Russian gas exports to Europe jump as prices fall

Russian gas exports to Europe jumped to an all-time high in July, its monopoly exporter Gazprom said on Monday, as European customers capitalized on a steep fall in prices. Gazprom’s gas prices are pegged to oil with a six-month lag, which meansits customers are currently paying the equivalent of the $45-$50 per barrel that  oil prices fell to in January following OPEC’s decision  not to reduce output.
The jump in exports will help Gazprom to endure one of the worst years in its history. The Kremlin-controlled company lost its position as western Europe’s top gas supplier to Norway earlier this year and its production risks collapsing to an all-time low due to sluggish demand and a decline in upstream investments.
“This is an all-time high level for July and the biggest monthly level for a year and a half,” a spokesman for the company said. “Exports in July 2015 were on par with  levels of supply usually only experiences during the peak heating seasons of autumn and winter.” 
Gazprom, which normally accounts for around 8% of Russian GDP, is also hoping to boost gas sales later in the year when it holds its first ever auction in September to sell additional gas to northwest Europe.