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Putin muzzles Russian firms

September 12, 2012

Vladimir Putin has issued a new decree to prevent certain Russian companies from disclosing their secrets to foreign regulators. This appears to be in response to an EU investigation into the energy giant Gazprom.

https://p.dw.com/p/167bQ
Russian President Vladimir Putin.
Vladimir PutinImage: AFP/Getty Images

On Wednesday, the Russian president declared that "strategic" firms would need government permission before giving out information to foreign authorities.

Under the edict, strategic companies would be forbidden from handing over documents to foreign states and authorities if doing so would jeopardized the economic interests of Russia. Furthermore, this provision would apply when contracts, price amendments and property sales, are given the green light.

Last week, the European Commission launched an antitrust investigation into Gazprom, a major Russian energy supplier of natural gas to the EU, because of concerns it may be "abusing its dominate market position in upstream gas supply markets" and distorting prices.

The EU imports natural gas to meet 80 percent of its consumer demand, and about a third of those deliveries come from Russia.

It does not appear, however, that Putin's directive will stop the investigation in its tracks. EU officials were able to gain access to volumes of documents during raids last year on the offices of Gazprom trading partners and subsidiaries.

Gazprom has previously stated that the proceedings initiated by the European Commission would endanger its strategic interests.

Ultimatum to Moldova

On Wednesday, Russia urged the improverished ex-Soviet nation Moldova to cut energy contracts with Brussels in exchange for low-priced gas.

Moldova is being asked to choose between the price discount and a pledge - opposed by Russia - to adopt European energy liberalization measures. These bar suppliers from also distributing energy products. Moldova is a transit country for Russian gas on its way to Europe, and is almost entirely reliant on Russia for its own gas supply.

Russia's energy minister says he is concerned that Gazprom might have to give up its Moldovan network by 2015, should the country adopt the EU measures.

"Obviously, this does not suit us," Alexander Novak said.

"First of all, we propose that Moldova denounce the protocol on entering the Europe energy community agreement," Novak said. "This is a precondition for us to discuss the issue of gas price cuts and the relief of debt, which at the moment amounts to $4.1 billion (3.18 billion euros)."

Novak was speaking before Putin met Moldavian Prime Minister Vlad Filat at a Russian resort.

jr/ipj (AFP, Reuters, dapd, dpa).