Gazprom Faces Asset Sale Under EU's Energy Plan (WSJ)

TALLINN, Estonia -- The European Union's antitrust chief on Friday said Russian natural-gas monopoly OAO Gazprom would have to sell its distribution assets in Eastern Europe if a plan to overhaul the energy industry is approved.

Under the plan, which was unveiled in January, the EU would force energy companies to separate production and distribution units as a means of increasing competition.

"This also applies to Gazprom -- they cannot fulfill both roles," the EU's competition commissioner, Neelie Kroes, said. "Gazprom cannot own the distribution network of countries to which it supplies natural gas. They have to separate their activities."

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Gazprom, which is majority owned by the Russian state, produces all its energy in Russia but owns several distribution companies in Eastern Europe, including 37% of Estonia's Eesti Gaas, 34% of Latvijas Gaze in Latvia and 37.1% of Lithuania's Lietuvos Dujos.