Gazprom Charges Monopoly Prices in Europe

Gazprom Charges Monopoly Prices in Europe
Gazprom Charges Monopoly Prices in Europe

One of the marks of a monopoly vendor is that it is able to charge a different price to different customers according to their estimated ability to pay. The European Union is currently bringing antitrust charges against Gazprom for selling natural gas to Europe and it looks like they have a case. As the chart indicates, Gazprom charges a wide variety of prices across the continent. It charges the highest prices to the nearby Baltic Republics, which were once part of the Soviet Union, and also charges higher prices to other former Soviet territories of Poland, Bulgaria and the Czech Republic. Meanwhile, it charges much lower prices to Italy, France and Germany. Only Hungary and Slovakia, also former Soviet satellites, are charged the lower price. A pure market price would probably be lower for Eastern Europe and higher for the Western states.

http://www.wsj.com/articles/gazprom-given-six-weeks-to-respond-to-eu-antitrust-charges-1433842713

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