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Sakhalin Gas Subsidized

The government will provide 24.6 billion rubles ($826 million) of subsidies for domestic gas supplies from Sakhalin Island via a pipeline to Vladivostok in the next three years, Prime Minister Vladimir Putin said Tuesday at a government meeting in Moscow.

The government is allocating 1.9 billion rubles this year, 11.2 billion rubles in 2012 and 11.5 billion rubles in 2013, Putin said.

This year’s subsidy covers the gap between the price at which Gazprom’s Sakhalin Energy venture with Royal Dutch Shell exports fuel and the regulated domestic price at the intake point of the pipeline to Vladivostok, the Energy Ministry said in December.


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