GAZPROM'S PROPOSALS TO LIBERALIZE GAS MARKET ARE REASONABLE, ILLARIONOV SAYS

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MOSCOW, April 6 (RIA Novosti) - Andrei Illarionov, adviser to the Russian president, describes Gazprom's proposals to liberalize the natural gas market as reasonable.

"I think that Gazprom's proposals to liberalize the gas market are overdue, because it would have been better if it happened four years ago," Illarionov said on Tuesday at a press conference.

According to Illarionov, "resistance to liberalization that we witness now is aimed at protecting monopolies like the United Energy Systems of Russia."

"Naturally, these actions have nothing to do with reforms. Actions like these can be characterized only as lobbying a single monopoly, operating in the infrastructure sector," Illarionov concluded.

Still, the President's adviser does not think that Gazprom's proposals should be accepted without amendments. In his opinion, they should be revised and adjusted within the framework of a comprehensive energy sector reform program.

"These proposals should be integrated into the general package of energy sector reforms," Illarionov said.

According to him, the comprehensive program, among other things, should include the removal of limitations on the participation of private investors - foreign as well as Russian - in the gas, electricity and oil business, elimination of obstacles to the construction of infrastructure facilities with private investors' participation, and the liberalization of sales markets in these sectors.

Today at a meeting in Moscow, Minister of Economic Development German Gref told US businessmen that Gazprom equity market will be liberalized as early as this year.

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