EU Opens Antitrust Probe Against Gazprom

[Nyusu]

The European Commission has started an investigation into Russia’s natural gas giant Gazprom over concerns that it might be hindering competition in Central and Eastern European gas markets, in breach of EU antitrust rules, the EC said on Tuesday.

“The Commission will treat the case as a matter of priority,” it said.

“The Commission has concerns that Gazprom may be abusing its dominant market position in upstream gas supply markets in Central and Eastern European Member States, in breach of Article 102 of the Treaty on the Functioning of the European Union.”

The Commission is investigating three suspected anti-competitive practices in Central and Eastern Europe.

“First, Gazprom may have divided gas markets by hindering the free flow of gas across Member States. Second, Gazprom may have prevented the diversification of supply of gas. Finally, Gazprom may have imposed unfair prices on its customers by linking the price of gas to oil prices,” the EC said.

Such behavior may constitute a restriction of competition and lead to higher prices and deterioration of security of supply, ultimately harming EU consumers, it said.

http://en.ria.ru/world/20120904/175769697.html

[DimoN]

The European Commission has started an investigation into Russia’s natural gas giant Gazprom over concerns that it might be hindering competition in Central and Eastern European gas markets, in breach of EU antitrust rules, the EC said on Tuesday.

Boo-hoo. Find your own natural gas deposits and invest in the appropriate infrastructure. Or wait until a "friendly" regime is installed in Iran again so you can pump Caspian Blue to Europe on your own terms and not Russia's, which is the long-term plan anyways, right?

[muck]

EU, I am dissappoint.

[snowflakes]

Boo-hoo. Find your own natural gas deposits and invest in the appropriate infrastructure. Or wait until a "friendly" regime is installed in Iran again so you can pump Caspian Blue to Europe on your own terms and not Russia's, which is the long-term plan anyways, right?

Boo-hoo, find a better customer. Maybe NK wants to change some of your precious NG to a clam shells... You want to do business in EU, then you play with our rules...

[sepheronx]

Boo-hoo, find a better customer. Maybe NK wants to change some of your precious NG to a clam shells... You want to do business in EU, then you play with our rules...

Sucks that EU is limited to sellers.

I think you guys are stuck.

Edit: You would think that after the debacle with Ukraine a couple of years ago during winter, would be indication to expand sellers, but that does not seem to be the case.

[Andrew Chalmers]

Boo-hoo. Find your own natural gas deposits and invest in the appropriate infrastructure. Or wait until a "friendly" regime is installed in Iran again so you can pump Caspian Blue to Europe on your own terms and not Russia's, which is the long-term plan anyways, right?

Boo-hoo, find a better customer. Maybe NK wants to change some of your precious NG to a clam shells... You want to do business in EU, then you play with our rules...

Yinz are both right! Keep going on this path and soon we'll be able to convince the Germans to let us frack their nice shale deposits!

But in all seriousness - Europe and Russia are stuck in a symbiotic relationship. Without Europe being willing to pay a premium for Russian gas, what will hold up the dysfunctional Russian economy? Without Russia's clean natural gas - what will Europe heat its homes and power its industries with?

[memfisa]

Boo-hoo, find a better customer. Maybe NK wants to change some of your precious NG to a clam shells... You want to do business in EU, then you play with our rules...

You have magical solution my vicious eurofriend?
Last time i checked, NK aint got no doe

[Nyusu]

Most funny thing is - you know, demanding fair play from Gazprom is stupidest thing that EU could do. You know, it could increase prices in some countries to EU level. You wish for market prices - you can get them. But who exactly would be happy about it?

[Henry's Fork]

Most funny thing is - you know, demanding fair play from Gazprom is stupidest thing that EU could do. You know, it could increase prices in some countries to EU level. You wish for market prices - you can get them. But who exactly would be happy about it?

The middle men. Cha-ching.

[muttbutt]

You have magical solution my vicious eurofriend?
Last time i checked, NK aint got no doe(dough)

Isn't that the point?

[muttbutt]

Boo-hoo. Find your own natural gas deposits and invest in the appropriate infrastructure. Or wait until a "friendly" regime is installed in Iran again so you can pump Caspian Blue to Europe on your own terms and not Russia's, which is the long-term plan anyways, right?

Actually they are looking.

[Laworkerbee]

Edit: You would think that after the debacle with Ukraine a couple of years ago during winter, would be indication to expand sellers, but that does not seem to be the case.

Give them some credit, they are working really hard in Syria in getting a new pipeline set up.

[snowflakes]

You have magical solution my vicious eurofriend?
Last time i checked, NK aint got no doe

I ain't vicious, I just tend to get cranky when exposed to retarded comments and my magical solution was: NG <-> some clam sells, I think NK could have a lot of those or maybe small rocks.

Point being that at a moment it's mutually beneficial to trade but if the Russia tries to milk its cash cow dry, then we'll have a problems. EU or at least several countries in EU are trying to get more energy independent and Russia can only accelerate this process by making things difficult. I'm not saying that EU will be self reliant in near future (next 25 years) but there are several options to reduce our dependency.

I fully support prosperous, democratic and stable Russia, because it's also in our interests to have a good and happy neighbor.

[BogT]

Considering Gazprom size and position (market and political) dealing with any trading problem at the EU level it's the way to go.

But the news is that the The European Commission does something good for a change.

[KoTeMoRe]

Considering Gazprom size and position (market and political) dealing with any trading problem at the EU level it's the way to go.

But the news is that the The European Commission does something good for a change.

But the issue is this.

Article 102 TFEU encompasses three major flaws in this case.

1. The company has a natural dominant position in the region.
2. Aligning prices seems to be the exact same issue. Only the EU would like to profit from a bundle offer. Which given the legal impediments (Gazprom is Russian) is impossible.
3. The prioritarization of the case is a clear double standart to :

making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

The politization of this inquiry, is a direct answer to the percieved politization of the Gazprom contractual dealings.

Same old, same old.

Snowflakes: I fail to see how Russia is to blame when despite a theoretical privatization the energy prices have been steadily on the rise (while the competition in the energy market should have made sure the prices would drop).

The case is similar with everything, energy, water, public services and contractual costs. Russia milking its cow dry does not really compute with EDF and GDF milking the Belgian market, with CEZ going full retard in Albania or ENI litterally raping millions of customers out of their seminal fluids without even a reach around.

As usually the energetical issue is a thorn on Europe's side to which we have found a fitting culprit. Blame the Russians.