27 Feb 2010 10:31

Gazprom to sell in Europe at 10%-15% of swap price for only three years

MOSCOW. Feb 27 (Interfax) - Gazprom has agreed changes some of its three-year "crisis" period European export contracts, the Financial Times writes, citing deputy Gazprom CEO Alexander Medvedev.

Gazprom has agreed to sell at from 10% to 15% of gas supplied at spot prices that are today about 25% below long-term contract determined based on oil product prices.

Medvedev said that the oil linkage to contract prices remains as before. "Every three years we have the right to discuss prices, and that is what we did today. This is only for the three-year period including 2010. We're confident that the situation will right itself in three years," he said. "There is no doubt in my heart, or the long-term perspective."

Gazprom is keeping take-or-pay terms in contracts that impost fines on buyers for failure to take gas. "We redistributed certain obligations from the crisis period to the future period, but we are not losing volumes in general," he said.

The Financial Times reported that Gazprom contracts with France's GDF Suez had been renegotiated, as had contracts with Germany's E.ON, Italy's Eni, and Turkey's Botas.