"Given [Russia's] enormous reserves of coal and hydropower, we see a disproportionate share of natural gas [being used in power generation]," Valery Golubev, deputy chairman of Gazprom's board of directors, told an economic forum in Krasnoyarsk, Siberia.
He said using natural gas to generate power is "extremely ineffective" since it can be exported, generating additional budget revenues.
However, he said providing gas to domestic consumers remains a priority for the natural gas giant.
Speaking at the forum, Vladimir Rashevsky, chief executive of the coal-mining company SUEK, said the effective use of coal in the power generating sector will help meet the existing power shortage.
"Considering the colossal potential of the coal sector, all our energy problems will be resolved within the next five to seven years," he said.
But Russia's economic development and trade minister said Gazprom's control of enterprises unrelated to the natural gas sector endangers the country's economy.
"With a total of $300 billion in assets, Gazprom's role in the economy will resemble state monopoly capitalism of the 19th century. This will throw the country back," German Gref said.
Gazprom holds significant non-core assets, including in agricultural enterprises, banks and financial companies, media and sport clubs.
