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In an interview, Alexsander Medvedev, Gazprom's deputy chief executive officer, said the price its European customers pay for gas will fall 32 per cent to $280( U.S.) per thousand cubic meters this year from $409 per thousand cubic meters las year.  Exports to Europe by will decline 5 per cent to 179 billion cubic meters due to an anticipated decline in demand.

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The roots of the problem is falling price of oil.That hurts Gazprom because the price of its gas in European markets is linked to he crude oil price with lag of six to nine months.

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Shippents to the former Soviet republics also are set to decline this year, he  said, largely because Ukraine is consuming less gas in the aftermath of its price disputr with Gazprom. But this would be compensated by the higher price Russian's neighbours now have to pay for its gas:The average price this year would be  $198 per thousand cubic meters, up from $159 per thousand cubic last year.