Gazprom accused of unfair business practices

Gazprom, which supplies Europe with much of its natural gas, is being accused by the European Competition Commission of unfair competition practices and overcharging eastern European countries, reports Business Insider. Margrethe Vestager, the European Competition Commissioner, is expected to deliver the exact charges to Gazprom soon.

The majority stake of Gazprom is owned by the Russian government

Gazprom is the world’s largest producer of natural gas, and one of the largest companies in the world. Although a joint open stock company, the majority stake of Gazprom is owned by the Russian government, raising the potential for further tensions in Europe.

Many European countries are reliant upon Russian gas, often leading to geopolitical concerns, resulting in some countries boarding Russia to start seeking energy independence, such as Lithuania.

The decision coincides with reports from the Guardian newspaper that Alexey Miller, the gas giant’s CEO, is heading to Greece. The trip is nominally to discuss energy issues, but the fear is that Greece may turn to Russian funds if their current negotiations with EU lenders fail.

The levelling of unfair business practices at Gazprom comes only a week after Vestager announced that her office would also bring charges of unfair business conduct in Europe against Google. According to Business Insider, “Vestager has the power to order changes in companies’ business practices as well as to levy fines of, in theory at least, up to 10 percent of their annual global turnover.” However it is uncertain whether state-backed Gazprom would comply.