Polish Briefing 27 August, 2019 9:00 am   
Editorial staff

Polish Briefing: Kommersant admits – gas from Russia is actually expensive for Poland

What goes on in Poland on the 27th of August.

Kommersant admits: Gas from Russia is actually expensive for Poland

Gazprom declined to comment on the words of PGNiG Vice-President Maciej Woźniak, who said that the Russians offer “completely different prices” on the Western European market than in Poland. Kommersant admits that gas from Russia is expensive for Poland.

Russian gas for Poland really seems expensive in the current market conditions – confirms Kommersant, as on the TTF stock exchange, spot gas prices fell almost by half to $ 120 per 1000 cubic meters and the price in the Yamal contract PGNiG-Gazprom remains at a higher level due to the relatively high value of oil on which it depends. PGNiG and Gazprom have been in arbitration proceedings since 2015. The companies have announced that they are hoping for a resolution by the end of this year.

A source from Kommersant in Gazprom argues that Poles’ declaration of not willing to extend the Yamal contract is a game to improve their negotiating position before negotiations to extend the contract. It admits, however, that the current supply volume of 8-10,2 billion cubic meters per year in the current contract will be reduced.

PKO BP will gradually reduce funding for high-carbon projects

PKO BP, the largest bank controlled by the State Treasury in Poland, has adopted a policy of gradually reducing funding for the high-carbon sector, according to Rzeczpospolita.

The daily quotes the statement of the Vice President of PKO BP, who says that the bank cannot stand behind trends in the financial sector, whose share in the financing structure of the coal industry will change. – The banks’ participation will start to decline and PKO must apply a similar policy – he said.

As Rzeczpospolita points out, the statement of the vice president does not mean that PKO BP will completely abandon financing of coal energy, but it is to approach such type of projects selectively and restrictively, taking into account their impact on the environment.

At the same time, the daily notes that Alior Bank and Pekao have similar policies regarding the financing of coal-based projects, which individually approach such investments.