In brief: EU charges Russia’s Gazprom gas giant with market abuse

BRUSSELS – The European Union on Wednesday charged Russian state energy giant Gazprom of abusing its dominant position in central and eastern EU nations in an antitrust case that will further test tense relations between Brussels and Moscow.

EU Competition Commissioner Margrethe Vestager said Gazprom is strong-arming customer nations ranging from Estonia to Bulgaria, where it sometimes almost fully controls the gas market, by setting unfair pricing and contract restrictions.

Vestager said she was investigating Gazprom’s sales policies throughout most of the EU’s eastern rim and was focused on three key issues: whether the company is preventing cross-border flows of gas to other EU nations, charging unfairly high prices and demanding to keep control of the pipelines in return for gas.

“It all ends up in one – abuse of dominant position,” she said.

Gazprom immediately dismissed the accusations as “unfounded.” The company said in a statement it “strictly adheres to all the norms of the international law and legislation in the countries where Gazprom operates.”

If found in breach of EU law, a company could be fined up to 10 percent of annual turnover. With Gazprom turnover at $99 billion at current rates in 2013, the latest year available, that could amount to penalties of some $10 billion.

Area evacuated after volcano erupts

SANTIAGO, Chile – The Calbuco volcano erupted Wednesday for the first time in more than 42 years, billowing a huge ash cloud over a sparsely populated, mountainous area in southern Chile.

Authorities ordered the evacuation of the 1,500 inhabitants of the nearby town of Ensenada, along with residents of two smaller communities.

The National Mining and Geology Service issued a high alert, barring access to the area around the volcano, which lies near the cities of Puerto Varas and Puerto Montt, a little more than 620 miles south of Chile’s capital, Santiago.

“For us it was a surprise,” said Alejandro Verges, regional emergency director of the Los Lagos region where the eruption took place. He said Calbuco wasn’t under any special form of observation.

Authorities said a large amount of ash was observed but no hot rocks or lava had been seen by late in the day. No injuries were reported.