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. Last Updated: 07/27/2016

Gazprom Sees Exports Down 17%

ST. PETERSBURG — Gazprom said Tuesday that its European gas exports were likely to fall more than it had previously expected as the global financial crisis hits demand.

Gazprom's deputy chairman Alexander Medvedev said exports were expected to fall to 140 billion cubic meters in 2009, down by more than 17 percent from the previous forecast of 170 bcm.

Gazprom said in a presentation to investors in February that its gas exports stood at 179 bcm last year.

The average price for Gazprom's European supplies was also expected to decrease to $260 per 1,000 cubic meters, from the $280 previously expected and about $400 last year, Medvedev said.

Gazprom was forced to reduce drastically its output this year after customers in Europe and Russia bought less gas. In January and February, Gazprom's gas production fell by 14 percent and 15 percent, respectively.

Medvedev said falling demand prompted Gazprom to ask independent gas producers, which extract about 18 percent of the country's total gas output, to cut their production together with Gazprom.

"It is natural, as demand is falling," Medvedev said, declining to clarify how big the cuts were. Gazprom is the country's export monopoly and the world's largest gas producer. It supplies Europe with a quarter of its gas needs and produced 40 bcm of gas in February.