PGNiG said RosUkrEnergo wants to boost the price of gas delivered to the country from the start of next year, Bloomberg reported. The company has been negotiating with RosUkrEnergo since July for a new contract, as the old 16-month contract with the company expires at the end of this year. RosUkrEnergo currently provides about 20% of PGNiG's natural gas.
Our view: It was already expected that RosUkrEnergo will lift the price for PGNiG as it did for other importers in the past few months. According to PGNiG the company agreed with URE that a potential import price increase will be immediately pushed through the retail tariffs. Even so we can imagine that URE will consider the interest of consumers and try to force some losses on PGNiG. However, this risk is already priced in, we believe. Thus we do not expect the news to have any trading impact on the stock.