Russian gas giant Gazprom warned Tuesday that the industry must triple prices and invest 10.7 billion dollars (11.8 billion euros) over the next five years to check falling production.
Gas prices on the Russian market -- set by a federal energy commission -- are far below that on world markets.
They should be multiplied "2.5 or 3.0 times", Gazprom director-general Rem Viakhirev told a conference on energy strategy, according to Interfax news agency.
Production by Gazprom, which has a near monopoly in Russian gas production, is expected to fall by 20 billion cubic meters (700 billion cubic feet) in 2000, said Gazprom board member Vladimir Rezounenko.
In 1999, the Russian giant produced 545 billion cubic meters (19,075 billion cubic feet), against 553.7 billion (19,380 billion cubic feet) a year earlier.
Investments of 10.7 billion dollars were required over the next five years to ensure operations in the gas industry, Rezounenko said at the same conference.
If Russia failed to change its pricing policy, it would not produce more than 260 billion cubic meters (9,100 billion cubic feet) a year from now until 2010, he said.
The Gazprom director-general, Viakhirev, said despite lower production, exports remained Gazprom's priority.
Gazprom earlier this month announced plans to reduce gas deliveries next year to power stations, its main Russian clients -- MOSCOW, Oct 16 (AFP)
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