Report: Gazprom set to gain EU antitrust approval Ц sources - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Report: Gazprom set to gain EU antitrust approval Ц sources

MOSCOW, Apr 4 (PRIME) -- The European Union and Gazprom are poised to settle a long-running antitrust case after the Russian gas company agreed to price reforms and to allow rivals to gain a foothold in Eastern Europe, Reuters reported late on Tuesday citing people familiar with the matter.

A decision by the European Commission could come as early as this month although the timing could still slip, the people said. A settlement would allow Gazprom to avoid a possible fine of as much as 10% of its global turnover.

The seven-year-old case underlines the rocky relationship between Europe and Russia, which have clashed over Ukraine, Syria and, most recently, a nerve attack against a former Russian spy living in England that resulted in expulsions of diplomats on both sides.

Last year, state-owned Gazprom, which supplies a third of the E.U.Тs gas, offered to link prices to benchmarks such as western European gas market hubs and border prices in France, Germany and Italy, and allow price reviews every two years.

This aimed to address complaints of excessive pricing in Bulgaria, Estonia, Latvia, Lithuania and Poland vis-a-vis German prices due to GazpromТs policy of locking clients into decades-long, oil-indexed contracts.

The company also pledged to scrap all contractual restrictions which bar clients from reselling its gas and let the Bulgarian transmission network operator take charge of the Balkan countryТs gas flows to Greece.

Gazprom will drop its U.S. $70 million claim for damages from Bulgarian partner BEH following the 2014 cancellation of the South Stream gas pipeline project that would have shipped Russian gas under the Black Sea via Bulgaria to central Europe.

Gazprom has tweaked its original proposal on concessions after negative feedback from E.U. countries and customers but the main elements remain unchanged, according to a recent draft seen by Reuters.

Revisions have been mainly technical such as lower service fees charged by Gazprom which could result in its clients saving millions of euros. The concessions are expected to apply for eight years and be monitored by a trustee.

Both the Commission and Gazprom declined to comment.

The E.U. competition enforcer has rejected a complaint by state-run Polish oil and gas company PGNiG which wants Gazprom to sell its controlling stake in companies that own key gas infrastructure in the E.U., including the Jamal-Europe gas pipeline, two other sources said.

The E.U. had previously said this was not covered by the blocТs antitrust rules because it was a bilateral deal between the Polish and Russian governments.

Gazprom found itself in the EU antitrust crosshairs in 2011 after regulators raided about 20 offices of its customers in eastern and central Europe, seizing more than 150,000 documents.

At issue was whether Gazprom had imposed unfair prices by linking gas price to oil prices, divided up gas markets by hindering the free flow of gas across E.U. countries and prevented the diversification of the supply of gas.


04.04.2018 08:25
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 77.3832 -0.3012 26 sep
USD 65.8244 -0.3350 26 sep
Stock Market Indices
1D 1W 1M 1Y
rtsi 1163.18 -0.50 12:23 26 sep
micex 2430.96 -0.54 12:23 26 sep
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 160.90 +0.04 10:16 26 sep
lkoh 4882.50 -0.36 10:16 26 sep
rosn 457.75 -0.49 10:16 26 sep
sber 195.28 -0.14 10:16 26 sep
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 77.3450 -0.2150 14:59 26 sep
USDTD 65.7500 -0.0150 17:44 26 sep