European regulators claim unfair policies by Russian energy giant
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Version 0 of 1. MOSCOW — The European Commission slapped Russian energy giant Gazprom with antitrust charges Wednesday, opening a new front in the increasingly tense diplomatic standoff between Brussels and Moscow. The Russian state-controlled gas company stands accused of abusing its power in central and eastern Europe, where it is often the only supplier on the market. The commission laid out three specific charges that portray Gazprom as using its position to leverage advantages such as higher prices and, at times, punish countries with bans or restrictions. Among the allegations is that Gazprom puts unfair territorial restrictions, such as export bans and geographical limits on the use of its gas. “All companies that operate in the European market — no matter if they are Europe or not – have to play by our E.U. rules,” said a statement from Margrethe Vestager, the E.U. commissioner in charge of competition. “If our concerns were confirmed, Gazprom would have to face the legal consequences of its behavior.” [Are sanctions working against Russia?] Gazprom has 12 weeks to respond to the charges, but a statement on its Web site called the charges “unsubstantiated,” stressing that the company “strictly adheres to all the rules of international law and legislation” and that its price-setting practice “meets the standards that are used by other producers and exporters of gas.” Russia’s foreign minister also responded to the charges in defense of Gazprom, telling various Russian media outlets that the European accusations were unacceptable. “The contracts, which are currently in effect between Gazprom and its parner, were concluded in strict compliance with the legal regime that existed in the European Union at that moment,” Russian Foreign Minister Sergey Lavrov said in an interview with Russian radio stations, according to news service Interfax. Russia has long played a vital role in the European energy market, and currently supplies Europe with about one third of its natural gas. About half of that gas flows into Europe via Ukraine — an arrangement that has let Russia threaten European gas supplies at various intervals. The situation has been particularly tense in the past year with Ukraine’s conflict between pro-Russian separatists and the Western-allied government. That experience also led many EU countries to re-examine their dependency on the Russian energy giant. Wednesday’s charges were based on an investigation involving Gazprom’s behavior in eight countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia. During the Cold War all of those countries either fell on Russia’s side of the Iron Curtain or were republics of the Soviet Union. Now, all are members of the European Union — which Ukraine also hopes to join. Should Gazprom be found guilty of violating the E.U.’s antitrust rules, it could be fined up to 10 percent of its annual revenue in the European Union. Griff Witte in London contributed to this report. Read more: Russia and China sign gas deal Putin says Russia’s economy can bounce back Today's coverage from Post correspondents around the world |