MOSCOW, September 5 (RIA Novosti) - Russia's government has approved a pilot project to sell up to 5 billion cubic meters of natural gas through an electronic trading floor at unregulated prices in 2006-07, the government press service said Tuesday.
Gazprom (RTS: GAZP) said in late June a Russian stock market would start trading in natural gas in 2007.
A relevant executive order was signed by Prime Minister Mikhail Fradkov.
The government entrusted the Industry and Energy Ministry, the Economic Development and Trade Ministry, and the Federal Anti-Monopoly Service with providing legal and regulatory support for the experiment, and with overseeing its progress.
Kirill Seleznyov of Mezhregiongaz, a Gazprom subsidiary that manages domestic sales, said earlier up to 10 billion cubic meters of natural gas will be offered on trading floors and provided by Gazprom and independent suppliers on parity terms.
"The average ratio between free-market and regulated prices is gradually declining," he said adding that the indicator has decreased from 1.4 to 1.12-1.15 since 2000.
On June 8, the Russian Trading System, the country's premier stock market, started trading in ruble-denominated contracts for oil and oil products, in line with President Vladimir Putin's suggestion in his State of the Nation address May 10 that as a leading oil exporting nation, Russia should establish its own oil exchange to trade crude and petroleum products for rubles.
