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Gazprom Export is seeking an arbitration against PGNiG over the contract price

Gazprom Export is seeking an arbitration against PGNiG over the contract price

Gazprom Export, a Russian company, said on Friday that it is seeking international arbitration against PGNiG for a contract price reduction, a demand the Polish state-owned gas company would contest.

The dispute is over a bigger conflict between Russia and the West, while Moscow awaits Germany and the European Union's approval for its Nord Stream 2 gas pipeline to begin gas exports.

Poland, which has taken steps to reduce its dependency on Russian gas supplies, has been one of the most vocal opponents of Nord Stream 2, which it says will increase Moscow's energy leverage against Europe.

Gazprom Export cited in a statement that it had filed a lawsuit seeking to retrovise the price terms of a 1996 contract with PGNiG.

Gazprom Export said it had sent a request to PGNiG to revise the price of gas under the contract beginning in November 2017, before making another request three years later.

"Although business negotiations on the price revision in line with above requests did not lead to agreements, we referred the dispute to the arbitration in full compliance with the contract terms," said Gazprom Export.

Pawel Majewski, the president of PGNiG's management board, said in a statement that Gazprom Export's desire to increase the contract price was "groundless."

"We are prepared to prove it before the arbitration tribunal," says the arbitrator.

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