Moscow-Sana
Russian Deputy Prime Minister Alexander Novak announced that the rise in gas prices in Europe is caused by low levels of storage capacity and not by a shortage of supply.
The RIA Novosti news agency quoted Novak as saying in a press interview: The European market is supplied with gas in full volume because import supplies and private production secure domestic consumption, and at the same time, gas is partially pumped into underground storage facilities.
Novak stressed that there is a problem related to filling gas storage facilities, as during the past five years it was at the minimum, i.e. approximately 74 percent, pointing out that this "raises fears among market participants in addition to the presence of risks and as a result the market responds and prices rise."
Novak explained that Gazprom will increase its production capacity if the European partners increase the volume of long-term contracts.
The Russian company Gazprom confirmed last month that it is exporting gas to the European market in full compliance with contractual obligations and is also seeking to meet requests with additional supplies according to the available capabilities.