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.
Copyright © 2014 euronewsMore about:
- 1New major vehicle recall by Toyota
- 2Global wealth increases along with inequality
- 3Rouble slumps further putting pressure on Russian central bank
- 4Russia plans sanctions protection, European businesses complain of being ‘sacrificed’
- 5Ireland ends austerity, closes tax loophole for multinationals like Apple and Google
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Iraq: Baghdad rally held against US ‘occupiers’ | euronews, world news
- 3Now is ‘right time’ for Catalonia independence vote, says Mas | euronews, world news
- 4Vatican rocked by another paedophilia scandal | euronews, world news
- 5Two container ships collide on Egypt’s Suez Canal | euronews, no comment
- 6British Muslims’ message to ISIL: Not in my name! | euronews, world news
- 7Ukraine: Donetsk rebel weapons factory blows up | euronews, world news
- 8Algeria: ISIL offshoot releases video threatening French hostage Hervé Gourdel | euronews, world news
- 9Sweden becomes first European nation to recognise Palestine | euronews, world news
- 10Emma Watson threatened with naked photos leak after UN equality speech | euronews, world news
- 11Iceland volcano ‘pollutes Paris’ | euronews, world news
- 12How nasheeds became the soundtrack of jihad | euronews, world news
- 13Learning through “serious games” | euronews, learning world
- 14euronews speaks to Ban Ki-moon ahead of key UN and climate change talks | euronews, the global conversation
- 15Thousands ‘evade’ Ebola lockdown in Sierra Leone | euronews, world news
- 16Mike Tyson: ‘You learn humbleness when you get older in life’ | euronews, the global conversation
- 17European Union News | euronews: latest breaking news and headlines about European Union
- 18Ebola: Six new suspected cases in Spain | euronews, world news
- 19International tv news | euronews: European and International tv news bulletin
- 20Global warming to ‘cause 250,000 extra deaths a year’ | euronews, world news
Wires > Business
- 11:28 CET Britain targets 2017 for start of European carbon market reforms
- 10:41 CET Philips says lighting spin-off on track despite quarterly loss
- 10:38 CET HSBC fall weighs on FTSE as rebound loses steam
- 10:15 CET Banks to get instruction manual for submitting Libor quotes
- 10:11 CET Italy industry orders rise in August after three steep monthly…
- 10:08 CET France urges Germany to boost investment spending
- 10:05 CET Metro eyes better Christmas as consumer electronics turns corner
- 09:59 CET Shire CFO to leave drugmaker as AbbVie drops bid