The European Commission should take into account the argumentation of Lithuania's government when deciding on the dispute with Russia's gas concern Gazprom, says Lithuania's Energy Minister Žygimantas Vaičiūnas.
Gazprom Neft
© Reuters / Scanpix

The minister spoke in comment of information published by Reuters news agency that the Brussels officials may shortly state agreement to the Russian proposals after more than six years of probe of Gazprom's abuse.

Citing unnamed sources, Reuters said that the European Commission's decision could come before the end of the month. If the commission approves the proposed discounts, Gazprom would avoid a fine that could total up to 10 percent of its global turnover.

Gazprom revised its initial proposal after negative opinion from European Union (EU) countries and clients, however, the main elements remain unchanged, as stipulated in the new draft received by Reuters.

Last year, Gazprom proposed linking prices with some indicators on the Western European market and drop the ban of reselling gas purchased from the company.
Vaičiūnas said that, according to the latest data, the process of aligning commitments was still not finished.

"We have submitted our opinion for the European Commission's so-called market test of Gazprom commitments. From the information that I have, the process of aligning commitments is still in progress and I am certain that some of our proposals should be taken into consideration," the minister told BNS on Tuesday evening.

In the energy minister's words, Gazprom's commitments on long-term contracts would not be consistent with today's market reality and "their benefits would be rather limited."

"This is a question of consistency of commitments to the current realities. No matter how ambitious or precise the commitments are, they are aimed at long-term Gazprom contracts. The share of such contracts is currently negligible, and the situation has not changed since the start of the probe in 2012 – short-term contracts are in effect on the market," said the minister.

Last May, Lithuania's Energy Ministry stated that the offers submitted by Gazprom to Brussels at the time did not guarantee that the Russian concern would not take advantage of the dominant status by restricting competition.

The government then said that the unfair Gazprom marketing caused Lithuania to incur around 1.5 billion euros in damage, stating that the Russian concern should be fined, if the offers are not improved.

The Stockholm arbitration in 2016 rejected the Lithuanian claim for millions of euros in compensation over the high gas prices in 2004-2012.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Producers: US tariffs to make dairies seek new markets

US import tariffs on Lithuanian dairy products will force exporters to look for new markets, the...

Cybersecurity expert in Vilnius: guard your cables and cords and never borrow from others (1)

Oct. 15th, 2019, Australia’s Deakin University Prof. Matthew Warren, Deputy Director of the Centre...

Dairy producers start feeling impact of rising US export duties

Lithuanian dairy producers say they have already felt the impact of duties , rising as of Friday,...

Nauseda doesn't expect EU budget deal by end of 2019

EU member states differ too much in their positions on the bloc's next multi-annual budget to...

Dairy products subject to 25 pct US import tariff

Lithuanian cheeses, yoghurts and other dairy products are now subject to a new 25-percent import...