Russian gas giant “Gazprom” avoid antitrust fines, as EU introduces obligatory ‘set of rules’

The European Union is not to fine “Gazprom” in the settlement, to prevent the Russian energy giant from Hiking gas prices in the countries of Central and Eastern Europe.

Magrethe Vestager, the European Commissioner responsible anti-monopoly Department of the European Commission, announced a number of mandatory rules on Gazprom, which is the dominant gas supplier in the region and accepted the terms of the EU.

But she warned on Thursday that if state-owned Gazprom ignores the new EU “set of rules” to ensure fair pricing, we encountered a mass of up to 10pc of their global turnover in the order.

MS Vestager insisted that the threat was not “a theory” in Brussels, a press conference, warning a fine may also be levied without the EU having to prove that the company violated the law On competition.

“Our solution provides a customized set of rules for future action “Gazprom””, – she said. “It gives customers of “Gazprom” in Central and Eastern Europe is an effective tool to ensure that the price they pay low.”

The decision marks the end of the EU’s seven-year struggle with “Gazprom”, which he blames separation of gas markets of the eight member States to charge higher prices in Bulgaria, Estonia, Latvia, Lithuania and Poland.

The addiction block the supplies of Russian gas were cruelly exposed the crisis in Ukraine, when the threat of disconnection of supply was used to leverage political pressure on the EU. The controversy over the gas pipeline “Nord stream” 2, That would see Gazprom to bypass Ukraine, denying it profitable transition charges, supplies the German market.

“This case is not about the flag company – it’s about achieving the result that best conforms to European consumers and businesses. And it’s not going to stop today’s decision, and to secure the performance of obligations of JSC “Gazprom”, which starts today,” said Ms. Vestager.

EU Commissioner for competition Margrethe Vestager gives a press conference at the European Commission in Brussels

“Gazprom” should remove any restrictions that do not allow buyers to resell gas across borders and enable the flow of gas to the Baltic States and Bulgaria, which are “energy Islands” isolated from the rest of the EU due to the lack of transmission lines.

The company shall also provide a system that provides gas prices in Eastern Europe reflects the lower level of prices in Western Europe.

“Gazprom” has put the European Union more than a third of its gas last year, but the dominance of Russia on the huge volumes of imports via pipelines from Norway and super-cooled tankers from Qatar.

Gazprom also committed itself not to use its dominance in the act or the supply of gas to any advantages it may have gained in gas infrastructure due to its dominance.

MS Vestager said: “this will significantly change the way of Gazprom in Central and Eastern Europe.”

Last warning “Gazprom” from Brussels to loosen the grip on its Eastern European neighbors happening against the backdrop of the rumoured retreat of the West as political relations sour.

As a result, the Skripal poisoning scandal involving the Gazprom started reducing the role of its energy trading office in London. He realized that he thought a complete shutdown of its 1,000-strong London headquarters near Regent’s Park, to keep its world energy market entertainment from St. Petersburg base.

The company has already merged its oil and liquefied natural gas (LNG), trading desks, which makes a handful of traders of LNG are released in the process.

Business Credit Report #BusinessCreditReport Home