PGNiG succeeds in arbitration proceedings against Gazprom regarding the revision of the price for gas supplied under the Yamal Contract

Rymarz Zdort represented Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”) in arbitration proceedings against PAO Gazprom and OOO Gazprom Export (“Gazprom”) in which PGNiG sought the revision of the contract price for gas supplied by Gazprom under the agreement commonly known as the Yamal Contract.

Based on an award dated 30 March 2020, the ad hoc Arbitral Tribunal in Stockholm recognised PGNiG’s claims and reduced the contract price for the gas supplied by Gazprom, as well as revised the price formula in the Yamal Contract, inter alia, through its material and direct connection with the market price of natural gas on the European energy market.

The new price determined by the Tribunal applies from 1 November 2014, i.e., from the date on which PGNiG filed its price revision request. Following the retroactive application of the new contract price, Gazprom returned to PGNiG approximately USD 1.5 billion for the period from 1 November 2014 to 29 February 2020.

The Rymarz Zdort team representing PGNiG in the arbitration proceedings comprised: Pawel Rymarz (Partner), Krzysztof Sajchta (Partner) and Marek Durski (Partner).