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Russian energy giant Gazprom and Greek gas company DEPA have signed an agreement to reduce the cost of supply to Greece by 15%.

According to the official announcement of the Ministry of Environment and Energy, the new price will be introduced retrospectively. Under the bilateral agreement, the new price will apply from 1 July 2013 and will be valid until 2016. The document provides for the possibility of extending this period for another 10 years and of revising the price two more times. The first revision is about to take place after two years.

The Ministry states that the agreement has been completed following the request of Greek Prime Minister Antonis Samaras to President of Russia Vladimir Putin.

Due to this 15% decrease, the price of natural gas in Greece reaches the European Union average values. According to the Ministry, it is one of the lowest prices compared to the prices of Greece's neighbouring countries that have signed long-term contracts with Gazprom.

The Ministry indicates that this will result in lower bills for the Greek consumers of natural gas, including both businesses and households. The revised contract of supply contains other conditions favourable to Greece such as a lower threshold below which the take or pay clause will come into force.