EU prepares legal challenge to Gazprom

Published on 4 October 2013 at 12:55

The European Union has announced has launched a legal prosecution against Russian energy firm Gazprom over claims of price-fixing relating to high gas charges being levied against its east European neighbours, reports European news website EUobserver.

EU competition commissioner Joaquín Almunia confirmed that the Commission has begun to draw up formal charges against Gazprom related to fees charged to Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania and Poland. It is expected to complete preparation of the charge sheet by spring 2014.

Announcing the news, EUobserver said –

The development is a significant victory for Lithuania, whose complaint on alleged Gazprom price-gouging prompted the launch of the EU enquiry back in 2011.

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The inquiry was probing claims Gazprom is abusing its dominant position in the market to demand “extortionate prices for gas” and “preventing countries from diversifying their energy supply,” writes the website, adding that Lithuania claims it is forced to pay gas prices which are 35 per cent higher than those demanded from Germany.

The announcement comes amid tense relations between the EU and Russia over claims Moscow is attempting to pressure former Soviet states into joining its customs union, rather than sign trade deals with the EU.

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