline gas. Pipeline gas, if it is already being supplied, is more competitive than liquefied gas. LNG is competitive when it is transported over distances of more than 3 thousand kilometers, that is, where it is impractical to pull the pipe. If we take, for example, the actively developing Asia-Pacific market, there is China and we have deposits close to China, from where it is advantageous to supply gas through a pipe. There are other markets where the pipeline can not be spent, it is more profitable to liquefy gas and carry it. At the same time, today our strategy is not only to develop the supply of pipeline gas, but also to develop our market share in the production of liquefied natural gas and supply it to markets where it is impossible to reach the pipe. Therefore, there is a lot of potential. If we had one plant, Sakhalin-2, with a total capacity of approximately 11 million tons of LNG, then after putting the full capacity of the Yamal LNG plant in the north of the Yamalo-Nenets Autonomous Region to production at full capacity last year, more than 27 million tons. This is about 9% of the global market, that is, over the past few years, we have increased Russia's share in the global LNG market (from 4.5%). Our task is to increase the share to 15-20%. There are resources, there is already infrastructure in Yamal, there are a number of projects, which have been announced and will be implemented: for example, Arctic LNG-2 with a capacity of 19.8 million tons per year. This is the Gydan Peninsula. The construction period is from 2022 to 2025. This is almost 20 million tons to existing capacity. Thus, we see that we can, in principle, reach 100 million tons. And the LNG market in terms of consumption in the global gas system will develop at a higher rate: now the share of LNG is 35%, and by 2035 there will be 50%. And we will have our niche, there are companies that are interested in this, there are projects that will be considered and investment decisions will be made on them: this is the third phase of Sakhalin-2, this is Far Eastern LNG, Baltic LNG, there are smaller projects with a capacity of about 1 million tons are quite a large number. We are ready. I think we need to develop this area

ALEXEY
- Kemerovo, Miner ra-he. Gas at 160 meters high pressure, and the connection 2000000 rubles. How so ???

KONSTANTIN KOVALEV
- Please tell me why our whole street with the status of land IZhS can not connect to the trunk gas 200 meters from us, the city of Novosibirsk for 10 years. Purely due to bureaucratic delays. Technical possibility is.

- We also often receive appeals of citizens, work with each appeal. Previously, such a problem was with connecting to power grids. Recently, we don’t see such a problem, because a lot of work has been done to improve the situation and remove various barriers, reducing the number of connection steps. We are in the top ten countries (in the relevant section of the Doing Business rating. - Ed.). Now we are doing this work on the gas infrastructure: the government has approved and 80% implemented a road map, according to which legal acts are developed and adopted to simplify the relationship between the applicant and the organization that provides the connection. The second thing that should lead to a reduction in cost is the creation of so-called benchmark costs for these purposes. Today, how is it going? Today, in each entity, the regional energy commission at the province level sets the rates for connection to the gas infrastructure. We are talking about the gas pipeline from the gas distribution station directly to the household. These prices are set for three types of consumers. Connections for 50-60 thousand rubles. at a standardized tariff rate for consumers up to 20 cubic meters per hour at a distance of up to 200 m. There are consumers who consume more than 20 cubic meters of gas, but less than 500, according to them the regional energy commissions establish standardized rates for connection works. There are consumers who consume more than 500 cubic meters per hour, these are some enterprises, that is, commercial enterprises. Respectively, for such consumers, an individual project is designed to be developed by design organizations: calculation, evaluation, and so on, based on SNiPs. The example you cited with a cost of 2 million rubles. I think this is an individual project. It's unclear how powerful he is. If there are questions, first of all it is necessary to contact the regional authorities, the regional energy commissions, which should give explanations. For the future, we want to make sure that all these connections pass through a single portal of electronic services - it is developed in accordance with the “roadmap” - so that the applicant can apply for connection, get permissions to all procedures at once, and have some electronic calculator with which you could calculate the cost of connection.

SERGEI
- Belarus complained of budgetary losses from the tax maneuver - $ 300 million only in 2019. Are Moscow ready to compensate for these "losses" in whole or in part? If so, under what conditions? And how is the coordination in the field of export of oil and oil products supplied from Russia to Belarus, on the further sale of which Minsk earns? What volumes and which petroleum products will Belarus be able to earn, and what amounts - not? thank

- Now there are negotiations in this direction, they are at a high enough level. As for the comprehensive analysis of relations in all areas (industry, energy, agriculture, and so on), from the Russian side this group is headed by First Deputy Prime Minister Anton Germanovich Siluanov. This is not such a simple question, because there is a complex of relationships, there is a complex of other issues accumulated during the interaction period. Therefore, I would not say “yes” or “no”, I think, within the framework of the negotiations, solutions and approaches will be developed, based on a complex of all issues related to relations between Russia and Belarus.

GAZETA.RU
- Gas prices are discussed in a similar way since 2020 ...

- As for gas prices, the price agreements for 2019 were reached several years ago. As for the price of gas supply from 2020, I think this is also a subject of negotiations and comprehensive solutions.

GAZETA.RU
- Thank you very much for coming to visit us. Thank you very much for the answers to our questions. Questions of readers who did not have time to ask, will give you an additional. We hope to see you again. Good luck in job!

- Thank you very much.

The beginning of the broadcast: February 26, 2019 at 18:00
GAZETA.RU
- Hello, Alexander Valentinovich. We are very glad to welcome you on our online in Gazeta.ru

- Good evening.

GAZETA.RU
- You mentioned the economic viability of transit. Is it possible to designate it in some digital parameters? If we compare it with the Nord Stream 2, especially transit, what makes up the transport component? Is there an understanding that it will now be more expensive for us to transport gas through Ukraine, rather than through the Nord Stream? About 3 billion a year, I think, we are now spending on transit costs with Ukraine? Have you compared this?

- It is necessary to compare the cost of the tariff for pumping 1,000 cubic meters of gas per 100 km. If we talk about the existing routes that are currently used for the transit of Russian gas, the Ukrainian direction, to date, is the most expensive and there is the highest tariff set - it is 2-2.5 times higher than other routes. What, for example, routes such as "Yamal-Europe" than the "Nord Stream-1." This is due, primarily, to the fact that the Ukrainian gas transportation system was created about 50 years ago, then there were still old technologies, a rather large deterioration of fixed assets, and large losses during gas transportation. The implementation of new gas transmission systems, which are being built, such as the Turkish Stream, Nord Stream 2, is based on the latest modern technologies that are used in this area.

- In addition, a significant issue is the distance of gas supply from the production center to the European consumer. For example, we have a production center today in Yamal, this is the Bovanenkovskoye field. The Nord Stream 1 route through the Baltic Sea from there to Germany is 1,885 km shorter than through the Ukrainian GTS. Given that the Ukrainian gas transportation system, as I have already said, is in a fairly worn condition with high operating costs and so on. It requires simply huge investments, billions of euros in order to restore and modernize it to at least the level of modern technologies. What is the point of using, "Lada", if you have a modern car, "Lada", for example, if you do not talk about some foreign models. Therefore, the cost of transporting gas through the Nord Stream 1 today costs almost 2 times cheaper than the cost of transportation through the gas system of Ukraine. And this is normal, this is competition. It is in any kind of economic activity. New roads are being built, the old ones are becoming less efficient. And automobile, and iron. There are new types of routes for the transport of goods by sea. Using modern technology. What is the difference between gas transportation infrastructure, as a type of gas transportation activity, and other types of activity? Nothing. The most effective, competitive (routes) should be used, creating an opportunity to save, first of all, the consumer. And to create conditions for the non-increase in the cost of purchasing gas from transportation costs.

GAZETA.RU
- A lot of readers and journalists are concerned about the issue of Ukrainian transit. Tell me, is Russia planning to agree to a new transit contract with the Ukrainian gas transportation system operator being created? Is it important to keep the conditions of the current transit agreement?

- First, I would like to begin by saying that there are 2 contracts between Gazprom and Naftogaz, which were signed in early 2009 for a ten-year period. They expire on January 1, 2020. One gas supply contract, directly for consumption by Ukrainian companies, consumers. The second contract concerns gas transit through the territory of Ukraine, using the gas transportation system of Ukraine for European consumers - in order to fulfill the contract for the supply of gas from Russia to Europe as a single gas exporter to European companies that have signed long-term contracts with Gazprom.

- Today we are in the process of discussing the possibility of concluding a new contract for the use of the Ukrainian GTS system. One of the conditions concerns the economic attractiveness of the Ukrainian transit route. Conditions must be provided that would be competitive with other routes. Such as "Turkish Stream", "Nord Stream-1", "Nord Stream-2", "Yamal-Europe" (gas transmission system, which runs through the territory of Belarus and Poland). And, accordingly, gas pumping rates should be competitive. The second basic condition is the settlement of all disputes that have arisen, which are now being considered in various instances of arbitration courts. As is known, this process has been going on for many years, there was a decision of the Stockholm Arbitration Court, which, in our opinion, was discriminatory, clearly a political connotation. The decision was made, we even roughly understand how this decision was prepared, taking into account the political situation. Therefore, Gazprom filed an appeal.

- We see the potential for growth in gas imports (this shows the practice of recent years). We see that not only new gas pipelines and transport structures will be loaded, but there is also potential, including to ensure that Ukraine’s gas transportation system remains as a route and is used. In some volume. This volume depends on the needs of European consumers directly. Therefore, there is still a big discussion. Until the end of the year, we will interact with our colleagues (in Ukraine) in working order and with our colleagues from the European Commission.

GAZETA.RU
- To what extent is the question of “Nord Stream 2” and the question of a transit contract with Ukraine linked to each other now? Perhaps there is some kind of bargaining? Because Ukraine is very interested, of course, to keep transit, many European partners are talking about it. What is our position in the negotiations?

- There are two different positions. Our position is that this is a commercial project, first of all, Nord Stream 2. It is sold by Gazprom in consortium with other European companies in France, England, Holland, and Germany. And these global companies, the same Engie, Shell and others, they would not have implemented this project if it was not commercially interesting. Such projects, they are implemented not for 1 year, but for decades. Somewhere, up to 50 years. And, accordingly, of course, this is a commercially very interesting project.

- On the other hand, there is a second opinion from some European countries supported by the European Commission. For example, that during the implementation of this project, Europe’s dependence on Russian gas will allegedly increase. And Ukraine will lose revenues from gas transportation, which it receives today. Therefore, by any means, by any means, by methods, by changing the legislation, or by direct blackmail, it is necessary to leave this volume of gas through the Ukrainian gas transportation system. Imagine, you were offered, say, to go from Moscow to Petersburg. You want to get to Sapsan in 4 hours. And you would be told: “No, you cannot go because you have to use the old railway infrastructure, the old locomotive, the old cars. Here you go, please, on them, in another way you can not. " But it's just some kind of nonsense. in fact. From some European countries, especially Eastern European countries.

- Plus, naturally, the US is interested here, who cynically push their liquefied natural gas to Europe. Moreover, it is absolutely cynical forcing ambassadors in many European countries to simply push through external economic channels, blackmailing other countries in different directions, including rendering assistance.

- Here are these two points of view. For our part, we say that we are ready to save part of the supplies through the Ukrainian gas transportation system. Because we see, as I said, gas consumption will grow and it will be enough to load both Nord Stream 2 and Turkish Stream, and to provide, among other things, part of the transit through the Ukrainian gas transportation system. You just need to understand whether this gas transmission system will be modernized, whether in the long run it will be competitive or not. We cannot guarantee that we will use it for 50 years. If Ukraine will modernize it, respectively, create a competitive environment, it will probably be able to use this infrastructure for a long time. For us, this is a purely commercial project, and we believe that all political opinions about the implementation of other routes,

DEIVIDAS LITOVCHENKO
- Given the increasing pressure from the United States on Russian oil and gas projects, such as Nord Stream 2, access to oil production technologies, etc., are our action plans developed or developed depending on the course of events? Does Plan A, B exist for the government? Thank.

EUGENE
- Will the European gas directive be able to spoil the blood of the Nord Stream 2? What else can some countries come up with to slow down the commissioning of this project? And why do the Europeans "cut the branch on which they sit" hindering the project?

GAZETA.RU
- The final decision on the "Gas Directive" will be made soon. Will Russia need to conclude any additional agreements after that? Do I need to somehow circumvent the terms of this directive?

- The essence of the "Gas Directive" is the extension of the third energy package to offshore projects. In our opinion, legally there is no need for that. This is, frankly, nonsense, because it has nothing to do with the passage of such routes through the territory of Europe. During the discussion at the meeting of representatives of the EU countries this issue was considered. The same Germany prepared amendments that extended the effect of this third energy package only to that part of the infrastructure located in the territorial waters of the country where the gas pipeline goes. And the right to regulate these relationships, also in accordance with these amendments, is given to the regulator of the country where the gas pipeline goes.

- Therefore, it is a much softer option than the previous ones. However, today there are still various discussion procedures and no final decision has been made. In the end, probably, in March or in other terms, as it will be established, the draft law will be directly considered.

- In any case, the implementation of such projects should not contradict European legislation. Our only requirement and legal understanding was that if it does not concern the jurisdiction of European countries, then (restrictions) should not apply, respectively, to the implementation of such projects.

- Therefore, we will observe, we will monitor. We need to finally see the texts of these amendments. In any case, we believe that the construction of the pipeline, it is not threatened. On a daily basis, a pipe is being laid along the bottom of the Baltic Sea. Even now, while we are talking to you, it lays 5-6 km a day. To date, more than 700 km out of 2100 km of pipe have been laid. This is about 30%.

OLGA
- Alexander Valentinovich, hello! Russia cuts oil production under the OPEC + agreement much slower than its partners. Tell me, other OPEC countries that have already exceeded their obligations, criticize Russia for such a pace? How much did Russia reduce production in February (as of February 26) to the October level? Do you plan to speed up production cuts? How much production will be reduced in March by October?

- Let me remind you of the agreements that were reached in October-December 2018. This, shall we say, is the second agreement between OPEC and non-OPEC countries. The first was in December 2016, and for one and a half years all parties fulfilled the agreement, achieved a result - the market was balanced. In the second half of 2018, there was a rebound - we have increased production by 1 million barrels of the country, knowing that the market was overheated and then, as we remember, prices were rising and it was necessary to react quickly in the other direction. Then the situation changed again. In December, we agreed that in the first six months of 2019, in total, OPEC and non-OPEC countries will reduce production compared to October 2018 by 1 million 200 thousand barrels of oil per day. Moreover, 800 thousand b / s will be taken over by the OPEC countries and 400 thousand b / s by the countries that are not members of OPEC. We discussed it and the discussion was very serious. In particular, we discussed the specifics of production cuts in the Russian Federation. For the first time, when we reached the reduction figure of 300 thousand b / s two years ago, we did it smoothly over several months. This is due to the specifics of Russian mining in the conditions of the Far North, low temperatures in the winter period: it is simultaneously impossible to simultaneously screw up the valve and reduce production. In winter, it is very dangerous to take and sharply shut off the well - there is a risk that it may not be restored in the future. And it will be irretrievable losses. This is due to the specifics of Russian mining in the conditions of the Far North, low temperatures in the winter period: it is simultaneously impossible to simultaneously screw up the valve and reduce production. In winter, it is very dangerous to take and sharply shut off the well - there is a risk that it may not be restored in the future. And it will be irretrievable losses. This is due to the specifics of Russian mining in the conditions of the Far North, low temperatures in the winter period: it is simultaneously impossible to simultaneously screw up the valve and reduce production. In winter, it is very dangerous to take and sharply shut off the well - there is a risk that it may not be restored in the future. And it will be irretrievable losses.

- Taking this into account, we agreed in December that Russia will gradually reach the level of reduction, which we took over the indicator for these six months - by 228 thousand barrels per day. At the present time, we fully comply with the concluded agreements: we fulfill all obligations and gradually reduce production. Within two months, by February 1, we started to reduce production somewhere in the 90-100 thousand b / d relative to October 2018. And considering that in December, our production figures were higher than in October, somewhere by 50 thousand barrels, then relative to December, the reduction now amounted to almost 140-150 thousand b / s. This is a fairly large and high rate of reduction. And I think that in March, by the end of March and in early April, we will reach the parameters that were agreed upon within the framework of the agreement. Once again I want to emphasize

GAZETA.RU
- What are your expectations from the meeting in Baku? Will the possibility of extending the OPEC + agreement be discussed?

- In Baku in the second half of March, there will be a monitoring committee that monitors the execution of the transaction, prepares recommendations for the ministerial meeting, where all ministers from 25 countries are already gathering. Typically, between 5 and 10 ministerial representatives of countries take part in such events. We will hear the reports of the technical committees for the execution of the transaction for January and February, as well as evaluate the current situation on the market, and forecasts of the development of the situation during the first half of the year and the second half of the year, including the balance of supply and demand. Now I would not guess about those decisions that can be made. Especially considering the factors that are often unpredictable, which are significantly influenced by certain actions of individual countries. For example, the same sanctions against Iran, against Venezuela, some statements are separate.

GAZETA.RU
- How do you think that the influence of OPEC is still preserved? It seems that oil prices are more responsive to the statement of US President Donald Trump on Twitter. Should OPEC balance the market, or does the other factors play more?

- There is always a fundamental factor — this is the balance of supply and demand. Because if supply exceeds demand, surpluses and residues form on the market, which find their application. And the markets react very strongly when overstocking in the direction of lower prices. Today we see a more or less calm, stable situation in the market, low volatility and more or less reasonable prices, which suit both exporters and consumers. We believe that, thanks to the deal, first of all, such stability has been achieved. Due to that, the winter period is quietly passing under conditions when the demand usually falls by 2 million barrels per day relative to the summer period. Our prices in December 2018 fell to $ 50. If the glut continued, we would see very low values. I would not even like to call them. I will remind you that in January 2016, prices reached the level of 25-27 dollars per barrel. And it is possible that we would break these records downward in the market.

GAZETA.RU
- If it were not for OPEC?

- If there was a deal. Because every day the market would additionally receive 1 million barrels per day, which would increase the surplus and overstock. Supply would exceed demand, prices would fall.

GAZETA.RU
- Question of Venezuela and sanctions against Venezuela, as one of the risk factors. For our companies that work there, how do you assess the risks? Maybe the state somehow plans to help them in their work plan now in such a difficult time?

- Our companies that are present there are very closely monitoring the situation, they are monitoring. They have the appropriate services, legal and commercial. To date, we have no information that somewhere there are problems or losses. Work is proceeding in the current order.

OLEG
- Why are citizens of the oil-producing country of Russia forced to pay for gasoline at exorbitant prices? And why does gasoline at gas stations rise in price with any movement of the price of oil (when oil rises, it rises in price and when oil drops, it rises)?

GAZETA.RU
- Many readers care about retail prices for gasoline and its quality. Last week, gas station prices have fallen slightly, but people are waiting for an increase - usually in March-April. Do oil companies comply with their obligations under the price regulation agreement or do they have to be managed manually? What can we expect in terms of rising gasoline prices?

- Let me remind you that a rather difficult situation developed in May last year, when prices at gas stations - in the retail market - grew at a high rate. They then grew by about 10%. The government took prompt measures to stabilize the situation, and a timely decision was made concerning the reduction of excise taxes on gasoline and diesel fuel from July 1, 2018. In addition, agreements were reached with companies that prices from the end of May-beginning of June will not grow. And if you look at the dynamics of retail prices at gas stations, from the end of May to the beginning of June they kept their level. On January 21 of this year, they rose by about 1.7% due to the fact that there was an increase in VAT from the beginning of the year from 18 to 20%. This is an objective situation, there were no surprises, everyone understood in advance that due to the increase in VAT in retail prices will increase by 1.7%. So far the prices have been stable for two months, we even see a drop for pennies. I think that this situation is not systemic and not fundamental, but systematically and fundamentally that the tasks have been set, all the necessary tools have been created in the form of tax regulation, which make it possible to keep the situation at the level of existing prices with growth rates no higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. that such a situation is not systemic and not fundamental, but systematically and fundamentally that tasks have been set, all necessary tools have been created in the form of tax regulation, which make it possible to keep the situation at the level of existing prices with growth rates not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. that such a situation is not systemic and not fundamental, but systematically and fundamentally that tasks have been set, all necessary tools have been created in the form of tax regulation, which make it possible to keep the situation at the level of existing prices with growth rates not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. which allow to keep the situation at the level of existing prices with a growth rate not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more. which allow to keep the situation at the level of existing prices with a growth rate not higher than inflation. The inflation forecast, I recall, according to the Ministry of Economic Development, is 4.3% for 2019 (in the “Picture of the Economy” report, dated February 12, the ministry pointed out that “for the year, while maintaining the stable ruble rate, inflation will drop below 5% ". - Ed.). These are the percentages of price increases that can be achieved during this year, but no more.

GAZETA.RU
- The peak period is spring - March, April, May. Is there a danger that in these months growth may be higher than inflation?

- Let's start with the fact that there are three different types of prices for motor fuel. First of all, it is directly the prices at gas stations, that is retail. They concern consumers, the population, enterprises that buy petroleum products for refueling trucks and so on. In addition, there are wholesale prices, that is, the cost of purchases at tank farms, at these prices the fuel stations themselves buy fuel. And there are also stock prices, or wholesale. So wholesale and small wholesale prices throughout the year really fluctuate and are seasonal in nature on the exchange. They depend on the volume of offers, production, repair programs, and so on. It has always been, it is just a market factor. Wholesale prices can fluctuate, this is nothing. However, it is important that there is no shortage of supply in the domestic market.

- Therefore, the government has developed a number of measures to restrain price increases. First of all, conditions were created for the growth of the level of refining of petroleum products and their sale on the domestic market. So, last year a bill was passed, which entered into force on January 1, 2019. It introduces a reverse negative excise, which compensates for a reduction in the export duty rate, as part of the so-called tax maneuver. As you know, the decision was made to reduce the export duty from 30% to zero within five years, and the rate of extraction tax would gradually increase. Thus, since 2019, the export duty on oil is no longer 30%, but 25%, respectively, and the export duty on petroleum products depends on it. It is compensated by a negative negative excise for enterprises, which produce petroleum products with a high degree of processing. This encourages our enterprises to engage in the modernization of oil refineries and abandon the so-called samovars, who export petroleum products for export after primary processing. The second mechanism, which allows us to keep prices at a level not higher than inflation, is the so-called damper. If you simply say - this is the compensation of the difference between the cost of selling for export and the price of sales to the domestic market. This damping mechanism can also be both positive and negative. It is designed to smooth the difference between profitability in the foreign and domestic market. If, say, world prices have risen, and, accordingly, it is more profitable to sell the market there, as wholesale prices are lower on the domestic market, then this difference is partially compensated by a negative damper, that is, it is partially budget funds from those add. revenues that go to reserve funds, and partly take over the company. It turns out, for 2019, this is a ratio of 60 to 40, from 2020, a ratio of 50 to 50. I emphasize that both the state and companies take on this burden in order not to increase prices. Given that if the difference is vice versa in the domestic market is more profitable, as it is now in January, then the opposite situation arises, when companies pay the reverse excise tax. That is, a smoothing tool was created. they take on this burden both the state and companies in order not to increase prices. Given that if the difference is vice versa in the domestic market is more profitable, as it is now in January, then the opposite situation arises, when companies pay the reverse excise tax. That is, a smoothing tool was created. they take on this burden both the state and companies in order not to increase prices. Given that if the difference is vice versa in the domestic market is more profitable, as it is now in January, then the opposite situation arises, when companies pay the reverse excise tax. That is, a smoothing tool was created.

GAZETA.RU
- In addition to the price of gasoline, readers complain of cases of falsification of fuel at the gas station. Is there such a thing? Perhaps, small gas stations, as they say, save in this way?

- Of course, there are such facts. They are illegal. And the monitoring services control the situation, reveal such cases, simply close these gas stations, because if the goods do not meet the requirements of the technical regulations, then the player who supplies them, will be disqualified. In addition, as a pilot project, the Rosstandard is now implementing a unified state information system that would allow tracking the movement of petroleum products directly from the refinery to a gas station. Then it will completely exclude the possibility of using low-quality products. This system is, of course, more complicated than the Unified State Automated Information System in the case of alcoholic beverages. The corresponding system has already been created, a pilot project is being implemented in one of the regions. And the second direction that we are working with the Ministry of Finance, the Federal Tax Service, - payment of excise taxes. Many Russian companies have offered to consider the possibility of transferring the excise tax on petroleum products not on the wholesale link, but on the retail one, so that the excise tax should be paid for gas stations. After all, today gas stations do not pay excise, and this allows them to engage in frauds, including, as you say, loosening, breeding and selling low-quality product. Paying excise tax, they simply will not have such an opportunity, because then the cost of fuel will be completely different. Here, of course, it is very important to ensure that the collection of this excise tax is at the current level, in many respects it depends on the tax service, on the system for collecting information, monitoring, that is, tax administration. Now it's easier to take the excise tax from the oil refinery - there are not so many of them - than from 25 thousand gas stations that are scattered throughout the country. Many Russian companies have offered to consider the possibility of transferring the excise tax on petroleum products not on the wholesale link, but on the retail one, so that the excise tax should be paid for gas stations. After all, today gas stations do not pay excise, and this allows them to engage in frauds, including, as you say, loosening, breeding and selling low-quality product. Paying excise tax, they simply will not have such an opportunity, because then the cost of fuel will be completely different. Here, of course, it is very important to ensure that the collection of this excise tax is at the current level, in many respects it depends on the tax service, on the system for collecting information, monitoring, that is, tax administration. Now it's easier to take the excise tax from the oil refinery - there are not so many of them - than from 25 thousand gas stations that are scattered throughout the country. Many Russian companies have offered to consider the possibility of transferring the excise tax on petroleum products not on the wholesale link, but on the retail one, so that the excise tax should be paid for gas stations. After all, today gas stations do not pay excise, and this allows them to engage in frauds, including, as you say, loosening, breeding and selling low-quality product. Paying excise tax, they simply will not have such an opportunity, because then the cost of fuel will be completely different. Here, of course, it is very important to ensure that the collection of this excise tax is at the current level, in many respects it depends on the tax service, on the system for collecting information, monitoring, that is, tax administration. Now it's easier to take the excise tax from the oil refinery - there are not so many of them - than from 25 thousand gas stations that are scattered throughout the country.

GAZETA.RU
- They, probably, then will go bankrupt under such working conditions?

- I can say that we are able to provide the domestic market with high-quality gasoline and diesel fuel. We are releasing enough. We produce more gasoline and diesel fuel than the domestic market consumes. At the same time, this excess of gasoline is not so significant: maybe 2-3 million tons to the volume of consumption. And for diesel fuel - exactly 2 times more. If unscrupulous refueling will not engage in fraud, then those who work with high-quality products will fully provide and close the market needs. In this case, prices will remain at the same level.

OLEG STRYUKOV
- In 10-20 years, what will Russia keep warm for? what will the planes fly on? if we are so successful we will sell hydrocarbons ... Will we leave something to our grandchildren and great-grandchildren?

PETER
- Alexander Valentinovich! Tell me, for how long do we have enough oil reserves in Russia just and clearly?

RAMIL
- When will the population of Russia begin to receive rent from the sale of minerals?

SEMYON SLEPTSOV
- When, in your estimation, will the country dismount from the “oil needle”?

IVAN UPOROV
- Do you think that Russia's stake on oil and gas resources has unreasonably dragged out (almost 50 years with the USSR), as a result, Russia is rapidly lagging behind in scientific research and especially the introduction of new technological advances, becoming more and more immersed in hydrocarbon feudalism?

- This question is often asked, it is quite global. There are a lot of proven oil and gas reserves in the world. Now the main question facing countries and oil companies is how fast to monetize these reserves: in many countries these reserves exceed 10, 15, 20 years, or even higher. For example, we have gas reserves, based on the volumes we are producing today, more than 100 years. Oil reserves today - talking about categories B and C - amount to 29 billion tons, although they are also divided into commercially recoverable and commercially non-recoverable. Commercial recoverability depends on us, on what kind of fiscal system we implement in relation to this industry. With the existing fiscal system, approximately 50% - that is, 15 billion tons - are commercially recoverable. Last year we produced 556 million tons, respectively by simple division we get about 30 years - these are only commercially recoverable reserves. Moreover, these reserves are kept at about the same level, because each year new reserves are put on the balance, and the amount of reserves that are put on the stock is even slightly higher than production. That is the minimum level. Of course, it should be noted that the quality of reserves that are put on the balance is very different from what was previously put - these are mostly small deposits that are difficult to recover; now there are few large deposits that are already being discovered. We need to strategically understand and think ahead about what the energy balance will be, how technologies, other sources of energy will evolve, how we can use natural resources more wisely and monetize them in terms of production, sales and so on. Here you need to look at that in the future hydrocarbons will be used to a greater extent not as an energy source, for example, for automobiles, but as a source of chemical elements for the production of other goods — the same hydrocarbon fiber, etc. We have more than half of things from artificial materials, one way or another connected with recycled hydrocarbons. In fact, we do not see big problems. Of course, we believe that it is necessary to motivate and motivate our companies to create conditions so that they are more engaged in geological exploration, put resources on balance as reserves. We have a huge potential in the Arctic: I gave you figures without an arctic potential, because the deposits there are little explored, they have not been fully explored, there is only an assessment of the potential as resources. These are tens of trillion cubic meters of gas, billions of tons of oil. This is a reservoir that in the future will be a source of hydrocarbons to meet the energy needs of the world as a whole. And energy consumption in the world will grow. According to forecasts, by about 2035–2040, 30% more energy will be consumed, and the proportion of hydrocarbons will remain. Today, this share in the global energy balance is approximately 85%. According to experts, by 2035 it will drop to 75%, but it still means about ¾. Therefore, we must preserve our potential, our competitiveness in this market. It is often said that the oil and gas industry is a raw materials industry, in fact, this industry is high-tech, the most advanced developments and digital technologies are being introduced. This is a huge order for science, industry and other economic actors. Last year, within Russia, the fuel and energy complex was a customer of investments worth 5 trillion rubles. These are orders for mechanical engineering, chemical industry, equipment manufacturing and so on. Moreover, this is an order for the most innovative products, without which we will simply be uncompetitive in the modern world.

GAZETA.RU
- You mentioned LNG. As is known, the United States wants to saturate the European market with its LNG. Will American gas be able to compete with Russian gas, including after the commissioning of the export LNG terminal in Louisiana (US authorities gave the go-ahead for its construction in February)? Does the US have any intentions to “strangle” our LNG - we see the corresponding sanctions proposals.

- With regard to competitiveness, I do not see, in principle, the potential for competition of American liquefied natural gas, if we talk about market approaches. Our production cost is very low, our infrastructure was created and depreciated in due time. Yes, new infrastructure is developing, it will also be used for many years. I see the use of American LNG to a greater extent in those markets where there is no pipeline gas. Pipeline gas, if it is already being supplied, is more competitive than liquefied gas. LNG is competitive when it is transported over distances of more than 3 thousand kilometers, that is, where it is impractical to pull the pipe. If we take, for example, the actively developing Asia-Pacific market, there is China and we have deposits close to China, from where it is advantageous to supply gas through a pipe. There are other markets where the pipeline can not be spent, it is more profitable to liquefy gas and carry it. At the same time, today our strategy is not only to develop the supply of pipeline gas, but also to develop our market share in the production of liquefied natural gas and supply it to markets where it is impossible to reach the pipe. Therefore, there is a lot of potential. If we had one plant, Sakhalin-2, with a total capacity of approximately 11 million tons of LNG, then after putting the full capacity of the Yamal LNG plant in the north of the Yamalo-Nenets Autonomous Region to production at full capacity last year, more than 27 million tons. This is about 9% of the global market, that is, over the past few years, we have increased Russia's share in the global LNG market (from 4.5%). Our task is to increase the share to 15-20%. There are resources, there is already infrastructure in Yamal, there are a number of projects, which have been announced and will be implemented: for example, Arctic LNG-2 with a capacity of 19.8 million tons per year. This is the Gydan Peninsula. The construction period is from 2022 to 2025. This is almost 20 million tons to existing capacity. Thus, we see that we can, in principle, reach 100 million tons. And the LNG market in terms of consumption in the global gas system will develop at a higher rate: now the share of LNG is 35%, and by 2035 there will be 50%. And we will have our niche, there are companies that are interested in this, there are projects that will be considered and investment decisions will be made on them: this is the third phase of Sakhalin-2, this is Far Eastern LNG, Baltic LNG, there are smaller projects with a capacity of about 1 million tons are quite a large number. We are ready. I think we need to develop this area

ALEXEY
- Kemerovo, Miner ra-he. Gas at 160 meters high pressure, and the connection 2000000 rubles. How so ???

KONSTANTIN KOVALEV
- Please tell me why our whole street with the status of land IZhS can not connect to the trunk gas 200 meters from us, the city of Novosibirsk for 10 years. Purely due to bureaucratic delays. Technical possibility is.

- We also often receive appeals of citizens, work with each appeal. Previously, such a problem was with connecting to power grids. Recently, we don’t see such a problem, because a lot of work has been done to improve the situation and remove various barriers, reducing the number of connection steps. We are in the top ten countries (in the relevant section of the Doing Business rating. - Ed.). Now we are doing this work on the gas infrastructure: the government has approved and 80% implemented a road map, according to which legal acts are developed and adopted to simplify the relationship between the applicant and the organization that provides the connection. The second thing that should lead to a reduction in cost is the creation of so-called benchmark costs for these purposes. Today, how is it going? Today, in each entity, the regional energy commission at the province level sets the rates for connection to the gas infrastructure. We are talking about the gas pipeline from the gas distribution station directly to the household. These prices are set for three types of consumers. Connections for 50-60 thousand rubles. at a standardized tariff rate for consumers up to 20 cubic meters per hour at a distance of up to 200 m. There are consumers who consume more than 20 cubic meters of gas, but less than 500, according to them the regional energy commissions establish standardized rates for connection works. There are consumers who consume more than 500 cubic meters per hour, these are some enterprises, that is, commercial enterprises. Respectively, for such consumers, an individual project is designed to be developed by design organizations: calculation, evaluation, and so on, based on SNiPs. The example you cited with a cost of 2 million rubles. I think this is an individual project. It's unclear how powerful he is. If there are questions, first of all it is necessary to contact the regional authorities, the regional energy commissions, which should give explanations. For the future, we want to make sure that all these connections pass through a single portal of electronic services - it is developed in accordance with the “roadmap” - so that the applicant can apply for connection, get permissions to all procedures at once, and have some electronic calculator with which you could calculate the cost of connection.

SERGEI
- Belarus complained of budgetary losses from the tax maneuver - $ 300 million only in 2019. Are Moscow ready to compensate for these "losses" in whole or in part? If so, under what conditions? And how is the coordination in the field of export of oil and oil products supplied from Russia to Belarus, on the further sale of which Minsk earns? What volumes and which petroleum products will Belarus be able to earn, and what amounts - not? thank

- Now there are negotiations in this direction, they are at a high enough level. As for the comprehensive analysis of relations in all areas (industry, energy, agriculture, and so on), from the Russian side this group is headed by First Deputy Prime Minister Anton Germanovich Siluanov. This is not such a simple question, because there is a complex of relationships, there is a complex of other issues accumulated during the interaction period. Therefore, I would not say “yes” or “no”, I think, within the framework of the negotiations, solutions and approaches will be developed, based on a complex of all issues related to relations between Russia and Belarus.

GAZETA.RU
- Gas prices are discussed in a similar way since 2020 ...

- As for gas prices, the price agreements for 2019 were reached several years ago. As for the price of gas supply from 2020, I think this is also a subject of negotiations and comprehensive solutions.

GAZETA.RU
- Thank you very much for coming to visit us. Thank you very much for the answers to our questions. Questions of readers who did not have time to ask, will give you an additional. We hope to see you again. Good luck in job!

- Thank you very much.