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Gazprom offers concessions in bid to settle EU antitrust case

Published 21/09/2015, 17:19
© Reuters. The logo of Gazprom is pictured at the 26th World Gas Conference in Paris
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By Vladimir Soldatkin

MOSCOW (Reuters) - Russia's top natural gas producer Gazprom (MCX:GAZP) has offered concessions in a bid to settle European Union antitrust charges of over-charging customers and blocking rivals in eastern Europe, in a move that could stave off a possible hefty fine.

After more than two years of investigation, the European Commission in April charged the state-controlled gas producer with abusing its dominant position and overcharging customers in Poland, Hungary and six other countries by up to 40 percent.

In response, Gazprom, which supplies a third of the EU's gas needs and generates more than half its revenue there, said on Monday it had submitted a proposal to the EU competition authority, but gave no details.

"We hope to discuss this proposal with the representatives of the Commission in the near future in order to come to a settlement," the company said in a statement.

It had said in May it would offer concessions that could include pricing.

The company on Sept. 10 completed its sale of gas based on the market or spot price, possibly paving the way for it to use more spot market pricing mechanisms in long-term contracts with European clients. Just 16 percent of its contracts were based on spot gas prices at the end of last year.

Interfax news agency quoted Alexander Medvedev, Gazprom's deputy chief executive officer, as saying the company would soon set up a meeting with EU antitrust chief Margrethe Vestager.

© Reuters. The logo of Gazprom is pictured at the 26th World Gas Conference in Paris

Commission spokesman Ricardo Cardoso confirmed receipt of an offer from Gazprom. The company has until Sept. 28 to respond to the Commission's charges, known as a statement of objections.

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