Russia Unable to Retake Stakes in European Gas Market

Russia significantly increased its gas production in the first half of 2010, but the country was unable to retake lost market shares in Europe.
According to the Russian Ministry of Economic Development, Russia in the first six months of 2010 increased its gas exports with 27.7 percent year-on-year to a total of 100.1 billion cubic meters. However, the lion’s share of this increase was in former Soviet Republics. When it comes to the EU market, Russia increased its exports only with 4.3 percent to a total of 62.9 billion cubic meters.
Figures also show a major drop in export to the EU starting from May. In June, the drop amounted to as much as 44 percent, Oilru.com reports.
The export figures is unhappy reading for the Russian gas industry, which in 2009 experienced a significant drop in exports to the EU market.
Meanwhile, Russia in the period significantly increased its gas production. According to Oilru.com, the country’s gas production in the first half of 2010 amounted to 379 billion cubic meters, which is a 19.3 percent increase year-on-year. Russia in the period exported 26.4 percent of the its total gas production, an increase of 1.7 percent point compared with the same period last year.