It's Springtime in Moscow--Time for the Annual Debate over Domestic Gas Prices

After six years of steady growth, Russian regulated domestic gas prices look set to decline in real terms for the next two years, until after the upcoming elections:

* The government is more concerned about meeting inflation targets than about halting Gazprom's losses in the domestic market.
* Gazprom's record-breaking profits from exports have weakened its case for higher domestic tariffs.
* Pressure is growing on Gazprom to cut costs instead of seeking higher domestic prices.

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