Poland - Russia Gas Supply Agreement Reached
It appears that at long last, Russia and Poland have agreed to a new gas supply deal that meets with the approval of the European Union.
"The EU delegation participated in the talks and did not raise any objections to the governmental agreement," Joanna Strzelec-Lobodzinska, Poland's Deputy Economy Minister, told reporters in Moscow.
An agreement on increasing Russian gas delivery to Poland and its transit to Germany through the Yamal pipeline was negotiated last year but was not signed due to worries that it was incompatible with European Union laws.
Philip Lowe, the European Commission's director-general for energy, said the talks were "very constructive".
The deal covers 10 billion cubic metres of Russian gas a year for Poland until 2037, as well as gas flowing onwards to the rest of Europe through the pipeline.
Poland's current supply contract runs out on October 20th and Poland's gas monopoly PGNiG had warned that supply disruptions would occur.
PGNiG and Russian gas monopoly Gazprom will work on the details of the agreement. Gazprom's Deputy CEO Alexander Medvedev, saying the contract would be finalized within two weeks.
"What is left is to finalise corporate agreements regarding the functions of the operator of the Yamal-Europe project," Medvedev said.
Reports have said that Gazprom has been demanding the exclusive right to use the Yamal pipeline, which runs across Belarus to Poland — not through Ukraine, the main transit point for Russian gas to Europe.
The Polish part of the Yamal pipeline is owned and operated by Europol Gaz, which is owned by Gazprom and by PGNiG, with each holding a 48 percent stake. These two companies hold the remaining 4 percent in a joint venture, Gas Trading.
If Gazprom and PGNiG had their way, Europol Gaz would retain the ownership, commercial and operating rights of the Polish section of the Yamal pipeline, a move that would prevent any competition or openness.
The European Commission has said the deal must respect EU rules, which say that the pipeline must not be monopolised by PGNiG and Gazprom.