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Stockholm Court Justifies Polish Demand for Gas Price Cut From Gazprom - PGNiG

MOSCOW (Sputnik) - The Arbitration Institute of the Stockholm Chamber of Commerce has ruled that the demand of the Polish oil and gas company PGNiG for a lower price for gas it buys from Russia’s energy giant Gazprom was justified, the PGNiG said Saturday.
Sputnik

"The Arbitral Tribunal granted PGNiG’s claim and ruled in its partial award that the contractual condition for PGNiG to demand a reduction in the price of the long-term contract under which gas is supplied to Poland by the Russian monopoly Gazprom (the so-called Yamal Contract) had been met. For years, Gazprom has rejected any possibility of such a revision, and as a result, the contract price for PGNiG has significantly exceeded prices on Western European markets," the company's statement read.

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The above-mentioned contract was signed in 1996 and prescribed 10 billion cubic meter gas deliveries to Poland per year. The deal is valid until 2022.

In 2012, the prices were reduced by 10 percent, but in 2015 PGNiG filed a complaint with the Stockholm arbitration court demanding the new reduction of prices from Gazprom in line with the European gas market trends at that time.

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