This report studies the factors hindering increased utilization of associated petroleum gas (APG) in Russia. The issue of flaring versus utilization is studied from a Technology Innovation System (TIS) perspective, seeing the nonutilization issue as a problem of technology diffusion. There are many technological options available for APG utilization, but a main blocking mechanism in the Russian case is the Gazprom monopoly on gas transportation via their pipelines. A commonly discussed solution is policy to ensure third party access, but this study finds that this solution holds little potential, as its ramifications are too extensive and unacceptable to the key actor Gazprom. More promising solutions may be found in small, emerging engineering companies.