Lithuania Complains over Gazprom Dominance

Lithuania has stepped up a row with Gazprom, complaining to the European Commission about the abuse of dominant position by the Russian gas supplier.

In a official statement, The Ministry of Energy requested the European Commission to impose on Gazprom a requirement to supply natural gas on the basis of transparent, reasonable and non-discriminatory conditions.

"The goal of the Ministry of Energy is to ensure that terms and conditions for supply of natural gas to Lithuania were determined solely by economic considerations. It is also expected that greater attention of the European Commission to this situation would prevent Gazprom from increasing the economic pressure and Lithuania would be in the position to complete the strategic liberation of the gas sector."

“In our opinion, the economic and political pressure exercised by the monopolistic gas supplier is aimed at prevention of restructuring of Lithuanian gas sector in a way that would encourage entrance into the market of other natural gas suppliers and emergence of a full-fledged competition among alternative sources of supply in the long run. Thus, Gazprom endeavours to eliminate the real potential for competition and disturb creation of a single European gas market.

As a member of the EU, Lithuania is obliged to implement the EU directives. Therefore, the situation where a full-fledge EU Member State is subject to pressure by the monopoly of a third country just because of determination to implement fundamental principles of the EU – promotion of a single market, competition and interests of the consumers – has no equal precedent”, - said the Minister of Energy Arvydas Sekmokas.

The EU's 27 member governments reached a deal on liberalising energy markets in March 2009. They agreed to split giant utilities' supply networks for gas and power from their production assets to help smaller players compete more fairly.

Lithuania has already clashed with Gazprom, and German partner E.ON Ruhrgas, over plans to separate their gas transport and supply assets according to EU policy.

The foreign gas companies have said Lithuania will face supply problems if it went ahead with separating supply and distribution, or unbundling, which they regard as unfair.