Germany's E.On AG (EOAN.XE) has agreed to pay Russian gas firm OAO Gazprom (GAZP.RS) between $500 million and $700 million under a take-or-pay clause for gas deliveries in 2009, the Kommersant daily reported Monday citing people familiar with the talks.
E.On and many other European utilities have imported less gas than stipulated in their contracts with Gazprom this year, as the economic slowdown and inflow of cheaper alternative fuels eroded demand for Russian gas.
However, the German utility has agreed only to pay Gazprom $140 million, due to losses from delays in development of the Yuzhno-Russkoye field, the daily said.
In June last year, the two companies finalized an agreement for E.On to take a 25% stake in the gas field, while Gazprom in return took E.On Ruhrgas' 49% stake in Russian company ZAO Gerosgaz, which holds almost 3% of shares in Gazprom.