Gazprom Cut Price to Clients

In its quarterly report, Gazprom confirmed that it reduced gas prices in its long-term contracts for some European clients last year.

The Russian company cut prices for South Stream partner Italy's Eni, partly owned Austrian company GWH Gashandel, EconGas, Switzerland's EGL, Sinergie Italiane and ERG.

The company also said it agreed to include a spot price element into its long-term contracts with some European clients including GDF Suez, while raising take-or-pay obligations on some who received concessions.

The company said that it is still in talks with other European clients on potential price cuts, including RWE, Transgas and Slovak provider SPP.

Gazprom did not say by how much it cut the prices, which are pegged to oil prices in long-term contracts with European customers.

Gazprom long-term contracts are subject to review every three years.