Gazprom Faces $7.58 Billion Fine From Polish Regulator Over Nord Stream 2 Pipeline
07 October 2020 - 9:40PM
Dow Jones News
By Anthony O. Goriainoff
Poland's anti-monopoly office UOKiK said Wednesday that it had
imposed a 29 billion-zloty ($7.58 billion) fine on Gazprom PJSC
related to the building of the Nord Stream 2 gas pipeline.
UOKiK said the Russian energy giant was one of six companies
working on the gas pipeline fined for undertaking work "without the
required consent of the president of UOKiK."
The regulator also imposed a PLN234 million fine on France's
Engie SA, Germany's Uniper SE and Wintershall AG, Austria's OMV AG,
and Royal Dutch Shell PLC.
The Polish watchdog said the entities concerned are obliged to
terminate the agreements for financing the project, which was
intended to increase Russia's gas export capacity via the Baltic
Sea.
The Polish anti-monopoly authority said the companies
concluded--without permission to establish a joint venture--a
number of agreements concerning the pipeline's financing and a
number of other authorizations, such as, for instance, the ability
to interfere with the operation of NS2.
UOKiK said that in 2016 its president voiced concerns regarding
the plan and noted that the planned transaction could lead to the
restriction of competition and presented its reservations. The
companies then withdrew the application, meaning in practice that
they were prohibited from performing the merger, the regulator
said.
The regulator said information surfaced shortly thereafter
stating that the companies had signed an agreement for the
financing of the gas pipeline.
"Therefore, proceedings against Gazprom and its five trading
partners regarding the execution of the transaction without
obtaining approval from the authority were initiated," the
regulator said.
"The financial penalties imposed are intended not only to
convince the parties involved to observe the law, but also to
discourage other players from attempting similar behaviors that
violate anti-monopoly regulations in the future," UOKiK president
Tomasz Chrostny said.
Gazprom didn't immediately respond to requests for comment.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
October 07, 2020 06:25 ET (10:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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