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. Last Updated: 07/27/2016

Gazprom Still Objects to EU Energy Plan

BERLIN -- Gazprom still opposes plans by the European Commission to split up integrated energy companies in the bloc, a Gazprom executive said during a visit to Germany on Wednesday.

"Our interest is to deliver gas economically, and we have invested in European transport and storage," said Mikhail Malgin, head of the directorate of the north and southwest European export department of Gazprom's export arm.

"We don't want to lose the security of our existing and future investments [through an obligatory breakup]," he said on the sidelines of a gas conference in Berlin.

Malgin added that Gazprom heads were making their views heard in ongoing talks with the EU, which derives 25 percent of its natural gas from Russia.

Gazprom has invested in downstream distribution, such as in German trade and storage company Wingas.

The EU's executive body aims to separate utilities' generation and distribution activities under so-called ownership unbundling in a bid to boost internal energy market competition.

Energy Commissioner Andris Piebalgs last week conceded that the majority of member states, led by Germany and France, were opposed to the plans as they wish to protect their big companies such as E.On or Gaz de France.