Long-running negotiations between Greek gas company DEPA Commercial and Russia’s Gazprom, which commenced late in 2022, now stand a better chance of resulting in an agreement, energy ministry sources have informed.

The talks between the two sides are dealing with possible price revisions as well as a compensation claim, by Gazprom, concerning an existing agreement running until the end of 2026.

DEPA Commercial is seeking a greatly improved supply price for 2024 as well as a retroactive price decrease from January 1, 2023, while Gazprom is pushing for a compensation payment based on a take-or-pay agreement signed with the Greek company.

The Russian company is demanding compensation over DEPA Commercial’s alleged failure to fully absorb an agreed 17 TWh gas quantity in 2023.

The Greek side has refused to acknowledge the Russian claims, arguing that its non-absorption of specific quantities has resulted from a violation of the contract by Gazprom.

The contract requires the Russian company to supply DEPA Commercial at a price ensuring a competitive advantage over rivals in the Greek market, but this has not been achieved for quite some time, local sources contended. Gazprom has been supplying both lower-priced LNG and natural gas to at least one of DEPA Commercial’s domestic competitors for months, the sources pointed out.

Despite these dealings, Greece’s energy ministry insists the country is pushing to completely end its reliance on Russian gas, in line with the overall EU strategy.