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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.
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.
The Polish company’s conflict with Gazprom began in 2014 when Poland pointed out that it pays much more for gas than, for example, Germany. The struggle went to the international court because price negotiations with the Russians ended going nowhere.
“That price was very unprofitable for us and was closely associated with the price of oil. Now, it is connected to gas prices, including those on the European market. The price is now a market one and much closer to the price we offered to our recipients,” Kwieciński explained.
He added that owing to the verdict, PGNiG will have more funds for infrastructure and development.
In its quest to execute the verdict, PGNiG received substantial support from the Polish Ministry of State Assets. Its deputy minister, Janusz Kowalski, had threatened that if Gazprom does not respect the Stockholm verdict, Poland could take over some of the assets of Nord Stream 2 as compensation.
