Gazprom agrees to reduce gas prices for Poland
Russian gas giant Gazprom promised to reduce the price of gas supplied to Poland (under the Yamal contract) after the demands of the Polish state oil and gas company PGNiG, reported the head of PGNiG Jerzy Kwieciński. He added that the Russian company also pledged to correct the bills issued for March and April 2020.
"I'm pleased to inform you that today PGNiG received Gazprom's correction to the invoice for gas supplies in March'20 I appreciate the quick reaction of our business partner, who declared yesterday that it'll correct invoices in line with the Arbitral Tribunal's ruling," Kwieciński wrote on Twitter.
“Gazprom said it would adjust the bills billed for gas supplies in March and April 2020. Gazprom's statement is in line with PGNiG's expectations for full and immediate implementation of the Arbitration Court's decision," the press service of the Polish company said.
On April 24, PGNiG stated that Gazprom had not complied with the Decision of the Stockholm Arbitration of March 30. According to the demand of the international court, the Russian side was obliged to revise the price formula for gas supply, but Gazprom did not do so and continued billing PGNiG at old prices. Polish company promised to file a new complaint with the European Commission if Gazprom does not change its position and noted that the Russian company is abusing its position in the market.
According to the ruling of the Arbitration Institute of the Stockholm Chamber of Commerce of March 30, 2020, the pricing formula of the Yamal contract (the gas supply contract that Russia and Poland concluded in 1996) has to be changed. Because of that Gazprom had to recalculate the cost of deliveries from 2014 and return the overpaid amount to Warsaw. Poland says Gazprom is obliged to return about $1.5 billion.
The Polish oil and gas company PGNiG has asked Gazprom to recalculate gas prices delivered in recent weeks but has not received a response from Moscow. In Warsaw, such actions were considered a gross violation of the terms of the contract.