Russia’s Gazprom is planning 3.5 billion euros worth of price cuts for its European customers this year
The world’s top gas producer is responding to falling demand due to Europe’s economic slump, energy efficiency drives and competition from liquefied natural gas, especially in its main market, Germany.
As a result it is amending long-term contracts with some European clients.
The state-controlled energy firm also vowed to make good on dividend promises despite the hit to its cash flow from the price cuts.
Gazprom’s declining cash flows have called into question its ability to boost dividends while funding vast investment projects, including plans to expand its pipeline export routes that will cost tens of billions of dollars.
Industry analysts say price concessions to the likes of Polish gas monopoly PGNiG, may help Gazprom rebuild its share of the European market, and meet its goal of raising gas exports to Europe by 10 percent this year.
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Spain’s first case of diphtheria in 30 years: parents of six-year-old ‘oppose vaccines’
- 3Greek debt crisis is “absolute supremacy of capital over humans”
- 4[Live updates] NGO flotilla bids to break Israeli blockade of Gaza
- 5[LIVE UPDATES] Greek debt deadline looms
- 6Istanbul Gay pride quashed by riot police, rubber bullets and water cannon
- 7[LIVE UPDATES] France: man decapitated, several wounded in chemical plant attack
- 8Israel prepares to repel boarders as ‘Freedom Flotilla 3’ tries to run Gaza blockade
- 9Greek debt summit – Live updates
- 10Large Hadron Collider ready to embark on an unprecedented voyage of discovery
- 11‘Distractingly sexy’ scientists hit back in lab chemistry polemic
- 12Romania, Hungary and Bulgaria focus of EU cash fraud probes
- 13NewsWires : euronews : the latest international news as video on demand
- 14Summit up in Brussels as Greek proposals give food for thought and rumours fly
- 15Interpol issues ‘red notice’ for accused ex-FIFA bosses
- 16Battle of Waterloo, live-tweeting 200 years on
- 17Greek PM faces day of crucial bailout talks in Brussels
- 18Citizens take power in Spain’s largest cities as a political revolution sweeps the country
- 19Italy discovers biggest illegal waste dump in Europe
- 20Greek debt: who will pay if Greece fails?
Wires > Business
- 18:30 CET Analysis – Spill settlement closure leaves BP open to growth…
- 18:22 CET Need single capital market watchdog to see off risks – ECB
- 18:07 CET Brazil investigates currency market rigging by 15 global banks
- 18:04 CET Weak U.S. employment report dampens September rate hike hopes
- 18:00 CET Anthem, Cigna in new round of talks – source
- 17:33 CET Irish tax take 4 percent above target at end-June
- 17:06 CET Spain brushes off Greek concerns as it hikes growth forecast
- 16:46 CET Suspicious share trades drop to record low in Britain