Bloomberg News

Gazprom May Refund Europe Gas Buyers $10 Billion, Interfax Says

April 13, 2012

OAO Gazprom may have to refund European customers as much as $10 billion in retroactive discounts after the Russian natural-gas exporter reduced prices in long-term contracts, Interfax said today, citing an unidentified person with knowledge of the matter.

The amount owed has grown from about $7 billion estimated at the start of the year, Interfax said. Of the total, Gazprom has confirmed $5 billion of refunds.

Gazprom’s agreement in March this year with Eni SpA (ENI) to lower the price of fuel deliveries applied the discount retroactively from the beginning of 2011, Interfax said.

Changes in Gazprom’s price formula led to an average discount of 10 percent for some of Gazprom’s biggest customers, the Financial Times reported Feb. 16, citing Deputy Chairman Alexander Medvedev.

Gazprom spokesman Sergei Kupriyanov was not immediately available to comment.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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