European Union Authorities are planning to move forward with the case against Gazprom OAO (ADR) (OTCMKTS:OGZPY). The reports claim that the authorities have decided to remain no longer neutral in the anti-monopoly case against OGZPY. The information was shared by Margrethe Vestager, Commissioner, and European Union competition.
Insights On The Matter:
It’s not the first time when they have teamed up against the proceedings of Gazprom OAO (ADR) (OTCMKTS:OGZPY). According to reports, the company has been under various investigations for more than two years time. The OGZPY is accused of using its dominant market position to block the business of its rival companies in Eastern Europe. Earlier, there were no major steps taken by the concerned authorities in Europe, but they started to held settlement talks with its representatives once the violence in Ukraine took place.
There are rumors that if the European Union doesn’t take necessary steps now, then it may have to face problems in the near future. If EU decides to issue formal charges against Gazprom, then this act will most likely be seen as an aggressive step by the Kremlin. It is already under immense pressure due to regularly falling oil prices in the region and various international sanctions.
Gazprom OAO (ADR) (OTCMKTS:OGZPY) is a well-known name in the field of natural gas production. It produces/extracts, stores transports and sells natural gas across the globe and has most of the clients in the Europe. It owns the Unified Gas Supply System of Russia, which makes it the largest and the most powerful natural gas supplier of the country. In other words, it enjoys monopoly in natural gas supply in Russian Federation and exports it to Western Europe. The impact of the EU Chief’s decision to team against OGZPY is yet to be known. The result of the case will come out in a few days time.