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    Poland, Russia Appear Moving Towards EU Approved Deal

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Summary

The European Commission will study a Russian-Polish gas deal to make sure it complies with European Union legislation.European Commission President...

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Poland, Russia, Natural Gas & LNG News, News By Country

Poland, Russia Appear Moving Towards EU Approved Deal

The European Commission will study a Russian-Polish gas deal to make sure it complies with European Union legislation.

European Commission President Jose Manuel Barroso made the comment Wednesday following a meeting with Poland's President Bronislaw Komorowski.

The EU has concerns over EuRoPol Gaz,  the operator of the Yamal-Europe pipeline which, as its name implies, carries gas from Russia's Yamal peninsula to Europe.

The EU requires that the operator of the pipeline remains independent of those companies who use its infrastructure and also that it guarantees equal access to the gas.

We are examining the contract at the moment. We would like to see that it respects EU law," said European Commission spokesman Joseph Hennon. "We want to be certain this is not just a pipeline which is operated by one company or two companies."

EuRoPol, the current Polish-Russian operator of the Polish section of the pipeline, is co-owned 48 percent each by the respective Polish and Russian gas monopolies, PGNiG and Gazprom and as to 4 percent by Polish Gas-Trading.

It is thought that EuRoPol, will be replaced by an independent Polish Treasury-owned company, Gaz System.

Poland's Prime Minister Donald Tusk said on Tuesday that an agreement to supply gas via the Yamal-Europe pipeline would be signed in the next 10-12 days after consultations with the European Commission.

Poland and Russia struck an agreement this past January on volumes and rates for gas for Poland and transiting en route to Europe.

The agreement, covering 10 billion cubic metres of gas a year for Poland until 2037  was initially due to be signed earlier this year, but has been delayed as Poland awaits advice from Brussels, which has said that the arrangements are inconsistent with European Union rules.

“It seems that the issues concerning EU law are close to being clarified,” Mikołaj Budzanowski, deputy minister of the Treasury, told Dziennik Gazeta Prawna.

Indications are that a proposed gas deal will now run through until 2045.