Gazprom has been fined $48 million by Lithuania’s Competition Council, who stated that the Russian company prevented competition in the Baltic state.

The  $48 million fine is the largest ever issued by the competition authority, a Council spokeswoman said.

Gazprom is Lithuania’s sole natural gas supplier.

The Competition Council said Gazprom breached competition rules when it refused to negotiate a deal on gas exchange with Lithuanian power producer Lietuvos Energijos Gamyba in 2012.

The local power producer, part of the state-owned energy group Lietuvos Energija, had negotiated a deal with another Western European provider to buy gas from 2013 to 2015.

Physical delivery was impossible, so Lietuvos Energijos Gamyba asked Gazprom to exchange the gas Lithuania planned to buy from Western Europe for gas Gazprom delivers to Lithuania via Belarus.

Gazprom refused to enter negotiations on such a deal, prompting the compliant filing.


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