Energy, Energy Market, EU – Baltic States, EU – CIS, Gas, Gas Market , Markets and Companies, Russia

According to sources Gazprom is to get out of paying a fine for restricting competition and exploiting its dominant position, but has to give a legally binding promise to change its operational methods in the future.

If Gazprom should again breach competition rules, the Commission can fine the company in the amount of up to 10% of its annual revenue.

According to Financial Times, "the bargain is likely to anger eastern and Baltic states that have campaigned for a tougher approach".

"The deal potentially marks a turning point in one of the European Commission's most important antitrust battles. Former communist EU member states see it as a test of whether the bloc's powerful antitrust arm will protect their interests against a Russian monopoly with a stranglehold over their energy supplies. Poland and Lithuania in particular see Russia as using gas as a political tool and are critical of Brussels for not tackling unfair prices," the newspaper writes.

The unfair gas price concerns Estonia, Latvia, Lithuania, Poland and Bulgaria.

The EU's competition commissioner Margrethe Vestager and CEO of Gazprom Alexander Medvedev should meet at the end of this week to reach a deal or announce being very close to reaching a deal.