Gazprom wants to sell non-core assets in conjunction with the investment program

Russian Gazprom is not considering the sale of 10% stake of private gas producer NOVATEK, focusing on the disposal of non-core assets, sales of which will depend on the investment of state concern, said the Deputy Chairman of Gazprom Alexander Medvedev in an interview with Reuters.

“As far as I know, the topic is not worth (selling 10% stake in NOVATEK), since it is a core asset and not non-core asset. We have plans to sell non-core assets. The sales amount will depend on how to develop our investment program,” he said.

Previously, the Agency Bloomberg reported that Gazprom plans in 2017 to sell the assets for $ 6 billion.

Medvedev said that Gazprom does not plan to sell the company’s deposits Tambeyskoye group on the Yamal Peninsula, but added that there may be “other options” without giving details.

The total volume of the investment program of monopoly for 2017 is 911,2 billion rubles, of which 42 billion is the project “Turkish stream”, and 111 billion rubles — “Nord stream-2”.

Medvedev said that Gazprom expects to receive funding from European partners to the “Nord stream-2” in 2017, but declined to disclose details.

In July, the Polish antitrust regulator refused to agree to establish a joint venture of Gazprom and its European partners for the construction of “Nord stream-2”, and the parties began to look for a new scheme of interaction.

The project “Northern stream-2” allows Gazprom to expand the already existing TRANS-Baltic export route to Europe and to reduce or even stop the transit of gas through Ukraine, which the Russian state monopoly has been conducting a number of trials.

Medvedev said that Gazprom’s Nord stream-2 reduces gas supplies to Europe in comparison with transit through Ukraine, a contract which expires in 2019.

“So the first thing for us is the economic project. And we’re not talking about that Ukraine will not transit at all, but the volume of this transit will depend on the conditions.”

European test

Gazprom is waiting for a response from the European Commission antitrust case in which the European authorities have accused the Russian state monopoly inflating prices for consumers in Central and Eastern Europe and the exclusion of competitors.

“We’ve been talking and its proposals for addressing the concerns of the European Commission sent. We expect that, in accordance with the rules will be a market test is passed and thus the issue will be closed”, — said Medvedev.

He refused to disclose the proposal, noting that Gazprom has gone to certain measures to remove the concerns of the European Commission.

The market test will take up to two months, Medvedev said.

Antitrust case against Gazprom, which provides about a third of the gas consumed in Europe is more than five years, and resolving it will help the company to avoid fines of up to 10% of turnover.

Gazprom became involved in another trial in Europe, once in early December, the Polish PGNiG filed for the European Commission to court over its decision to grant Gazprom greater access to the OPAL gas pipeline in Germany.

Medvedev believes that the decision of the European Commission, which allows the Russian gas giant to double the capacity of “Nord stream-2”, can work up to the conclusion of the court.

“And in fact, and in our plans any thoughts on the reduction or cessation especially of transit through Poland no, — said Medvedev. On the contrary, we heard that the poles are not going to renew the transit contract.”

Medvedev said that the average price of gas sales to Europe in 2016 amounted to $167, and in 2017 will be higher.

“We now believe that the price this year will be, including due to the fact that we have a spot component, will be higher. And it will depend on oil prices, and the prices in the spot markets”.

Medvedev said that the next export auction for the sale of gas “Gazprom” plans to spend in the beginning of summer, but its size is not disclosed.