Samaras sent a letter to Putin saying Greece wants a reduction in the cost of its gas supply from Gazprom
Russia Will Cut Greek Gas Prices... NYET!
13/08/2013 - 7:36pm
ATHENS – Greece wants Russia to reduce the price at which it supplies gas to the Mediterranean country, which is currently 30% higher than the European average. Greece’s Prime Minister Antonis Samaras reportedly sent a letter to Russian President Vladimir Putin, saying that Greece wants a reduction in the cost of its natural gas supply from Russian gas monopoly Gazprom, along the lines of discounts made by Gazprom to other clients in the rest of Europe.
The Greek premier also noted that the cost of energy will be a decisive factor in making the Greek economy competitive and is thus an issue of vital importance for Samaras’ government.
But Chris Weafer, founding partner of Macro Advisory in Moscow, told New Europe on 13 August that “neither Gazprom nor the Kremlin are known for the acts of charity so I would expect the request to be met with a polite yet firm nyet”.
He noted that any talks would depend on what assets the Greeks may bring to the table. “As to whether there is any room for negotiation will depend on what ‘gifts’ the Greeks may bear,” Weafer said.
“We have seen in the past, for example with Belarus and Ukraine, the Kremlin is prepared to review the price only if the other side has something interesting to barter with. The most interesting barter from the Russian side is usually equity in energy infrastructure such as pipelines or terminals,” Weafer said. Gazprom was expected to submit a top bid for Greece’s natural gas firm DEPA in June but withdrew its interest at the last minute.
“The obvious asset of interest to both Gazprom and the Kremlin will be an equity position in the Trans Adriatic Pipeline (TAP). If Greece can be persuaded to part with an equity stake, and is in a position to do so, then it will get cheaper gas from Russia. Without a piece of TAP in offer it is hard to see why Russia will agree to a gas discount,” Weafer said.
Greece’s current contract with Gazprom runs through 2016.
Meanwhile, DEPA has asked for an annual quantity of 1 billion cubic metres through the TAP pipeline, at a price far lower than what it currently pays Russian firm Gazprom and Azeri rival Botas.
Italian Prime Minister Enrico Letta paid an official visit to Baku last weekend where he told Azerbaijan’s President Ilham Aliyev that the TAP project is important not only for Italy but for Europe. “We have started good cooperation with Greek and Albanian governments, and of course, Turkey. I am glad to be here and thanks to Azerbaijan for the commercial and industrial choice it has made,” Letta said.
For his part, Aliyev said TAP provides the best and most attractive conditions for investors. “We are very glad that this project was selected in a fair competition,” he said. europe on line
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