Bloomberg: "Gas relations between Russia and Europe will continue"

By Vestnik Kavkaza

The US publication Bloomberg Business writes today that the EU, which relies heavily on Russian gas, has sent a statement of objections to Gazprom that lays out where regulators see possible violations of competition law, according to an official who asked not to be identified because the decision hasn’t been made public. The EU has been examining whether the company’s contracts unfairly link oil and gas prices and prevent customers from reselling gas.

 The website of the European Commission writes that on the basis of its investigation, the Commission's preliminary view is that Gazprom is breaking EU antitrust rules by pursuing an overall strategy to partition Central and Eastern European gas markets with the aim of maintaining an unfair pricing policy in several of those member states. Gazprom implements this strategy by hindering cross-border gas sales and charging unfair prices.

 “What we’re looking at is whether customers are getting the best prices or if a dominant company is using its remarkable strength to get different prices for different customers,” EU Competition Commissioner Margrethe Vestager told Bloomberg TV in New York on Monday. “It means quite a lot for a country if it pays more for its gas than maybe it ought to do.”

 None of this would stop the gas from flowing, analysts say, though Gazprom is preparing for a fight, Bloomberg reports.

 “Gas relations between Russia and Europe will continue, but Gazprom has to deal with a more stringent enforcement of EU competition rules and diversification plans,” said Marco Giuli, an analyst at the European Policy Center.

 The Financial Times writes that Gazprom rejected the charges. In a statement, it said its pricing practices were the same as other gas suppliers to EU countries.
 Significantly, Gazprom said it is considered to be a “strategic government-controlled business entity” within Russia, and reiterated the Kremlin’s position.
 Russia’s energy ministry on Wednesday expressed “surprise and regret” over what it said were unjustified charges against a non-EU company.

 In a statement, it described the charges as “an unfriendly act and an attempt to exert pressure on Russia in its energy policy.” It went on to describe the “political nature” of the case, linking it to the EU’s efforts to put economic pressure on Russia over the Ukraine crisis.