Naftogaz Complained to the EC about Gazprom's Actions

Source: 12/22/2021, Location: Asia

the national joint-stock company Naftogaz of Ukraine filed a complaint with the European Commission alleging that Russian Gazprom abused its dominant position on the European gas market.

The national company has applied to the Directorate General for Competition for immediate action to normalize the situation. "Gazprom has sharply reduced its own gas sales on the European spot market despite growing demand and limits the ability of other companies to supply additional gas to Europe and compete with Gazprom. This is one of the key causes of the crisis and the record rise in prices in Europe. Gazprom's actions are anti-competitive and have had significant negative consequences for all European consumers. Naftogaz, as one of the largest buyers of gas in Europe, is also suffering from these abuses. Therefore, we ask the European Commission to respond appropriately to the violations, "said Naftogaz Chairman Yuri Vitrenko.

In its complaint, Naftogaz draws the European Commission's attention to a number of specific abuses. In particular, it concerns Gazprom's deliberate refusal to properly fill gas storage facilities in the EU owned by Gazprom or in which it has significant reserved volumes. In addition, the Russian company abruptly and without good reason stopped selling gas through its own electronic platform. With sufficient gas volumes and the ability to use the free transit capacity of Ukraine's GTS, Gazprom has refused to supply large volumes to the EU. Also, without good reason, Gazprom did not add a gas transmission point on its electronic platform on the Russian-Ukrainian border. In addition, Gazprom continues to block exports of gas produced in Russia by private companies, as well as block the transit of gas from Central Asia to Europe.

The aim of such actions is, in particular, to create an artificial gas shortage and put pressure on the European Union to launch the Nord Stream-2 gas pipeline as soon as possible without complying with European legislation. Gazprom's actions directly contradict European antitrust law and have already led to rising prices to a record $ 1921 per 1,000 cubic meters. m (as of December 21, 2021).

The complaint also alleges that Gazprom does not discriminate against Nord Stream 2, the Ukrainian gas transportation system and other transit routes that transport Russian gas to Europe.

Naftogaz therefore asks the European Commission to take a set of immediate precautionary measures. In particular, Naftogaz asks the EC to oblige Gazprom to sell significant volumes of gas for sale via the electronic platform for supply on the Ukrainian-Russian border or at least on the border between Ukraine and the EU. At the same time, Gazprom's customers will have the opportunity to buy gas, in particular, on the Russian-Ukrainian border for further independent reservation of GTS capacities and transportation to Europe and / or injection of gas to Ukrainian underground storage facilities. In addition, Gazprom must provide technical capabilities for its gas transmission system for gas exports by private Russian production companies, as well as gas transit from Central Asia.

Naftogaz's proposals aimed at resolving the energy crisis in Europe as soon as possible are fair and balanced.

Naftogaz's appeal to the European Commission contains a brief description of Gazprom's abuses and anti-competitive actions, as well as priority proposals to normalize the situation - in the future the company will also provide the European Commission with expanded and supplemented materials.

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