Gazprom rebuffs Germany's E.ON on gas contracts-paper

FRANKFURT, Nov 30 (Reuters) - Russia's Gazprom (GAZP.MM: Quote, Profile, Research) has rejected a request by German utility E.ON (EONGn.DE: Quote, Profile, Research) for adjustment of terms of their long-term gas supply contracts, a German newspaper said on Monday.

"Gazprom insists that the contracts be fulfilled," Die Welt quoted a source as saying in a pre-release of its Tuesday edition.

E.ON's unit Ruhrgas wants to soften the terms of the contracts because demand has slumped as a result of the worldwide economic slowdown.

A spokesman for E.ON declined comment to Reuters.

Ruhrgas' volume sales in the first nine months of the year have declined 15 percent, the report said.

Die Welt, citing an E.ON supervisory board member, said Ruhrgas' earnings before interest and tax are expected to fall by more than 30 percent this year largely due to the unfavourable impact of the gas supply contracts. ((Reporting by Tom Kaeckenhoff; Writing by Marilyn Gerlach; editing by Carol Bishopric; Reuters Messaging: marilyn.gerlach.reuters.com@reuters.net; 00 49 69 7565 1279))