RWE AG and Gazprom have terminated talks about joint power production ventures, a setback in the German utility's efforts to seek Russian-funded growth to help make up for its domestic market's exit from nuclear power. "Although our discussions were conducted in a very constructive manner we were unfortunately not able to agree on a framework for co-operation which would be sustainable for both parties," RWE Chief Executive Juergen Grossmann said in a statement on Thursday.
RWE had an exclusivity deal with Gazprom. Sources close to the matter said that the co-operation partly fell through because Gazprom struck a deal with Danish utility Dong earlier this year to explore opportunities for promoting gas-fired power generation in Europe.
"There seems to be a view of first-come-first-serve here, and differing price expectations (for gas supplies) also did their part in derailing the deal," one source at Gazprom said. In Moscow, Gazprom CEO Alexei Miller did not rule out further talks with RWE but said the Russian gas export monopoly was looking at other power generation opportunities in Germany. "We can continue talks, but there is no more exclusivity," Miller told reporters.
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