Gazprom Expects to End E.ON Gas Price Talks Soon

Russian gas giant Gazprom plans to complete talks with Germany’s E.ON Ruhrgas about lower gas prices in the nearest future, Gazprom export head Alexander Medvedev said on Wednesday.

“We have completed negotiations with all partners to adjust prices except three firms: Germany’s E.ON Ruhrgas and RWE Transgas, and Polish PGNiG,” Medvedev told a news conference.

This spring Medvedev has said that the company reduced the gas price by 10 percent on average in its long-term contracts with several European consumers including France’s GDF Suez, Slovakia’s SPP and Turkey’s Botas.

Gazprom’s prices stipulated in long-term gas supply contracts have long been the subject of heated debates with European partners, in particular with E.ON and RWE, which want a spot price mechanism to obtain cheaper gas. In July 2011, Gazprom made concessions to Italy’s Edison S.p.A, which was the first to file a suit against Gazprom, but dropped it after Gazprom agreed to introduce a spot element into the price formula.


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