/ world immediately information/ Because of Bulgaria’s place, the European Fee might reopen the antitrust case in opposition to Gazprom on suspicion of abuse of its dominant place on the Japanese European gasoline market.
The case AT.39816 – Gasoline provides in Central and Japanese Europe will most certainly enter the agenda of the brand new composition of the European Fee.
Based on sources in Sofia, the Bulgarian state gasoline provider Bulgargaz is making ready an enchantment to the European Fee with a view to resuming antitrust proceedings in opposition to Gazprom because of the Russian firm’s failure to meet one in all its key guarantees.
It’s Gazprom’s obligation to regulate Russian gasoline costs to common EU market costs that allowed the European Fee to say no to pursue this case.
On Might 24, 2018, the European Fee, with the choice of the Vice President for Competitors Coverage Margret Vestager, closed the antitrust investigation in opposition to Gazprom. The case lasted seven years and ended with out a tremendous, however with essential circumstances: the Russian firm needed to decrease costs and cease making an attempt to forestall opponents from coming into the Japanese European market.
The investigation issues Gazprom’s alleged abuse of its dominant place on the gasoline markets of Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Hungary and Slovakia.
Throughout the framework of the case, the market costs of pure gasoline in Europe have been clearly outlined. These are the costs of the continental hubs, in addition to the common costs on the borders of Germany, France and Italy.
The value of Russian gasoline for Bulgaria didn’t trigger concern till the tip of 2018. Issues appeared in early 2019, when hub costs started to fall sharply.
Based on Bulgargaz, the Bulgarian request for worth revision was despatched initially of August final 12 months, and the settlement between the 2 events expired after 120 days (initially of December).
As reported, the negotiations between “Bulgargaz” and “Gazprom” over the last six months have been intense, however unsuccessful. Sources stated the dearth of response to a lot of Bulgarian proposals was a means for Gazprom to delay the method of reviewing the contract worth, and it was clear the Russians have been unwilling to achieve an settlement.
In the meantime, the European Fee printed the official information on the border costs of pure gasoline within the third quarter of 2019. From the following report of the fee, it turned clear that seven of the eight nations coated by the antitrust investigation have already obtained worth reductions from Gazprom. All besides Bulgaria.
Within the third quarter of 2019, Bulgaria turned the nation that buys gasoline on the highest worth within the EU. The info for the fourth quarter is more likely to replicate the continuation of this example.
That’s the reason Bulgargaz plans to show to the European Fee for assist to pressure Gazprom to meet its voluntary obligations.
As well as, there’s a threat that the antitrust proceedings in opposition to Gazprom will probably be reopened, through which case Gazprom will as soon as once more face the chance of a giant tremendous – which the corporate averted by accepting obligations.
This isn’t the primary time that the Bulgarian gasoline sector has confronted Gazprom’s reluctance to revise the phrases of the contract. For many years, comparable requests frequently “run right into a brick wall”largely on account of the truth that virtually 100% of the nation’s pure gasoline consumption relies on provides from Russia.
Nonetheless, every little thing is altering. Final 12 months, Bulgargaz was the primary to import 500 million cubic meters of gasoline from different suppliers at decrease costs. Most of those volumes are reported by US LNG. For comparability, the nation’s whole annual consumption is estimated at 3 billion cubic meters.
As well as, a billion cubic meters are anticipated to be imported from Azerbaijan by way of the Southern Gasoline Hall when the Greece-Bulgaria Interconnector (IGB, also referred to as Stara Zagora-Komotini) is prepared within the second half of 2020.
Bulgaria plans to import Russian gasoline from Turkey by way of the Balkan Gasoline Pipeline (a continuation of the Turkish Stream pipeline), which can ship Russian gasoline to the European territory of Turkey by way of the underside of the Black Sea. The gasoline will go additional to Serbia, Hungary and Austria, and Bulgaria plans to make use of a part of the gasoline for its personal consumption.
Translation: M.Zhelyazkova
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