Russia Beyond the Headlines: Why Gazprom Became So Flexible

Russia's natural gas giant is planning to put three billion cubic meters of gas up for auction - yielding to pressure from European customers, experts say. It may also scrap plans to stop Ukrainian gas transits, reducing supply risks linked to the construction of a new Turkish route.

In September 2015 Gazprom will hold an auction for the supply of three billion cubic meters of gas to the European market, business daily Kommersant reports.

Gazprom CEO Alexey Miller told the newspaper that it will be a spot bid auction, for the supply of gas "here and now, rather than the traditional take-or-pay model used by Russian companies, where buyers commit to purchase an agreed amount of gas during a set period - but pay fines if they take less.

The Russian energy company also unexpectedly announced the possible continuation of gas transits through Ukraine. Last year Gazprom said it would cut Ukraine out of the transit market after it announced a new line via Turkey. The Turkish Stream will pipe gas under the Black Sea for delivery to southern European countries.

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