* RWE had said expected agreement with Gazprom in H1
* RWE to receive triple digit million euro amount -analyst
(Adds detail on gas contract talks, background)
DUESSELDORF, Germany/MOSCOW, June 7 Direct talks
between Germany's RWE and Russia's Gazprom
on an out-of-court settlement in a dispute over gas price
contracts have failed, two people familiar with the matter told
Supply contracts are vital for European utilities, which buy
gas from Gazprom or Norway's Statoil under long-term
deals linked to oil prices while having to sell it to customers
at lower retail prices linked to the freely traded spot market.
Last year, Gazprom gave in to customer pressure and offered
RWE's peer E.ON a price cut on its long-term gas
supplies, giving it a 1 billion euro ($1.3 billion) boost to its
A spokesman for Gazprom said on Friday the dispute with RWE
would have to be decided by an arbitration court in Vienna,
adding a ruling could be announced "in the next few days or in
The court of arbitration in Vienna declined to comment.
RWE, which had said it aimed for an agreement with Gazprom
in mid-2013, also declined to comment.
John Musk, analyst at RBC Capital Markets, said he expected
a payment settlement of about 300 million euros.
RWE, Germany's No.2 utility, has come under pressure after
Germany's decision to exit nuclear power for good by 2022, tepid
demand for energy in core market Europe, as well as the rise of
renewables that has edged out energy of its conventional power
($1 = 0.7579 euros)
(Reporting by Tom Kaeckenhoff and Vladimir Soldatkin,
additional reporting by Michael Shields in Vienna; Writing by
Christoph Steitz, editing by William Hardy)