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Gazprom gets turned on (Shift)

(credit: Gazprom)

(BRUSSELS2) It is not just any entrepreneur who finds himself in the sights of the European competition authorities today: neither more nor less than Gazprom, the Russian gas company. The latter is accused by the European Commission of having committed an abuse of a dominant position; what is called in chosen terms an "article 102" (from the name of the reference article in the Treaty, formerly "article 82" or "article 86" for the oldest 🙂 ).

The Commission's concerns go back several months. Its inspectors had carried out inspections in several Member States, a year ago, in September 2011, inspections which made it possible to "back up" certain information. What support the formal opening of information. Of course, the Commission is told, " the initiation of a procedure does not prejudge the results of an investigation ". But generally, the Commission does not open an investigation on a whim or for fun...

Three offenses in 8 countries

Gazprom is in fact accused of having committed three offenses in the countries of Central and Eastern Europe. First, he is accused of having divided the gas markets by hindering the free flow of gas between member states ". Second charge, Gazprom could have prevented the diversification of gas supply ". Finally, he could having imposed unfair prices on its customers by linking the price of gas to oil prices”. Gazprom currently has a dominant position in eight countries (Poland, Czech Republic, Hungary, Bulgaria, Slovakia, Estonia, Lithuania, Latvia). " The whole question now is whether there is abuse of a dominant position,” said a spokesperson for the Commission. “It is premature to prejudge the results of the investigation ". But he is not " ruled out that the investigation be extended to other Member States if the investigation reveals new facts".

Dog threat justifying specific protection

Questioned by B2, the Commission's spokesperson on competition did not indicate that specific measures had been taken to protect the various investigators of DG Competition against Gazprom. On the contrary, it seems the Commission. " There is no reason to suspect anything. Gazprom cooperated (with the Commission) throughout the investigation and did not obstruct. There's no reason to believe it won't. " in the future.

Gazprom recalls its state-owned status

For its part, Gazprom reacted in a press release, stressing that today (the press release is from September 5), " our company has not received any official notification from the Commission on this subject (the announcement on the website of the opening of an infringement procedure). " The opening of a procedure does not imply that Gazprom has breached EU competition rules he adds. " Gazprom scrupulously complies with all provisions of international and national law in all countries where the group conducts business.” And to warn. “We expect that the investigation will respect our regulatory rights and our legitimate interests based on international and European law and that account will be taken of the fact that OAO Gazprom, registered outside the jurisdiction of the EU, is a authorized enterprise, according to the legislation of the Russian Federation, with specific social functions and the status of a strategic organization, administered by the government. » The allusion is clear no!

A strategic procedure

Why talk about this information on a site dedicated to foreign policy and defense? Because Gazprom is not just a Russian company. It is one of the tools of Russian power, intrinsically linked to its strategic interests. As effective, if not more, than an armored brigade or a squadron of Sukhoi. Recall that the current Prime Minister Dmitry Medvedev sat on the board of directors and that its current president, Alexei Miller, was Minister of Energy, and is part of the Putin clan which he followed from the town hall of St Petersburg. (Leningrad), where he comes from, to the presidential administration. We will now have to see how Gazprom - and the Russian government - will react. Are the gas pipelines that supply several European countries not going to have a few "breakdowns" as winter approaches?

Europe better prepared than before in the face of a cut

On the possibility of gas cuts, the European Commission, Marlene Holzner, however, says that everything is ready and “better than before”. Responding to a question from B2, she stated that " we have no indication of a possible problem. We are better prepared this time than in the past. "Each Member State must therefore" ensure that each gas company has at least 30 days of gas in stock”. Europe has also sought to " diversify its sources of supply », contracts have been negotiated with other providers to deal with a disruption ". In the event of a bilateral agreement that does not comply with European legislation, we also have the possibility of requesting a change to this agreement”. Otherwise, " the European Commission can initiate an infringement procedure”.

(Updated September 5) with details provided by the European Commission on the countries concerned, possible protection measures and anticipation of gas cuts, as well as Gazprom's reaction

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Nicolas Gros Verheyde

Chief editor of the B2 site. Graduated in European law from the University of Paris I Pantheon Sorbonne and listener to the 65th session of the IHEDN (Institut des Hautes Etudes de la Défense Nationale. Journalist since 1989, founded B2 - Bruxelles2 in 2008. EU/NATO correspondent in Brussels for Sud-Ouest (previously West-France and France-Soir).

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