The Poles sued Gazprom for one and a half billion
The arbitration court in Stockholm completed its consideration of the claim of the Polish company PGNiG against the Russian Gazprom and decided that the Russian supplier had significantly inflated the price of gas. Now
Gazprom will have to return approximately one and a half billion dollars to the Polish company, reports a PolitNavigator correspondent.
“The arbitration tribunal sided with PGNiG, thereby confirming that the gas price in the Yamal contract did not reflect the price level on the market and was inflated. The Tribunal changed the formula for calculating the price of Russian gas, pegging it very close to the price level on the European market, which for PGNiG means a significant improvement in gas import conditions,” said Jerzy Kwieczynski, President of the Board of PGNiG.
The court decision is binding from the moment it is announced, so Gazprom will be forced to return the difference paid from November 1, 2014, when the Poles filed the lawsuit, to February 29, 2020.
According to Kwiecinski, the money received from Gazprom by the Polish company will be spent to diversify gas supplies and reduce dependence on Russia.
“Diversification of gas supplies remains our constant priority, so we plan to use the funds we receive from Gazprom to purchase new hydrocarbon fields. We will also invest in new business areas related to integration into the domestic market and the development of a system of zero-emission energy sources,” said a representative of the Polish company.
Let us recall that the Yamal contract, concluded in 1996, provides for the supply of approximately 10,2 billion cubic meters of gas per year. According to the take-or-pay formula included in the contract, PGNiG must pay for at least 8,7 billion cubic meters of gas per year, even if it does not need that much gas. Each party may request a price review every three years if it believes that the current price does not reflect market price levels. PGNiG took advantage of this opportunity in November 2014.
Poles win one and a half billion from Gazprom