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one of our long-term gas contracts with Russia is dormant -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This is the logo of RWE, the German power supply company, pictured in Essen (Germany) on November 15, 2021. REUTERS/Thilo Schmuelgen

By Christoph Steitz and Tom Käckenhoff

FRANKFURT, (Reuters) – RWE said Friday that one of its long-term contracts with a Russian supplier had been cancelled. This will limit the risk for Germany’s biggest power producer in the event of disruptions to supplies due to the Ukraine crisis.

German gas suppliers saw their shares fall on fears that Russia could cut or suspend supply.

RWE has long-term gaz contracts with Gazprom. (MCX:). RWE told Reuters the contract is on hold so there was no risk. These comments led to RWE’s shares increasing in value and rising to 6.1%.

RWE is, along with Uniper, one of Germany’s main importers of Russian natural gas. RWE also stated that it has contracted up to 15 TWh of Russian gas delivery by 2023.

It added that half of this amount will be made available within the next twelve months.

Bernstein noted that the impact of a 20% loss in volumes was much lower than the 50 TWh estimation. The brokerage stated that a loss of volume of 20% is less than 300 million euros (329 million), which is significantly lower than our estimation of 1.8 billion euros.

RWE provided no further information about the supplier, or the identity thereof.

($1 = 0.9107 euros)

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