TUT professor: Gazprom concessions good news ({{commentsTotal}})

According to Hamburg, Gazprom's concessions will make an open market possible, and with it a lower gas price.
According to Hamburg, Gazprom's concessions will make an open market possible, and with it a lower gas price. Source: (Reuters/Scanpix)

Engineering professor Arvi Hamburg of the Tallinn University of Technology finds that Gazprom’s proposals to reach an agreement in its anti-trust case with the European Commission are good news for Estonia.

Hamburg confirmed to ETV’s Aktuaalne Kaamera newscast that Estonia stood to win from the compromise the company was working on with the European Commission.

“Today we are buying at a price the formula for which is based on the oil price and the exchange rate of the dollar. In the future the gas price would be disconnected from the price of oil, which means that in a certain area, like that of the electricity exchange, we’ll also have a gas exchange, and there’s the advantage that if there are more suppliers, more than anything else natural gas suppliers, then a drop in the exchange price becomes possible as well,” the professor explained.

The eight-year change period to move from the fixed-price market to a model based on regional gas exchanges was still oddly extensive, Hamburg found. But the preparations would take time as well, everybody needed to prepare for the open market, create connections, and agree on market rules.

That Gazprom might escape the requirement of a penalty fee Hamburg sees as an exaggeration by the media. There was no reason to assume that concessions would be made to the gas giant, the professor said.

Editor: Dario Cavegn



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