Gazprom Says 'Proactive' Action On Contracts Considered

Russia's gas giant, Gazprom, has said it was considering "proactive" measures to ensure its consumers meet contractual obligations.

The statement did not mention Ukraine by name, but comes at a time when the Russian gas company is seeking $7 billion (€5 bn) for unused gas from its neighbouring country. Gazprom says it must stick to the letter of a "take-or-pay" contract.

The comment came in a Gazprom press release mostly concerned with independent gas producers in Russia. The independent sector produces around 20% of gas supplied by Russia.

Gazprom said it was normal for consumers to take on less natural gas than contracts stipulate. Excessive gas then settles in a gas transmission system. "This hinders the fulfillment of requests from independent producers for gas transmission to other purchasers," Gazprom said. "In the end, such a situation keeps down the development of the Russian gas market which stipulates the flexibility of transmission services."

Many of Gazprom's contracts include "take-or-pay" clauses, meaning customers are liable for natural gas they might not use. "Proactive steps should be taken to improve the regulatory framework in this area, particularly by introducing the GTS users' liability for fulfilling their contractual obligations," the company said.