Russian energy giant seeks arbitration against Poland’s largest gas retailer over contract price
Gazprom Export has sought international arbitration in its dispute with PGNiG over an upward adjustment of a gas contract price, a claim that the Polish state-owned gas monopoly has said it would fight in court.
“As business negotiations on the price revision in accordance with the above requests did not lead to agreements, we referred the dispute to arbitration in full compliance with the terms of the contract.” This is stated by Gazprom Export in a statement.
According to the Russian company, the requirement is aimed at revising the price terms of a 1996 contract with PGNiG retroactively. Gazprom Export noted that it had sent a request to PGNiG to revise the price of gas under the November 2017 contract, before making a new request three years later.
Pawel Majewski, PGNiG CEO, called on Gazprom’s demand to raise the contract price “unfounded” adds that his company is “prepared to prove this before the arbitral tribunal.”
The Polish company also stated that Gazprom is demanding an increase in the price of gas supplies under the Yamal contract, which is “unfair.” In October 2021, PGNiG applied for a reduction in gas prices under the contract entered into with Gazprom.
The dispute comes amid a broader battle between Russia and the EU, with Brussels accusing Gazprom of withholding supplies and driving up natural gas prices. Russian authorities have repeatedly denied the allegations, saying they are unfounded.
Meanwhile, Moscow is awaiting approval from Germany and the EU for the Gazprom-led Nord Stream 2 gas pipeline to start gas exports. The much-discussed project is to double the capacity of the existing pipeline with 55 billion cubic meters of gas per year.
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Poland has been one of the loudest opponents of the pipeline, saying it would increase Moscow’s energy use towards the bloc.
Europe is currently struggling with a devastating energy crisis that has hit the region over the past many months, causing natural gas prices to rise almost fivefold.
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