Poland fines Gazprom with 6.5 billion euros for construction of Nord Stream 2 / Article / LSM.lv

Poland fines Gazprom € 6.5 billion for construction of Nord Stream 2Uģis Lībietis00:00 / 03:03

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The Nord Stream 2 gas pipeline in the Baltic Sea, built by the Russian gas giant Gazprom, has met with strong condemnation from the Baltic States, the United States and Poland since the beginning of the project.

In 2016, the country’s competition council warned that if the pipeline were built, competition would suffer both in Poland and throughout the European Union. That is why the council did not give its blessing to the formed consortium of five Western European companies that would participate in the construction of the pipeline as a partner of Gazprom. The five companies are Engie, Uniper, Wintershall, OMV and Shell. Changes were made in response to these objections. The five Gazprom-owned companies, Nord Stream 2, have now lent € 950 million each, half of the pipeline’s construction.

In assessing this behavior, the Polish authorities have found that attempts have been made to find ways to circumvent the formal ban. That is why the Polish Competition and Consumer Protection Council has decided to impose a huge fine on the pipeline builders.

For example, Gazprom is required to pay a record amount of 6.5 billion euros or 29 billion zlotys.

The other five companies have a total fine of around € 52 million. The Office’s statement states that the pipeline builders have an obligation to suspend the pipeline financing agreements. Tomasz Hrostny, the head of the Competition Council, has expressed hope that the fine will force companies to rethink their actions:

“It all depends on these entrepreneurs. I very much hope that these companies – the largest corporations in Western Europe – have given serious thought to their actions. to Gazprom.

I would like to emphasize that this claim is not directed against any particular company. This is a claim against companies for illegal actions in deciding to violate antitrust laws. “

Gazprom announced immediately after the decision that the fine would be appealed because it is disproportionate. It is estimated that such an appeal process could take up to five years. Several legal experts have expressed doubts as to whether a single national supervisory authority has the power to impose a maximum fine of 10% of annual turnover, as this Polish decision has not been in line with the European Union.

Doubts are also expressed as to whether Poland would have a legal chance to recover this money from Gazprom in the event of a victory, but Poland itself has indicated that it has such instruments.

Polish Deputy Foreign Minister Pavel Jablonski has also announced that Poland will do its utmost to block the completion of the construction of Nord Stream 2, as it considers the project a political investment aimed at gaining Russian dominance.

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