• 4 minutes China goes against US natural gas
  • 12 minutes WTI @ 67.50, charts show $62.50 next
  • 15 minutes Saudi Fund Wants to Take Tesla Private?
  • 1 hour Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 23 mins Peak Oil is Now!
  • 12 hours Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 46 mins Russians hacking vs U.S., Microsoft President: Russians Targeting All Political Sides
  • 1 hour Corporations Are Buying More Renewables Than Ever
  • 7 hours VW Receives Massive Order Of 1,600 All-Electric Trucks
  • 15 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 19 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 22 hours The EU Loses The Principles On Which It Was Built
  • 12 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 22 hours Film on Venezuela's staggering collapse
  • 21 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 18 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

Environmentalist actions in France may…

Nord Stream 2 Clears Another Hurdle

Nord Stream 2 Clears Another Hurdle

Russia’s controversial Nord Stream 2…

EU, Gazprom Move Closer To Resolving Gas Sales Dispute

Gazprom

Signaling a thaw in relations, the European Commission (EC) said on Monday that Gazprom had offered commitments to address the EU’s competition concerns regarding the Russian gas giant’s dominating gas markets in Central and Eastern Europe, and potentially abusing its dominant position in pricing.

Last October, Gazprom said it was about to offer concessions to the EU in order to avoid what was suspected might be billions of dollars in fines over the five-year-old gas pricing dispute. The conflict began back in 2011 when EU antitrust regulators began investigating Gazprom for anticompetitive behavior, citing Gazprom’s practice of pricing natural gas differently to different countries depending on how compliant they were to Moscow.

The EC had expressed in April 2015 its preliminary view that Gazprom had been breaching EU antitrust regulation by pursuing an overall strategy to partition Central and Eastern European gas markets, for example by reducing the customers’ ability to resell the gas, possibly charging unfair prices in certain EU member states, and potentially abusing its dominant market position by making the supply of gas dependent on unrelated commitments from wholesalers concerning gas transport infrastructure.

Now, Gazprom is offering to remove restrictions on reselling gas cross-border once and for all; ensure that prices in Central and Eastern Europe reflect competitive price benchmarks; and not use any advantages regarding gas infrastructure that it had obtained because of its dominant position. The countries concerned are Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Hungary, and Slovakia.

Related: Saudi Arabia’s War On Shale Never Ended

“In the Commission’s view, the commitments offered by Gazprom cover its competition concerns. They help to better integrate Central and Eastern European gas markets, facilitating cross-border gas flows at competitive prices,” the EC said in its statement.

The commitments “address our competition concerns and provide a forward-looking solution in line with EU rules. In fact, they help to better integrate gas markets in the region,” EU Commissioner in charge of competition policy, Margrethe Vestager, said.

All interested parties have seven weeks to comment on Gazprom’s commitments, and after that the EC will adopt a final view on the issue. If it deems the commitments to be satisfactory, it may adopt a decision that would make the commitments legally binding on Gazprom. However, “if a company breaks such commitments, the Commission can impose a fine of up to 10% of the company’s worldwide turnover, without having to prove an infringement of the EU antitrust rules,” it noted.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From OIlprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News