Russia: Staying Competitive in Europe's Energy Market

Russia's Gazprom Export and Germany's E.On reached an agreement on the price of Russian natural gas supplies under a new long-term contract, the companies said in a joint statement July 3. The deal came as Russia is re-examining its energy relationships in Europe and its plans for the future.


Under the terms of the new contract, Russia gives in to several German demands — which it has so far been reluctant to do — in order to secure its largest European market for the long term. The agreement will help safeguard the future of Russian natural gas exports and will lock Berlin and Moscow into a closer political relationship.