In a significant development, the Polish Court of Appeal has dismissed an appeal by the Office of Competition and Consumer Protection (UOKiK) against Gazprom (MCX:GAZP) and its European partners related to the construction of Nord Stream 2, as reported by Puls Biznesu today. This decision rescinds a previously imposed fine of $7.6 billion on Gazprom and five other European companies, including Engie, Uniper, Wintershall Dea, OMV, and Shell (LON:SHEL).
The penalty was initially levied in 2020 for Gazprom's infringement of competition laws when it formed a company to build and manage the Nord Stream 2 gas pipeline without UOKiK's pre-approval. The fine represented 10% of Gazprom's annual turnover and extended to its five EU partners.
However, the court of first instance upheld its decision in November 2022, leading to the overturning of fines and absolving Gazprom from paying billions associated with Nord Stream 2. This dismissal represents a significant victory for Gazprom and its partners.
The Nord Stream 2 pipeline, constructed by Gazprom and various European firms from 2011-2021, runs alongside Nord Stream 1 on the Baltic Sea floor, which was the primary route for Russian gas to the EU. A sabotage attack in September 2022 disrupted both pipelines, halting Russia's gas supplies to Germany via Nord Stream 1. Meanwhile, Nord Stream 2 remains non-operational due to licensing issues with Germany.
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