OAO Gazprom (GAZP), Russia’s natural-gas export monopoly, said recovering demand in Italy and Turkey drove an 8.2 percent increase in exports to Europe last year. Exports to Turkey, the company’s second-biggest buyer outside the former Soviet Union, surged 44 percent to 26 billion cubic meters, while supplies to Italy jumped 31 percent to 17.1 billion cubic meters, OAO Gazprom Export said today. Shipments to Germany were little changed from the previous year at 34 billion cubic meters. Demand in Europe, Gazprom’s biggest market by revenue, is recovering after a two-year slump when buyers turned to the spot market for cheaper supplies than under Russian contracts. Gazprom, facing competition and a persisting gap between its long-term oil-linked gas prices and spot rates, agreed to lower prices to five customers in late 2011 and early 2012. Russian gas exports to Europe climbed to 150 billion cubic meters last year, Chief Executive Officer Alexey Miller told President Dmitry Medvedev on Jan. 11. Gazprom in June said annual exports were expected to rise to at least 155 billion cubic meters for the year, after saying in February that demand may recover to a pre-crisis level. To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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