Reuters: Regulatory News: UPDATE 1-EU launches competition probe into Gazprom

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UPDATE 1-EU launches competition probe into Gazprom Sep 4th 2012, 16:41 Tue Sep 4, 2012 12:41pm EDT * EU investigates Gazprom competition practices * Tensions rising with Moscow over energy policy By Justyna Pawlak BRUSSELS, Sept 4 (Reuters) - The European Commission has opened an investigation into suspected anti-competitive market practices by Russia's Gazprom, the EU watchdog said on Tuesday, adding to tensions between Europe and Moscow over energy policy. The Commission said it was concerned the natural gas producer, Russia's biggest company and the world's largest gas producer, was abusing its dominant position in central and eastern Europe in upstream gas supply markets. Specifically, it said, the probe would focus on suspicions Gazprom was hindering the free flow of gas across the EU's 27 countries, preventing supply diversification and imposing unfair prices on its customers by linking the price of gas to oil prices. "Such behaviour, if established, may constitute a restriction of competition and lead to higher prices and deterioration of security of supply," the Commission said in a statement. "Ultimately, such behaviour would harm EU consumers." Last year, the Commission raided the offices of several Gazprom units in Europe to investigate their involvement in supply, transmission and storage of natural gas. A Commission official said at the time the raids were part of an EU effort to wean itself off reliance on Russian gas. . The company said on Tuesday it had no details of the probe. "Let them investigate," Gazprom spokesman Sergei Kupriyanov said by telephone. Relations between the EU and Moscow over energy policy have been tense in recent years as European governments seek new sources of natural gas supply. Russia has expressed anger over EU regulations that seek to liberalise the European gas market by barring suppliers from controlling the transport infrastructure used to deliver their gas. Link this Share this Digg this Email Reprints

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