Gazprom, PGNiG reach gas price agreement

Press Release
Thursday, November 8, 2012

In Warsaw, a working meeting was held between Deputy Chairman of Gazprom's Management Committee Alexander Medvedev and President of the Management Board of PGNiG SA Grażyna Piotrowska-Oliwa. The meeting resulted in an agreement to adjust prices in the natural gas supply contract to Poland.

Alexander Medvedev and Grażyna Piotrowska-Oliwa signed an Additional Agreement to the contract, stipulating the adjustment of prices of natural gas supplies via the Yamal-Europe pipeline. The agreed price takes into account the current market prices of gas and oil products. At the same time, the basic principles of gas trade are preserved, including the long-term contract, take-or-pay principle, and oil-pegged gas prices. The spot component, taking into consideration the state of play of the Polish market, will not be included in the contract directly.

The Agreement allows for the termination of the procedure at the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).

"We have found a mutually acceptable mechanism to adjust the Russian gas price, introducing certain changes to the contract in a flexible way, reflecting the Polish and European gas markets. The fact that we have reached an agreement is proof that reliable partners are always able to find a mutually beneficial solution, which maintains the balance of interests of both parties," Alexander Medvedev said.

"By signing this agreement, Gazprom and PGNiG have shown that through business-focused negotiations we can find a positive solution, beneficial for both sides. This is a crucial step in the process of restoring the competitiveness of PGNiG's long-term gas contracts," Grażyna Piotrowska-Oliwa noted.

Categories: Europe

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