It is reported that Gazprom hinted that it could adjust its long term deals with European customers to avoid imposing fines for reduced gas purchases.

The comments came as industry analysts say Gazprom is presenting a tough line with its customers in Europe under which they must buy a minimum amount of gas or pay fines.

European firms, for their part say they would stick to current terms and practices despite complications while some observers note that Gazprom is in danger of losing its share in Europe market which it supplies with more than a quarter of imported gas.

Mr Sergei Komlev head of contract structuring and price formation at Gazprom Export said “Long term contracts will stay in place, but they might be changed.

His chief, Mr Alexander Medvedev said earlier this week that some companies are facing take or pay problems but he still expected Gazprom European customers to fully take volumes of contracted gas. The discussions were fuelled by a report suggesting that European customers owe Gazprom USD 2.5 billion under take or pay provisions.

Representatives of European companies tried to downplay the issue saying they will fulfill the contractual obligations.

(Sourced from The Moscow Times)