EU Announces Antitrust Probe into Gazprom Market Practices

The European Commission has opened an investigation into suspected anti-competitive market practices by Russia's Gazprom. The Commission said it was concerned the natural gas producer was abusing its dominant market position, and would specifically investigate suspicions that Gazprom was (1) hindering the free flow of gas across the EU's 27 countries, (2) preventing supply diversification, and (3) imposing unfair prices on its customers by linking the price of gas to oil prices. "Such behaviour, if established, may constitute a restriction of competition and lead to higher prices and deterioration of security of supply," the Commission said in a statement. "Ultimately, such behavior would harm EU consumers." Several EU states rely on Gazprom for a majority of their consumption and are locked into long-term contracts.  Under EU antitrust regulations that bar suppliers from controlling the transport infrastructure used to deliver their gas, Gazprom may be forced to sell its EU pipeline network and/or to dismantle existing market-sharing deals.
http://af.reuters.com/article/energyOilNews/idAFL6E8K4GJU20120904