Lithuania shall take a strong and principled line if it wants to win the dispute with Gazprom, Sekmokas says.
The formal proceedings were opened more than a year after Lithuania addressed the Commission over the issue and about a year after the Commission carried out inspections at the premises of Gazprom-owned companies in several Member States, including Lithuania.
“I think that the opening of that probe was justified. Lithuania’s court has also found it justified to open an investigation into the activities of Lietuvos Dujos (Lithuanian Gas). It proves once more that our measures taken to ensure fair prices for consumers are measured and won approval in the European Commission,” Sekmokas told BNS on Tuesday night.
“I think that Gazprom should also assess the current circumstances and respond. I do not know which line they will choose ... Gazprom best understands a stance that is principled, strong, and consistent. This is exactly what our stance is now. And when they see any uncertainty, tossing about ..., then they feel powerful and strong and start using their rhetoric, threatening with arbitration and so on,” Sekmokas said.
Lithuania sought to ensure lower prices of gas from the very beginning of this process and used two ways to achieve that purpose, the minister said. In particular, Vilnius chose to implement the European Union’s third energy package and to unbundle gas transmission and distribution operations. Moreover, the country decided to build a liquefied natural gas (LNG) terminal in Klaipėda in order to secure the alternatives for gas supply.
“Both actions have already started to produce specific results,” Sekmokas said.
The minister believes that the probe will definitely take time.
The European Commission said on Tuesday that it had opened an official anti-trust probe against Russia’s gas giant Gazprom on suspicion it was hindering competition in Central and Eastern European gas markets in breach of European Union‘s (EU) anti-trust rules.
The Commission is investigating three suspected anti-competitive practices in Central and Eastern Europe. First, Gazprom may have divided gas markets by hindering the free flow of gas across Member States. Second, Gazprom may have prevented the diversification of gas supply. Finally, Gazprom may have imposed unfair prices on its customers by linking the price of gas to oil prices.
Vilnius wants to have the price of gas linked with biofuel prices instead of oil prices, which is the current practice of Gazprom in setting the price of gas for Lithuania.
Sekmokas earlier said that Europe could follow the suit of the US and stop linking the price of gas with the prices of crude and oil products.
The formula set in the long-term agreement between Lietuvos Dujos, Lithuania‘s gas supply and distribution company, and Gazprom links the natural gas price to global oil prices. This formula, which dates back to 2008, replaced the formula established in 2004.
Sekmokas said in May that he expected the Commission probing Lithuania’s complaint on the price of gas supplied to Lithuania by Gazprom and possible abuse by Russia’s gas monopolist to publish its conclusions this year. He expected the conclusions to be favorable for Lithuania.
In minister’s opinion, Gazprom’s trading policy might change as a result of Commission‘s conclusions. He reminded that Lithuania wanted the price of gas to be identical to the prices applied to Latvia and Estonia.
Last September, officers of Lithuania’s Competition Council carried out searches at the premises of Lietuvos Dujos in an effort to find documents and information proving violations of legislation.
Following more than a year-long hearing of a dispute between the Energy Ministry and Lietuvos Dujos, the Vilnius Regional Court decided on Monday to launch an investigation into the company’s activities. The probe will be carried out by the experts who will be appointed by the court at a later date.
Gazprom, which is Lithuania’s sole supplier of gas, owns around 38 percent of shares in Lietuvos Dujos.
The decision to open an anti-trust probe against Gazprom proves that it is not just Lithuania’s problem, the Parliament Speaker says.
“I am really happy since earlier it seemed that it is just a concern for Lithuania and we had no support,” Irena Degutienė said in an interview to Žinių Radijas on Wednesday.
The opening of the probe was justified, she said adding that Gazprom would have to respond to the decisions taken as a result of the investigation.
“The opening of the probe was justified and I can remind that Lithuania has addressed the European Commission over potential breaches of European competition principles and ... I think that they will assess the current situation and Gazprom will have to respond to the decisions taken as well,” Degutienė said.
Prime Minister Andrius Kubilius said late on Tuesday that the Commission’s decision to open the probe against Gazprom reinforced Lithuania’s stance in dispute with Russia’s gas giant.
“Reports about anti-trust probes prove things we have been emphasizing repeatedly. We can only remind that Lithuania addressed the European Union’s anti-trust watchdog as far back as in the spring of 2011,” he told BNS on Tuesday night.
