02-10-02 Gazprom has decided to resurrect a complex barter deal with Moscow-based gas trader and producer Itera, a source close to the deal said. Gazprom has allowed Itera to export 590 mm cm of gas through its pipeline to Poland between August and December, a Gazprom source said.
Gazprom deputy chairman Alexander Ryazanov issued the order Aug. 15, and an agreement is to be signed soon.

Itera is to sell the gas to Gazprom's trading arm Gazexport, which will then transport it to Poland under terms similar to those agreed to in a 2000 deal between Gazprom, the Moscow city government and Bartimpex, a Polish trading firm, the source said. Gazexport supplied about 1.5 bn cmpy of gas to Bartimpex, which would then pay Exima, a company close to the Moscow city government. Exima then purchased Polish foodstuffs from Bartimpex and sold them to Moscow stores. Exima paid the cash back to Gazprom with interest.

Gazprom stopped the barter program in 2001 citing a lack of profitability. But a new modified barter program with Poland was resumed in March. Valery Nesterov, an analyst at Troika Dialog, said that by giving Itera an export quota, Gazprom was violating the principle of fair competition.
"A tender should have been organized between Itera and the oil majors," said Nesterov, adding that Gazprom should avoid opaque barter schemes. "I doubt that competitors and partners in the West will see this in a good light."