RIGA, May 26 (Xinhua) -- The European Commission' s latest ruling on Russian gas giant Gazprom will bring "some improvement" to the Baltic gas market but it does not necessarily mean considerably lower gas tariffs for consumers already in the nearest future, Latvian authorities believe.
The new sales condition imposed on Gazprom by the European Union will reduce the Russian energy company's dominance in Latvia as the new rules will allow for swap arrangements and re-export of gas which until now was banned under Gazprom's contracts, said Rolands Irklis, chairman of the Latvian public utilities regulator.
The European Commission's requirements, however, do not mean an automatic correction of the gas price. Instead, they provide an opportunity to seek price revision every other year. An arbitration procedure can be used in case of a dispute, Irklis said, adding that Latvia therefore can't expect the gas price to drop very soon.
Evita Urpena, a spokeswoman for the Latvian Economics Ministry, said that the agreement reached between the European Commission and Gazprom would promote competition on the gas market and that Latvia appreciates the results achieved by European Commission in talks with the Russian gas company.
For Latvia, the main benefits from the agreement include healthier competition and more flexible gas sale conditions on the Central and Eastern European markets, which will also improve the gas flow the Baltic region.
The European Union on Thursday reached a settlement in a three-year anti-trust case against Gazprom. The agreement was reached after Gazprom agreed to harmonize gas prices in eastern Europe, including the Baltics, with the rest of Europe and to drop the ban of re-export of gas in its gas supply agreements.
