Following years of unsuccessful talks, E.ON said in a statement that
the German company and Russian gas giant Gazprom reached an agreement on
adjusting prices under their long-term contracts for the supply of
Russian gas.
“Negotiations between Uniper, the fully-owned E.ON subsidiary, and
Gazprom on price adjustments to long-term gas supply contracts have led
to an agreement,” Sputnik quoted Dusseldorf-based E.ON as saying in a
statement, adding that the deal resolved the pending arbitration
proceedings between the companies, which were first launched in April
2014.
E.ON estimates that the agreement will allow E.ON to earn $425
million in the first quarter of 2016, as well as additional $895 million
until the year-end.
Germany, Europe’s biggest gas market and a major Gazprom customer, is
likely to increase gas supplies from Russia even more after the
expansion of the Nord Stream pipeline.
European gas firms such as E.ON are being squeezed as they buy gas
under long-term deals with Gazprom linked to the price of oil while
having to sell it to customers at lower retail prices linked to the
freely traded spot market, according to Reuters.
https://neurope.eu/article/e-gazprom-reach-price-deal-breakthrough/