Polish Gas Firm CEO Becomes Another Victim of Gazprom Memo Puzzle
The CEO of the Polish gas firm PGNiG was sacked by the Supervisory Board of the state controlled company.
Grazyna Piotrowska Oliwa survived at her position just nine days longer than Mikolaj Budzanowski, the Minister of Treasury, overseeing the gas company, who was sacked by the Prime Minister of Poland on 20 April.
Budzanowski was replaced by Wlodzimierz Karpinski and the PM Donald Tusk recommended that Mr. Karpinski should consider personnel changes at PGNiG. New minister soon announced an urgent audit of the PGNiG was needed.
VP of PGNiG Radoslaw Dudzinski also lost his post. Press reports pointed to Mr. Dudzinski as another person who was informed on EuRoPol - Gazprom talks but failed to effectively inform the treasury minister.
Loss of confidence
According to the statement of the Supervisory Board, the official reason for ousting of the CEO is “the loss of confidence, which prevents further cooperation”, but the whole chain of dismissals was preceded by the confusion over Memorandum of Understanding, signed in St Petersburg on April 4 by Gazprom and EuRoPol Gaz.
The memo concerns the feasibility study of a gas pipeline, that would pump Russian gas via Poland to Slovakia and Hungary, thus circumventing Ukraine, the country which is widely considered a natural ally of Poland.
EuRoPol Gaz owns the Polish section of Yamal-Europe, the main land gas pipeline transporting russian gas to Germany. Both Gazprom and PGNiG have over 48% share in the EuRoPol.
According to a special report, commissioned by the PM and released by the Interior Ministry, the Management Board of PGNiG were following negotiations between EuRoPol and Gazprom for weeks and were aware of an approximate date of signing.
At the same time, according to this report, there aren`t any documents or undisputed statements, proving that the Minister of Treasury, overseeing the PGNiG on behalf of the government, was informed on the incoming inking of the MoU in St Petersburg.
On April 4, then Treasury Minister Budzanowski and Donald Tusk claimed they were unaware of the agreement with Gazprom and stresssed that Poland was not interested in “political projects”.
However, the Interior Ministry report indicates that a director of the EuRoPol Gaz, before signing the MoU in Russia, met the deputy PM, Economy Minister and leader of a junior coalition party Janusz Piechocinski, who is now advising that the new pipeline offer should be reconsidered in six months, when a feasibility study would be ready.
On Leave
Grazyna Piotrowska Oliwa was not available for comments. According to some press reports, her leave to Mediterranean was made in consultation with the Board.
Mrs. Piotrowska Oliwa has been appointed as PGNiG head in early 2012. Under her command, PGNiG managed to negotiate a significant price reduction of Russian gas.
The departing CEO has repeatedly underlined her support for shale gas development. PGNiG was also to lead a partnership of Polish state-controlled mining companies and utilities in moving shale gas efforts. The alliance, promoted by the ex- “shale gas minister” Budzanowski, was to finance exploration and development activities.
Another unfinished work of Mrs. Piotrowska-Oliwa was preparing the company for more competitive market, as currently PGNiG enjoys nearly-monopoly position in Poland.
Unofficial information on the ousting had been circulating for hours before the PM Donald Tusk finally confirmed it at the press conference, which was organized to announce a dismissal of the Minister of Justice Jaroslaw Gowin, who was replaced by Marek Biernacki, former Interior Minister.