The Federal Anti-Monopoly Service is most likely to ask Prime Minister Mikhail Fradkov to examine Gazprom’s upcoming takeover of Russia’s largest coal company.The competition watchdog suspects that the deal will limit competitionon the fuel market. Gazprom, meanwhile, sounds confident of thegovernment’s succor.
Theagency’s director for the fuel and energy industry Alexander Pirozhenkoon Thursday supported Anti-Monopoly Service Head Igor Artemyev in hisharsh criticism of the upcoming deal between Gazpom and the SUEK coalproduer. If the examination of the market situation shows that “themerger of Gazpromand SUEK will limit competition, the Federal Anti-Monopoly Service willpresent this opinion to the prime minister,” Mr. Pirozhenko told Kommersant.
The competition watchdog has powers to block the merge. The deal tocreate a joint venture of Gazprom and SUEK will also have to win theagency’s go-ahead. SUEK plans to put all its coal assets in the company.
In the meantime, another top official have come up to question themerger. Vyacheslav Kravchenko, head of the Industry and EnergyMinistry’s tariff policy, said that Russia “must not concentrateeverything – from football to a fuel company in one place”.
Neither the gas monopolist nor the coal companies gave official comment on the news. But a high-placed source of Kommersant inGazprom said the company had secured succor in the government. At anyrate, First Deputy Prime Minister Dmitry Medvedev will surely not tryto oppose the idea, continuing to sit on Gazprom’s board of directors.
Theagency’s director for the fuel and energy industry Alexander Pirozhenkoon Thursday supported Anti-Monopoly Service Head Igor Artemyev in hisharsh criticism of the upcoming deal between Gazpom and the SUEK coalproduer. If the examination of the market situation shows that “themerger of Gazpromand SUEK will limit competition, the Federal Anti-Monopoly Service willpresent this opinion to the prime minister,” Mr. Pirozhenko told Kommersant.The competition watchdog has powers to block the merge. The deal tocreate a joint venture of Gazprom and SUEK will also have to win theagency’s go-ahead. SUEK plans to put all its coal assets in the company.
In the meantime, another top official have come up to question themerger. Vyacheslav Kravchenko, head of the Industry and EnergyMinistry’s tariff policy, said that Russia “must not concentrateeverything – from football to a fuel company in one place”.
Neither the gas monopolist nor the coal companies gave official comment on the news. But a high-placed source of Kommersant inGazprom said the company had secured succor in the government. At anyrate, First Deputy Prime Minister Dmitry Medvedev will surely not tryto oppose the idea, continuing to sit on Gazprom’s board of directors.
