UPDATE: Poland demands EU impose antimonopoly fine on Gazprom

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WARSAW, May 18 (PRIME) -- Poland has demanded that the European Commission fine Russian gas giant Gazprom for violation of the E.U. antimonopoly legislation, Polish state oil and gas company PGNiG said in a statement on Thursday.

“The European Commission should financially punish Gazprom and create competitive conditions on the gas market,” the company said.

PGNiG CEO Piotr Wozniak said in a news conference that the company demands Gazprom cut the maximum volume of natural gas stipulated in the take-or-pay contract rule to 75%.

The European Commission initiated an antimonopoly investigation against Gazprom in August 2012 and accused it of violating the E.U. competition rules in 2015. According to the authority, Gazprom restricted free supplies to Eastern E.U. countries by splitting gas markets, preventing diversification of supplies and setting unfair prices.

In March 2017, the European Commission disclosed details of Gazprom’s proposals for a peaceful settlement of the case. Vice President for Energy Union Maros Sefcovic said then that the proposals are sufficient. The E.U. gathered responses to Gazprom’s suggestions from participants of the European gas market, and is now studying them.

Gazprom agreed to lift the ban on trans-border sales of gas previously bought from the company, and to tie gas prices for Poland, Bulgaria, Estonia, Latvia, and Lithuania to benchmarks with consumers having the right to initiate revision of the price if it differs from the benchmark.

Besides that, Hungary, Poland, and Slovakia will be able to receive gas at entry points to the Baltic states and Bulgaria, and Gazprom has decided against demanding compensation from Bulgaria for scrapping the South Stream gas pipeline project.

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