Gazprom Monitor № 55 December 2015 - Preview

• Gazprom and the EU: Gazprom and European Commission representatives meet in Brussels to discuss the antimonopoly investigation; Gazprom’s proposed auction for gas sales to the Baltic is postponed to early 2016 and other Gazprom-related developments in the Baltic region; Gazprom reaches gas price agreement with Finnish Gasum & sells its 25% stake in the company; Gazprom set to divest 50% stake in Bulgarian Overgas• Nord Stream: EU member states divided over Nord Stream II; Nord Stream II in the context of EU gas market legislation: An emerging debate• Turkish Stream: Turkey vows to reduce dependence on Russian gas, searches for alternatives• Ukraine: Gazprom & Naftogaz CEOs meet in Moscow as the two sides debate prices & volumes; Gazprom suggests that transit of Russian gas via Ukraine will continue after 2019; The question of Ukraine’s debt to Russia remains; Ukraine receives shipment of South African coal as Russia and Eastern Ukraine resume coal supplies to Ukraine• Belarus: Belarus expects gas price reduction of $10 per mcm in Q1 2016, talks remain ongoing• Asia: Gazprom and CNPC sign agreement on design and construction of cross-border section of ‘Power of Siberia’ pipeline and plan for construction of gas-fired power plants in China; Gazprom to propose ‘third route’ to China by July 2016; Gazprom may purchase gas from other suppliers to meet its Chinese commitments• Other: Oil prices continue to fall as Brent Crude reaches lowest price since 2004, hitting Gazprom’s oil-indexed long-term contracts