Wednesday, April 22, 2015

Brussels accuses Gazprom hinder competition in the gas – The World

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According to Brussels, the territorial restrictions imposed by Gazprom

After the Google Wednesday, April 15, there is a week in Brussels are now taking another giant, Russian, this time Gazprom. The Competition Commissioner Margrethe Vestager confirmed Wednesday, April 22, noon, that his services would send in the day, a statement of objections, that is to say, an indictment in good and due form, . for violation of antitrust law, the gas group

The charges against Gazprom are heavy: the Commission considers that the company restricts competition on the European gas market in eight Member States (Bulgaria, Republic Czech, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia).

Gazprom will impose in particular “territorial restrictions in its supply agreements with wholesalers and certain industrial customers [...] . These restrictions consist of export bans and clauses providing for the use of gas purchased in a specific territory (clauses on the destination), “ the statement from Brussels.

especially five countries (Bulgaria, Estonia, Latvia, Lithuania and Poland), these territorial restrictions, the Commission continues, “may cause a rise in gas prices and allow Gazprom to carry an unfair pricing policy in five states members (Bulgaria, Estonia, Latvia, Lithuania and Poland) to wholesalers charging much higher prices than its own costs or reference price. “

The” artificial obstacles “to move the gas

Finally, in two countries, Poland and Bulgaria, Gazprom could benefit from its dominant position by making its gas deliveries to obtaining separate commitments from wholesalers on gas transport infrastructure . “For example, gas supplies were subject to investments in a pipeline project promoted by Gazprom or the obligation to accept Gazprom strengthens its control over pipeline” also explains Brussels.

“The gas is a very essential for our daily life: it heats our homes and we use it for cooking and to generate electricity. Maintaining fair competition in the European gas markets is therefore of the utmost importance, “ said Margrethe Vestager Wednesday .

“All companies operating in the European market – be they European or non must comply with EU rules. We believe [Gazprom] could have erected artificial barriers to transport gas from certain countries of Central and Eastern Europe to other, hindering cross-border competition. The partitioning of national gas markets has also allowed Gazprom to charge prices that we believe, at this stage, unfair. If our concerns were to be confirmed, Gazprom should bear the legal consequences of his behavior, “ added the Commissioner

Read also:. Gas: negotiations between Russia Ukraine and the European Union resumed

The Russian giant has responded in a statement, deeming the charges of the European Commission “unfounded” . “ Gazprom strictly adheres to all standards of international law and national laws of the countries where it does business. Gazprom’s practices in the European market, including the principles of pricing, are in full compliance with the standards observed by other producers and exporters of natural gas “, says the group. The head of the Russian Foreign Minister Sergei Lavrov denounced him practical “ineligible” the EU.



Diplomatic Implications

This indictment is completely devoid of ulterior political motives, is it accurate in Brussels – the statement of objections must be based on sufficiently justified evidence from a legal point of view to “hold” if it is challenged in the EU Court of Justice in Luxembourg.

However, it could cause diplomatic consequences. “Any such charge against Gazprom may be seen as additional sanctions of the EU against Russia,” had warned Monday 20 April, a source close to the Russian state group . And this at a time when Moscow pretends to want to respect a fragile peace in eastern Ukraine, concluded under the auspices of Berlin and Paris (the so called “Minsk 2″).

One thing is certain, M me Vestager, former leader of the Danish Social Liberal Party, arrived in Brussels in November 2014, has decided to “wake up” the European antitrust policy. Wednesday, April 15, it launched the same type of load – an indictment formally – against US Google

Read also: Brussels revives one. hard line on competition

The Commission in Brussels opened in September 2012, a formal investigation into alleged anti-competitive practices of Gazprom, in particular following a complaint filed by Lithuania. She was then conducted surveys in eight European countries: in addition to Lithuania, Estonia, Bulgaria, the Czech Republic, Hungary, Latvia, Slovakia and Poland. After discussions about a possible amicable agreement with Gazprom in late 2013, Brussels had continued its investigative work in early 2014.



Remedies

In the autumn of 2014, the “statement of objections” was already written and Joaquin Almunia, the predecessor of M me Vestager, ready to send. But he had not received the green light from the president of the then Commission, José Manuel Barroso, anxious not to inflame the already tense relations with Russia – a second phase of sanctions, economic, was voted by the European Union (EU) during the summer.

“M me Vestager received it, the green light Juncker [l current President of the Commission] understands a close case. An unconfirmed report, Tuesday, April 21 in the morning

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Gazprom and Brussels, the battle just beginning. The Russian group will now be able to access “charges” against him gathered by the Commission, and refine his defense accordingly. It has twelve weeks to do, after sending the statement of objections. At any time, a conciliation procedure may intervene. This is what would the leaders of Gazprom and Moscow, suggests a source close to the Russian authorities. “For the first and third sets of charges [territorial restrictions and the relationship between contract to supply and infrastructure investment ], an agreement can easily be found, “ Does judge.

However, the source added, Gazprom will carry the iron on the issue of unfair prices deemed by service the Commission, and could challenge the “benchmarks” (references) used to judge if they are too high or not.

If the Commission is not convinced by the company’s arguments, it can it impose remedies, force it to change its practices, and (or) it fined up to 10% of its worldwide turnover.

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