Bloomberg: Gazprom Price Risk Reduced With Higher Spot Rates, Otkritie Says

OAO Gazprom, Russia’s state-run natural gas exporter, may have reduced the risk of further contract renegotiations by cutting rates for most of its European clients as spot prices rise, Otkritie Capital said.

Prices at European hubs rose on average 28 percent year-to- date, analysts led by Alexander Burgansky, said in a research note today. Otkritie has a buy recommendation on Gazprom stock.

The U.K.’s National Balancing Point prices approached $391 per 1,000 cubic meters last week, in line with those of Gazprom’s long-term contracts, according to Otkritie. Rates at the three main continental hubs in Belgium, Germany and the Netherlands, were 3 percent to 5 percent below Gazprom’s prices, Otkritie said.  MORE