Gazprom to challenge UAH 86 bln penalty imposed by Ukraine Antimonopoly Committee

It is reported that Ukraine's largest energy holding Naftogaz of Ukraine and Naftogaz-controlled Ukrtransgaz are defined as defendants in the lawsuit filed with the Kyiv Commercial Court on April 12, 2016.

As UNIAN reported earlier, in late April of 2015, Ukrainian Prime Minister Arseniy Yatsenyuk requested that the ACU launch a probe into Gazprom's activities in the Ukrainian market that were said to undermine the Ukrainian economy, as the company "was operating under discriminatory and in fact non-competitive conditions."

According to data provided by the Justice Ministry, Energy Ministry, the ACU and also Naftogaz, Ukraine has lost opportunity to trade gas on its western border due to actions of Gazprom. Neither is Ukraine able to make full use of the Slovakian route for gas imports, as Russian gas monopoly has taken control of all gas transportation facilities. Also, having blocked virtual reverse flows from Slovakia, Gazprom has deprived European suppliers of a potentially significant share in the Ukrainian market.

Read alsoAntimonopoly Committee fines Gazprom UAH 85 blnFor its part, the European Commission on April 22 formally charged Gazprom with abusing its dominant market position in Central and Eastern European gas markets in breach of the EU antitrust rules.

At the same time, Ukraine appealed to EU partners to jointly conduct an antitrust investigation and to establish "the fact of monopolism by the Russian Gazprom company not only in the European Union, but also in Ukraine."

In mid-May, the Antimonopoly Committee of Ukraine began its antitrust investigation against Gazprom.

Read alsoNaftogaz CEO: Nord Stream-2 Russia’s "Trojan Horse" for EUOn December 24, 2015, the ACU declared Russian gas company Gazprom a monopolist in the Ukrainian gas transit services market and stated it was expecting to meet Gazprom representatives to examine the allegation that the company abused its monopoly in the market.