(Source: http://kaleidoskoop.ru/63/page6)

The average price of sales of the Russian gas to Europe amounted to 251 dollars per thousand cubic meters in the second quarter. This was reported by TASS referring to the statements of “Gazprom” for the first half of the year.

Let’s compare, the price of gas amounted to $ 284 in the first quarter. Thus, the prices have fallen by 11.7 percent. In addition, the demand fell too: if the volume of sales amounted to 41 billion cubic meters in the first quarter, taking into account the supply of LNG, in the second quarter it dropped to 39 billion.

The price on Russian gas for Europe is reviewed quarterly and is linked to oil prices with a lag of nine months. The gas on the continent has recently become cheaper due to a substantial drop in oil prices, as well as due to the expansion of supplies from alternative suppliers. “Gazprom” is the largest Russian energy company engaged in the development and sale of oil and gas. The company’s share in the world gas reserves amounts to 17 percent and to 72 percent in Russian reserves.

“Gazprom” is the only Russian producer and exporter of liquefied natural gas. More than 50 percent of the shares are controlled by the state (Federal Property Management Agency directly owns 38.4 percent of shares), ADR holders own 26.2 percent of the shares, other legal entities and physical persons own 23.5 percent.