European Commission secures binding commitments from Gazprom

European Commission secures binding commitments from Gazprom

The European Commission has accepted binding commitments from Gazprom to address concerns that Gazprom has abused its dominant position in markets for the wholesale supply of gas in Central and Eastern Europe (CEE).

The Gazprom case reflects a particular theme in the last few years where the Commission’s attention has been on abuse of dominance investigations in the energy sector in the CEE.  It has undertaken high profile investigations against European energy incumbents in Bulgaria, the Czech Republic and Romania, as well as against Russia’s Gazprom.   

Gazprom was among the companies that were subject to a dawn raid in 2011.  The inspections concerned its German (Gazprom Germania) and Czech (Vemex) offices.

On 4 September 2012 the Commission announced that it had opened formal proceedings to investigate whether Gazprom may be abusing a dominant position contrary to Article 102 TFEU. 

An indication of the complex interplay between EU law and political relations with Russia was the presidential decree signed in September 2013 which banned ‘strategic companies’ – mostly state-owned companies such as Gazprom – from disclosing information to foreign countries, companies or regulators without the prior approval of an authorised Russian federal body.  This was widely seen as an attempt to obstruct the Commission’s competition investigation into Gazprom.

The commitments require Gazprom to remove any restrictions placed on customers to re-sell gas across EU borders. Gazprom must enable gas flows to and from parts of the CEE that are isolated from other member states.

Gazprom must put in place a process to ensure competitive gas prices.  It cannot act on any advantages relating to gas infrastructure, which it may have obtained from customers as a result of its position in gas supply.

The commitments must remain in place for eight years.  If Gazprom fails to comply, the Commission can impose a fine up to 10% of its worldwide turnover without having to prove an infringement of EU competition law.

http://europa.eu/rapid/press-release_IP-18-3921_en.htm