Poland’s Office for Competition and Consumer Protection (Urząd Ochrony Konkurencji i Konsumentów - UOKiK) on Wednesday said it had slapped Russian gas company Gazprom with more than 29 billion zlotys ($7.6 billion) fine for constructing the Nord Stream 2 gas pipeline project without Warsaw’s consent. The antimonopoly watchdog also said that it had fined a total 234 million zloty to some companies backing the $11 billion project.
The Nord Stream 2 project will double flows of Russian gas to Europe. It has stoked fear of Moscow’s growing dominance over the region’s energy market although Russian gas supplies are facing competition from supplies of Azeri gas and US LNG. Gazprom leads the projects, with European companies such as Uniper, BASF, Wintershall, Shell, OMV, and Engie providing half of the funding.
Austria’s OMV and France’s Engie face the largest fines at 88 million zlotys ($23.0 million) and 55.5 million zlotys ($14.5 million), respectively. UOKiK said that these companies are obliged to terminate the agreement to finance the project. Gazprom said it had not violated Poland’s regulations, adding that it will appeal against the fine. Germany’s Uniper also disagreed with the ruling and mulled an appeal.
Previously, UOKiK fined Gazprom 213 million zlotys ($55.8 million) in August and Engie €39 million ($45.8 million) in 2019 under the same investigation. Poland’s gas requirements were mostly supplied by Gazprom, but the country has been diversifying suppliers by importing LNG from the US and Qatar. Poland has also been vocal against the Nord Stream 2, especially after the alleged poisoning of a prominent Kremlin critic Alexei Navalny.
