• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 3 hours Why Trump will win the wall fight
  • 6 hours Prospective Cause of Little Ice Age
  • 54 mins *Happy Dance* ... U.S. Shale Oil Slowdown
  • 9 hours L.A. Mayor Ditches Gas Plant Plans
  • 3 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 10 hours students walk out of school in protest of climate change
  • 10 hours Maduro Asks OPEC For Help Against U.S. Sanctions
  • 2 days Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 1 day Ford In Big Trouble: Three Recalls In North America
  • 1 day Why Is Japan Not a Leader in Renewables?
  • 22 hours Is the Green race a race from energy dependence.
  • 4 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian

Gazprom Avoids Fine In EU Antitrust Settlement

Gazprom

Gazprom has dodged a fine in the settlement of the seven-year-long antitrust dispute with the European Union (EU), after the Russian gas giant agreed to change market behavior and ensure competitive gas prices in Central and Eastern Europe.

The European Commission (EC) imposed on Thursday legally binding obligations on Gazprom to address competition concerns and enable free flow of gas at competitive prices.

Gazprom is the dominant gas supplier in many Central and Eastern European countries, and the Commission’s binding obligations will change the way the Russian company operates in those gas markets.

The binding commitments include Gazprom removing any restrictions on customers to re-sell gas cross-border, and enabling gas flows to and from parts of Central and Eastern Europe that are still isolated from other EU Member States due to the lack of interconnectors—the Baltic States and Bulgaria. The Russian company will also have to commit to a structured process to ensure competitive gas prices—its customers will have a contractual right to ask for a lower gas price, if the price they pay diverges from competitive Western benchmarks, including prices at liquid hubs. In addition, “Gazprom cannot act on any advantages concerning gas infrastructure, which it may have obtained from customers by having leveraged its market position in gas supply,” the EC said.

Related: Dubai To Become Global Leader In Solar Energy

“Today’s decision removes obstacles created by Gazprom, which stand in the way of the free flow of gas in Central and Eastern Europe. But more than that – our decision provides a tailor-made rulebook for Gazprom’s future conduct. It obliges Gazprom to take positive steps to further integrate gas markets in the region and to help realise a true internal market for energy in Europe,” Commissioner in charge of competition policy, Margrethe Vestager, said.

Gazprom is satisfied with the EU decision and believes that it is “the most reasonable outcome for the well functioning of the entire European gas market,” Alexander Medvedev, Deputy Chairman of Gazprom’s Management Committee said.

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