EC hits Gazprom with rules to ensure free flow of gas in CEECs
European competition regulators are forcing Russian gas giant Gazprom to supply gas at competitive prices in central and eastern Europe.
After finding that Gazprom had breached antitrust rules in several Central and Eastern European countries, enabling the group to charge higher gas prices in five EU member states, the European Commission on Thursday imposed four "obligations" that it said would enable the free flow of gas at competitive prices in the region.
This detailed set of rules included that Gazprom has to remove any restrictions placed on customers to re-sell gas cross-border and that Gazprom will enable gas flows to and from parts of Central and Eastern Europe that are still isolated from other Member States due to the lack of interconnectors, namely the Baltic States and Bulgaria.
Gazprom customers will also be given an "effective tool" to make sure their gas price reflects the price level in competitive Western European gas markets, especially at liquid gas hubs, with Gazprom also banned from acting on any advantages concerning gas infrastructure that it may have obtained from customers by having leveraged its market position in gas supply.
Margrethe Vestager, the EC competition policy chief, said: "All companies doing business in Europe have to respect European rules on competition, no matter where they are from.
"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 rulebook for Gazprom's future conduct."
She said the new rules would oblige Gazprom to take steps to further integrate gas markets in the region and give its customers in Central and Eastern Europe a tool to make sure the price they pay is competitive.
"As always, this case is not about the flag of the company – it is about achieving the outcome that best serves European consumers and businesses. And the case doesn't stop with today's decision – rather it is the enforcement of the Gazprom obligations that starts today."