Russian gas giant Gazprom's Chief Executive Officer (CEO) Alexei Miller attends a press conference after the annual meeting of the company's shareholders in Moscow on June 30, 2016.
Photo by AFP
Despite the tentative March 13 agreement between the European Commission and Gazprom on the liberalization of gas markets in Central and Eastern Europe, it is still premature to declare an end to the Russian energy giant’s dominance in the region. In its statement of promises, Gazprom pledges to remove destination clauses in its long-term contracts barring the re-exporting of excess gas imports, to renegotiate pricing to reflect spot hubs in Western Europe, and to drop its refusal to allow virtual gas transfers along the Gazprom-dominated transit pipelines. However, Gazprom’s behavior would depend on the political will of its clients to directly challenge it amid its allegedly receding market power in Europe amid greater competition, liquidity, and supply sources.
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