In a discussion with St. Petersburg Governor Alexander Beglov, he commented on the relocation of the registration of Gazprom from Moscow to St. Petersburg. The move, intended to channel substantial revenue into the city budget, instead resulted in notable ongoing expenses for the northern capital. Beglov noted that while Gazprom is a major national player, the city has seen limited direct income from the company and has shouldered a sizable portion of the costs associated with expanding the city’s infrastructure to accommodate Gazprom’s new footprint. He pointed to the construction of several expressways and the development of a transport interchange designed to improve access to Gazprom’s office tower as concrete examples of the investments involved.
The governor outlined two possible paths forward given the current circumstances. One option requires federal funding to support Gazprom’s presence and related urban needs. The alternative is to fully implement a protocol aimed at compensating the city for revenue losses incurred this year. He estimated that in 2023 the federal budget should allocate 47 billion rubles to be drawn from the Moscow budget to offset the costs tied to Gazprom in St. Petersburg.
On August 4, 2021, the latest edition of Gazprom PJSC’s charter, reflecting its location in St. Petersburg, was registered with the city’s tax authorities. This administrative update signaled formal recognition of the strategic shift in Gazprom’s corporate geography and its tax footprint for the city. Later, President Vladimir Putin met with Beglov and discussed Gazprom’s status in St. Petersburg. The president indicated that the reregistration would bring additional tax revenues to the city, estimating 17 billion rubles for 2021 and 40 billion rubles for 2022. These forecasts underscored the city’s expectation of a growing fiscal contribution from Gazprom as a consequence of the relocation and expanded local presence.
Historically, Gazprom has continued energy exports to China through established channels such as the Power of Siberia pipeline. The shift in corporate registration and the accompanying urban development initiatives in St. Petersburg have been framed as part of Russia’s broader strategy to integrate major energy interests with regional economic planning. As the city navigates this transition, officials emphasize a balance between fostering strong national energy links and maintaining fiscal prudence for metropolitan growth. The discussion around Gazprom’s footprint in St. Petersburg highlights the complexities of aligning centralized national resources with local budget needs and the ongoing evaluation of revenue mechanisms to support urban infrastructure and public services.