Uniper to keep importing gas from Russia for another decade

Uniper SE plans to keep importing natural gas from Russia for another decade, even as Europe seeks to cuts its energy dependency on the country.

The German utility—one of the continent’s largest buyers of Russian gas—has contracts with Gazprom PJSC that will expire in the middle of 2030s, CEO Klaus-Dieter Maubach said at Uniper’s annual general meeting on Wednesday. The company won’t extend these contracts or begin any new ones, he reiterated. 

The European Union is racing to find alternative supplies following Russia’s invasion of Ukraine. For now, however, the bills are coming due for recent gas shipments. Moscow has demanded payment in rubles, but buyers are concerned about running afoul of sanctions. EU guidance on the matter has left room for interpretation.

Companies including Uniper and Italy’s Eni SpA have indicated they intend to keep buying from Russia as the bloc’s guidelines appear to allow this. Uniper will pay for gas in euros to a Gazprombank account, to ensure “timely fulfillment of the contract” on the company’s part, a spokesman said on Tuesday.

The speed of Europe’s decoupling from Russian energy depends on the size and timing of long-term contracts. Gazprom’s contracts typically set minimum volumes buyers must take annually and include a take-or-pay clause.

Uniper relies on Russia for more than half of the natural gas it needs under long-term contracts. The amount of Russian gas it imported hasn’t changed amid the war in Ukraine. The company bought 86 terawatt-hours of supply from January through April—about the same as a year before, according to Maubach. 

“So far, Gazprom has been a reliable supplier,” he said, when asked whether Uniper trusts Russia, which the German government has accused of weaponizing energy. Maubach said Uniper continues to pursue a diversification of energy supplies.