Gazprom raises company transparency amid declining exports

The team that came to Gazprom with Alexei Miller, the head of the company from 2001, could nsistibg of the business and administrative elite of St. Petersburg, completely departed from the operational management of the concern. This was reported by Interfax.

On Monday, Gazprom announced that the chief accountant will retire, and the deputy chairman of the executive board will be transferred to another job in the group. The St. Petersburg team’s exodus from the Gazprom board began last February: Valery Golubev, deputy chairman of the domestic market, retired.

In April, Kirill Seleznev was announced to be transferred from the post of Head of Department 614 and General Director of Gazprom Mezhregiongaz LLC to RusKhimAlliance LLC. In May, Deputy Chairman Andrei Kruglov joined the Ministry of Finance. In the same month, it was announced that Department 621 (Corporate Cost Management) was being deducted from the state. The department was headed by Mikhail Sirotkin, who actually created a procurement system in the company and consolidated the most important cash flows in investment activities.

“In general, the changes are aimed at overcoming the inertial obstacles in the development of the company,” Miller commented on the changes at the annual meeting in June 2019. – Our challenge is to increase the transparency of the company. These changes are not completed, and we will continue them in the very near future.”

At the same time, according to Kommersant, Gazprom’s deliveries to the EU countries in 2019 fell by 0.7% compared to the previous year – to 175.8 billion cubic meters. In the supply structure, a record drop is observed in the volume of exports to Turkey – it has decreased by 35% or to the lowest level since 2004. Also, gas exports to Estonia decreased significantly – by 38%, Lithuania – by 32%, to Bulgaria and Greece – by 25%. In addition, exports fell sharply in the direction of Gazprom’s largest partner – Germany, the figure fell by 5 billion cubic meters or 8.5%.

Competition in the gas market of the European Union and Turkey is becoming more acute. Gazprom will soon have to compete here not only with LNG, but also with Azerbaijani gas, which will first come to the Turkish and then to the European market via the Southern Gas Corridor. Of course, the volumes of supplies are not comparable; there is no need to talk about serious competition. But some part of the market, even a very small one, will probably have to be conceded.