This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2017/03/13/business/eu-russia-gazprom.html

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
In Sign of Thaw With Russia, E.U. Accepts Gazprom Concessions on Gas Sales In Sign of Thaw With Russia, E.U. Accepts Gazprom Concessions on Gas Sales
(about 2 hours later)
BRUSSELS — European antitrust regulators moved a step closer on Monday to resolving a longstanding dispute with the Russian energy giant Gazprom over the company’s dominance in natural gas markets.BRUSSELS — European antitrust regulators moved a step closer on Monday to resolving a longstanding dispute with the Russian energy giant Gazprom over the company’s dominance in natural gas markets.
Countries in Central and Eastern Europe have long argued that the state-controlled Gazprom used its powerful position to inflate prices and quash competition. The European authorities filed charges against the company nearly two years ago, accusing it of breaking regional antitrust rules.Countries in Central and Eastern Europe have long argued that the state-controlled Gazprom used its powerful position to inflate prices and quash competition. The European authorities filed charges against the company nearly two years ago, accusing it of breaking regional antitrust rules.
On Monday, however, the European Commission, the executive arm of the European Union, said it had provisionally accepted commitments by Gazprom to address those charges. Margrethe Vestager, the bloc’s competition commissioner, could have levied a large fine and forced the company to change the way it does business, but thus far has not opted to do so. On Monday, however, the European Commission, the executive arm of the European Union, said it had provisionally accepted commitments by Gazprom to address those charges. Margrethe Vestager, the bloc’s competition commissioner, could have imposed a large fine and forced the company to change the way it does business, but thus far she has not opted to do so.
“We believe that Gazprom’s commitments will enable the free flow of gas in Central and Eastern Europe at competitive prices,” Ms. Vestager said in a statement. “We now want to hear the views of customers and other stakeholders and will carefully consider them before taking any decision,” she said.“We believe that Gazprom’s commitments will enable the free flow of gas in Central and Eastern Europe at competitive prices,” Ms. Vestager said in a statement. “We now want to hear the views of customers and other stakeholders and will carefully consider them before taking any decision,” she said.
The move is not the final word: Gazprom’s customers and competitors have seven weeks to comment. The vetting process, a regular step in antitrust settlements involving the European Commission, has in the past led the commission to abandon deals but that outcome is relatively rare. The move is not the final word: Gazprom’s customers and competitors have seven weeks to comment. The vetting process, a regular step in antitrust settlements involving the European Commission, has led the commission to abandon previous deals, but that outcome is relatively rare.
Still, it is a major step toward ending the case.Still, it is a major step toward ending the case.
It may signal an improvement in ties between Russia and the European Union, at odds for years over what officials in Brussels assert are aggressive tactics by a Moscow leveraging its role as one of the region’s main energy suppliers to extract diplomatic concessions. It may signal an improvement in ties between Russia and the European Union, at odds for years over what officials in Brussels say are aggressive tactics by Moscow in leveraging its role as one of the region’s main energy suppliers to extract diplomatic concessions.
The acceptance was also part of efforts by the European Union to reduce reliance on Russian energy, as the two sides face off over a growing list of geopolitical disputes, including the conflict in Ukraine and the civil war in Syria.The acceptance was also part of efforts by the European Union to reduce reliance on Russian energy, as the two sides face off over a growing list of geopolitical disputes, including the conflict in Ukraine and the civil war in Syria.
The high level of mutual dependence between Europe and Russia also helped pave the way to a settlement. The European Union relies on Gazprom for about a third of its natural gas supply while Moscow earns significant revenue from selling the gas to Europe. The high level of mutual dependence between Europe and Russia also helped pave the way to a settlement. The European Union relies on Gazprom for about a third of its natural gas supply, and Moscow earns significant revenue from selling that gas.
A priority for Europe was to prevent a repeat of the so-called gas wars of 2006 and 2009. In those cases, Gazprom stopped shipping fuel through Ukraine, choking off supplies westward and leaving people in European Union member states like Bulgaria shivering in the midwinter cold.A priority for Europe was to prevent a repeat of the so-called gas wars of 2006 and 2009. In those cases, Gazprom stopped shipping fuel through Ukraine, choking off supplies westward and leaving people in European Union member states like Bulgaria shivering in the midwinter cold.
The antitrust allegations focused on Gazprom’s stranglehold on the energy supplies for formerly communist and Soviet-bloc countries like Poland and Lithuania. Gas prices in those countries have frequently been higher than prices in Western Europe. The antitrust allegations focused on Gazprom’s stranglehold on energy supplies for formerly communist and Soviet-bloc countries like Poland and Lithuania. Gas prices in those countries have frequently been higher than prices in Western Europe.
President Dalia Grybauskaite of Lithuania, the country that called most vigorously for formal charges, said in 2015 that the case should help to end an era of “political and economic blackmail” by Russia. President Dalia Grybauskaite of Lithuania, the country that called most vigorously for formal charges, said in 2015 that the case should help end an era of “political and economic blackmail” by Russia.
Among the issues the European Commission investigated was whether Gazprom harmed competition by restricting gas flows to some parts of Europe by reducing its customers’ ability to resell it across borders.Among the issues the European Commission investigated was whether Gazprom harmed competition by restricting gas flows to some parts of Europe by reducing its customers’ ability to resell it across borders.
The inquiry also looked at whether the company used its powerful market position in Bulgaria and Poland by making supplies of gas conditional on agreements from those countries to participate in pipeline projects that would carry even more Russian gas into Europe.The inquiry also looked at whether the company used its powerful market position in Bulgaria and Poland by making supplies of gas conditional on agreements from those countries to participate in pipeline projects that would carry even more Russian gas into Europe.
In its statement, the European Commission said Gazprom had pledged to remove restrictions on reselling gas; ensure that prices in Central and Eastern Europe were competitive; and not act on any advantages regarding gas infrastructure that it had obtained because of its dominant selling position.In its statement, the European Commission said Gazprom had pledged to remove restrictions on reselling gas; ensure that prices in Central and Eastern Europe were competitive; and not act on any advantages regarding gas infrastructure that it had obtained because of its dominant selling position.
If the deal between Gazprom and the European authorities comes into force, it will allow regulators in Brussels to fine the Russian company up to 10 percent of its worldwide revenue if it breaks any of the commitments. If the deal between Gazprom and the European authorities comes into force, it will allow regulators in Brussels to fine the Russian company up to 10 percent of its worldwide revenue in the event it breaks any of the commitments.