Russia’s Gazprom proposes settlement to end EU antitrust probe on pricing

By GASPARD SEBAG
Bloomberg

Gazprom PJSC submitted a draft settlement proposal to end a European Union probe and avert possible antitrust fines ahead of a deadline to reply to accusations that the natural gas giant may have imposed unfair prices in central and eastern European countries.

The European Commission “can confirm it has received a set of commitment proposals from Gazprom, which it will assess carefully,” EU spokesman Ricardo Cardoso said in an e-mailed response to questions. Russian press agency Interfax reported the news earlier.

Gazprom has until Sept. 28 to submit a formal response to the commission’s objections, Cardoso said.

“We hope to discuss this proposal with the representatives of the commission in the near future in order to come to a settlement agreement,” Gazprom said in an e-mailed statement. The company plans to submit a written response by Sept. 28.

Settlement talks with Gazprom froze last year as tensions escalated over Russia’s actions in Ukraine, where it annexed the Crimea region and was accused of supporting an insurgency that’s threatened to split the country apart. Power politics seeped into the case from the start after Russian President Vladimir Putin signed a decree giving the government the right to protect Gazprom from EU inquiries.

The EU in April sent Gazprom a formal antitrust complaint, accusing it of pursuing an unfair pricing policy in Bulgaria, Estonia, Latvia, Lithuania and Poland.

The commission said territorial restrictions -- such as export bans -- may result in wholesalers facing prices that are significantly higher than the company’s costs or benchmark rates.

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