Slovakia extends Russian gas contract by 20 years

Gazprom Export, the export arm of Russian energy giant Gazprom, has extended a contract to supply natural gas to Slovakia until 2028.

Gazprom Export also signed a deal with Eustream (SPP's subsidiary transiting gas via Slovakia) to transport gas for the same period - until 2028. Both deals represent a 20-year extension on the current arrangement.

Under the agreements, which kick in as of January 1, 2009, by 2028, SPP will buy about 130 billion cubic meters of gas while Eustream will transport approximately 1 trillion cubic meters, according to the RIA Novosti news outlet.

In April 1997, Gazprom and SPP signed an array of agreements under which the Slovak gas company received a discount of $5 per 1,000 cubic meters of Russian natural gas. In return, a Gazprom-Slovak joint venture was formed to transit Russian gas via Slovakia to the European Union.

In July 2002, the European Commission approved the purchase of a 49% stake in SPP by Gazprom, Ruhrgas and Gaz de France.