EU Almunia says Gazprom’s antitrust proposal to be presented this week

By Foo Yun Chee

PARIS (Reuters) – Russian gas export monopoly Gazprom (MCX:GAZP) has promised to present proposals this week to end a year-long investigation into its business practices and avoid a possible fine of as much as $14.3 billion, the European Union’s antitrust chief said on Monday.

Last year, the European Commission informed Gazprom that the company may have obstructed the free flow of gas in Central and Eastern Europe, blocked competing suppliers and charged customers inflated prices by making its gas prices dependent on oil prices.

The European competition watchdog threatened earlier this year to formally prosecute Gazprom, which supplies a quarter of Europe’s gas demand.

Bowing to EU pressure, Gazprom Vice President Alexander Medvedev told EU Competition Commissioner Joaquin Almunia last week that the company was ready to settle the case.

“He promised that the proposal would be sent to my office this week,” Almunia told reporters on the sidelines of a conference organised by the Prime Minister Cercle in Paris.

The Commission is expected to seek the views of third parties before deciding whether to accept Gazprom’s offer.

(Reporting by Foo Yun Chee; editing by Martin Santa and Keiron Henderson)