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News // Russia

Poland approves deal with Russia on increased gas supplies

28 October 2010 , 15:53RIA Novosti1580

"The Cabinet has agreed to sign the document," the government said in a statement.

"The conclusion of the agreement results from the necessity of providing Poland with additional natural gas supplies and increasing the country's energy security," the government said.

Russia and Poland agreed the text of the document on October 17. Gas will be supplied until 2022 while transit will be maintained until 2019, as was in the previous contract.

The agreement also envisages a gradual increase in Russian gas supplies to Poland, from 9.7 bcm in 2010 to 11 bcm in 2012. EuRoPolGaz, a Russian-Polish joint venture operating the Polish stretch of the Yamal - Europe pipeline will set the transit tariff.

The row between Poland and Gazprom started in 2006, when Warsaw wanted to increase the transit tariff on its stretch of the Yamal-Europe pipeline to $2 from $1.94 per 1,000 cubic meters per 100 kilometers.

Gazprom insisted on a rate set by an intergovernmental agreement and filed a suit against Poland, which it won in 2008.

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