Russia Gas Exports Fall By Half In January To April

Russian gas exports fell by 53% from January through April this year compared with the same period in 2008, Interfax news agency quoted the economic development ministry as saying Tuesday.
Τετ, 27 Μαΐου 2009 - 17:48

Russian gas exports fell by 53% from January through April this year compared with the same period in 2008, Interfax news agency quoted the economic development ministry as saying Tuesday.

Gas exports in January through April totaled 35.2 billion cubic meters, the ministry said.

Russia, the world's largest natural gas producer, shipped 26.3 billion cubic meters to non-neighboring states and 8.8 billion cubic meters to the Commonwealth of Independent States, a group of ex-Soviet states excluding the Baltic nations, the ministry said.

It said the drop in demand was due to European consumers cutting back on consumption of supplies agreed under long-term contracts with Russia.

"Because of high current contract prices which are pegged to the oil price from half a year ago, European consumers began reducing consumption of the Russian gas and disorientating towards other suppliers...that sell gas on the basis of spot contracts," the ministry said.

Russia's gas production fell by 17% to 198 billion cubic metres in the first four months of 2009, the ministry said.

The Russian economy, heavily driven by exports of oil and gas, has been battered by falling commodity prices, which has led the state to run its first deficit this year after nearly a decade of surpluses.