Kiev Fines Gazprom $3.4 Billion

The Antimonopoly Committee of Ukraine (AMCU) fined Gazprom 85 billion Hryvnia (around 3.4 billion dollars) for an abuse of dominance in the gas transit market in Ukraine, as reported on 22 January, by the head of AMCU, Yuriy Terentyev.  “The decision has just been made concerning the abuse of the dominant position in the market by the monopoly gas producer Gazprom. The amount of the fine is 85 billion Hryvnia," wrote Terentyev on his Facebook page. Yaroslav Teklyuk, Director for Legal and Governmental Affairs for Naftogaz of Ukraine specified that the representatives of Gazprom did not participate in the AMCU meeting, as reported by Interfax.

The Antimonopoly Committee of Ukraine initiated an investigation into the breach of economic competition laws by Gazprom at the request of the Cabinet of Ministers of Ukraine in April 2015. The investigation revealed that the Russian gas company has a monopoly in the gas transit market in Ukraine. It was concluded that from 2009 to 2015 Gazprom was constantly breaching the conditions of the contract with NJSC Naftogaz of Ukraine. Preliminary results of the investigation were sent by AMCU to Naftogaz and Gazprom at the end of 2015. Ukraine agreed with the conclusions but the Russian gas monopoly did not respond.

Gazprom has not acknowledged the fine. Such an accusation is "extremely surprising” because Gazprom does not conduct business in Ukraine, it only transmits gas to Naftogaz on the western border of Russia, commented the Russian company to RBC. The decision of the AMCU can be only considered as an attempt to exert pressure on Gazprom. The Russian company intends to defend their rights.

  Gazprom, Ukraine, monopoly