Russia Works On Strengthening Centrality on European Gas Markets

Russia will receive Azerbaijani gas in 2015, after the completion of construction works of the remaining section of the Baku-Guba-Russian border road. According to SOCAR, the deliveries will resume in 2015 after a temporary halt. 

Last December in Sochi, Azerbaijan and Moscow signed a deal to increase gas deliveries from 1.5 billion cubic meters to 3 billion cubic meters.

In this sense, Russia is well-equipped to maintain and increase its centrality in European gas markets.

Accordingly, Gazprom and Gazprom Export started price negotiations with Poland’s PGNiG.

‘PGNiG SA's request marks the beginning of the formal renegotiation procedure. Pursuant to the Yamal Contract, if the parties fail to reach an agreement concerning price renegotiation within six months, the Company will have the right to initiate arbitration proceedings. PGNiG will use its best efforts to reach a satisfactory agreement through bilateral talks,’ the Polish company wrote on Wednesday. 

The Yamal Contract establishes a 10.2 bcm deliveries of gas until 2022.