Russia's Gazprom Paid a Total of Rb133.186 Billion in Retroactive Gas Price Adjustments

Russia's Gazprom paid a total of Rb133.186 billion ($4.4 billion) in retroactive gas price adjustments in January-September 2012, after renegotiating long-term gas supply contracts with some of its customers, the company said Tuesday in management analysis issued alongside its third-quarter results. 

These adjustments relate to volumes of gas delivered in 2010 and 2011 for which a discount was agreed in 2012, it said. 

Currently the company "is in ongoing talks related to price renegotiations with certain other customers," it said. 

The effects of gas price adjustments, including the impact on profit tax, and ongoing negotiations are recorded when they become probable and a reliable estimate of the amounts can be made, it added. 

Gazprom renegotiated supply contracts with a number of European customers in 2012 after complaints that they were paying too much for the gas under long-term oil price-linked contracts, which were higher than spot gas prices. 

In September, Gazprom deputy CEO Alexander Medvedev said Gazprom expected to pay a total of Eur1 billion ($1.29 billion) in retroactive payments to European clients between April and December, in addition to Rb78.5 billion paid in the first quarter.