PGNiG Takes Lawsuit Against Gazprom

Poland's PGNiG has released a statement confirming that it has initiated proceedings for a lawsuit against Russian

gas major OAO Gazprom and OOO Gazprom Export with the Arbitration Tribunal in Stockholm. 

The state-controlled company has filed the suit in a bid to force current supply prices down. Currently, Gazprom's gas prices are linked to oil prices, ensuring the price of its gas remains high despite greater supply in the market.

"The subject of the suit is an amendment of the price terms of the long-term gas supply contract of September 25th 1996 executed by PGNiG SA with Gazprom and Gazprom Export," the statement said.

The company declined to comment further on the nature or details of the suit, saying that, "Due to the nature of the arbitration proceedings, and in particular their confidentiality, PGNiG is not in a position to provide any further details regarding the suit."

The suit is an intensification of an existing dispute between the companies in relation to gas prices. Last November, PGNiG initiated an arbitration process with the court, after talks between both companies failed to bring a resolution.

Poland is heavily reliant on Gazprom for gas with about 90 per cent of its imported gas coming from Russia.