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Gazprom lowers gas prices on long term contracts for the EU and Turkey

The new price will ensure that Russian gas remains competitive

Photo ITAR-TASS

Photo ITAR-TASS

LONDON, February 17 (Itar-Tass) — Russia’s natural gas monopoly Gazprom reduced the gas price under long-term contracts for consumers in the EU and Turkey by 10 percent, The Financial Times reported on Friday.

This step was caused by “mounting pressure to move away from oil-linked prices,” the publication says.

The newspaper quotes Deputy Chairman of the Gazprom Management Committee, head of Gazprom Export Alexander Medvedev as saying, “Our partners asked us to revise our prices and ... what we did is correct the parameters of our formula, which led to a relative price reduction of 10 percent on average.”

“The new price will ensure that Russian gas remains competitive,” he added.

According to him, the concession came as a result of negotiations with some of Gazprom’s biggest customers, including France’s GDF Suez, Wingas of Germany, the Slovakian gas company SPP and Botas, Turkey’s state gas supplier.

The Financial Times also reported that Gazprom fought off calls from the EU customers to increase the spot price component in its contracts.

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