OREANDA-NEWS. June 02, 2010. Deputy Economics Minister Andrey Klepach was quoted as saying that the government planned a 15% increase for domestic household gas prices for 2011, reported the press-centre of OTKRITIE Financial Corporation.

PM Vladimir Putin also said yesterday that domestic prices should increase to account for 55% of the export netback level, which also corresponds to about a 15% increase, on our estimates.  

View: We believe a 15% domestic gas price increase is in line with the current market consensus and therefore we see the news as neutral for Gazprom and NOVTAEK. The government should approve new gas prices for 2011 in the second half of the year, after reviewing updated budget and macroeconomic parameters.