Burcu Aksoy – Follow @fxanalizdestek
European gas prices have dropped after a meeting between Vladimir Putin and Gazprom officials.
The Russian President instructed the country’s state-controlled natural gas company to pump more supplies into the EU, prompting the immediate fall in prices on Thursday.
Europe’s gas prices have soared in recent weeks amid strong demand during the economic recovery from the pandemic. European Union stocks were also depleted after a cold winter.
During a call with officials on Wednesday, Putin told Alexei Miller — the head of Gazprom — to start pumping gas into the company’s storage facilities in the bloc.
The natural gas giant was told to supply storage units in Austria and Germany after November 8, by which time Russia’s domestic depots are expected to be filled.
“This will make it possible to fulfil our contractual commitments in a reliable, stable, and consistent manner and to supply our European partners with gas in the autumn and winter,” Putin said.
“This will create a favourable situation, at any rate, a better situation in the European energy market in general,” he added.
The 27-member state EU currently depends on Russia for more than 40% of its gas imports.
While Gazprom has met its obligations under long-term agreements, it has not sold additional gas on the EU spot market, opting to fill domestic storage.
Some European politicians alleged that Russia was withholding gas deliberately to pressure German and EU authorities into speeding final regulatory approval for the Nord Stream 2 pipeline.