Lithuania Competition Watchdog Fines Gazprom $48 mln

Posted by Joseph Keefe
Tuesday, June 10, 2014

Fine is highest ever imposed by the Lithuanian watchdog; Gazprom is Lithuania's sole supplier of natural gas. Company also faces EU competition investigation.

Lithuania's competition authority has fined Russia's Gazprom a record 123 million Lithuanian litas ($48 million), saying that the company had prevented competition in the Baltic state.

Gazprom, the world's top gas producer and supplier of about 30 percent of Europe's gas needs, is also facing a European Union investigation over suspected anti-competitive behaviour, including overcharging customers and blocking rival suppliers.

The company, Lithuania's sole natural gas supplier, breached competition rules when it refused to negotiate a deal on gas exchange with Lithuanian power producer Lietuvos Energijos Gamyba in 2012, the Competition Council said in a statement.

The power producer, a part of Lithuania state-owned energy group Lietuvos Energija, had negotiated a deal with an unidentified seller in Western Europe to buy gas from 2013 to 2015. But because the physical delivery was not possible, Lietuvos Energijos Gamyba asked Gazprom to exchange the gas the Lithuanian company planned to buy in Western Europe for volumes the Russian company delivers to Lithuania via Belarus.

Gazprom, however, refused to enter negotiations on such a deal, prompting the Lithuanian company to file a complaint with the competition authority in July 2012.

It meant that Lithuanian consumers had to pay more for electricity and heat generated by burning more expensive Russian gas, the Competition Council said.

Gazprom's actions were in breach of its obligation not to prevent customers from seeking alternative suppliers when the Russian company bought 37.1 percent of Lithuania's gas supplier Lietuvos Dujos a decade ago, the Council added.

The 123.1 million lita fine is the biggest ever issued by the competition authority, the watchdog's spokeswoman said.

Lithuanian state-owned companies last month offered to buy Gazprom's stakes in the country's gas utility Lietuvos Dujos and gas transmission company Amber Grid.

Under European Union gas market rules designed to ensure fair competition, companies that supply energy are not allowed to dominate ownership of the infrastructure.

Gazprom, which is due to hold a board meeting on Wednesday to decide on its shares in Amber Grid and Lietuvos Dujos, declined to comment on the fine.

The competition authority also said that Gazprom refused to provide it with required information, citing the decision of Russia's President Vladimir Putin to ban strategic companies from sharing information with foreign regulators. ($1 = 2.5495 Lithuanian Litas)

 

Reporting by Nerijus Adomaitis

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Legal

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

PHA Budgets $ 275 mi for Capital Improvements

In 2015, the Port of Houston Authority has budgeted $275 million for various capital improvement projects. About $184 million is being allocated to its container

Finance

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

PHA Budgets $ 275 mi for Capital Improvements

In 2015, the Port of Houston Authority has budgeted $275 million for various capital improvement projects. About $184 million is being allocated to its container

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

Energy

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Chevron Scraps 2015 Share Repurchase Program

Chevron Corp halted its 2015 share repurchase program on Friday, a move to conserve cash amid tumbling oil prices.   The company's shares extended loses on the news,

BOEM Issues Supplemental Environmental Impact Statement

The U.S. Department of the Interior, Bureau of Ocean Energy Management (BOEM), announces the availability of the Draft Supplemental Environmental Impact Statement

LNG

Tohoku Electric's LNG Buy Sets Asian Spot Level

Japanese utility Tohoku Electric has purchased an LNG cargo for delivery in the third week of March at a price in the low $7 per million British thermal unit (mmBtu) range,

Yemen Lifts Force Majeure on LNG Deliveries

Yemen on Friday lifted force majeure on liquefied natural gas (LNG) deliveries from its Balhaf plant, trading sources with knowledge of the matter said. Reuters reported last week that the 6.

Gazprom, OMV Ink Additional Deal

Vienna hosted today the signing of an Addendum to the existing contract for gas supply to Austria between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Gerhard Roiss,

Government Update

PHA Budgets $ 275 mi for Capital Improvements

In 2015, the Port of Houston Authority has budgeted $275 million for various capital improvement projects. About $184 million is being allocated to its container

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

USCG Updates Rules for Arrival/Departure Notices, AIS

Final rule on vessel requirements for Notices of Arrival and Departure and Automatic Identification System published in Federal Register   U.S. Coast Guard (USCG)

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1534 sec (7 req/sec)