Putin: EU Gazprom Investigation "Not Constructive"

Russian President Vladimir Putin has hit out at an EU investigation into anti-competivity practices in Gazprom, saying the motivation is part of the EU's subsidisation of Eastern European economies.

Speaking on Sunday after the Asia-Pacific Economic Cooperation (APEC) Leaders' Week summit, President Putin told a press conference that the Antitrust investigation into Gazprom was "not constructive".

"The problem is that all these (Eastern European) states joined the European Union and the EU committed to subsidise their economies," he said. "And to a large extent, the EU subsidises the economies of Eastern European countries. Now it seems someone in the EU has decided to shift part of the burden, some of the subsidies, onto us. United Europe wants to preserve its political influence but it wants us to pay for it. This is not constructive."

The European Commission probe, which was launched last week, is seeking to determine whether Gazprom has conducted business in an anti-competitive way. The investigation hinges on three points: whether it has impeded on the free flow of gas across Europe, whether it has overcharged customers in using oil-linked gas prices and whether it has impeded upon the creation of a more diversified gas network in Europe.

Yesterday, President Putin insinuated that the motivation for some countries seeking lowered gas prices was as a result of difficult economic conditions, a "temptation" that those countries were finding hard to resist in the face of financial crises, not as a result of wrongdoing on Gazprom's part.

"We have had certain pricing principles in place for decades, and they are written in long-term contracts," the President told reporters. "No one ever questioned these principles. I know that during a crisis there is a strong temptation to shift the financial burden onto someone. However, once again, we do not believe that this approach is constructive."

The Russian head of state said that Russia would seek to resolve the matter in a "friendly" way.

"I sincerely hope that through business-oriented, friendly dialogue - I want to highlight that - between our economic entities, Russian companies and the European Commission will find solutions and a way out of this situation without damages for either party."