EU Closes in on Deal with Gazprom Over Pricing Dispute

The European Union is close to resolving its five-year dispute with Gazprom over pricing policy. The affected countries, including Lithuania and Poland, are critical of the proposed agreement as it may allow Gazprom to avoid fines for breaching EU rules.

The meeting between European Commissioner for Competition Margrethe Vestager and Alexander Medvedev, deputy chairman of Gazprom's management committee, is expected to produce a first draft of terms to resolve the dispute. The agreement will likely commit Gazprom to changing its commercial policy but will not include any fines. It may also address the issue of long-term gas sales contracts linked to oil prices.

Lithuania and Poland pay higher prices for gas than Germany, despite being geographically closer, due to Gazprom's pricing policy. The EU ambassador expressed concern that if Gazprom is not fined, it will send a 'bad signal' and undermine the rule of law in the region.