Gazprom takes Polish gas companies to court in Russia, likely over Yamal pipeline section

6 March 2024, 02:35 PM

Gazprom has filed a lawsuit with the Arbitration Court of St. Petersburg and Leningrad Oblast against Poland's Orlen and Europol Gaz, which owns the Polish section of the Yamal-Europe gas pipeline.

The lawsuit was filed on March 4, local business outlet Kommersant reports. The defendants, in addition to Orlen and Europol Gaz, are Ernst and Young Global Limited, a UK-registered consulting corporation, and Ernst and Young Sp. z oo Corporate Finance, a Polish company. The details of the lawsuit are not provided in the court materials.

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The Arbitration Court of St. Petersburg and Leningrad Oblast ruled In November 2023 to recover more than $1.5 billion from Europol Gaz if it violates the ban on continuing the proceedings in the Stockholm Arbitration against Gazprom Export.

Europol Gaz filed a lawsuit against Gazprom Export with the Arbitration Institute of the Stockholm Chamber of Commerce in May 2023. The claims concerned lost profits from the termination of gas transportation through the Yamal-Europe pipeline in the amount of PLN 5.357 billion ($1.2 billion), as well as debts for gas transportation in the amount of PLN 848 million (approximately $200 million).

Gazprom completely stopped deliveries through the pipeline in 2022 due to the Polish side's refusal to pay for gas in rubles.

The Polish section of the Yamal-Europe gas pipeline was transferred to Orlen in October 2023. The merger was authorized by the Polish Office of Competition and Consumer Protection after an antitrust review. Under the terms of the agreement, Orlen said, Europol Gaz, which controls the pipeline, will buy out 48% of the shares owned by Gazprom.

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