Poland fines $ 100 million for companies building Nord Stream-2

The Polish Competition and Consumer Protection Service (UOKiK) has decided to fine Gazprom and five European companies cooperating with it, and has demanded that they terminate their partnership agreement. This was stated at a press conference today by the head of the service Tomasz Khrustni, quoted by TASS.

We have completed the process of building and financing the Nord Stream-2 gas pipeline, he said. The companies were fined a total of 385 million zlotys ( $ 100 million ), and Gazprom was fined 29 billion zlotys ( $ 7.6 billion ). Within 30 days of receiving the decision, the companies must terminate the construction contract, informed Khrustni. He explained that the companies could challenge the regulator's decision before the Court of Appeal in Warsaw.

The purpose of these companies was to finance and build the pipeline. They enforce it in violation of Polish antitrust law. This is an extremely sensitive blow for Polish consumers, said Khrushny, adding that this was done on purpose.

This is not a decision against any company, but against the violation of the law, which undermines the rules of competition and can lead to monopolization of the market, said the head of the service for protection of competition and consumers.

In response, Gazprom said it did not agree and would appeal. "The decision violates the principles of legality, proportionality and fair trial, and the unprecedented amount of the fine shows a desire to oppose by all means the implementation of the Nord Stream -2 project," the company stressed.

Gazprom intends to exercise its right to appeal the decision in court, as it has not violated Polish antitrust law. In case of appeal, the decision of the Polish regulator is not subject to execution until the entry into force of the respective court decisions, the holding specified.

Gazprom may retaliate against today's decision by the Polish regulator, Kremlin spokesman Dmitry Peskov told the media today. I have no doubt that everything that is possible and necessary from the point of view of the legal provision of retaliatory actions will be done by the company, Peskov stressed.

He noted that the issue of the fine should be referred to Gazprom. According to him, the information is new and should be analyzed from a legal point of view. Asked how these actions of the Polish authorities will affect the relations between the two countries, Peskov answered that they are not prosperous anyway and it is difficult to assume that something could affect them even more negatively.