Stockholm Arbitration Court supports Poland’s demand for a reduction in gas prices from Gazprom

In the interim judgment on the claim of the Polish oil and gas company PGNiG, the Stockholm Arbitration Court ruled that it can demand that the Russian gas monopoly Gazprom reduce gas prices, as evidenced by the partial decision of the Court published by the press-service of the PGNiG.

The Polish company has the right to demand lower prices for Gazprom’s Russian gas within under the so-called Yamal contract, the long-term contract under which the Russian company supplies Poland with gas.

The Court accepted the arguments of the PGNiG and ruled that there are grounds that give rights to the PGNiG to demand the reduction of prices. For years, Gazprom has rejected the possibility of reducing prices, making the contract price significantly higher than European market value.

"The Court took into consideration the key arguments of the PGNiG indicating a need for the reduction of the contract price and dismissed Gazprom’s formal objections aimed at maintaining existing non-market price terms within the framework of the Yamal contract,” stated the Head of the PGNiG, Piotr Woźniak.

Woźniak noted that the company welcomes this court’s decision. "We expect that [the price] will be reduced to market level at a later stage of the proceedings.” The press-secretary Gazprom, Sergey Kupriyanov also commented on this decision. He said that the Russian company “will continue to defend their interests.”

According to the contract signed in 1996, Gazprom is obliged to supply 10 billion cubic meters of gas to Poland annually. The contract is valid until 2022. The Stockholm arbitration Court has been deliberating on the PGNiG’s lawsuit against Gazprom since 2016.

Poland has also filed a case against Gazprom and five more companies for financing Nord Stream-2.

  Russia, Poland, Gazprom, Russian gas, Nord Stream-2