Gazprom and Eni sign new supply contract

Russia

MILAN, May 28, 2014 – On May 23, Gazprom and Eni signed a new gas supply deal that delinks gas prices from oil prices via an index. Analysts believe the deal will add about €560 million euros to Eni’s operating profit for 2014.

Other European buyers, such as E.ON and RWE, are looking at the decoupling of oil and gas prices as a way to drive down the price for Russian gas, and the precedent might favour them in the long term. Other main suppliers for Europe, such as Algeria and Libya, might have to follow suit.

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