Gazprom pipelines and export capacity

Газопроводы Газпрома и экспортные мощности

Gas pipelines of West Siberia

Газопроводы Западной Сибири

Export flows of Gazprom

Экспортные потоки

Spot, Gazprom, Brent

Цены на нефть и газ

End-use price of gas

Russia and USA

Daily gas production

Суточная добыча

Gas export to the former Soviet Union is the most profitable business segment of Gazprom

The following table shows estimated revenues of Gazprom from sales of 1000 cubic meters (mcm) of gas to selected countries, net of customs duties and costs of international transit.

Netbacks from Gas Exports to Selected Countries, $/mcm


Netback (1)

Germany - Waidhaus








Turkey - Malkoclar


Turkey - Blue Stream


Turkey - Blue Stream - if customs duties were introduced (2)




Ukraine - if customs duties were restored (2)


(1) Revenue net of customs duties and costs of international transit.

(2) In case of introduction of customs duties at 30% of contract price.

Gas exports to the former Soviet states are more profitable than sales to the rest of Europe, except the duty-free sales of gas to Turkey via the Blue Stream pipeline. As a matter of fact, the duty-free status of Blue Stream has saved Gazprom more than $4.0 billion, compared to $3.2 billion of the total cost of the project.

Because of the high netbacks from sales to Ukraine, Gazprom is unlikely to restore the freedom of transit of Central Asian gas through the Russian territory. Now the netbacks from exports to Ukraine are 50% higher than these to Germany. Using the Kremlin's terminology, one can say that Gazprom is subsidized by both the Russian state budget and Ukrainian Naftogaz. If the customs duties were restored, exports to Ukraine would still be more profitable than sales to the most of other European clients of Gazprom.

Mikhail Korchemkin

May 20, 2010

Malvern, PA, USA



Netback at the Russian border is equal to the price minus customs duties (30% of the price) minus cost of international transit (outside of the territory of the Russian Federation). Exports to Belarus and Ukraine are free of duties, same as exports to Turkey via the Blue Stream pipeline.


Last modified: 12/07/14                    East European Gas Analysis 2006-2014                                           Email:
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