Russia’s gas giant Gazprom is ready to compete on the European market but amendments should be made to Europe’s third energy package, which requires the separation of energy production, transportation and sales, Gazprom Export head Alexander Medvedev said on Tuesday.
The Third Energy Package particularly affects the operations of Russian gas export monopoly Gazprom, which produces and sells gas and owns transportation facilities.
“German Chancellor Angela Merkel has said today the Third Energy Package needs changes. Such statements are not made casually. We are ready for competition but a solution should be found acceptable for all the parties,” he said.
At the same time, Medvedev said that the Third Energy Package did not threaten Gazprom’s long-term contracts.
Gazprom’s prices stipulated in long-term gas supply contracts have long been the subject of heated debates with European partners, in particular German energy companies E.ON and RWE, which want a spot price mechanism to obtain cheaper gas. In July, 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.