RWE is to be reimbursed by its gas supplier Russian Gazprom for payments made since May 2010 under its long-term gas supply contract with Gazprom, an arbitral tribunal ruled, RWE said in an ad-hoc statement made yesterday pursuant to the German Securities Trading Law (WpHG).
Besides Gazprom had to adjust the purchase price formula of the contract by also introducing a gas market indexation, which according to the arbitral tribunal reflected the relevant conditions on the gas market at the time of the price revision in May 2010, RWE informed.
The company was currently analysing the award and the effect on its full year guidance in detail and would inform about the financial implications of the ruling in short-term, RWE said. The ruling could mean reimbursements in the three-digit million Euro range, possibly even reaching the billion Euro mark, Frankfurter Allgemeine Zeitung said referring to “market observers”. In March 2012 RWE’s rival E.ON reached a settlement with Gazprom on its long-term gas supply contracts and raised the Group outlook for 2012 considerably.
Source: RWE AG; Frankfurter Allgemeine Zeitung, Friday 28 June 2013, page 15.