Interfax: Russia ready to adapt gas contracts, make them more flexible – expert

BRUSSELS. May 14 (Interfax) – Russia is ready to adapt long-term gas supply contracts and make them more flexible, said Pavel Zavalny, president of the Russian Gas Society.

“Keeping relations with traditional consumers of Russian energy resources stable is a foreign energy policy priority. Russia is ready adapt the system of its own contracts to today’s tendencies for the market’s development, to take into account the interests of both sides, by making long-term contracts more flexible without undermining their basic principles. This work is already under way and I think a lot of attention will be paid to this issue during today’s discussions,” Zavalny, who is also a member of the Russian State Duma, said at the “Energy Dialogue: Russia – European Union. Gas Aspect” conference.

Zavalny said Russia’s Energy Strategy called for “broader cooperation, the join t creation and exchange of assets, the joint integration of companies in the energy business as an effective tool to enhance the economic and energy security of Europe and Russia, to strengthen the mutual confidence of partners and spread risk more fairly when carrying out projects.”

“Russian pipeline gas deliveries are far more dependable and predictable both in terms of volume and price conditions, based on the traditional model of pricing with the oil coupling. But they definitely require firmer guarantees and long-term commitments on the part of consumers both in terms of volume and price,” he said.

“Today, countries, Russia included, that supply gas to the European market and that depend on traditional supply mechanisms and coupling contracts to the petroleum basket crude basket are having difficulties interacting with the legislation in the Third Energy Package that the EU is enacting,” Zavalny said.