Gazprom and RWE project talks break down

• 12 years ago (2011-12-23)
• Junior Isles

Europe 1061 Nuclear 640

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German utility RWE AG and Russian giant OAO Gazprom have ended talks aimed at creating a joint venture to build and operate power plants in Europe after failing to agree on a deal, Bloomberg reports.

“Although our discussions were conducted in a very constructive manner we were unfortunately not able to agree on a framework for cooperation which would be sustainable for both parties,” Juergen Grossmann, chief executive officer of RWE, said in a statement.

Gazprom, the world’s biggest gas producer, announced plans in July to negotiate its first power generation venture in western Europe with RWE, including coal and gas plants in Germany, the UK, Belgium and the Netherlands. RWE was investigating ways to mitigate the costs of Germany’s decision to close all its nuclear reactors by 2022 and has pledged to sell €11 billion ($14 billion) of its assets.

Gazprom had reportedly stalled the talks with RWE because of deteriorating profits in Germany, two insiders revealed earlier this month. It has been speculated that the companies had not agreed on the required assets and needed more time to monitor demand and margins in Germany.