FX.co ★ Greece wants a discount on Russian gas export

Russia’s oil company Gazprom, a leader in natural gas shipments to Europe, has recently received a letter from Greek gas monopoly DEPA. The Greek colleagues have been asking the Russian giant for a discount. Athens, where the global crisis impact was the worst among the region, cannot pay the gas bills and is asking for the price reduction of 15 or even 20 percent. The negotiations continue, however, if the sides do not find a compromise, the dispute may be considered by the International Court of Arbitration. Two years ago, DEPA was given a 7% discount after negotiations with Gazprom. And now, after the notable success, it is trying to take another chance. More than that, there is good evidence to believe the Russian gas prices are irrationally high. Greece pays $470 per thousand cubic meters of natural gas. This rate is 20 percent higher than the European average price, paid by France, Germany, Italy, and the Netherlands. At the beginning of the year, Gazprom was going to take part in the privatization of the Greek gas monopoly, but in June the Russian concern refused the purchase due to lack of guarantees that the financial position of the Greek company would remain stable by the end of the deal. Today, Gazprom provides about 60% of gas purchases of DEPA.