The Russian gas company Gazprom and the European Commission are close to agreement over the commitments to respond to the accusations of abuse of dominant position, the Financial Times reported on Monday 24 October.
In April 2015, the European institution notified its objections to the gas giant Gazprom after having decided, under the previous mandate, to suspend the discussions to explore the possibility of responding to its concerns through commitments, as provided for procedurally (see EUROPE 11160). Presenting her objections to the press, European Commissioner for Competition Margrethe Vestager explained that all channels were still open.
The investigation carried out by the Commission revealed last year that the Russian gas company occupied a dominant position on the gas supply markets of several countries of central and eastern Europe, in some cases with a market share considerably above 50% and close to 100% in a few. The institution took the view that Gazprom was hindering competition on the gas supply markets in Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia.
According to the Commission, Gazprom included a number of territorial restrictions in its supply contracts in place with wholesalers in order to block the export of gas in the eight member states listed above (clauses banning exports, clauses on destination that obliged the client to use the gas bought in its own country, and a requirement to seek Gazprom's authorisation in order to carry out any exports).
The Commission also suspected Gazprom of having exploited its dominant position on the Bulgarian and Polish markets by making gas supplies conditional upon receiving certain commitments regarding infrastructure from the wholesalers.
In September 2015, the European Commission confirmed that it had received proposed commitments from the Russian gas giant (see EUROPE 11394). As the Financial Tines explained, sealing a deal with the European institution on commitments that would become legally binding would allow Gazprom to avoid a fine. This situation came under fire from a European ambassador, who told the Financial Times that politically, this would send out very much the wrong signal.
According to the British daily newspaper, the agreement will provide for Gazprom's clients to be offered a guaranteed channel to challenge the prices practised, including through arbitration. Vestager is to meet Gazprom's vice-president, Alexander Medvedev, this week. (Original version in French by Élodie Lamer)