Russian Deputy Prime Minsiter Arkady Dvorkovich said Russia could retaliate if the European Union's antitrust investigation into OAO Gazprom (GAZP.RS) leads to sanctions, and that "regulatory risks" could cut supplies from Gazprom and result in higher gas prices, Kommersant daily reported Thursday.

"If there are consequences for us, there will be consequences for them," Mr. Dvorkovich told Kommersant in an interview.

The EU is investigating whether state-owned Gazprom--which supplies the bloc with around one quarter of its gas needs--has violated antimonopoly rules. The EU is also encouraging competition by barring suppliers from owning transport capacity as part of its Third Energy Package of measures.

" Europe needs gas in any case. If because of regulatory risks Gazprom can't deliver the required volumes, prices in Europe will rise," Mr. Dvorkovich said.

"With the antimonopoly investigation, the European Commission is, in essence, calling into question the essential conditions of long-term contracts. If Europe wants to work by different rules, we should see them and document them," he said.
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