E.ON Russia said on Thursday it had signed gas supply deals with Russia's No. 2 gas producer Novatek, which continues to carve domestic market share from Gazprom.
A spokeswoman for E.ON Russia, controlled by Germany's utility E.ON, said the company would not renew agreements with Gazprom. "The contracts with Gazprom expire in the end of 2012, we have been in talks over future supplies. Novatek offered better terms," Anna Martynova said.
Novatek, controlled by Gunvor trading house co-owner Gennady Timchenko and its chief executive Leonid Mikhelson, has been winning lucrative gas supply deals at Gazprom's expense.
In 2009, Novatek, which is barred from selling Russian gas abroad by law, struck a $6 billion domestic gas supply deal with power trader Inter RAO, which decided not to renew contracts with Gazprom.
E.ON Russia, which last year consumed more than 13 billion cubic meters of gas, said in a statement on Thursday that Novatek will supply gas to four of its five power plants till 2027. The companies also agreed to change the terms of existing deals.
(Reuters)
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
