Russian Gazprom must refund USD 1.5 bln to Poland's gas monopolist PGNiG

The Polish company announced in March 2020, that it had won an arbitration case against Gazprom. Andrzej Hrechorowicz/PAP

On June 5, PGNiG and Gazprom signed an annex to the Yamal contract, under which the Polish company expects to receive a USD 1.5 bln net return by July 1, 2020, PGNiG has said in a statement.

In March 2020, the company announced that it had won an arbitration case against Gazprom.

Under the judgment, the Arbitration Tribunal changed the price formula for the purchase of gas supplied by Gazprom under the Yamal contract including, among other things, its significant and direct connection with the market quotes of natural gas on the European energy market.

The application of the changed pricing formula will mean for PGNiG a significant improvement in business conditions, thanks to the greater consistency between the price indexing which affects the cost of gas imports and the market pricing policy of gas sales, the company wrote.

Commenting on today's information, Deputy PM and States Assets Minister Jacek Sasin said that these funds will "in an excellent way" allow PGNiG to implement a business strategy which, as he explained, consists in further strengthening of the process of diversification of supply sources.

He added that the money will allow to acquire "new deposits of natural gas, build infrastructure enabling future full diversification of supplies and full independence from supplies from the East."

PGNiG CEO Jerzy Kwiecinski assessed that relations with Gazprom are becoming more normal. "We have switched to a normal mode of accounting in the new price formula," Kwiecinski told a press.

According to him a sign of normalisation of relations is the signing of the 56th annex to the Yamal contract, in which "we have specified July 1 of this year as the date of the overpayment transfer."