Current Report No. 26/2022
2022.04.26 19:00
Warsaw, April 26th, 2022
The lack of consent for PGNiG to fulfil its payment obligations for the natural gas supplied by PAO Gazprom nad OOO Gazprom Export under Yamal Contract in accordance with Decree of the President of the Russian Federation
Current Report No. 26/2022
The management board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG” or the “Company”) reports that, on 12th April 2022, it decided to refuse consent for PGNiG to fulfil its payment obligations for the natural gas supplied by Gazprom under contract No. 2102-14/1\Z-1/25/96 for the sale of Russian gas to the Republic of Poland dated 25 September 1996 (the “Yamal Contract”) in accordance with Decree of the President of the Russian Federation No. 172 of 31 March 2022 “on the special procedure for the performance of obligations of foreign buyers with respect to Russian suppliers of natural gas” (the “Decree”). The above means that the Company rejected the option of making final payments in Russian roubles from PGNiG’s bank accounts which would be opened with AO Gazprombank, and will continue to settle PGNiG’s obligations under the Yamal Contract for gas supplied by Gaprom in accordance with the terms of such contract.
The Decree introduces a ban on gas supplies to foreign customers from countries “unfriendly to the Russian Federation” (including Poland) if the payments for the gas supplied to such countries as of 1 April 2022 are not executed in accordance with the terms of the Decree.
The management board of the Company underscores that at present,the Decree is not binding on PGNiG. Also, there is no contractual basis for the suspension of the supply of the gas deliveried under the Yamal Contract because PGNiG has no due and payable liabilities owed to Gazprom and timely satisfies all payment obligations owed to Gazprom, subject to the binding terms of the Yamal Contract.
The disclosure of the information concerning PGNiG’s Management Board’s decision on the lack of consent for PGNiG to fulfil its payment obligations for the natural gas supplied by PAO Gazprom nad OOO Gazprom Export under Yamal Contract in accordance with Decree of the President of the Russian Federation was delayed on April 12th 2022 until this day according to Article 17 paragraph 4 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.
