Gazprom seeks to raise gas price for Poland

by   CIJ News iDesk V
2020-06-23   16:14

Gazprom is negotiating with Poland’s largest gas company PGNiG to retroactively raise the cost of gas supplied to the country since 2017. It gave no reason for the move, but it's fairly common for the company to change contract prices retroactively if spot prices have changed significantly or if there have been major developments in the market.

The two companies are in a dispute over pricing, which led to an international arbitration process that resulted in Gazprom being forced to pay state-run PGNiG around $1.5bn by July 1. If Gazprom Export reaches agreement with PGNiG to raise prices retroactively that could reduce the bill it owes the Poles. PGNiG wouldn't comment on whether it would accept a rise in prices, saying only that the Yamal contract allows for price renegotiation every three years. The Polish company also admitted that the arbitration court ruling does not prevent the companies from further renegotiating the contract’s prices.