Economic consequences of the suspension of gas supplies under the Yamal contract

31 May 2022 | Knowledge, News

Natural gas as a ‘transition fuel’ for Europe on its path towards a zero-carbon economy was supposed to help gradually reduce greenhouse gas emissions. However, this environmentally-sound objective now needs a second look, particularly when gas market developments may affect the viability of new gas-fired generation projects, and when permanent impediments to gas availability may even prevent their uninterrupted and efficient operation.

However, a switch from a largely “blue fuel”-based economy cannot be made overnight. In seeking new alternatives – in addition to obtaining the missing billions of cubic metres of gas from other sources – it will be necessary to steer new courses in order to ensure further energy security. While the adopted strategy to diversify gas sources partially allays fears of a gas shortage, it is now essential to ask the question: “what’s next?”. The experience of the recent developments may affect the structure of Poland’s energy mix, encouraging the production of energy which is less dependent on foreign resources, such as nuclear or renewable energy.

At the same time, the suspension of gas supplies to Poland raises numerous questions from a purely legal point of view. These are, first and foremost, the issues of the proper performance of gas supply contracts, and the corporate issues related to decision-making in the company that owns the Polish section of the Yamal-Europe transit gas pipeline.

While there is a real chance for maintaining relatively uninterrupted gas supplies, the likely price increases may change the preferences of legislators and investors as to the future directions for the development of the energy sector. The hopes so far pinned on gas may be shifted e.g. to a more intensive development of RES or hydrogen technologies. In particular, gas-fired generation projects planned to be implemented or already at an advanced stage of implementation in Poland are now being called into question. These are likely to be most affected by the newly emerging situation on the international gas market.

Source: “Under the Eyes of an Expert (Okiem Eksperta) series, published by “With energy about law” Association (Stowarzyszenie „Z energią o prawie”).

https://zeop.pl/wstrzymanie-dostaw-gazociagiem-jamalskim/

Do you have any questions? Contact the authors

Wojciech Wrochna LL.M.

Katarzyna Ziółkowska

Bartosz Brzyski

Latest Knowledge

Implementation of the Directives concerning contracts for the supply of digital content and contracts for the sale of goods

On 29 June 2022, the draft new legislation was submitted to the Sejm with a view to implement Directive 2019/770 on certain aspects concerning contracts for the supply of digital content and services, and Directive 2019/771 on certain aspects concerning contracts for the sale of goods. It is likely that the changes will enter into force nearly one year after the deadlines set in the Directives, since the new legislation should have been implemented into the Polish legal regime by 1 July 2021 and should have applied from 1 January 2022.

Brexit | The current impact of the UK’s exit from the EU

Only a few years ago, Europe faced a major upheaval to the international economy with Brexit, i.e. the exit of the United Kingdom from the European Union. This event, like the war in Ukraine or the COVID-19 pandemic, has had significant consequences for the global economy, affecting the quality of our daily lives.

The European Union at war with disinformation

Functioning in an information society generates a number of challenges that both economic operators and private citizens must face. The foundation of a healthy system relies on the ability to sift true information from false, which today is becoming increasingly difficult in an increasingly complex and technological world.

Over EUR 600 billion today – and the value of war loss in Ukraine is rising

According to analysts and economic experts, Ukraine could eventually suffer losses of up to EUR 1.3 trillion in 2014-2026. Assuming a favourable scenario under which the Russian Federation would pay war reparations, it will still not have sufficient financial capacity to cover even a greater part of this amount. Therefore, the priority for Ukraine should be strategic economic cooperation with European Union Member States.

Polish Deal 3.0 – transfer pricing | Tax Focus

On 28 June 2022, a draft of further amendments to the Personal Income Tax Act and other acts – Polish Deal 3.0 – was published on the Government Legislation Centre website (draft No. UD404).

Polish Deal 3.0 | Tax Focus

On 28 June 2022, a draft of further amendments to the Personal Income Tax Act and other acts – Polish Deal 3.0 – was published via the Government Legislation Centre website (draft No. UD404).

Rebuilding Ukraine | What to do today and after the war is over

For a new Ukraine, the reconstruction of housing and infrastructure are believed to be the main areas of development. 33,700 sq.m. of residential property, 300 bridges and over 40 railway bridges are already lost or destroyed. 640 medical facilities and 40 institutions of secondary and higher education, 620 kindergartens are destroyed or under occupation.

Investments planned in Poland 2022-2023 | Roads & Motorways, Railways, Energy

Every year, the Polish state allocates nearly EUR 45 billion for purchases via public procurement. The coming years will be a time of revolutionary change in Poland in terms of the infrastructure and energy sectors, and so we expect the Polish public sector to maintain and even increase its spending levels in the near future.

Landscape resolutions – a relief for the landscape vs. property rights

Although the number of landscape resolutions nationwide remains small, an increasing number of cities are deciding to draft and enact such resolutions. While, on the one hand, there is a vital need to regulate the advertising chaos in Poland, on the other hand, the interests of advertising-related service providers should not be neglected, thus, the requests of offices, hotels, shopping malls or arcades and other businesses should be taken into account while drafting new resolutions.

Contact us:

Wojciech Wrochna, LL.M.

Wojciech Wrochna, LL.M.

Partner, Head of Energy, Natural Resources & Chemicals

+48 734 189 743

w.wrochna@kochanski.pl