Polish gas company wins lawsuit against Gazprom
Poland's gas monopolist PGNiG has won a lawsuit against Russia's Gazprom regarding the revision of the contract price for gas supplied by Gazprom under the 1996 Yamal Contract.
A final award in the arbitration proceedings brought by PGNiG against Gazprom was issued by the Arbitral Tribunal in Stockholm on Monday, the company wrote in a press release.
According to the provisions of the Yamal Contract and the final award, the new contract price determined by the Arbitral Tribunal should apply retroactively from 1 November 2014, i.e., from the date of the submission by PGNiG of its price revision request.
According to the company’s preliminarily assessment, the retroactive settlement under the final award results in a price difference payable by Gazprom to PGNiG of approximately EUR 1.3 billion for the period from November 1, 2014 to February 29, 2020.
The Arbitral Tribunal revised the price formula for the purchase of gas supplied by Gazprom through its material and direct connection with the market price of natural gas on the European energy market.
According to PGNiG, the change of the price formula results in a substantial improvement of terms of its commercial activity thanks to greater compatibility between indexation of the price that impact the cost of sourcing imported gas, and the market gas sale pricing policy.