Gazprom caved to AMCU's decision to collect $ 6 billion due to monopoly in gas transit in 2009-2015

In 2016, the Antimonopoly Committee of Ukraine (AMCU), having considered the case file on violation of the legislation on protection of economic competition, concluded that the Gazprom in 2009-2015 held a monopoly (dominant) position in the Ukrainian market of natural gas transit services by main pipelines of Ukraine.

The AMCU also determined that the Gazprom's inaction and failure to transit natural gas in full volumes infringed the rights of the NJSC Naftogaz of Ukraine, and violated the Law " On Protection of Economic Competition" due to abuses by the Gazprom of its monopoly position in the gas transit market through the Ukrainian GTS.

So, the AMCU fined Gazprom UAH 86 billion for the abuse, and ordered the Russian company to stop the violations within two months. As Gazprom did not pay the fine within the set two-month period set, the AMCU also ruled out to collect extra UAH 86 billion in fines.

The AMCU filed a lawsuit with the Commercial Court of Kyiv against Gazprom, claiming that the latter be fined the initially decided UAH 86 billion plus extra UAH 86 billion for non-compliance with the AMCU’s Decision №18-r. Totally, the combined fines constituted UAH 172 billion, or estimated $ 6 billion at the current forex rate.

The decision of the Commercial Court of Kyiv from December 5, 2016, left by the decision of the Kyiv Commercial Court of Appeal from February 22, 2017, unchanged, as well as additionally upheld by the he decision of the Supreme Commercial Court of Ukraine from May 16, 2017.

To enforce the court decision, the AMCU issued an Order to withdraw UAH 172 billion from any of the Gazprom’s accounts, and to channel the collections to the State Budget of Ukraine.

On November 18, 2020, the Gazprom filed a complaint with the court against the actions of the state executor of the Ministry of Justice regarding the decision of October 13, 2020 on the opening of enforcement proceedings №63287069. In its complaint, the Gazprom asked the court to recognize such actions as unlawful and quash the decisions underpinning the collection of fines. However, the court dismissed the Gazprom’s complaint, thus validating the former decisions in force.

On February 10, 2021, the Gazprom surrendered, and sent a petition to revoke its former complaint. By the decision of the Northern Commercial Court of Appeal, the Gazprom’s petition to waive its former complaint was sat-isfied, and the appeal proceedings were closed.

11:20 / 23 February 2021

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