EU accuses Gazprom of "abuse of dominant position," but everyone needs a compromise
Moscow (AsiaNews/Agencies) – The European Commission yesterday accused Russia’s state-controlled gas company Gazprom of abuse of dominant position by hindering trans-border competition and charging unfair prices in Central and Eastern Europe.
The Russian gas giant, led by Alexey Miller, now has 12 weeks to meet EU anti-trust concerns. EU regulators had already open a file against the company in 2012.
Gazprom rejected the Commission's objections, calling them "unfounded". However, Brussels' competition authority has the power to impose fines of up to 10 per cent of Gazprom's global turnover, or US$ 3.8 billion.
Accusations
The Commission said that, in its preliminary view, Gazprom was hindering competition in the gas markets in eight Central and Eastern European member states – Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia. These countries rely on Russia for 50 to 100 per cent of their requirements.
Brussels slammed Gazprom’s pricing policy, which relies on a dominant position to impose tough conditions. It is especially unfair in five Central and Eastern European member states – Bulgaria, Estonia, Latvia, Lithuania, and Poland – charging wholesalers higher or preferential prices.
The Russian company stated that it closely followed rules, saying that it was hoping for a solution between governments.
Whilst expressing hope in a compromise and counting on EU impartiality vis-à-vis Gazprom, Russian presidential spokesperson Dmitry Peskov noted that Russia and the energy company would defend their interests.
Inevitable compromise
According to two important Russian newspapers, Kommersant and Vedomosti, Moscow and Brussels were close to a deal in 2013, but everything was scuttled by the Ukrainian crisis.
At a news conference, Margrethe Vestager, the EU’s antitrust chief, sought to play down the political implications of the case, insisting that it was based on facts.
The EU’s antitrust initiative comes at a critical juncture in EU-Russia relations, now based on sanctions, food embargo, economic crisis, and non-application of the Minsk protocol.
After EU pressures tanked Russia’s South Stream pipeline project, Moscow has been studying an alternative route with Turkish Stream, but this requires the cooperation of Turkey and Greece.
Sources inside Gazprom told Kommersant that the Russian giant is ready to talk. Some of the accusations made by the EU have in fact been dealt with since the initial investigation began, this according to Vedomosti.
Gas prices in some European regions are already determined by spot market trading. The Baltic States’ relative isolation is being gradually overcome and fines are not being applied when gas is re-exported.
According to Valery Nesterov, an analyst with Sberbank CIB, “the EU and Gazprom are doomed to agree. It would be almost impossible to stop cooperation without severely damage their economies. Europe depends on Russian gas, which is crucial to Russia’s budget.”
“Each year,” he added, “the EU buys about 300 billion cubic metres, 125 from Gazprom. For its part, Moscow cannot solely rely on markets in the East. Europe remains a key partner.” (N.A.)
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