Russia's Gas Exports To Europe Fell

Exports to Germany, Gazprom's top customer, fell 30 percent in the first half of 2007. Deliveries to Italy decreased by almost 17 percent less gas.

In May, Gazprom forecast a 6.8 percent drop in European exports for the full year of 2007 due to the warm winter.

Analysts said spot prices also contributed to the sharp decline in exports.

"The decline was likely due to the warm winter and more favorable spot prices for gas, which resulted in more spot market purchases for gas, rather than contracted," analysts at UralSib said in a research note Thursday. -Neftegaz.RU