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Antimonopoly Committee Imposes Fine on Gazprom Amounting to UAH 85 Bln for Abuse of Monopoly on Gas Transit Market

Friday, 22 January 2016 16:47

 The Antimonopoly Committee of Ukraine has imposed the Russian gas monopolist “Gazprom” a fine amounting to UAH 85 bln for abuse of monopoly on the domestic gas transit market, as it is said by Head of Department Yurii Terentiev, UNIAN reports.

“The decision on abuses of monopoly on natural gas transit market by cross-country pipelines on the territory of Ukraine by the company “Gazprom” as the monopoly buyer has just been taken. The amount of fine is UAH 85 bln,” – wrote Terentiev.

As UNIAN reported, in late April 2015 Prime Minister of Ukraine Arsenii Yatseniuk applied to AMCU with the request to initiate investigation against Gazprom, as its actions on the Ukrainian market inflict damage to Ukrainian economy, and the company itself “acts on discriminatory,   noncompetitive conditions”.

As per data, provided by the Ministry of Justice, the Ministry of Energy and Coal Mining, the Antimonopoly Committee and NJSC “Naftogaz of Ukraine”, due to actions of “Gazprom” Ukraine lost its opportunity to trade gas on its western border as well as lost its opportunity to fully use the Slovak route for gas import, as the Russian gas monopolist bought all facilities of this gas pipeline. Also, blocking virtual gas streams from Slovakia, “Gazprom” deprived supplier of its potential considerable share of Ukrainian market.

On its part, on April 22, 2015, the European Commission has pressed official charges against Gazprom in connection with it dominating position on Central and Eastern European market, which violates antimonopoly EU legislation.

Meanwhile, Ukraine addressed to partners to jointly conduct investigation and identify “the fact of monopolism of Russian company “Gazprom” not only in the European Union, but also in Ukraine”.

In mid-May the Antimonopoly Committee of Ukraine by the order of the Prime Minister started antimonopoly investigation against “Gazprom”.

On December 24, 2015, the Antimonopoly Committee declared “Gazprom” monopolist on the natural gas transit market on the territory of Ukraine and expected to have meeting with representatives of the company and present them with evidence of abuse of monopoly in Ukraine.

In the meantime, on January 19, 2016, Ukraine unilaterally raised the cost of Russian gas transit services to EU countries by 50%. The tariff was raised to $4.5 per each 100 km. According to the Minister of Energy and Coal Mining of Ukraine Volodymyr Demchyshyn, since the beginning of 2016 Ukraine fully changed its approach to Russian gas transit in the EU, fixing tariffs for input and output from gas transportation system. Currently “Naftogaz” prosecutes ”Gazprom” in Stockholm Arbitrage under contract of 2009, including in terms of transit of Russian gas.  

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