Agreement reached with Gazprom on price adjustments to long-term gas supply contracts
Negotiations between Uniper, the fully-owned E.ON subsidiary, and Gazprom to adjust the prices of long-term gas supply contracts have led to an agreement earlier than anticipated. The agreement resolves a pending arbitration proceeding between the companies. Alexander Medvedev, Deputy Chairman of the Management Committee of OAO Gazprom, Elena Burmistrova, General Director of Gazprom export LLC, and Klaus Schäfer, Chairman of Management Board of Uniper AG, signed an agreement to this effect.
The agreement will enable E.ON to release some of the provisions recorded in prior years, resulting in a non-recurring positive EBITDA effect of about €380 million in the first quarter of 2016. The release of the remaining provisions, made in several years, will result in cash outflow of € 800 million, probably in the second quarter. ….