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11/28/06

IOL: Russia to increase gas prices in Europe

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Russia to increase gas prices in Europe

Russian state-controlled natural gas giant Gazprom plans to raise the price of gas supplies to Europe next year by almost 15%, a Russian newspaper reported today. Vedomosti, citing a draft 2007 budget for the gas giant, said Gazprom forecasts gas prices of around £150 (€221) per 1,000 cubic meters for shipment to Europe next year. That’s up from roughly £133 (€196) in 2006.

Gazprom forecasts that the higher prices should yield total revenue of £51bn (€75bn), with export revenues accounting for nearly half that – £24bn (€35bn), Vedomosti reported. The company plans to export some 157.8 billion cubic meters to European countries in 2007.

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