Poland's PGNiG To Return $90Mln Received From Gazprom In Excess Of Overpayment Refund

Poland's PGNiG to Return $90Mln Received From Gazprom in Excess of Overpayment Refund

Russia's Gazprom Export has transferred excess funds to Poland's state energy company PGNiG as part of overpayment reimbursement pursuant to an arbitration tribunal ruling, PGNiG chief executive Jerzy Kwiecinski said on Wednesday, pledging to return some $90 million back

WARSAW (Pakistan Point News / Sputnik - 01st July, 2020) Russia's Gazprom Export has transferred excess funds to Poland's state energy company PGNiG as part of overpayment reimbursement pursuant to an arbitration tribunal ruling, PGNiG chief executive Jerzy Kwiecinski said on Wednesday, pledging to return some $90 million back.

In late March, PGNIG said that it had won the case against Gazprom in an international arbitration court in Sweden and is entitled to $1.5 billion because the court had changed the formula for gas price specified in a 1996 contract with the Russian energy giant. On Wednesday, PGNiG confirmed receiving the reimbursement as scheduled. Kwiecinski specified that PGNIG received over $1.6 billion from Gazprom, which is more than some $1.5 billion refund awarded to the Polish company.

The PGNiG chief explained that Poland underpaid for Russian gas in some months of 2014 and therefore "will make payments of about $90 million in favor of Gazprom" in the coming days.

"As a result, PGNiG will have, in fact, about $1.5 billion," Kwiecinski said.

In late May, Gazprom and Gazprom Export contested the Swedish arbitration tribunal's ruling. In mid-June, Gazprom Export, however, signed an addendum to the gas contract with Poland, which reflected the court verdict. The Russian company noted that this will not affect its position in court.