MEPs urge Gazprom probe over sky-high gas prices

A group of more than 40 MEPs have requested the European Commission launch an investigation into Russian energy giant Gazprom, accusing the company of market manipulation.

The request comes as energy prices soar across Europe. The price of natural gas rose from around $300 (€256) per 1,000 cubic metres in early 2021 to more than $800 (€683) for the same amount this week.

"We call on the European Commission to urgently open an investigation into possible deliberate market manipulation by Gazprom and potential violation of EU competition rules," the MEPs said in a letter to EU Commission Executive Vice President Margrethe Vestager and Energy Commissioner Kadri Simson.

They claim that energy providers have pointed to Gazprom's actions as an explanation for the rocketing prices, for example, the company closing down parts of its own production and refusing to book additional volume through existing pipelines.

The members of the European Parliament suspect Gazprom is pushing up the prices to put pressure on Brussels over the Nord Stream 2 pipeline. The project allows Germany to effectively double its gas imports from Russia, but it has yet to be cleared for use. While construction on Nord Stream 2 was completed last week, it could take months to clear the bureaucratic hurdles which would allow the gas to start flowing.

Read more: Nord Stream 2 pipeline is finally complete, says Gazprom

Critics of the pipeline argued that it would make Germany overly reliant on Russia for its gas needs, as well as taking power and profit from gas transit countries Poland and Ukraine. Earlier this week, Kremlin spokesman Dmitry Peskov said it was "obvious" that an "early start of Nord Stream 2 [would] balance the price parameters for natural gas in Europe."

Gazprom and The Kremlin have both denied market manipulation. Gazprom chief Alexei Miller said prices were rising because European stockpiles were more depleted than usual due to the cold winter and spring, which in turn delayed resupply.

Last week, the company said it was delivering everything that was agreed upon in existing contracts and was also attempting to meet additional demands.

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