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Viewing cable 06WARSAW2418, POLAND FINALIZES GAS DEALS WITH ROSUKRENERGO AND

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Reference ID Created Released Classification Origin
06WARSAW2418 2006-11-20 10:55 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Warsaw
VZCZCXRO3660
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHWR #2418 3241055
ZNR UUUUU ZZH
P 201055Z NOV 06
FM AMEMBASSY WARSAW
TO RUEHC/SECSTATE WASHDC PRIORITY 2463
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHKW/AMCONSUL KRAKOW PRIORITY 1405
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS WARSAW 002418 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR S/P, EUR/NCE, EUR/ERA, EB/ESC 
S/P FOR GMANUEL AND SHELLMAN 
EUR/NCE FOR DKOSTELANCIK AND BPUTNEY 
EUR/ERA FOR DLIPPEAT AND LCATIPON 
EB/ESC FOR RGARVERICK AND SLEWANDOWSKI 
COMMERCE FOR 4232/ITA/MAC/EUR/JBURGESS, JKIMBALL, MWILSON 
COMMERCE FOR SFRASER 
TREASURY FOR MGAERTNER 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ECON PO RS UR
SUBJECT: POLAND FINALIZES GAS DEALS WITH ROSUKRENERGO AND 
GAZPROM 
 
1.  (U)  Polish Oil and Gas Company PGNIG signed a contract 
with RosUkrEnergo for gas imports beginning January 1, 2007. 
The contract is for 2.5 BCM of gas per year for three years 
with the possibility of prolonging the deal for another two. 
The price is based on the price of oil derivative products on 
the global market.  Poland's current contract with 
RosUkrEnergo will expire December 31.  At current market 
prices, the contract is valued at 2 billion zloty ($673 
million). 
 
2.  (U)  At the same time, PGNiG signed an annex to its 1996 
Yamal gas contract with Gazprom.  Sources indicate that the 
revised annex will increase gas prices on average 10 percent. 
 Other contract conditions remain unchanged.  At current 
market prices, the contract is valued at 6.7 billion zloty 
($2.2 billion). 
 
3.  (SBU)  Comment:  PGNiG's conclusion of a three year 
contract with RosUkrEnergo and addendum with Gazprom is good 
news for the GOP and Polish consumers.  The contracts should 
ensure that gas will continue to flow on January 1 as the 
company's negotiations will not go down to the wire.  The 
contracts also give the GOP breathing space as it attempts to 
negotiate other deals that will improve Poland's long-term 
energy security. 
ASHE