OGZPY PJSC Gazprom (PK)

By Natalia Drozdiak 

BRUSSELS--Russian energy giant PAO Gazprom has formally committed to changing some business practices to settle a multiyear antitrust case, the European Union said Thursday, in a procedure that allows the state-owned company to avoid billion-dollar fines.

The announcement, which contrasts with billion-dollar antitrust fines levied by the same office on internet companies like Alphabet Inc.'s Google, comes amid strained relations between Russia and the West.

The European Commission, which serves as the EU's antitrust watchdog, said Gazprom has committed to a variety of pledges for an eight-year period that will enable the free flow of gas in central and Eastern Europe at competitive prices. The company has already made some of those changes of its own volition in response to customer pressure.

"We are satisfied with the commitments decision announced today by the European Commission in relation to the settlement of the investigation," said Alexander Medvedev, Gazprom's deputy chairman. "We believe that today's decision is the most reasonable outcome for the well-functioning of the entire European gas market."

Should the company renege on its promises, it could be hit with a fine as high as 10% of its annual revenue, the EU said.

As part of the commitments, Gazprom pledged to remove contractual restrictions that prevented customers from reselling gas across borders, the bloc said.

The commission said the company had also promised to set gas prices in line with the price level in competitive western European gas markets and that the company will allow customers to more frequently ask for price revisions.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com

(END) Dow Jones Newswires

May 24, 2018 07:10 ET (11:10 GMT)

PJSC Gazprom (PK) (USOTC:OGZPY)
Historical Stock Chart
From Mar 2024 to Apr 2024

PJSC Gazprom (PK) (USOTC:OGZPY)
Historical Stock Chart
From Apr 2023 to Apr 2024