OSW: The European Commission opens antitrust proceedings against Gazprom

On 4 September, the European Commission announced the initiation of an antitrust investigation against Gazprom. The primary complaint relates to the abuse of its dominant position on the gas market, mainly in Central Europe, by means of (1) limiting the freedom of movement of gas between EU member states, (2) preventing attempts to diversify gas supplies to EU countries, and (3) imposing unfair prices on contractors.The European Commission’s actions were preceded by an investigation, initiated in September 2011, involving the search for and examination of documents in 20 EU gas companies affiliated with Gazprom (both subsidiaries and joint ventures), as well as in Gazprom’s contractors and transmission operators in some EU countries.

Under EU law, Gazprom is obliged to respond to the complaints within four months, followed by an appropriate administrative procedure usually lasting 6-12 months, although this can be extended. In the event of a negative decision (finding an infringement of EU law), Gazprom may appeal to the EU’s Court of Justice (in this case, the proceedings could in fact take up to two years).  MORE