Naftogaz lists measures for EU to fight Gazprom monopoly on gas market

Naftogaz of Ukraine (NAFTO) filed a competition law
complaint with the European Commission against Gazprom for abusing its dominant
position on the European gas market, the company reported on Dec. 22. According
to the complaint, Gazprom decreased gas deliveries to the EU spot market where
demand has increased (despite having sufficient volumes and free transit
capacities), as well as prevented other Russian and Central Asian companies
from supplying their gas to the EU. Due to such anti-competitive actions,
contributing to record-high prices of gas on the EU market, Naftogaz is
suffering losses, its CEO Yuriy Vitrenko said in the press release.

“The goal of [Gazprom’s] action is to create an artificial
deficit of gas to pressure the EU into securing the rapid commissioning of the
Nord Stream 2 pipeline without complying with European rules,” Naftogaz stated,
calling on the EU Commission to implement precautionary measures. They include
ordering Gazprom to: a) release significant gas volumes for sale on its
Electronic Sales Platform on the Ukrainian-Russian border (or on the border of
Ukraine and EU countries), b) provide its transmission system for other gas
production companies that are willing to supply gas to the EU.

Alexander Paraschiy: Naftogaz is trying to use Gazprom’s uncompetitive actions to its
benefit by realizing its key dream – forcing Gazprom to sell natural gas on the
Russian-Ukrainian border. In this way, Ukraine’s gas transition system can
start working for EU clients instead of Gazprom. While the offered solutions
can indeed smoothen the EU gas crisis, we do not believe the EU Commission will
be able to implement them soon, for bureaucratic reasons and due to apparent
lack of political will for that.