The Participation of the Russian Gas Company in Projects of a Public-Private Partnership (the Example of Gazprom PJSC)

Abstract

Aim. To explore participation of “Gazprom” PJSC in Russian public-private partnership projects. Methods: institutional approach, document analysis, case study, generalization and synthesis. Results. The article examines specific examples of the implementation of the capital participation model and the contractual public-private partnership of “Gazprom” PJSC. The model of participation in capital is the priority model, which is confirmed by the state’s controlling stake in the company and is expressed in significant state support for “Gazprom” PJSC by guaranteeing an advantageous position in the high-yield market, providing large loans from banks with state participation, ensuring attractive tax conditions for work in promising segments of the economy and concluding profitable contracts with public authorities. However, the company has to take on social obligations in the form of gasification of whole country, which to a certain extent harms its own economic efficiency. At the same time, “Gazprom” PJSC can be both a public and a private partner in PPP projects. Conclusions. The key problem for “Gazprom” PJSC remains the commitments it has made to gasify the country, which require investments from the company and are characterized by low profitability. The ways to solve this problem may be to involve other gas companies in the implementation of gasification projects within the framework of PPP; to ensure the profitability of gasification projects for “Gazprom” PJSC itself by providing the latter with tax breaks or increasing export supplies of gas to the Asia-Pacific market, which will also provide access to gas for regions of Siberia and the Far East; to reduce the gasification program by optimizing energy consumption and developing alternative sources such as liquefied natural gas and liquefied petroleum gas.