Baltic States – CIS, Energy, EU – Baltic States, Gas, Legislation, Russia

Gazprom considers the objections put forward by the European Commission to be unfounded," the company said in a statement. Gazprom strictly adheres to all the norms of international law and national legislation in the countries where the Gazprom Group conducts business."

The European Commission, the EU's powerful executive arm, earlier Wednesday formally charged Gazprom with abusing its market position in Europe, in a move that risked inflaming tensions with Russia further.

Gazprom now risks fines as high as 10% of the company's overall annual sales.

The Russian gas giant, which many critics accuse of being the Kremlin's political tool, has 12 weeks to respond.

Gazprom said that the so-called "statement of objections" approved by the European Commission did not amount to a guilty verdict, calling it "only one of the stages within the on-going antitrust investigation."

"We also expect that it will be duly noted that Gazprom was established beyond the jurisdiction of the EU," the company said.

Speaking to reporters on Wednesday, Russian Foreign Minister Sergei Lavrov defended the company, saying regulations could not be applied retroactively.

"All existing contracts which Gazprom has with its partners were concluded in full accordance with the legal regime that existed in the EU at the time," he said in televised remarks.

Russia's top diplomat also expressed confidence the two sides would be able to reach a mutually acceptable agreement.

The Kremlin expects impartial treatment for Gazprom under the antimonopoly probe and reaching a compromise with the European Commission, Press Secretary of the Russian President Dmitry Peskov said on Wednesday, cites TASS/LETA/ELTA.

"We hope compromises will be reached. We believe such disputes should definitely be resolved in the course of negotiations," he said.

"We expect the absolutely impartial treatment for Gazprom," Peskov added.

Gazprom will defend its interests in this matter and "the government as the key shareholder in this company will also look after Gazprom's interests," the press secretary said.

Gazprom believes that the European Commission's claims are unfounded. Gazprom expects to resolve the situation taking into account the agreement reached earlier between the Russian government and the European Commission on a mutually acceptable solution for the antimonopoly investigation issue, the company said.