Russian gas giant Gazprom clinched a deal with EU antitrust regulators on Thursday to reform its pricing structure and allow rivals a foothold in eastern Europe, avoiding fines in a case that has dragged on for seven years, reported the Financial Times.
Margrethe Vestager, EU competition commissioner said: “Today’s decision removes obstacles created by Gazprom, which stand in the way of the free flow of gas in central and eastern Europe. But more than that — our decision provides a tailor-made rule book for Gazprom’s future conduct.”
The European Commission probe concerned the gas group’s alleged abuse of its dominance in the gas markets in Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Hungary and Slovakia, which rely heavily on the company to meet their energy needs.
Rather than levy a fine to punish past behaviour, the commission chose to shape a legally binding solution that would resolve the issues for the next eight years. “The case doesn’t stop with today’s decision — rather it is the enforcement of the Gazprom obligations that starts today,” said Ms Vestager who can fine the state-owned gas giant up to 10 per cent of the annual turnover if it breaks any of its promises.
Full Content: Financial Times
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