“Gazprom” promised Poland to return $1.5 billion overpayment for gas

The Russian monopolist “Gazprom” is obliged to return the Polish state gas company PGNiG $1.5 billion overpayment for gas.

PGNiG announced on 15 June that this item is contained in the Annex to the agreement on the supply of natural gas dated September 25, 1996, known as the Yamal contract. Annex to the contract was signed in June.

“By signing the application, we agreed that the amount of the overpayment, which is approximately $1.5 billion (about 6.2 billion zlotys), will be transferred to the account of the PGNiG until July 1, 2020,” – said the Chairman of the management Board of PGNiG Jerzy Kwiecinski.

In pol, the company said that in addition to the agreement approved a new formula for calculating the price at which the cost of gas will be calculated from November 2014. The new formula tied to prices of gas to markets in Western Europe, whereby PGNiG buys gas at a lower price, reminded the press service.

“The Annex sets out rules for application of formulae for the calculation of prices determined by the decision of the arbitration court in Stockholm, and the terms of the settlement of the financial consequences arising from the application of the new formula to the previously completed gas supplies”, – reported in PGNiG.

Kwiecinski stressed that the amount Poland overpaid for gas in November 2014 – February 2020 “shows how bad was the Yamal contract for PGNiG”.

At the end of March the Stockholm arbitration court ruled in favour of Poland in a five-year dispute with “Gazprom” about the price of gas. The court recognized the just demands PGNiG to change the price formula in the agreement signed with Russia in 1996 of the contract because it was non-marketed and overpriced, announced PGNiG. The new formula should be applied to gas deliveries as of 1 November 2014. PGNiG estimated compensation for the overpayment of $1.5 billion.

“Gazprom export” declared that it is studying the court’s decision. But on April 24 PGNiG announcedthat Russia does not fulfill it, since “Gazprom” has put her gas bill on the old terms.

27 April sDeputy energy Minister of Poland Janusz Kowalczyk said that the Polish government is considering the seizure of assets of “Gazprom”to force it to implement the decision of the Stockholm arbitration. “It would be nice” in the beginning to arrest the shares of Nord Stream AG and 2 Nord Stream AG, which engaged in the projects of gas pipelines “Northern stream” and “Nord stream – 2,” said Kowalczyk. This may delay the implementation of the project “Nord stream – 2,” he said.

After the application of Kowalczyk Gazprom agreed to revise the price of gas to PGNiG. The Russian monopoly has promised to correct the invoices for gas deliveries in March and April 2020, reported the Polish company.

Dispute PGNiG and Gazprom in the Stockholm arbitration began in 2016. The Yamal contract, signed in 1996, provides for the delivery to Poland from Russia of 10 billion m3 of gas per year. The agreement is valid until 2022. PGNiG said that they do not intend to renew the contract.