13 September 2012

European Commission's Antitrust Inquiry of Gazprom

Consequences for the Gas Market in Europe

This bulletin argues that the initiation of an antitrust proceeding against Gazprom proves that the European Commission is aiming to play an active role in the liberalization of the gas market in the European Union. The antitrust decision that may arise from the competition investigation may not only impose multi-billion euro fines on Gazprom but also limit its further expansion on the European energy market and hamper efforts to win over investors for capital-intensive ventures. Changing the price formulas in long-term contracts for market-oriented ones sought by the EX may enhance the transformation of the gas sector, a process which is under way in Poland and other EU Member States.

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