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Polish PGNiG wins Stockholm Arbitration against Gazprom: Russia to pay about $1.5 billion

Source : 112 Ukraine

The Arbitration recognized the PGNiG arguments and thus, it confirmed that the price for gas on Yamalsky contract was non-market and excessive
14:59, 31 March 2020

Open source

Stockholm Arbitration Tribunal issued a decision in favor of Polish gas company PGNiG ending the 5-year dispute about the price for gas with Russian Gazprom as the PGNiG reported.

“The Arbitration recognized the PGNiG arguments and thus, it confirmed that the price for gas on Yamalsky contract was non-market and excessive,” Chair of PGNiG Jerzy Kwieciński stated.

The Arbitration changed the way of pricing for Russian gas, attaching it to the prices for gas in Western Europe.

Related: Gazprom transported four billion m3 of gas through Ukraine’s Gas Transmission System in February

The decision of the Tribunal is applied since November 1, 2014, in other words, when PGNiG appealed to Gazprom with the request to reconsider the price of the contract.

It means that the Russian company is obliged to return about $1.5 billion to PGNiG. It is the difference between the price calculated on the new formula and the sum paid by PGNiG from November 1, 2014, up to February 29, 2020.

As we reported, PGNiG Polish state-owned oil and gas company informed the Russian Gazprom and Gazprom Export that it would stop buying gas from them after December 31, 2022, under an existing contract.

 

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