PGNiG: Supplement on the information on retroactive payment by Gazprom under Annex to Yamal Contract

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG” or the “Company”) – further to the Company’s Current Report No. 28/2020 of June 15th 2020 (“Report”) and pursuant to a recommendation by the Polish Financial Supervision Authority, hereby supplements information published in the above mentioned Report.
The Company in the Report concerning the conclusion of an annex (the “Annex”) with PAO Gazprom/OOO Gazprom Export (jointly – “Gazprom”) to the contract for sale of natural gas to the Republic of Poland between PGNiG and Gazprom dated September 25th 1996 (the “Yamal Contract”), whereby Gazprom was obliged to refund by July 1st 2020 to PGNiG sums overcharged for gas supplied in the period November 2014 – February 2020, pointed a net amount of mutual settlements between the parties of approximately USD 1.5bn.
Following the Polish Financial Supervision Authority’s recommendation the Company informs, that on July 1st 2020 the Company received from Gazprom a payment of approximately USD 1.6bn, with the parties having agreed under the Annex that the price difference for gas supplies in individual months between November 2014 and February 2020 would be settled based on credit notes for approximately USD 1.6bn (payable by Gazprom to PGNiG) and debit notes for approximately USD 90m (paid by PGNiG to Gazprom on July 2nd 2020). As a result the total net amount of overpayments refundable to the Company under the Annex was approximately USD 1.5bn.