Russian gas monopoly Gazprom will break even on domestic gas sales this year and hopes to post $300-400 million in profits from Russian deliveries in 2005, a senior company official said on Thursday.
Gazprom has long wanted to break even in Russia, where it sells three quarters of its gas but is forced to do so at prices far below those it receives for exported supplies.
"This year we think we've turned the corner, and will reduce to zero (losses) for deliveries to the domestic market," deputy Chief Executive Alexander Ryazanov told reporters.
Tariffs for domestic deliveries rose by 20 percent in 2003-2004 and Gazprom had planned to stop losing money domestically last year. But costs rose as it did not manage to introduce extra supply service charges in some regions.
The company has lobbied the government to liberalise gas prices and Ryazanov said the state-controlled firm would once again raise that question with ministers.
Russia has agreed to double domestic business gas rates by 2010 under an agreement with the European Union over membership of the World Trade Organisation.