The European Commission has prepared bills that will form the basis of the emerging EU energy union. According to these documents, the EC will be able to receive information about Gazprom’s contracts in Europe, including prices

The European Commission has prepared two bills that should become basic documents for the emerging energy union of the European Union. According to documents obtained by Kommersant , the EC will be able to receive all data on Gazprom’s commercial contracts in Europe, including their prices.

As Kommersant learned, the first bill is dedicated to creating a mechanism for exchanging information on upcoming and concluded intergovernmental agreements in the energy sector (amendments to Decision N994/2012). It states that all intergovernmental agreements on energy that EU countries are going to conclude must be agreed upon with the European Commission before signing. The EC receives the right to send its observer to the negotiations. The final agreement must be approved by Brussels before signing and ratification.

All information on existing intergovernmental agreements must be provided to the EC within three months from the date of approval of new amendments. The document also implies the exchange of information between EU countries about all existing and discussed intergovernmental agreements.

The second bill represents amendments to the 2010 Security of Gas Supply Directive, adopted in response to the Russian-Ukrainian gas crisis of 2009, Kommersant notes. According to the document, all non-European gas suppliers must inform the EC about the parameters of long-term (expected for a period of more than a year) contracts, which may be requested “to assess its impact on energy security.”

The period of validity of the contract, minimum and maximum daily, monthly and annual volumes, gas delivery points, as well as contractual conditions for termination of supplies will need to be reported, the publication clarifies.

In addition, the European Commission will be able to gain access not only to non-price information, but also to the entire contract. If, in the opinion of the local regulator or the EC, it “may harm the security of supply,” Brussels has the right to request such a contract (as well as all annexes to it) from the gas buyer to assess the “impact on security.”

The EC did not comment to the publication on what criteria this rule could be applied, but noted that “the confidentiality of commercial information will be guaranteed.”

The explanatory note to the document, according to the publication, “almost directly” states that the main threat of supply disruptions comes from Russia, which is an incentive to obtain additional information. “In the winter of 2014-2015, according to the European Commission, some EU companies experienced a reduction in gas supplies from Russia, but the commission received only limited information about this, since local regulators did not have the legal basis to request such information from companies,” quotes “ Kommersant" explanatory note to the bill.

The European Commission will be able to find out the prices of Gazprom contracts in Europe