Gazprom once looked set to become the world’s largest company. But the Russian giant has failed to boost production and stubbornly refused to adjust to a changing market in which liquefied natural gas and shale gas have come to the fore. Now it could face penalties under European Union competition rules – and even if it avoids them, it may eventually have to compete with independent Russian gas producers.

RUSSIAN national gas giant Gazprom has fallen from grace in the wake of Rosneft’s US$61 billion acquisition of its oil rival TNK-BP.

The company long enjoyed such intimate links with the government that observers sometimes wonde...

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Professor Stefan Hedlund
Gazprom has stubbornly retained its traditional focus on pumping natural gas to markets via pipelines, a business model that offers considerable political clout over customers
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