Reuters reported that Russia state gas pipeline operator, Gazprom was suspending purchases of gas from so-called "independent" non-Gazprom producers in Russia as of Monday.

Gazprom's press office said in a statement that "The reason is unstable demand for gas on the domestic market at the current time."

Gazprom said the decision to suspend gas purchases from independents would affect purchases only by the parent company, not by other Gazprom group companies. It added that it would also not affect transportation of independents' gas supplies to their own customers through the Gazprom controlled unified gas supply system.

Russia second largest gas producer, Novatek controlled by Gunvor trading house founder Ms Gennady Timchenko and Novatek CEO Mr Leonid Mikhelson declined to comment immediately.

A Novatek spokesman said "We confirm we got the letter and we are now discussing the situation with Gazprom. Until these talks are complete we will not be commenting on their details."

Currently barred by Gazprom monopoly from exporting gas to Russia core export markets in Europe, Novatek has built its primary strategy around domestic supply arrangements.

Source - Reuters

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