Economist Predicted Stabilization of Gas Prices with EU Cooperation with Russian “Gazprom”
OREANDA-NEWS. If the European Union agrees to cooperation and adequate interaction with Gazprom, gas prices will go down rather quickly and stabilize within the range of 600-800 dollars, economist Alexei Korenev believes. In a conversation with Lenta.ru, he added that for this the EU must revise its policy of long-term contracts and increase the limits on Gazprom's supplies.
An auction for additional supplies of Russian gas via the Ukrainian gas transmission system to Europe did not take place. Gazprom refused to increase gas pumping in this direction. As a result, prices rose by 14 percent to $ 1,281.9.
The economist recalled that, according to representatives of Gazprom, the company has already used all its opportunities to sell gas and additional volumes for pumping to Europe through the Ukrainian gas transportation system.
“He partially bought out the rights to additional supplies in the summer, but only a small part. The company says that all the gas has already been contracted, the supplies have been paid in advance and bought out. Gazprom, in its turn, had already proposed to Europe to increase supplies, but the countries refused. And now, it is quite possible that they were late, - said the economist. "Although Russian President Vladimir Putin hinted that if Europe does make contact, we will try to find additional opportunities."
The only thing Europe hopes for now is, according to the economist, a warm winter. Only in this case, the countries may have enough available gas reserves. Gazprom, on the other hand, expects to revise the gas directive towards increasing the supply limit through Nord Stream 2, as well as to revise at least some of the prices with the conclusion of long-term contracts.
“If the EU meets halfway, prices will stabilize rather quickly. Of course, they will not become the same, within the range of 250-270 dollars, but they may well stop within the range of 600-800 dollars, "the economist concluded.