Page 12 - Gi flipbook June/July 2018

NEWS | INTERNATIONAL

EUROPE
EU turns blind eye to Russian

stranglehold over European

gas supplies

RUSSIAN PRESIDENT almost like a colony, while Gazprom CEO Alexei Miller with
Vladimir Putin’s stranglehold Poland was forced to Russian President Vladimir Putin
over European gas supplies pay exorbitant prices for
has been laid bare by imported flows of pipeline
European Union documents gas from Siberia.
that expose deliberate The files leaked to
violations of EU law and a Members of the European
pattern of political bullying Parliament imply that
over many years. Brussels learnt the full truth
The longest investigation but is nevertheless turning
in EU history found that a blind eye as it prepares
the Kremlin-controlled to reach an understanding
energy giant Gazprom has with Moscow, disregarding
used its enormous power fundamental principles of
to pressure vulnerable EU law.
states in Eastern Europe “This is a very big deal.
and fragment the EU’s What the documents show
energy market with is that there was systematic is a confidential indictment privileged price may help
coercive pricing policies. abuse of dominant position, by the competition explain why it has been the
The investigation leaves and that it was clearly done directorate. It was drawn up chief champion of Gazprom’s
little doubt that Germany for political purposes,” said in 2015 after four years of interests in Brussels.
has been enjoying a Professor Alan Riley, an investigation. Polish politicians say
sweetheart deal with expert on EU energy law It said Gazprom had Germany has used its
Gazprom, gaining a at the Atlantic Council, a infringed multiple EU laws enormous influence to
competitive advantage in United States think tank. and had engaged in “abusive suppress the full findings
gas costs at the expense of “Gazprom was splitting behaviour”, charging “unfair of the inquiry and to push
fellow EU economies and the European energy prices” and leveraging its for a friendly settlement
leaving front-line states market at every point. And “dominant position”. The with Gazprom.
at the mercy of Moscow’s now the Commission is Commission called for fines “What we’re told is that
strong-arm tactics, minded to do a deal that of up to 30 per cent of the Commission wants an
according The Telegraph. treats the East Europeans relevant sales. amicable settlement and
A leaked document from as if they were not member “The Commission considers has already decided to do
the European Commission states at all.” that the infringement this deal. It is disloyal and
(EC) paints an extraordinary The Competition has been committed Poland is one of the victims,
picture of predatory Commissioner Margrethe intentionally. Gazprom is but not the only one,” said
behaviour, with Gazprom Vestager has pursued an fully aware of the illegal Jacek Saryusz-Wolski, a
acting as an enforcement aggressive campaign against nature of at least some Polish MEP.
arm of Russian foreign US technology companies of the various contractual At the time of the inquiry
policy. Bulgaria was treated such as Google and Apple, and non-contractual Russia had a near monopoly
openly vilifying the Silicon measures,” it said. across the old Warsaw Pact
Valley leaders as a threat to Gazprom was charging region, accounting for over
European democracy. Poland $US350 ($451) per two thirds of natural gas
Critics say the double 1,000 cubic metres of gas, supply to several countries.
standards over Gazprom compared with $2US00 Its three sets of pipelines
suggest that the EC has further down the Yamal provided 64 per cent of EU
succumbed to “regulatory pipeline in Germany. The gas imports, though the
capture” or other forms of apparent reason was to advent of liquefied natural
pressure, and has become punish Poland for refusing gas and the construction
ideologically unhinged. to cede control over that of LNG terminals in Poland
The key report, called a section of the infrastructure and Lithuania has reduced
“Statement of Objectives”, to the Russians. Germany’s this dependency slightly.■

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News.indd 7 17/05/2018 13:50