An international arbitration court ruled that Russia’s Gazprom has to pay Polish state-run gas firm PGNiG about $1.5 billion in a pricing dispute case.
“The Arbitral Tribunal has sided with PGNiG, thus confirming that the price of gas in the Yamal Contract failed to reflect the price level on the market and was overstated”, said Jerzy Kwiecinski, President of the Management Board of PGNiG, was quoted as saying in a statement by PGNIG.
“The Tribunal changed the calculation formula for the price of the Russian gas by tying it very closely to the price level on the European market, which for PGNiG means a huge improvement of the terms of our gas imports gas,” Kwiecinski added.
As of the court ruling, PGNiG said the price they will pay to Gazprom for natural gas “will be based on the new price calculation formula,” which is very closely and directly tied to the gas price level on the Western European market.
The arbitration court’s ruling would cover time between Nov. 1, 2014 when the price dispute between PGNiG and Gazprom first started, and Feb. 29, 2020.
By Sibel Morrow