RIA Novosti reported that Royal Dutch Shell and France GDF Suez have started talks with Russia gas giant Gazprom on prices amid pressure from European firms to cut prices.

Gazprom said in a statement referring to its export arm that "Gazprom export is holding commercial consultations with RWE Transgas, SPP, Shell Energy Europe BV, EON Ruhrgas, Eni, GDF Suez, EconGas, GWH Gashandel, Centrex."

Most European gas consumers are in talks with Gazprom to revise prices. Gazprom favors long term deals where the price is set under a take or pay principle while consumers say long term contracts are more expensive than purchases on the spot market.

In early August Germany E.ON, one of Gazprom major consumers, went to court over the pricing principle while Italy Edison had recently forced it to cut the price by EUR 200 million with the help of court proceedings.

(Sourced from RIA Novosti)