RWE Sees Revolution in European Gas Prices System After Arbitration Ruling

RWE AG expects that the arbitration ruling against Russia’s Gazprom will change the existing system for European gas prices. 

“We have a solution which partly replaces oil indexation by gas indexation,” said RWE Chief Financial Officer Bernhard Guenther in an interview to Bloomberg on Tuesday.

Last month, an arbitration tribunal ruled that Germany's RWE has overpaid gas supplies from Russia's Gazprom, disposing a rebate for the German utility. 

“Going forward we will claw the small money back which we might now still lose on the remaining oil-indexed part,” added Guenther.

RWE is asking to overcome oil indexation, while Russian President Vladimir Putin stated that there are no reasons to abandon long-term contracts and the ‘take-or-pay’ principle. RWE and Gazprom are now negotiating a deal on gas prices.