MOSCOW, October 25 - RAPSI. The Austrian Federal Economic Chamber's International Arbitral Center in Vienna has ruled in favor of RWE Transgas in its dispute against Gazprom regarding its obligations under "take or pay" contracts, RWE reported on Thursday.
RWE Transgas is a Czech subsidiary of the German RWE.
"The center confirmed that as part of its long-term gas supply contracts with Gazprom Export, which are tied to oil prices, RWE Transgas can reduce the volumes under its current obligations as part of the 'take or pay' principle," an RWE representative told the PRIME business news agency. "Gazprom Export filed a lawsuit to receive the payment. We are content with the ruling. This will reduce our financial load arising from this contract, which amounts to a three-digit figure in the millions of euros every year."
Pursuant to the contract, the contracted volume is around 9 billion cubic meters per year. The contract runs until 2035.
In January, Gazprom reported that it adjusted the gas prices in its contracts with GDF Suez (France), Wingas (Germany), SPP (Slovakia), Sinergi Italiane (Italy), and Econgas (Austria) due to market conditions. It was later reported that the price was cut by 10 percent. Agreements to reduce the gas prices were reached with Eni in March and with E.On in July.
In spring, the deputy head of Gazprom and the head of Gazprom Export said Gazprom reduced the prices as part of its long-term gas contracts for various European consumers by an average of 10 percent during negotiations.