Publication: Monitor Volume: 1 Issue: 89

Russian first deputy prime minister Anatoly Chubais said that the government is prepared to compensate Russian energy giant Gazprom for financial losses resulting from the loss of its tax privileges, Itar-Tass reported September 5. Because of new government regulations which went in force September 3, Gazprom stands to lose its exemption from energy exports surcharges, which will reduce its profits by nearly 15 percent. Chubais hinted that in the future the government would not protect either Gazprom or its customers from market conditions. However Prime Minister Viktor Chernomyrdin, said that his government would not allow any rise in domestic fuel and energy prices until the end of the year. Chernomyrdin is a former head of Gazprom and remains closely associated with the energy complex.

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