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PGNiG calls for Gazprom fine

Published by
World Pipelines,

The Polish Oil and Gas Co. has called for the European Commission to fine Gazprom and create competitive conditions on the gas market.

PGNiG SA has presented its position on commitments submitted by Gazprom within the Commission's antitrust proceedings, and has indicated a long-standing violation of antitrust law by the Russian corporation and has proposed imposing a number of obligations on Gazprom.

“The violations committed by Gazprom have been long-lasting and serious. They have caused considerable damage to the gas market in Central Europe. This applies both to the competition in the gas market and to the financial losses incurred by the recipients of commodity. We would like to emphasize that Gazprom has not refrained from violating the competition law and, until this day, the company has not complied with its provisions,” said Piotr Wozniak, President of the PGNiG SA Management Board.

PGNiG SA will submit its position to the European Commission as part of the so-called market test conducted by the EC with regards to antitrust proceedings against Gazprom.

PGNiG argues that Gazprom has infringed antitrust laws in Central and Eastern Europe by:

  • Partitioning of Central and Eastern European gas markets.
  • Excessive pricing policy towards customers.
  • Conditioning gas supplies upon maintaining or taking control over gas infrastructure by Gazprom.

“This approach will make it possible to compensate for the losses caused by Gazprom’s illegal practices. According to the provisions of the applicable law, the fine will be paid to the budget of the European Union. The affected companies will be given an opportunity to pursue their claims against Gazprom in Member States’ courts. This will bring an immediate halt to Gazprom’s illegal practices and will facilitate the introduction of competition on the gas markets in Poland and other Central and Eastern European countries” stressed President of the PGNiG SA Management Board.

PGNiG SA has also proposed to impose a number of commitments on Gazprom, including:

  • Granting Gazprom customers a one-time right to set a price formula in the contract.
  • Gazprom should change the "Take or Pay" clauses by lowering the current maximum level of mandatory gas deliveries in long-term contracts for Central and Eastern European customers to a maximum of 75%.
  • Divestment by Gazprom in selected companies that own transport and storage infrastructure in the EU.
  • Obligating Gazprom to approve the introduction of network codes and bidirectional gas flows on all interconnectors between gas grids of the Central European Member States and the Energy Community.
  • The unconditional execution of all III Energy Package principles towards transmission infrastructure owned by EuRoPol Gaz (which is the owner of part of Yamal-Europe Pipeline in Poland), including with respect to the certification of independent system operator.

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