The UK government has put an end to speculation that it would protect gas supplier Centrica from a potential Gazprom takeover with the announcement that ministers would not seek to actively block such a move.
Prime minister Tony Blair believes that any takeover attempt can be dealt with by the UK’s independent Competition Commission, the Financial Times has reported.
Press reports last week suggested that ministers were discussing whether the government could effectively stop the Russian state-controlled energy company from acquiring Centrica, the British Gas owner.
However, trade and industry secretary Alan Johnson has now ruled out government interference. Whatever the difficulties and challenges of globalization, the answers will not be found in the stagnant waters of protectionism, he said.
Gazprom has recently confirmed its interest in expanding into downstream gas distribution in an interview with the BBC. Deputy chairman Alexander Medvedev said: Centrica is considered as one of our potential acquisitions but it’s very difficult to find a company that is not on our watch list.
However, many states are concerned over Gazprom’s ties to the Kremlin and the threat that energy supply could be used as blackmail following the dispute with Ukraine in January 2006. Gazprom defends its monopoly of Russian gas exports despite European Union calls for access to these to be liberalized.