Poland Terminates Russia Gas Deal

Poland announced on Monday it terminated delivery of Russian gas via the Yamal-Europe pipeline. Warsaw decided to end its contract with Gazprom after Russia cut off supplies in April in response to Poland’s refusal to pay gas shipments in roubles.

Warsaw’s decision will not affect gas deliveries from Germany to Poland via the pipeline, which is operated by a Polish company, Polish Climate Minister Moskwa said.

Poland had already decided that it would not renew the supply contract the had been due to expire at the end of 2022. Polish gas firm PGNiG had told Gazprom in 2019 that it would not extend the deal.

Moskwa further stated that Russia’s invasion of Ukraine showed the accuracy of Warsaw’s decision to become completely independent of Russian gas.

Putin ordered last March that gas payments from “unfriendly countries”, including the buyers in Europe, to be received in roubles although most contract are denominated in euros or dollars. Warsaw has refused to comply with Russia’s demand.

Moskwa said ending the deal was the normal thing to do after Russia breached the contract by halting supplies.

Poland has used the pipeline to receive gas from Germany by reversing the flows when gas has not flowed from Russia towards western Europe.

The Polish section of the Yamal pipeline that links Russia with western Europe is owned by a joint venture of Gazprom and PGNiG but it is operated by Poland’s state-owned gas transmission company Gaz-System.

Moskwa added that intergovernmental agreements with Russia that are not compatible with European law should no longer be in place. She said the Yamal pipeline is operational in line with the European law, which allows it to be used for reverse supplies of gas from Germany to Poland without interruption.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

China Owned Volvo to Build EV Factory in Slovakia

Chinese owned Volvo Car Group announced that it will invest €1.2 billion to build a new electric vehicle (EV) production facility in Slovakia as part of its expansion plans. 

Ontario Reveals Strategy to Develop Critical Minerals, EV Industry

Government of Ontario revealed its five year critical minerals strategy, with an investment of C$24 million over three years in its “Junior Exploration Program”. Half of the investment will be made in critical minerals funding stream, and C$5 million for critical minerals innovation fund. 

Chinese Stock Markets Trade High Despite Risks

Despite risks stemming from China has been increasing, the country’s stock market trading sees record levels. China’s Covid-zero policy is one such risk. The country has been hard on any outbreak of the virus, and one of the last places that still has movement restrictions. 

Stay informed

error: This content is protected !!