Russia's Gazprom ready to cut natural gas price for Poland.

By bne IntelliNews June 21, 2012
Russia's OAO Gazprom will probably lower the price of natural gas it sells to Poland, according to the firm's vice president Alexander Medvedev, cited by daily Rzeczpospolita. He added that he is sure that Gazprom is coming close to end its negotiations (with its Polish peer PGNiG) with a view to price lowering. He also admitted that similar disputes with German firms E-ON and RWE are close to "outside of court" consensus. In November of 2011, PGNiG formally called on Russia's OAO Gazprom and OOO Gazprom Export to participate in arbitration proceedings before the Arbitration Tribunal in Stockholm and filed a suit to this tribunal in February. The subject of the suit is an amendment of the price terms of the long-term gas supply contract of September of 1996 executed by PGNiG with Gazprom and Gazprom Export. PGNiG commenced negotiations on gas price reduction and change in the price terms with Gazprom Export in early 2011. However, Gazprom has maintained that talks with PGNiG focus on general market issues rather than price changes. In 2011, Poland imported 9.3bn m3 of gas from Russia. According to analysts earlier cited by Rzeczpospolita, the price - officially never revealed - was above USD 500 per 1,000 m3, which is over 20% more than in spot transaction offered by Gazprom for Western Europe.

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