Turkmenistan: Gazprom Still Not Taking Delivery of Turkmen Gas

Turkmen natural gas is still not reaching Russia following a pipeline explosion in April, the vice-chairman of Gazprom has revealed.

The Kremlin-controlled energy behemoth does not want to renegotiate the terms of its purchase obligations of Turkmen gas, Gazprom Vice Chairman Alexander Medvedev insisted. "We are ready to take Turkmen gas in accordance with our contractual arrangements," the Russian news agency Interfax quoted him as saying on May 19.

But when asked when deliveries would resume, Medvedev became evasive. "The question is better put to our colleagues in Turkmenistan," he said.

The Turkmen budget, which relies heavily on gas sales, is taking a big hit amid the export stoppage, analysts say.

Separately, Gazprom has been ordered by the Russian government to cut its dividend, as falling demand for gas is damaging the company's profitability. Investors will now get a return of just over 1 cent per share.