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EU court upholds 2018 EC-Gazprom antitrust deal

  • Märkte: Natural gas
  • 02.02.22

The EU's general court today rejected Polish state-owned PGNiG's appeal against a 2018 settlement of an antitrust probe into Russian state-owned Gazprom.

But the court, in a second ruling, annulled an earlier decision by the European Commission to reject a separate complaint by PGNiG in 2017 which alleged abusive practices by Gazprom.

The 2018 decision upheld today was the culmination of an investigation by the commission between 2011 and 2015 into alleged anticompetitive practices by Gazprom in central and eastern European gas markets.

As part of that ruling, the commission had imposed binding obligations on Gazprom to enable firms to move gas around central and eastern Europe, and to ensure prices reflect liquid hubs. Gazprom accepted them, and the case was closed without a fine. PGNiG subsequently appealed this decision.

The obligations imposed on Gazprom addressed three potentially anticompetitive practices. The first was that Gazprom imposed territorial restrictions on its gas supply contracts, prohibiting the resale of its gas. The second alleged that those territorial restrictions made it possible for Gazprom to "pursue an unfair pricing policy whereby it charged excessive prices" to Bulgaria, Estonia, Latvia, Lithuania and Poland. The third claimed that Gazprom had made its supplies of gas in Bulgaria and Poland conditional on certain commitments from wholesalers in relation to gas transport infrastructure. This particularly concerned attempts by Gazprom to gain increased control over the management of investments in the Polish section of the Yamal-Europe pipeline.

But the court's other ruling today was that the commission in April 2019 unfairly dismissed a separate complaint made by PGNiG in 2017 alleging abusive practices by Gazprom — largely overlapping with concerns expressed in the other case. The court ruled today that the commission committed a "manifest error of assessment" when it said in its dismissal that there was a "limited likelihood of establishing an infringement by Gazprom... in relation to the claims concerning infrastructure-related conditions".

Most of Gazprom's practices which have been challenged by PGNiG "continue today and should be the subject of an in-depth examination by the commission", PGNiG's president Pawl Majewski said. The rejection of PGNiG's 2018 appeal "may reassure Gazprom that actions involving the abuse of its dominant position on the European gas market will be treated leniently", while the lack of a firm judgement against similar practices in the past may have "emboldened Gazprom to limit supplies and not fill its storage facilities in the EU, which is largely responsible for the current, historically high level of gas prices on European wholesale markets", Majewski said.

Gazprom was not immediately available for comment on the court's rulings. The firm has reiterated in recent months that it has delivered gas to European customers in accordance with contractual obligations. There was a limited incentive for strong buyer nominations under Russian long-term contracts linked to the TTF front-month index last month, while some firms may have largely exhausted flexibility under long-term Russian contracts running on the calendar year by the fourth quarter of 2021 following strong take earlier in the year.


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