Gazprom’s concessions – possibly improved after today’s meeting

Asian markets trade today

Major markets are closed today, due to holiday. Asian markets were moving flat, after the North Korea’s latest ballistic missile.

North Korea tested the ninth missile this year. It has fired the missile near the country’s cost. It landed in the Sea of Japan. Before landing, the missile was in the air for 6 minutes. The North Korea is constantly facing pressure from U.S. and its historical ally China.

Japan’s benchmark Nikkei 225 index edged higher by 0.13 percent. Observing the South Korea’s Kospi, it added 0.33 percent. This is the seventh straight session of gains for the Kospi.

Later, the S&P/ASX 200 declined after trading flat during early trade. It was edging lower by 0.44 percent. The financials sub-index inspired this fall. It has tumbled 1.16 percent.

Hong Kong’s Hang Seng Index added 0.19 percent. Markets in mainland China are closed for a public holiday today.

Stateside, Wall Street will be closed for Memorial Day. After closing mixed last Friday following the release of the second reading of Q1 GDP numbers. Markets in the U.K. will also be closed for the spring bank holiday.

Gazprom

EU antitrust chief Margrethe Vestager will today meet Gazprom’s deputy chief executive. They might possibly discuss the Russian giant Gazprom to improve its concessions. Those contracts aim to end a six year investigation.

Gazprom supplies one third of the Europe’s gas. The state-controled company offered in March to scrap business practices as well as the pricing policy. Because the European Commission sees it as anti-competitive.

These ideas also include exporting its gas to other countries. Investing money in new pipelines, reconsidering monopoly pricing in the Baltic states, Bulgaria and Poland.

Current Gazprom’s concessions are letting clients to renegotiate their decades-long contracts. With prices in it, which are linked to benchmarks. For example, to the European gas market hubs and border prices. Including in Germany as well.

The competition companies seek feedback from Gazprom’s clients and rivals.They are many among those who do not agree that Gazprom should reconsider its policies and invest in new capacities. Also it shouldn’t be refreshing the concessions. Most noteworthy, the Polish state-run company said Gazprom should be punished with a tough finish.

The meeting

Vestager could possibly demand the slight changes to Gazprom’s concessions at the meeting with Alexander Medvedev.

The Commission confirmed the meeting, but they did not give the specific details. The EU executive is not likely to bow to pressure from Gazprom’s foes and scrap the deal, underlying the thaw in business ties between the bloc and Russia despite tensions over Ukraine and Syria.

For now, Vestager’s line with Gazprom is pretty flexible. Which questions her tough approach towards other giants. For example Alphabet Google, and many others… It puts her attitude in a sharp contrast.

The results of this meeting will be familiar soon. Gazprom may change its concessions, and the new ‘pipeline canals’ may soon be on the way.