Sergey Komlev will discuss the key issues of gas pricing mechanisms and future gas contracts formation. The European Union’s Third Energy Package has become a reality, thus increasing the level of liberalization of the European energy markets. Moreover, the European Commission has launched an antitrust lawsuit against Gazprom, as the Russian gas monopoly has allegedly been hindering competition in Eastern and Central Europe. The Gazprom-favored model (long-term contracts with take or pay clause) is being challenged by the development of spot prices and increased gas liquidity in Europe. Yet, the EU’s securitization of supply goes hand in hand with Gazprom’s security of demand. The uncertainty reigning over the future of European markets—demand, legal and institutional frameworks—are natural concerns for the gas monopoly. The debate over contracts and pricing mechanism is at the very heart of the future of Russia-EU energy trade and relations.
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