The supervisory board of EuRoPolGaz discussed yesterday the issue of rates for gas transport to Germany for 2007, Puls Biznesu reported. No decisions regarding the case have been made, however. According to a source close to the negotiations cited by Russia's Kommersant, Polish and Russian representatives in the company were unable to reach an agreement because Gazprom demands lowering of the rates, while PGNiG wants to leave them unchanged. Another meeting of the EuRoPolGaz supervisory board is planned for 21 December.
Our view: Lowering the rates would worsen EuRoPolGaz's financial condition, while the company has to repay loans taken out for the construction of the Yamal pipeline. Until the final decision is not made we regard the news as neutral.