PGNiG: Information on the submission by PAO Gazprom and OOO Gazprom Export of a notice of arbitration before the ad hoc Arbitral Tribunal in Stockholm

The management board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG” or the “Company”) reports that, on 14 January, 2022, PGNiG received via email from the counsel of PAO Gazprom and OOO Gazprom Export (hereinafter jointly referred to as “Gazprom”) a notice of arbitration before the ad hoc Arbitral Tribunal in Stockholm (“Gazprom’s Notice”). Gazprom’s Notice includes a request for the revision of the contract price for natural gas supplied by Gazprom based on the contract for the sale of natural gas to the Republic of Poland of 25 September 1996 (the “Yamal Contract”). Gazprom’s Notice includes a demand for the increase of the contract price under Gazprom’s request for the revision of the contract price of 8 December 2017 (“Gazprom’s 2017 Request”) and Gazprom’s request for the revision of the contract price of 9 November 2020 (“Gazprom’s 2020 Request”), which the Company reported in current reports No. 96/2017 and No. 58/2020.

Gazprom’s 2017 Request was submitted in response to PGNiG’s request of 1 November 2017 for a downward revision of the contract price (“PGNiG’s 2017 Request”) which the Company reported in current report No. 91/2017.
Moreover, Gazprom’s 2020 Request was submitted in response to PGNiG’s request of 1 November 2020 for a downward revision of the contract price which was subsequently amended by PGNiG on 28 October 2021 (“PGNiG’s 2020/2021 Request”), which the Company reported in current reports No. 57/2020 and No. 43/2021.

PGNiG is of the opinion that the demand for the increase of the contract price as per Gazprom’s 2017 Request and Gazprom’s 2020 Request included in Gazprom’s Notice is completely unfounded, as stated by PGNiG in PGNiG’s 2017 Request and PGNiG’s 2020/2021 Request, in which PGNiG requested a decrease of the contract price.
In accordance with the rules of arbitration applicable to the arbitral proceedings commenced in consequence of Gazprom’s Notice, the Company is required to take further steps regarding the case (including the submission of a response to Gazprom’s Notice) within 30 days of receipt of Gazprom’s Notice. PGNiG will take appropriate action within the relevant time.