Insider: EU takes a closer look at Gazprom

Created: 02/14/2022, 16:30

According to an insider, the EU competition authorities are likely to take a closer look at the European business of the Russian gas giant Gazprom.

(Iconic image) © Patrick Seeger/dpa

The Ukraine conflict between Russia and NATO continues to escalate.

Now the EU Commission is also getting involved.

According to an insider, the EU competition watchdogs are likely to take a closer look at the European business of the Russian gas giant Gazprom in view of the gas price explosion.

The EU Commission will probably intensify its investigations, said a person familiar with the considerations of the Reuters news agency.

However, there is still no decision on further steps.

The EU Commission declined to comment on this.

Gazprom did not respond to requests for comment.

Russia denies allegations

EU Competition Commissioner Margrethe Vestager reported last month that she had asked gas companies, including Gazprom, for information about the shortage of supplies.

Russia has denied allegations that it is holding back additional volumes that could lower gas prices.

Russia is meeting all of its delivery obligations.

Gazprom had stated that if desired, even more gas than agreed could be supplied.

The head of the International Energy Agency (IEA), Fatih Birol, said in January that Russia was contributing to the tense gas supply in Europe.

In 2018, Gazprom and the EU Commission clashed over the pricing policy of the Russian state-owned company.

Gazprom was only able to avert a fine of up to ten percent of its global sales by agreeing to revise its price clauses and allow more competition. 

Von der Leyen: "Odd business behavior by Gazprom"

Last week, EU Commission President Ursula von der Leyen also saw increasing evidence of the use of gas supplies as a means of exerting political pressure on Russia.

"There are increasing signs that the Kremlin is continuing to use gas supplies as a means of exerting political pressure," said von der Leyen in a contribution to a European conference in Berlin.

This affects the prices.

It cannot be ruled out that gas prices could remain at a high level for a while.

More than 40 percent of European gas imports came from Russia.

"And despite peak prices and excessive demand, there seems to be no interest in increasing deliveries at the moment," she noted.

"This is a very strange business practice by Gazprom."

This must have consequences: "That's why we have to make ourselves independent of it and work consistently with reliable gas suppliers," she said.

For example, a partnership for energy security is being built up with the USA, which is primarily concerned with liquefied gas supplies.

The storage facilities in Europe could also be expanded and used better.

Above all, the development makes it clear that we must increasingly rely on renewable energy*.

"Every kilowatt hour of electricity that Europe generates with sun, wind, hydropower and biomass makes us less dependent on Russian gas and other CO2-polluting energy imports."

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