Skip to content
Subscriber Only

Russia Tightens Grip on Europe's Gas With Gazprom Deal

  • Price cut for Russian gas makes alternatives less attractive
  • LNG importers from the U.S. to Qatar may struggle to sell
Eustream AS Open The Vojany-Uzhorod Gas Pipeline To Ukraine

Photographer: Martin Divisek/Bloomberg

Updated on

Russia’s natural gas export monopoly is set to expand its position as the dominant fuel supplier to Europe after a deal between the two resolved a seven-year-old anti-trust dispute.

The agreement between Gazprom PJSC and the European Commission gives gas buyers more flexibility in handling imports and greater leverage to push for lower prices. That’s likely to make flows from Russia more attractive than alternatives such as expensive new links to fields at Europe’s southeast corner or tanker shipments of liquefied natural gas.