Poland scores victory over Russia after Gazprom relents and adjusts gas prices

The Polish side had to wait a month for the Russians to respect the verdict of the Court of Arbitration in Stockholm from March

editor: REMIX NEWS
author: Blog energetyczny

Russia was still trying to stiff Poland on energy and gas prices in March and April despite a European court verdict that determined Russia overcharged Poland and should adjust its prices to fair market value.

The Polish Oil Mining and Gas Extraction Company (PGNiG) won in the Court of Arbitration in Stockholm against Russian Gazprom in late March concerning the price of gas and energy. Poland was expecting lower prices as a result, but the Russian side initially refused to adjust the invoices lower for March and April 2020.

According to the verdict of the Court, between 2014 and 2020 the Russian partner had inflated the prices of gas in the Yamal Contract by over $1.5 billion.

In April, PGNiG’s CEO Jerzy Kwieciński stated that the Russian partner was not respecting the verdict and all the invoices are being issued unadjusted. PGNiG did not relent in pressuring Gazprom and called for the immediate implementation of the March verdict in its report on April 24.

A few days later, Gazprom caved in and stated that the invoices for March and April 2020 will be properly adjusted.

PGNiG released information of their successful efforts in an official statement, writing that it has positively accepted Gazprom’s declaration to apply the new price terms of the Yamal contract.

“Gazprom declared it will adjust the invoices issued for March and April. The declaration has met the expectations of PGNiG concerning full and immediate fulfillment of the Court of Arbitration’s verdict,” the company stated.

Gazprom’s declaration is only the first step in recognizing the verdict. PGNiG will be able to proclaim full success only when the Russians return the full $1.5 billion declared in Stockholm to the Polish company.

In comparison, Ukrainian Naftohaz had to struggle with Gazprom for several months in a similar case.

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